Dáil Éireann Debate, Tuesday - 17 February 2004
100 Mr. Gregory asked the Minister for Finance if he will intervene with insurance companies to ensure that flood cover is provided to householders in areas where remedial measures have been taken to prevent renewed flooding; and if he will make a statement on the matter. [4978/04]
Amharc ar fhreagraI am not in a position to intervene with insurance companies about the level of premiums or any risks it is willing or unwilling to underwrite. The appropriate regulatory body for the industry is the Irish Financial Services Regulatory Authority. In November 2002 I initiated a major review of the State's approach to flooding with the primary objective of developing a cohesive national flooding policy. I met with the Irish Insurance Federation, IIF, on 6 December 2002. The IIF welcomed my decision to initiate the review of policy and outlined its views and concerns about the increasing risks from flooding. I indicated that the State would play its part in risk reduction and that the insurance industry would in turn be expected to act in a responsible manner.
I invited the IIF to make a submission to the review group which I established to carry out the policy review. A submission was received and OPW officials subsequently met with the IIF to clarify certain aspects of that submission. These discussions, along with all others involved in the consultation process carried out as part of the policy review, have contributed to the work of the review group. Its report is currently being considered by Departments before being submitted to Government in the near future. I am confident that the recommendations of the report can lead to a much improved flood management regime in Ireland and will in the long term substantially mitigate the impact of flooding on our society.
One of the key components of future flood management strategy is the development of flood maps. These provide valuable information to assist in numerous decision-making processes such as planning and development, flood works prioritisation and assessment of risk. The OPW has commenced work on a flood mapping programme, the first phase of which will be completed in 2005. I remain confident that the increased availability of flood information arising from the production of flood hazard maps and implementation of the other recommendations contained within the report of the policy review group, will reduce exposure to risk from flooding.
As the Minister of State, Deputy Parlon, met with the Irish Insurance Federation and indicated that the industry would be expected to act in a responsible manner, does he believe it has so responded? Is he aware that in areas where the State on behalf of taxpayers has spent large amounts of money on well thought-out and planned anti-flooding measures — I do not wish to add to the stigma or problems of residents by naming the areas — insurance companies continue to double premia, to place a loading in excess of €5,000 for flood cover and to refuse cover to those who move into the area, in effect, preventing residents selling houses as without insurance cover, one cannot get a mortgage? Is the Irish Insurance Federation behaving in a responsible manner when it effectively, making no secret of it, blacklists specific areas? Representatives of residents' associations in these areas meeting with individual insurance companies seem to have more success than the Minister of State and the Department in getting the insurance companies to respond responsibly.
Does the Minister of State believe the insurance industry in behaving as I have outlined is acting responsibly? If not, in areas where the State has worked effectively to prevent future flooding, will the Minister of State ensure the insurance companies behave responsibly and provide insurance at a reasonable price?
My remit extends to the OPW and as the Deputy rightly stated, the OPW has completed a programme of substantial works in that area, mitigating the flood risk substantially. Under the new plan, Dublin City Council has applied to the OPW for further funds to carry out additional work which will mitigate the flood risk. It is not within my remit to intervene with insurance companies as to how the insurance premia are set. That is for the Irish Financial Services Regulatory Authority but I assume, as I stated in my reply, it would be expected to act in a responsible manner. The IIF was invited to make a submission to the flood review group which it did. In its final report that will go to Government shortly, the flood review group has taken on board many of the IIF suggestions and recommendations. In the light of that and further works, I can see no reason that it should not respond in a favourable manner, but it is outside my remit to force it to do so.
The Minister of State has met with the Irish Insurance Federation in advance of the works being carried out. Will he meet it again to discuss the IIF's response to the works, to ensure that it responds positively, having reflected on the points raised by the Minister of State at the previous meeting, by providing insurance cover to residents?
Certainly, if that were to help the situation. The flood review group report is to be submitted to Government and I hope it will be adopted by Government shortly. Following that, I have no difficulty outlining to the IIF and making a case for the measures to be put in place. My officials and I met with the IIF, one of the approximately 100 interested parties that made recommendations across all Departments.
