INSURANCE companies will be compelled to provide coverage to people in flood-stricken areas that have had protection schemes constructed under new legislation proposed by Michael McGrath TD.
Flooding along the quay and Grenville Place by the Mercy Hospital in 2009, where a section of the wall gave way following the heavy rainfall. Picture: Denis Minihane
On Tuesday, the Fianna Fáil spokesperson on finance fended off the government’s initial opposition to the bill to see it go forward to the committee stage where it will face the final stages of going into law.
Thanks to the lobbying of members of the Irish National Flood Forum, 91 TDs – a safe majority – were convinced to support the legislation, meaning that it couldn’t be blocked by the government as planned.
While the Office of Public Works has constructed flood defences in towns and cities across the country, insurance providers are still withholding coverage from homes and businesses. This has had the knock-on effect of restricting borrowing options for businesses, and for mortgages, meaning that anyone living in a flood-prone area can only sell their home to a cash buyer.
Ger Buckley, a Blackpool-based trader and PRO of the Irish National Flood Forum, was in the Dáil gallery for the debate last Tuesday and said that it was a landmark piece of legislation that would help businesses and homeowners all over the country.
“We will be the first country that will make it compulsory for insurance companies to provide coverage for areas that have flood defence installed. It ensures towns like Fermoy, Mallow, Kilkenny, and Clonmel have a secure economic future,” he said.
Having discussed the leglislation with representatives from the UK’s flood forum, Mr Buckley said that other countries could follow Ireland’s lead.
“This is something that Ireland could lead on. People laughed when people in Ireland introduced the smoking bad and took on the multinationals, but they did it. This is another first. People say that politics doesn’t work, but politics does work, and this is proof of it,” he said.
Pat O’Connell, the English Market fishmonger and President of the Cork Business Association (CBA) said that members of his organisation, who were also in the Dáil, were delighted that it was moving to the next phase.
“The CBA were thrilled and delighted that it will go the committee stage because they worked so hard on it,” he said.
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