PARLIAMENTARY DEBATES - United Kingdom Parliament

1545 Flood Insurance
26 MARCH 2013
Flood Insurance
1546
Mr Smith: The Minister said earlier that he was
impatient to share information with the House. Can he
tell us what the Government’s sticking point—their
fundamental problem—is with the “Flood Re” proposal?
Richard Benyon: I will come on to that.
My hon. Friend the Member for Cardiff North (Jonathan
Evans) talked about flood insurance in the context of
terrorism, but those are entirely different types of insurance.
The pool model does work for some of them, but the
“Flood Re” model would not work in this case, because
it does not provide support for the cost of that cover.
He made the point that “Flood Re” is a not-for-profit
solution. Well, yes and no, in that the Government
would pay through a levy—so householders are paying
for it with an element of underwriting—but taking
away risk from the most at risk is an advantage to the
industry. So we must be very careful. The Minister’s job
is to look after the taxpayer and householder. Yes, we
need a solution, but not at any price. Whoever was
standing at the Dispatch Box, they would not want to
bring before the House a deal that was unworkable or
that would cause the wrong sort of increases for some
of the most at risk and hard up of our constituents. We
need to get this right.
My hon. Friend the Member for Portsmouth North
(Penny Mordaunt) made a point about farmland and
the wider risk. When farmland is flooded as part of a
formal flood alleviation scheme, the landowner is
compensated.
My hon. Friend the Member for Esher and Walton
introduced the debate with a powerful speech. He made
a point about the governance of any arrangements. He
was right to do so, and it is important that we take
forward his concerns and make those arrangements
clear in the announcement. I can assure him that the
Department for Communities and Local Government
and the Department for Environment, Food and Rural
Affairs are working closely.
I was concerned that the hon. Member for West
Lancashire (Rosie Cooper) talked about shambolic local
flood administration in her constituency. We have
implemented the Flood and Water Management Act
2010, which arose from Sir Michael Pitt’s recommendations
after 2007. I note that she said that that is not happening
in her constituency, and I am happy to take that up.
Many hon. Members made good points, which I
could probably summarise as, “We want a decision and
an announcement soon, because our constituents are
worried.” I can understand that. We are doing other
things to help those who might be struggling to find
affordable insurance. We have published a guide to
obtaining flood insurance in high flood risk areas in
collaboration with the National Flood Forum, Which?
and insurance industry representatives. The guide helps
people navigate through the insurance market and acts
as a signpost to actions that individuals can take to
reduce their flood risk.
Insurance can be found for reasonable prices if people
talk to their insurer about their specific circumstances.
The Environment Agency can provide supporting evidence
on the local flood risk, for free, which people can use in
discussions, and I want to hear from hon. Members if
that is not happening. Different companies take different
approaches to flood risk and it almost always pays to
shop around.
I recognise the great concern on both sides of the
House on this matter. I want to give hon. Members and
their constituents the assurance that they want, but I
will not do it at any price. Yes, it has taken longer than
any of us would have wished, but I hope that the deal
we bring to the House will be better than what we have
now, especially for those of our constituents who are on
low incomes.
4.43 pm
Mr Raab: I thank the Backbench Committee for this
debate, and I thank all hon. Members who have contributed
for their excellent speeches. Some of them talked about
the local dimension and some mentioned the national
implications of these issues. Given the lack of time, I
will not go into detail on all of the contributions, but
the hon. Member for West Lancashire (Rosie Cooper)
talked about the lack of a joined-up approach locally.
My hon. Friend the Member for Oxford West and
Abingdon (Nicola Blackwood) talked about the human
dimension to local flood damage and the importance of
planning in the mitigation of flood risk.
The hon. Member for Kingston upon Hull North
(Diana Johnson), my hon. Friend the Member for West
Aberdeenshire and Kincardine (Sir Robert Smith) and
the hon. Member for Wansbeck (Ian Lavery) talked
about the local aspects of flood insurance.
My hon. Friend the Member for York Outer (Julian
Sturdy) made an important point about what local
community initiatives can do to reduce flood risk, and
my hon. Friend the Member for South East Cornwall
(Sheryll Murray) highlighted the human toll across
Cornwall. I am sure the whole House joins her in
expressing our condolences to the bereaved family of
her constituent.
There were other powerful contributions. My hon.
Friend the Member for Cardiff North (Jonathan Evans)
made a powerful speech on his work with the all-party
group. My hon. Friend the Member for Portsmouth
North (Penny Mordaunt) talked about the problem of
planning approvals in the flood plain. Other hon. Members
were unable to attend the debate—for example, my hon.
Friend the Member for Brigg and Goole (Andrew Percy)—
but have expressed support for the motion, and I welcome
that.
The shadow Minister gave an important speech. He
tracked the recent negotiations with a fine-toothed comb,
if, at points, rather selectively. He had rather less to say
on the previous Government’s progress, but none the
less made some important points.
The Minister described the arduous and urgent
negotiations with the ABI and the importance of delivering
a legal, workable deal that delivers value for money. I
am sure the whole House joins him in wanting to
achieve that result. We do not expect him to negotiate in
public, but we do need urgently to deliver a new deal on
flood insurance. We need to strengthen flood defences,
address the planning failures of the past and ensure that
UK environmental policies place a greater emphasis on
resilience and adaptation in the future. I commend the
motion to the House.
Question put and agreed to.