§ 9. Gareth Thomas (Clwyd, West)If she will make a statement on steps taken to co-ordinate flood prevention. [13072]
§ The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mr. Elliot Morley)The Environment Agency has a general supervisory responsibility for all matters relating to flood defence in England and Wales. The agency has been working with the other operating authorities in developing arrangements for inspecting defences and watercourses, receiving reports and assessing flood risk. We have been reviewing the present arrangements for funding flood and coastal defence as part of that, and we will consider whether the institutional arrangements are fit for the purpose.
§ Gareth ThomasI am grateful for that response. On the subject of insurance against flooding, I am sure that the Minister will be aware that many householders are now finding it difficult to obtain insurance cover. Does he think that the Government have a role—and if so, what role—in ensuring that the insurance industry, which is so keen to collect premiums from people in good times, provides affordable cover, save in exceptional circumstances?
§ Mr. MorleyI agree with my hon. Friend. The Government are regularly in touch with the Association of British Insurers, and we have held several meetings recently to discuss those points. Insurance companies are of course in the business of managing risk, while the Government are in the business of reducing risk for people in relation to the threat from floods. The substantial sums that we are putting in and the substantial programmes that we have in place are reducing those risks, and we expect the insurance companies to respond accordingly.
§ Mr. Elfyn Llwyd (Meirionnydd Nant Conwy)The flood problems in Wales are far more than a bijou 976 problemette; they are serious and subject to repetition. Has the hon. Gentleman held discussions with officials of the National Assembly for Wales? The Welsh Local Government Association has estimated that it will cost about £50 million of new money to set up a co-ordinated flood defence strategy in Wales. What input has the hon. Gentleman made in that matter?
§ Mr. MorleyWe meet regularly with our colleagues from the Welsh Assembly. Of course, their input in long-term strategy is most important and we take their views into consideration.
§ Mr. Michael Foster (Worcester)One of the barriers in setting up flood defence mechanisms seems to be the economic test to which they are subject. Will my hon. Friend impress on the Treasury the need to change the economic test so that, when it is used to assess value for money for flood defence schemes, it includes social costs, impact on health, and business and commercial losses?
§ Mr. MorleyWe are currently reviewing the way that we apply the points score on the very issues raised by my hon. Friend. Of course, issues such as the effect on health can be difficult to quantify, but we accept that that is a perfectly legitimate consideration to take into account, and we are examining how that could be done in the future review of assessments.