North Wales: Storm Damage Assistance (Hansard, 23 April 1990)

§ The Minister of State, Department of Trade and Industry (Lord Trefgarne)
My Lords, my right honourable friend the Secretary of State for Wales has already announced that the Bellwin scheme of special financial assistance will apply to all eligible expenditure incurred by local authorities in dealing with this emergency. Exceptionally, grant will be paid at a rate of 85 per cent.
Her Majesty's Government have also made a contribution of £150,000 to the disaster funds. This is the first time that such a contribution has been made to funds for disasters that did not involve loss of life. The European Community has donated the sum of £111,500.
In addition, special assistance is being given by my right honourable friend to farmers affected.

§ Lord Dean of Beswick
My Lords, I am grateful to the Minister for that reply and for the help that has already been given, which has been greatly appreciated. However, is the Minister not aware that, apart from the fact that there was no loss of life, this particular area of Wales was struck by a calamity of enormous dimensions? While the Minister has said that the Government have applied the Bellwin scheme does he accept that the Bellwin scheme, admirable though it is, is in no way sufficient to meet the needs of those affected by such an incident? Is he aware, for example, that before the local authority could benefit from the Bellwin scheme it had to raise £800,000 of its own money? Will the Minister ask the Secretary of State for Wales to try to pump money into the area in order to avoid the need for the local authority to find that £800,000? Will he ask his right honourable friend to make that money available immediately because the need is urgent and great?

§ Lord Trefgarne
My Lords, I am not sure whether the noble Lord fully appreciates the extent of the help that has been given. The grant of 85 per cent. of the emergency expenditure which will be provided under the Bellwin formula is more in percentage terms than is usually provided under that formula. It is likely to amount to between £4 million and £5 million, depending on precisely what the expenditure turns out to be. I do not believe that that is an inconsiderable contribution; nor is the contribution to the disaster funds to which I also referred.

§ Lord Cledwyn of Penrhos
My Lords, while I appreciate the assistance that has been given by the Government and other sources, does the noble Lord not agree that this was a major tragedy affecting several thousand people and more than 3,000 properties and that 5,000 people were evacuated from their homes and put into emergency centres? Would he agree with me that a very warm tribute is due to the local authorities, the police and voluntary organisations for the magnificent way in which they responded to what was a major crisis?
Secondly, can the Minister say how many people are still in emergency centres in the area? What is the final estimate of the cost of damage? Would he not agree that it is far in excess of any estimate under the Bellwin formula or any other assistance from the EC —namely, in the region of £8 million? Will he say what further assistance the Government will give to try to resolve that great problem?

§ Lord Trefgarne
My Lords, I certainly agree with the first part of the noble Lord's supplementary question. It was an appalling catastrophe for the area concerned and the emergency services responded splendidly. If I may say so, I think that the Government responded splendidly too.
The local authorities estimate their expenditure at something in the order of £5 million, although it is too early to produce a precise estimate because some of the work is not yet complete, as the noble Lord will be aware. The Government have undertaken, in accordance with the Bellwin formula, to provide no 314 less than 85 per cent. of that expenditure and, in addition, have made the other specific contributions to which I referred. I also referred earlier to the special help that we have provided to some farmers, particularly those whose land was affected by salt water. I understand that that land needs special treatment to bring it back into proper use.

§ Lord Cledwyn of Penrhos
My Lords, let me clarify the position for the sake of the people of the area. Am I right in understanding that, under the Bellwin formula, if the total estimated cost is in the region of £5 million, in effect 85 per cent. of that sum will be found to assist the area? Is that the position?

§ Lord Trefgarne
Yes, my Lords, in so far as the expenditure to which the noble Lord referred falls within the Bellwin definition.

§ Lord Tordoff
My Lords, will the noble Lord respond to the question of the noble Lord the Leader of the Opposition regarding the number of people who have been able to return to their homes? My understanding—perhaps the noble Lord will correct me if I am wrong—is that only 50 per cent. of people are as yet back in their homes. Is he further aware that difficulties are arising for those people who are only partly covered by insurance? Those who are not covered by insurance appear to be able to obtain money from the local authorities while those who are partly but not fully covered are unable to obtain anything. Will he comment on that point?

§ Lord Trefgarne
My Lords, I shall deal with all the points. I apologise for not answering the point raised by the noble Lord the Leader of the Opposition. I am advised that about 500 people are still in temporary accommodation following the events of February and that work clearly still needs to be done on the houses belonging to those people before they can return to them. As I think is well known, many of those living in that part of the country are elderly and retired people who, for obvious reasons, choose to live in bungalows. Bungalows are particularly subject to flooding when such events occur. The people concerned have therefore been very adversely affected. The noble Lord is quite right. There were rather more people than we should have wished who were not adequately covered by insurance, either with no insurance or inadequate insurance. The special disaster contributions to which I referred will be specifically aimed at helping those people.

§ Lord Dean of Beswick
My Lords, will the noble Lord clarify the point that I raised? I still do not understand his answer to the second part of my question. The county council officer who is dealing with the matter and to whom I spoke said that it was necessary for the council, through rates or a precept, to raise £800,000 before it qualifies for the Bellwin formula. Is that correct? If it is correct, will the noble Lord waive the requirement given the urgent situation in the area?

§ Lord Trefgarne
My Lords, that would mean raising the Bellwin percentage to 100 per cent. from 85 per cent. As I understand it, under the Bellwin 315 formula, local authorities must provide the product of a penny rate from their own resources before they qualify for Bellwin payments, as the noble Lord rightly said. I believe that that is a right and proper arrangement. All prudent local authorities should make some provision for disasters of that kind, although it is recognised that they cannot be expected to make 100 per cent. provision. That is why the Bellwin formula exists.