Flood Losses (Hansard, 28 November 2000)

§ The Minister of State, Ministry of Agriculture, Fisheries and Food (Baroness Hayman)
My Lords, under current guidance local planning authorities are advised to consult the Environment Agency on any proposed development in the flood plain. LPAs need to consider the agency's advice alongside other material considerations in deciding whether planning consent should be given. The LPAs' decisions will in most cases turn on the agency's advice. They may, for example, refuse permission, or allow it to go ahead provided that the developer undertakes measures to mitigate flood risk as advised by the agency. However, current case law indicates that neither the agency nor the local planning authority is liable for individual losses suffered as a result of such a decision to grant planning consent.

§ Lord Renton of Mount Harry
My Lords, first, perhaps I may congratulate the noble Baroness, following yesterday's announcement that she has become a Privy Counsellor.
I declare an interest in this Question as a resident in the new Sussex archipelago! Is the Minister aware that, three weeks ago, the Prime Minister visited the capital city of West Sussex, Chichester, and warned its residents that, thanks to climate change, they could 1247 expect storms more frequently in the future? What is the Minister persuading the Government to do in order to ensure that the Environment Agency has the resources to deal with this huge challenge? Does it have the money and the staff? What can be done to ensure that bureaucratic delays are broken? At present, a flood protection scheme that has been designed and improved is often delayed for years before being implemented.

§ Baroness Hayman
My Lords, I thank the noble Lord for his congratulations.
I recognise the deep distress that has been caused to a large number of people by the recent flooding and their concern for the future. We obviously need a coordinated response. We have already announced more immediate help for local authorities dealing with the aftermath of flooding and more resources to ensure that flood defences are strengthened where appropriate. We shall also have to examine the effects of recent flooding on existing local defences to see whether any work needs to be undertaken. Equally, looking ahead and recognising the possibility of climate change creating more of these situations, we need to strengthen guidance to local planning authorities on developments in the flood plain and make sure that improved information about flood risk is available. We are taking action on all those fronts.

§ Lord Campbell of Alloway
My Lords, I support my noble friend in his concern. I declare an interest as I live in the flood plain. Is the Minister aware that everyone living in and around Lewes knew perfectly well that there could be flooding and were waiting for it to happen? I live between the Ouse and the Winterbourne, both of which flood regularly. Is the Minister further aware that planning permission was given to build 20 houses on the flood plain in what was the old cattle market? Is the Minister further aware that the lock gates on the Ouse were opened to save Uckfield with the result that Lewes was absolutely inundated? Does the Minister agree that there must be some form of government control?

§ Baroness Hayman
My Lords, I am aware of a great deal of what the noble Lord suggests. I understand that most of the development in Lewes that was flooded pre-dates the existing planning system, although two recent developments were involved. In both cases they were brownfield sites developed in accordance with current planning guidance. The Environment Agency's agreement to the development was subject to strict conditions being imposed, including the raising of floor levels. The Environment Agency believes that, even though there has been experience of serious flooding, where the agency's advice was taken flood damage was greatly reduced.
The town of Lewes has not expanded outwards for 20 to 30 years because of the constraints imposed by the flood plain along the River Ouse and the South Downs area of outstanding national beauty—now a prospective national park. That presents real 1248 difficulties. I agree that it is important that we take into account the best possible advice on the risk of flooding and that we ensure that prospective buyers, for example, receive that advice. There are ways of achieving that.

§ Lord Skelmersdale
My Lords, the Minister mentioned extra money for local authorities to help with the clearing up operations around the country. She will no doubt be aware that her noble friend Lord Whitty told the House some three or four weeks ago that the Bellwin formula will operate in such a situation. Has any of that money been applied for by local authorities; and what is the contingency for money that may need to spent?

§ Baroness Hayman
My Lords, we said that assistance under the Bellwin rules will now be automatic for authorities dealing with the current flooding; that the rate of government support will increase from 85 per cent to 100 per cent; that valid claims will be settled within 15 working days; and that claims for advance payment can be made. From that, I deduce that if claims were made more than 15 days ago they will have been settled. If I am incorrect, I shall write to the noble Lord.

§ Baroness Byford
My Lords, returning to the Question posed by my noble friend, have the Government considered ways in which they will help compensate those who have lost their homes and businesses? Are they thinking of, for example, X amount of money for a house, Y amount of money for a business or a percentage of any successful insurance claim? What is the position? Secondly, in referring to the Bellwin agreement the Minister said that valid claims would be settled within 15 days. How quickly shall we know what is happening on the insurance side and what progress has been made some 22 days on from the consultation that the Government were to have with insurance companies?

§ Baroness Hayman
My Lords, perhaps I can guarantee to answer that question within 15 days! As regards insurability, Treasury Ministers and the Parliamentary Secretary at MAFF, my honourable friend Elliot Morley, have met insurance industry representatives. They received reassurance that the industry will deal with claims as quickly as possible; that it intends to continue providing flood insurance—which is extremely important; and that recent flooding should have little or no impact on premiums. It is also taking action in particular areas—for example, I believe, by pro-actively contacting potential claimants.
As far as concerns the original Question, I believe that I have made clear in my responses that flooding has always been seen as an insurable risk; indeed, that has been the view of successive governments. Although the Government have put more money into both the compensation available to local authorities for the work that they have undertaken and into more 1249 flood defence work, we have not said that we shall compensate individuals for the damage they have suffered.