§ Mr. Gwilym Robertsasked the Secretary of State for the Environment if he will set up a National Disaster Fund to provide financial help when major disasters arise or to assist individuals, local authorities, or organisations to meet heavy damages due to acts of God not 16W covered by normal insurance; and if he will make a statement.
§ Mr. CroslandNo. Local authorities are empowered, under Section 138 of the Local Government Act 1972, to incur whatever expenditure they consider necessary when a disaster involving destruction of, or damage to, life or property occurs. This includes the power to make grants or loans subject to conditions determined by the local authority. In any case where the effects of a disaster were clearly beyond the resources of the local authority, the Government could provide additional assistance, including finance, as outlined in the recent DOE circular to local authorities on natural disasters and in my statement of 7th January.
In appropriate cases a local authority may declare a housing action area under Part IV of the Housing Act 1974; this would enable repair grants of up to 75 per cent. of eligible expenses to be made, rising to 90 per cent. in cases of acute financial hardship. Houses damaged beyond repair or beyond the ability of the owner to pay may be acquired by the local authority and the owner assisted to find new accommodation.
Obviously many individuals have been affected by the recent storms—some tragically—and they have my deepest sympathy. There are others who have suffered in areas of severe damage to private property. But I am not persuaded that acentrally-administered fund would be an effective way of aiding disaster victims.