§ Mr. Bill WalkerTo ask the Secretary of State for Scotland whether special Government assistance to local authorities will be made available in the light of the floods and storms of February; and if he will make a statement.
§ Mr. RifkindI indicated to the House on 14 February that I had invited local authorities and others to provide details of the damage which had occurred and of the remedial costs. I made it clear that in considering whether special Government help was needed, particularly to local authorities, the same principles would be applied as in the past. Highland regional council, the worst affected, Inverness district council and 43 housing authorities have responded. I have also received a number of representations from hon. Members, the National Farmers Union of Scotland, Scottish Landowners Federation and from individuals.
Having reviewed the information now available to me, I am pleased to announce that the financial scheme to
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§ Mr. Michael ForsythThe information requested is as follows:
assist local authorities in emergencies—the Bellwin scheme—will be made available on this occasion on the same basis as it operated in England and Wales in 1987. This will ensure that special financial assistance goes to those local authorities which, as a consequence of the emergency, would otherwise incur an undue financial burden in providing relief and carrying out immediate works to safeguard life or property. Prudent authorities have long provided in their budgets for contingencies and emergencies and the scheme therefore requires authorities to meet the first tranche of expenditure on emergency work up to a threshold. I am setting the threshold at a level equivalent to that used in 1987 which is 0.32 or a penny rate product. Eligible expenditure above that will attract 75 per cent. Government grant. My Department is writing today to all Scottish local authorities explaining how the scheme operates and it will be up to any authority that considers itself eligible to apply to the Department. The scheme does not cover losses that are insurable.
609WOn housing, 33 out of the 43 authorities which replied have estimated some additional housing revenue expenditure but only in one case (Lochaber) above the Bellwin threshold. Local authority capital expenditure is not covered by the Bellwin scheme. However, five authorities also reported a compelling need for increased housing capital expenditure and in the final housing capital allocations for 1989–90 I announced on 29 March I included extra capital allocations totalling £1.7 million for these authorities. Concerning other capital expenditure it would appear that authorities can manage within the capital allocations for 1989–90 which I increased by 16 per cent. over the previous year, but any unmanageable items can, if necessary, be included in their financial plans they will be submitting later this year and which will be carefully considered.
On the flooding of land and agricultural damage, grant-aid is available under the farm and conservation grant scheme. for those farmers who already have plans under the agriculture improvement scheme (EC) or agriculture and horticulture development scheme my officials will consider as sympathetically as possible any applications to vary the plans in order to remedy damage caused by the floods. It is clear that the main problem caused by the flooding and high winds has been the breaching of agricultural floodbanks. Grant for these works is already available at 50 per cent. in the less favoured areas and 40 per cent. elsewhere. Given the seriousness of the problems caused I am satisfied that additional aid is justified and am therefore proposing to increase these grants by 50 per cent., i.e. to 75 per cent. and 60 per cent., for a six months period from today in order to encourage riparian owners and fish farmers to carry out the necessary work. In making available this enhanced assistance, I am particularly conscious of the problems of those in the Conon area. I have consequently called for a more detailed report covering not only the agricultural interest of the area but the public safety aspects associated with the A832 and Conon village. In the light of that report I will review whether any government assistance is necessary.
On forestry, I have received advice from the Forestry Commission from which I have concluded that while a number of individual estates have suffered significant wind blow the scale of damage is not beyond existing harvesting resources and that there is likely to be little overall effect on the timber market. Almost 4 million cu m of timber were lost in the south in 1987 and timber prices were badly affected. The February storms damaged 0.3 million cu m and there has not been the same effect on timber prices. Planting grants are already available. There does not seem, therefore, to be a need for any special measures in this sector.
On private property the same principles that have applied in the past will apply on this occasion, namely that the Government cannot meet damage to private property which is normally insurable, otherwise few would take out insurance.
I have also considered assessments of damage and cost from other public services and utilities for which I am responsible. The physical damage and other repair costs will be found from within my resources.
The measures that I have announced will, I hope, be welcomed as providing both short-term assistance to those local authorities who undertook emergency work as well as assistance with repair in the longer term.