§ Norman BakerTo ask the Chancellor of the Exchequer what steps he is taking to secure an extension to the agreement reached with the Association of British Insurers in respect of insurance cover available to properties subject to flooding. [8007]
§ Ruth KellyThe agreement among ABI members is that they will continue to provide flood cover, except in exceptional circumstances, for domestic properties and small businesses which they currently insure, during 2001 and 2002. My hon. Friend the Under-Secretary of State with responsibility for flood defence in the Department of Environment, Food and Rural Affairs and I met the Association of British Insurers on 5 September to discuss our mutual aim of ensuring that affordable flood insurance cover continues to be generally available after December 2002.
The Government are acting to reduce flood risk, through substantial increases in investment in flood and coastal defence (which now totals over £400 million a year). Flood defences are being repaired, renewed, maintained and improved. The flood warning scheme is being continually improved. The Government have issued strengthened guidance to local planning authorities on control of development in flood risk areas, and are reviewing the financial and institutional arrangements under which the flood defence service is delivered. These are the chief concerns raised by the ABI. The Government are continuing to work with the ABI on these issues.