Interim Report to Government. Interdepartmental Flood Policy Co-ordination Group. 8 November 2016.

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1 Interim Report to Government Interdepartmental Flood Policy Co-ordination Group 8 November 2016.

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3 Table of Contents INTRODUCTION... 3 ABBREVIATIONS... 5 EXECUTIVE SUMMARY GOVERNMENT S FLOOD RISK MANAGEMENT STRATEGY FLOOD RISK POLICY EU FLOODS DIRECTIVE BACKGROUND TO AND TERMS OF REFERENCE FOR INTERDEPARTMENTAL FLOOD POLICY CO-ORDINATION COMMITTEE REPORT TO GOVERNMENT JANUARY A PROGRAMME FOR A PARTNERSHIP GOVERNMENT INTERIM REPORT OF THE INTERDEPARTMENTAL FLOOD POLICY CO-ORDINATION GROUP FLOODING AND FLOOD RISK INTRODUCTION TYPES AND CAUSES OF FLOODING IMPACTS OF FLOODING PREVENTION FLOOD PREVENTION POLICIES AND MEASURES LAND USE MANAGEMENT CLIMATE CHANGE SUMMARY OF FLOOD PREVENTION POLICY MEASURES IN PLACE SUMMARY OF FLOOD PREVENTION POLICY MEASURES UNDER DEVELOPMENT AT THIS TIME PROTECTION ARTERIAL DRAINAGE CAPITAL FLOOD DEFENCE SCHEMES CATCHMENT FLOOD RISK MANAGEMENT AND ASSESSMENT (CFRAM) PROGRAMME PRIORITISING PROTECTION FOR AT RISK PROPERTIES NOT PART OF THE CFRAM PROGRAMME REDUCING THE TIMELINE FOR DELIVERY OF FLOOD RELIEF SCHEMES NON-STRUCTURAL MEASURES TO SUPPORT AT RISK PROPERTIES STAFFING RESOURCES WITHIN THE LOCAL AUTHORITIES AND THE OPW SUMMARY OF FLOOD PROTECTION POLICY MEASURES IN PLACE SUMMARY OF FLOOD PREVENTION POLICY MEASURES UNDER DEVELOPMENT AT THIS TIME RECOMMENDATIONS

4 5. PREPAREDNESS OVERVIEW FORECASTING AND WARNING NATIONAL RESILIENCE COMMUNITY RESILIENCE RESPONSE TO FLOODING EMERGENCIES SUMMARY OF FLOOD PREPAREDNESS POLICY MEASURES IN PLACE SUMMARY OF FLOOD PREPAREDNESS POLICY MEASURES UNDER DEVELOPMENT AT THIS TIME SUPPORTING COMMUNITIES DURING AND AFTER A FLOOD EVENT SUPPORT FOR HOUSEHOLDERS- DEPARTMENT OF SOCIAL PROTECTION S HUMANITARIAN ASSISTANCE SCHEME RESPONSE BY DEPARTMENT OF AGRICULTURE, FOOD AND THE MARINE TO FLOODING ONCE OFF EMERGENCY HUMANITARIAN ASSISTANCE SCHEME FOR SMALL BUSINESSES, COMMUNITY, VOLUNTARY AND SPORTING BODIES INSURANCE AND FLOODING SUMMARY OF SUPPORT AND ASSISTANCE POLICY MEASURES IN PLACE RECOMMENDATIONS CONCLUSION APPENDICES

5 Introduction Flooding has devastating impacts on communities and requires a cross-sectoral approach to effectively manage the risk. The effects of flooding are wide ranging, impacting on the economy, social wellbeing and the environment. For individuals and communities, the impact can be significant in terms of personal suffering and financial loss; and even where flooding has natural causes, it can have damaging effects on the environment. Essential services such as mains water, electricity and transport can be disrupted. Property and possessions can be damaged and most seriously, flooding can result in injury and death. The Office of Public Works (OPW) is co-ordinating Ireland s whole of Government approach to flood risk management across three strategic and policy areas that inform this report s structure: Prevention e.g. avoiding construction in flood-prone areas, Protection e.g. taking feasible measures, both structural and non-structural, to reduce the likelihood and impact of floods, and Preparedness e.g. informing the public about dealing with flood risk and a flood. The Group has also considered policy initiatives by Government to support households and businesses affected by flooding. The Government has introduced many flood risk management measures. The OPW s Catchment Flood Risk Assessment and Management (CFRAM) Programme, the principal vehicle for implementing the Government s 2004 national policy on flood risk management and the 2007 EU Floods Directive, is providing recommended feasible solutions of both a structural and non-structural nature, through 29 Flood Risk Management Plans (FRMPs), to proactively manage flood risk in those areas at significant risk from fluvial and coastal flooding. These Plans are to be finalised for submission to the Minister for Public Expenditure and Reform in Spring 2017 for approval. These Plans will be implemented over a ten-year period. 3

6 The Interdepartmental Flood Policy Co-ordination Group, established to support the OPW s CFRAM Programme, was reconvened in July The purpose of the Coordination Group is to have regard to the extent of non-structural solutions that will inform the ten-year implementation strategy of the FRMPs and to ensure that policies that can benefit communities and individuals directly - to be prepared for and respond to or live with flood risk - are carefully considered. This Group updated Government of progress in January. In doing so the Group updated the Government on the response to the flooding events in Winter 2015/2016. The Government at that time identified a number of additional policy areas that the Group should consider as part of its final report. The final report of the Group is being informed and being aligned with the final FRMPs. The purpose of this interim report is to set out progress on the work of the Group and make appropriate recommendations for consideration by Government at this time. 4

7 Abbreviations AFA Areas of Further Assessment CFRAM Catchment Flood Risk Assessment and Management Programme CWS Community Welfare Service DAFM Department of Agriculture, Food and the Marine DAHRRGA Department of Arts, Heritage, Regional, Rural & Gaeltacht Affairs DCCAE Department of Communications, Climate Action and Environment DHPCLG Department of Housing, Planning, Community & Local Government DOF Department of Finance DSP Department of Social Protection EFAS European Flood Awareness Service EIA Environmental Impact Assessment EIB European Investment Bank ENPs Exceptional Needs Payments FFS Flood Forecasting Service FRMPs Flood Risk Management Plans GAEC Good Agricultural and Environmental Condition GLAS Green Low-Carbon Agri-Environment Scheme GSI Geological Survey of Ireland GTF Government Task Force on Emergency Planning HRI Scheme Homeowners Renovation Incentive Scheme IFI Inland Fisheries Ireland 5

8 IPP Individual Property Protection IROPI Imperative reasons of overriding public interest LGMA Local Government Management Agency MCA Multi-Criteria Analysis MoU Memorandum of Understanding NDFA National Development Finance Agency NECG National Emergency Co-ordination Group NFFWS National Flood Forecasting and Warning Service NHA Natural Heritage Areas NPWS National Parks & Wildlife Service NTMA National Treasury Management Agency OEP Office of Emergency Planning OPW Office of Public Works PFRA Preliminary Flood Risk Assessment PRAs Principal Response Agencies SAC Special Areas of Conservation SMRs Statutory Management Requirements SPA Special Protection Areas UNP Urgent Needs Payments 6

9 Executive Summary Flooding has devastating impacts on communities and requires a cross-sectoral approach to effectively manage the risk. A table of Notable or Significant Past Floods in Ireland is provided at Appendix 1. The most significant types of flooding nationally in terms of both hazard and risk are fluvial (river) and coastal flooding. Groundwater flooding is a significant source of flood hazard in the west of the country, where prolonged flooding can occur from turloughs. Flooding has wide ranging impact including on individuals, communities, businesses, heritage and the environment. In line with government policy, the Office of Public Works (OPW) is in the process of completing the Catchment Flood Risk Assessment and Management (CFRAM) Programme to give a clear and comprehensive picture of flood risk in 300 areas including 90 coastal areas identified as being at potentially significant risk and impact from flooding and to set out how the risk can be prioritised and managed effectively and sustainably. The CFRAM Programme is being undertaken, in partnership with the OPW's consultants, Local Authorities and other stakeholders. This is a strategic approach that recognises the need, in line with international best practice, to move to a more sustainable, planned and risk-based approach to dealing with significant flooding risks. The Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of final Flood Risk Management Plans (FRMPs) that is scheduled for Spring 2017 to set out the preferred feasible measures, both structural and non-structural, that can manage the flood risk in each of the 300 areas. The CFRAM Programme is assessing the risk for the majority of those properties in communities at potentially significant risk from flooding. The implementation of flood risk policy must address solutions for both properties assessed through the CFRAM Programme and for other at risk properties. Each category will involve both structural and non-structural solutions. 7

10 It has also to be recognised that there will not be a feasible flood risk solution for all properties and a policy response for these properties has to form part of an integrated flood risk policy. The role of the Interdepartmental Flood Policy Co-ordination Group is to have regard to the extent of non-structural solutions that will inform the ten-year implementation strategy of the FRMPs and other policies and measures across the different sectors of Government that can benefit communities and individuals directly - to be prepared for and respond to or live with flood risk - are carefully considered. The experience and lessons from the recent floods is also informing the work of the Group, including the announcement by the Government on 5 th and 26 th January 2016 of the following decisions and initiatives designed to alleviate the difficulties of those subjected to flooding in their homes and businesses: establishment of a Shannon Flood Risk State Agency Co-ordination Working Group, the once off temporary scheme, in December 2015, administered by the Irish Red Cross for businesses which was extended to include community, voluntary and sporting organizations and remained open for people to apply for assistance until 21 February 2016, targeted support to farmers affected by the flooding, OPW overseeing two pilot individual home protection schemes, meeting between Taoiseach and relevant Ministers with Insurance Industry representatives on 12th January and establishment of a National Flood Forecasting and Warning Service. The OPW is co-ordinating Ireland s whole of Government approach to flood risk management across three strategic and policy areas that inform this report s structure: Prevention e.g. avoiding construction in flood-prone areas, Protection e.g. taking feasible measures, both structural and non-structural, to reduce the likelihood and impact of floods, and Preparedness e.g. informing the public about dealing with flood risk and a flood. 8

11 The Group has also considered policy initiatives by Government to support households and businesses affected by flooding. The Group has discussed how key policy needs are currently being addressed as part of the whole of Government approach to Flood Risk Management. The Group has identified specific actions that could benefit individuals and communities at risk of flooding. Many actions identified are now being implemented by the relevant Departments and Offices. The following summarises the policies in place and under development to address Ireland s flood risk management. Prevention Summary of Flood Prevention Policy Measures in Place The Department of Housing, Planning, Community & Local Government (DHPCLG) is satisfied with the compliance by Local Authorities with the statutory guidelines on The Planning System and Flood Risk Management and these guidelines are routinely reviewed. Natura 2000 sites are important, not only for their scientific significance, but for the natural ecosystem services they provide and the economic activities that they support. Implications of proposed works need to be properly assessed under the Habitats Directive to ensure they are less damaging or not damaging at all. This approach to flood mitigation works provides a reasonable balance to protect the interests of other property owners and communities downstream, as well as the wider environment. The Forest Service has published Forestry Standards Manual 2015, the Code of Best Practice Ireland and the Forest and Water Quality Guidelines that provides guidance on measures to be taken by those planting forests to manage flood risk. Coillte and other forestry companies adhere to these guidelines. 9

12 The Afforestation Scheme, Native Woodland Conservation Scheme and a new scheme, Woodland Improvement: - Environmental Enhancement each promote flood risk management through good forestry practice. The Green Low-Carbon Agri-Environment Scheme (GLAS) is focusing in particular on the preservation of various habitats and species, mitigating climate change and improving water quality. It contains a number of actions which will aid the protection of watercourses. Generally, Bord na Móna cutaway bogs that flood naturally will be permitted to flood unless there is a clear environmental and/or economic case to maintain pumped drainage. OPW flood defence schemes are designed to take account of climate change and to ensure they do not worsen a flood risk upstream or downstream of the protected area. Summary of Flood Prevention Policy Measures under Development at this Time The detailed Flood Risk maps completed through CFRAM will be incorporated into the Myplan.ie website. The feasibility of using cutaway peatlands for flood attenuation measures is being considered as part of the CFRAM Programme and the Shannon Flood Risk State Agency Co-ordination Working Group. Restoration plans are currently being developed for each of the 53 raised bog Special Areas of Conservation (SAC) sites as part of the overall strategy for the restoration of the raised bog SAC network. In many instances, bog restoration can return more natural hydrological conditions whereby flow is attenuated and reaches the surrounding watercourses more slowly than when drains were present. 10

13 Following approval of the Climate Change Adaptation Framework (before 10 December 2017) key sectors will be required to develop sectoral adaptation plans. This will require a revised sectoral plan to be prepared by the OPW, covering the flood risk sector. Other sectors identified in the Framework will also be required to take account of flood risk, amongst other risks identified, when preparing their own sectoral adaptation plans and, in particular, where this is identified by themselves as a significant risk to their sector. Protection Summary of Flood Protection Policy Measures in Place The OPW s annual arterial drainage maintenance works protects 650,000 acres of agricultural lands and Local Authorities maintain 4,600kms of river channel see Appendix 2. Since 1995 to the end of 2015, the OPW, in co-operation with the relevant Local Authorities, has constructed 37 major flood defence schemes throughout the country, protecting 7,000 properties at a cost of 280m see Appendix 3. As of October 2016, ten major capital flood defence schemes were under construction, two more were due to commence later this year and a further 23 schemes were at design development/ in the pipeline see Appendix 4. The OPW continues to work with Local Authorities to support local flood relief projects. Funding of almost 37m has been approved by the OPW to Local Authorities since 2009 under the Minor Flood Mitigation Works and Coastal Protection Scheme in respect of almost 600 local flood relief projects in every county protecting 5,000 properties to date. A 430 million, 6 year programme of capital investment on flood defence measures was announced as part of the Government s overall Capital Investment Plan During this time, the annual allocation for flood defence schemes will more than double to 100m. 11

14 A Guide to Works and Development Consents for Repairing Infrastructure Damaged in Storms or other Emergency Events was developed and published so that repair and restoration works, as well as new flood and coastal defences, are professionally designed and constructed and informed by ecological advice and assessments. On 8th November, the Planning and Development (Housing) and Residential Tenancies Bill 2016 was published which includes a provision to introduce new Environmental Impact Assessment (EIA) screening arrangements to streamline the process of determining planning consent for, and the subsequent undertaking of works, including emergency flood relief works to be carried out by the OPW. This legislation may help to reduce the timeline for delivery of some major flood defence schemes. The Shannon Flood Risk State Agency Co-ordination Working Group has met on five occasions during 2016, published and consulted on its 2016 Work Programme and is solutions focussed and is adding value to the Shannon CFRAM by ensuring the best possible level of co-ordination between all statutory bodies involved in flood risk management on the Shannon. The Homeowners Renovation Incentive (HRI) scheme extended in the Budget 2017 enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work that is carried out on their main home or rental property by taxcompliant contractors. Works include those that may be aimed at preventing the risk of flooding on the dwelling. Summary of Flood Prevention Policy Measures under Development at this Time While the Minor Works Scheme has been very successful to date, it has been decided to review its operation to see what changes may be appropriate to ensure that the scheme remains relevant to and can continue to support Local Authorities in their work to address smaller scale flooding problems in their areas. It is hoped to have completed the review by the end of

15 The OPW is chairing a cross Departmental Group to clarify the rights and responsibilities of riparian landowners in relation to the maintenance of water course on or near their lands in the context of managing the flood risk. All Flood Risk Management Plans (FRMPs) developed through the CFRAM Programme have been published since 15 th July 2016 for public consultation. The Plans identify the preferred feasible measures to address and mitigate the assessed flood risk in each of the 300 at risk areas. Over the coming months the OPW will finalise the FRMPs and prioritise the roll out of preferred works informed through a Multi Criteria Analysis giving equal weight to the economic, environmental, social and cultural issues to ensure the FRMPs are consistent with the objectives for sustainable development. OPW will shortly be publicly inviting tenders to initiate frameworks for consultants for the detailed design and environmental aspects of major flood relief schemes for inclusion on frameworks. This will enable the frameworks to be in place and available for use by contracting authorities both the OPW and Local Authorities when the FRMPs are approved by the Minister for Public Expenditure and Reform. These frameworks should allow speedier procurement and appointment of consultants which will allow some reduction in the lead-in time for projects. The work of the cross-government group of Ministers and officials is exploring ways to accelerate the timeline for delivery of flood-related works during the planning, procurement and construction stages. The Group is continuing to monitor progress and outcomes from the end 2016 on the two Individual Property Protection pilots announced by Government on 26 th January 2016 to inform any support by Government for at risk properties where protection through a flood defence scheme is not feasible. The OPW and Geological Survey of Ireland (GSI) have recently commenced a three-year project on groundwater flooding related to turloughs, to investigate the issue of flooding from turloughs, the areas potentially at risk and assess potential solutions. 13

16 Preparedness Summary of Flood Preparedness Policy Measures in Place Many preparedness measures are in place to manage and reduce flood risks when and where flood events may occur, including: real time data on water levels ( and historical flood data ( forecasting through Met Éireann, the OPW s Tide and Storm Surge Forecasting Service (provides Local Authorities with two to three days advance warning of impending coastal surge events) and OPW s national point of contact for accessing the European Flood Awareness Service (EFAS) that is a medium range operational forecasting system (typically from over 2 days to 10 days out) and is based on meteorological forecasts from a number of European centres, and public awareness through Plan, Prepare and Protect and and the Office of Emergency Planning (OEP) Be Winter Ready campaign that is focussing on flooding in Winter 2016/2017. The Department of Housing, Planning, Community and Local Government is designated as the Lead Government Department for, inter alia, co-ordinating the response to the Flooding and other Severe Weather Emergencies at national level. Summary of Flood Preparedness Policy Measures under Development at this Time The National Directorate for Fire and Emergency Management has reviewed the response to flooding events from 4 December 2015 to 13 January 2016 and prepared a report identifying learning points which can further improve and consolidate the response to flooding and other emergencies/crises. Implementation of the recommendations of this report will be undertaken by the relevant bodies and overseen by the Government Task Force on Emergency Planning. 14

17 The Government Decision of 5 th January 2016 agreed to the establishment of a National Flood Forecasting and Warning Service (NFFWS), and noted that the Flood Forecasting Service (FFS) would be a new operational unit within Met Éireann with guidance for standards and performance overseen by the OPW. Options are being examined for accelerated capacity development through collaboration with other national meteorological services. New arrangements have been put in place with the current flood forecasting process to include direct access to the EFAS web portal for Local Authorities. DHPCLG has researched how Community Resilience may be advanced within the overall field of emergency management and is further developing this aspect as part of the overall review of the Framework of Major Emergency Management. The Government Task Force on Emergency Planning is drafting a Strategic Emergency Management (SEM): National Structures and Framework document. This is to include a Chapter on Recovery to include, inter-alia, proposals for addressing how the recovery phase and the transition of response to recovery is managed and how funding for emergencies, particularly recovery costs, may be handled in the future. Supporting Communities Summary of Support and Assistance Policy Measures in Place The Department of Social Protection s (DSP) Humanitarian Assistance Scheme, which is means tested, is available to assist people whose homes are damaged by severe flooding and who are not in a position to meet costs for essential needs, household items and in some instances structural repair. The Department of Agriculture, Food and the Marine (DAFM), while not having a prearranged scheme does provide targeted response and support to flooding events to support those areas of agricultural production that are most affected from each event. 15

18 On a temporary and once off basis, the Government decided to allocate a fund of 5 million to be distributed as emergency assistance for small businesses, community, voluntary and sporting bodies which had suffered damage to their property due to the floods of last Winter. The Irish Red Cross Society agreed to administer the temporary scheme which was designed to provide emergency humanitarian support to small businesses, community, voluntary and sporting bodies that were unable to secure flood insurance and suffered flood damage to their premises. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. A Memorandum of Understanding between Insurance Ireland, the representative body for the insurance industry in Ireland, and the OPW ensures that appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. Insurance Ireland members have committed to take into account all information provided by OPW when assessing exposure to flood risk within these areas. The Department of Finance (DOF) has analysed a number of options including examination of practical examples in a number of jurisdictions, to inform Government s policy on flood insurance for the future. Its report and recommendations are set out in Appendix 5. Recommendations The Group would make the following recommendations to Government for its consideration at this time: Recommendation 1 The Group recommends the introduction of a targeted and prioritised once off Voluntary Homeowner Relocation Scheme for those primary residential homes that were again flooded during the flooding event in Winter 2015/2016, and while are habitable are unsustainable due to their flood risk. 16

19 Recommendation 2 The Group recommends that any targeted once-off Voluntary Farm Building Relocation Scheme must in the first instance involve an examination of those farm buildings that were worst affected by floods in Winter 2015/2016 and had flooded previously to identify on an individual basis the feasible alternative flood alleviation remedial works and measures and those that remain unsustainable due to their flood risk. Through the Group, the Department of Finance would make the following recommendations to Government for its consideration at this time: Recommendation 3 The Department of Finance recommends that the current Government strategy in place since 2010 should be continued, which involves working to improve the availability of flood insurance cover by: prioritising spending on flood relief measures by OPW and relevant Local Authorities, and improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in protected areas, complemented as necessary by targeted State emergency humanitarian assistance after flood events. Recommendation 4 The Department of Finance recommends that the arrangements for data sharing between Insurance Ireland and OPW be strengthened as well as obtaining additional levels of data on the availability of flood insurance through detailed surveys. 17

20 1. Government s Flood Risk Management Strategy Flood Risk Policy Historically, flood risk management focused on land drainage for the benefit of agricultural improvement. With increasing urbanisation, the Arterial Drainage Act, 1945, was amended in 1995 to permit the Office of Public Works (OPW) to implement localised flood relief schemes to provide flood protection for cities, towns and villages. In line with changing national and international paradigms on how to manage flood risk most effectively and efficiently, a review of national flood policy was undertaken in The review was undertaken by an Inter-Departmental Review Group, led by the Minister of State at the Department of Finance with special responsibility for the Office of Public Works. The Review Group prepared a report that was put to Government, and subsequently approved and published in September The scope of the review included a review of the roles and responsibilities of the different bodies with responsibilities for managing flood risk, and to set a new policy for flood risk management in Ireland into the future. The adopted policy was accompanied by many specific recommendations approved by Government on 21 September 2004, including: the OPW is responsible for leading and co-ordinating the implementation of national flood risk management policy, structural (i.e. engineered) flood relief measures continue to play an important role in flood management but with increased emphasis to be placed on nonstructural measures (e.g. flood forecasting, planning guidelines etc.), and the OPW with input from other relevant State bodies, where necessary, to develop a programme to implement the detailed recommendations of the report. 18

21 Three specific recommendations of the report, led to the development and implementation of the Catchment Flood Risk Assessment and Management (CFRAM) Programme. These are: focus on managing flood risk, rather than relying only on flood protection measures aimed at reducing flooding, taking a catchment-based approach to assessing and managing risks within the whole-catchment context, and being proactive in assessing and managing flood risks, including the preparation of flood maps and Flood Risk Management Plans (FRMPs). The main finding of the 2015/2016 Dutch Risk Reduction Team Peer Review of Ireland's flood risk management approach and strategy is that Irish Flood Risk Management complies with international best practice and is well on track. The Dutch team benchmarked Ireland s policy against international best practice and reported the critical achievements to date including: that we have profiled the main flood risk areas, through the CFRAM programme, significant Government investment to reduce flood damage, introduction in 2009 of planning guidelines, and our progress in responding to flooding events. 1.2 EU Floods Directive 2007 The adoption of the national flood risk policy direction corresponded with the subsequent requirements, in 2007, of the EU Floods Directive. Protecting the community from the risk and impact of flooding is at the heart of the EU Floods Directive (2007/60/EC). This Directive requires Member States to assess if all watercourses and coast lines are at risk from flooding, to map the flood extent and assets at risk in these areas and to take adequate and co-ordinated measures to reduce this flood risk. 19

22 It is a framework directive that requires Member States to follow a certain process, namely: undertake a Preliminary Flood Risk Assessment (PFRA), to identify areas of existing or foreseeable future potentially significant flood risk (referred to as Areas for Further Assessment, or AFA s), prepare flood hazard and risk maps for the AFAs, and prepare FRMPs, setting objectives for managing the flood risk within the AFAs and setting out a prioritised set of measures for achieving those objectives. The Floods Directive was transposed into Irish law by the European Communities (Assessment and Management of Flood Risks) Regulations 2010, S.I. No. 122 of 2010 and amended by the European Communities (Assessment and Management of Flood Risks) (Amendment) Regulations 2015, S.I. No. 495 of The Regulations set out the responsibilities of the OPW and other public bodies in the implementation of the Directive, including public consultation, and details the process for implementation of the measures set out in the FRMPs. Implementation of the Directive is monitored by DG Environment in the European Commission. 1.3 Background to and Terms of Reference for Interdepartmental Flood Policy Co-ordination Committee. A number of implementation structures were established following the Government's approval of the 2004 Flood Risk Management Policy, including an Interdepartmental Flood Policy Co-ordination Group. Its initial role, chaired by the OPW, was to co-ordinate and inform the progress with implementing the recommendations of the Report of the Flood Policy Review Group. The Interdepartmental Group met on four occasions between March 2006 and September During this period, many elements of the Outline Implementation Plan for the 2004 Policy that involved parties in addition to the OPW were undertaken and/or completed. 20

23 These included: The Planning System and Flood Risk Management guidelines published in 2009, Plan, Prepare, Protect was published in 2006 ( to provide practical advice to the public on how to prepare for potential flooding (revision issued in 2014), Guidelines and templates for flood event emergency response plans were prepared in 2008 by the OPW and the Department of Housing, Planning, Community and Local Government (DHPCLG) under the Framework for Major Emergency Management (revision issued in 2013), The national past flood event database ( was launched in 2006 to promote awareness of flooding, The national Tide and Storm Surge Forecasting Service was initiated in 2009 by the OPW, which now provides Local Authorities with two to three days advance warning of impending coastal surge events, Real time water level information on all main river catchments was launched in 2013 through OPW s portal Ireland, via the OPW, joined the European Flood Awareness System (EFAS) partner network in 2010, and receive flood notifications issued where a high probability for flooding is forecast. Upon receipt of flood notifications from the EFAS, the OPW advises Local Authorities to carefully assess EFAS forecast information for their respective area, together with any additional rainfall forecasts issued by Met Éireann to inform their decision on whether to issue Local Flood Warnings, and Completed in 2011 a strategic review of options for flood forecasting and flood warning in Ireland. The Government agreed to the establishment of this service on 26 th January In 2009 the Group also set the direction for the development of the national CFRAM Programme (see Section 4.3) and agreed further policy initiatives would be considered when the detail of the FRMPs from the CFRAM were available. The CFRAM Programme is the largest flood risk management planning programme ever undertaken in Ireland. It will propose feasible measures to address the assessed flood risk of those properties, across 300 communities, at potentially significant risk and impact from flooding. 21

24 In the above context, the Interdepartmental Flood Policy Co-ordination Group, reconvened by Government in July 2015 is to: explore the impact on individuals and communities of the OPW's FRMPs, recommend to Government policies and measures that would reduce the impact of flood risks on individuals and communities, recommend to Government policies and measures that would support individuals and communities to be prepared and respond effectively to flood risks, identify the lead Department and/or agency for each recommended policy measure, and estimate the financial and other resource implications of their recommendations. The Group is chaired by the Minister of State with special responsibility for the OPW and Flood Relief and membership includes, Departments of Finance; Public Expenditure and Reform; Housing, Planning, Community and Local Government; Arts, Heritage, Regional, Rural and Gaeltacht Affairs; Agriculture, Food and the Marine; Defence; Social Protection and the OPW. The Group met on eight occasions between July 2015 and November The details now available from the CFRAM are helping to inform current and any future policy initiatives for the full implementation of 2004 Flood Risk Policy. The Group as well as reviewing existing policies and measures is also considering additional policy initiatives to: help prevent flood risk, address structural and non-structural solutions for at risk properties assessed through the CFRAM Programme and for other at risk properties, raise the awareness of flood risk and encourage people, businesses and communities to take action to protect themselves and their properties, and support and assist those people and communities affected by flooding. It has also to be recognised that there will not be a feasible flood risk solution for all at risk properties and a policy response for these properties must form part of an integrated flood risk policy. 22

25 The Group considers that the whole of Government approach is necessary to support flood risk management, so that Government Departments and State Agencies are each taking the lead to provide effective supports and policy measures in areas of responsibility outside of the OPW s scope and also to promote and address community and individual response. As the approach taken by the Group was sector led, the individual members each took responsibility for reviewing and as appropriate developing further policy initiatives within their sector s area of responsibility. These sector-led policy initiatives have been coordinated through the Interdepartmental Flood Policy Working Group. 1.4 Report to Government January Last Winter was the wettest Winter ever recorded in Ireland with rainfall totals at 189% of normal. This gave rise to floods that are the worst on record. In January 2016, the Group updated the Government on its work and also informed Government decisions taken at that time to do the following: establish the Shannon Flood Risk State Agency Co-ordination Working Group, establish a National Flood Forecasting and Warning Service, introduce two pilot individual home protection schemes, and review the Government s approach to flood insurance policy. The Government also asked the Group to consider additional policy items including: detailed implementation aspects of future relocation of homes and/or farm buildings where that proves unavoidable in the context of the schemes to be devised for each of the affected areas under the CFRAM programme, providing guidance to riparian owners on how they can meet their legal obligations in relation to flood risk management, and providing guidance on land use management such as forestry that may impact and/or benefit managing flood risk. 23

26 1.5 A Programme for a Partnership Government Following the General Election on 26 February 2016 the new Government published its priorities for the 32 nd Dáil. The Programme proposed a plan for flooding that combines a short-term co-ordinated response with long-term planning of our cities and towns, including: providing 430million, as part of the Capital Plan, for flood mitigation initiatives to protect threatened localities from river and coastal flood risk, the work of the Shannon Flood Risk State Agency Co-ordination Working Group, exploring the benefits of better land use and crop management, including the use of forestry, to prevent flooding, providing adequate funding for Local Improvement Schemes to give councils greater discretion in how they spend their money on local projects, including the cleaning and clearing of ditches, establishment of the new national flood forecasting system, reviewing the response protocols of the State to examine if a more rapid and coordinated response to local flooding incidents can be achieved, flood protection measures may involve individual protection, introducing a voluntary property relocation scheme for properties, including businesses, affected by repeat flooding, based on a similar 2009 scheme, examining the issue of households and businesses unable to access flood insurance, commission studies into individual problematic (prone to flooding) turlough systems, examining the potential for a Rapid Response Unit, led by DHPCLG, which could be deployed when necessary, to co-ordinate offers of help and assistance to those experiencing hardship following a severe weather event, and establishment by Local Authorities of a local improvement scheme to assist with drain cleaning. 24

27 1.6 Interim Report of the Interdepartmental Flood Policy Co-ordination Group The Group has been actively considering all policy issues to inform an implementation plan for: all at risk properties including for those properties addressed through the draft FRMPs, and delivery of flooding policy priorities set by Government and set out in A Programme for a Partnership Government. While the final report by the Group will be aligned to the final FRMPs, it is opportune for the Group to update Government of its work and where appropriate to make recommendations for consideration by Government. 25

28 2. Flooding and Flood Risk 2.1 Introduction Flooding is a temporary covering by water of land that is normally dry, and is a natural process that can happen at any time in a wide variety of locations. Flood hazard is the potential threat posed by flooding to people, property, the environment and our cultural heritage. The degree of hazard is dependent on a variety of factors that can vary from location to location and from one flood event to another. These factors include the extent and depth of flooding, the rate of flow or velocity over the floodplains, the rate of onset and the duration of the flood. Flooding only presents a risk however when people, property, the environment and our cultural heritage can be potentially damaged by floods. Flood risk is dependent on the probability and magnitude of the flood hazard and the vulnerability of society, infrastructure and our environment to damage or loss in the event of a flood. 2.2 Types and Causes of Flooding Flooding can occur from a range of sources, individually or in combination, as described below. Coastal Flooding Coastal flooding occurs when sea levels along the coast or in estuaries exceed neighbouring land levels, or overcome coastal defences where these exist, or when waves overtop over the coast. Wind speed and direction, which can create or exacerbate surge events, force water into estuaries and harbours, cause surge effects, and create extreme wave conditions, such as those seen in the storm events in the Winter of 2013/

29 Fluvial Flooding Fluvial flooding occurs when rivers and streams break their banks and water flows out onto the adjacent low-lying areas (the natural floodplains). This can arise where the runoff from heavy rain exceeds the natural capacity of the river channel, and can be exacerbated where a channel is blocked or constrained or, in estuarine areas, where high tide levels impede the flow of the river out into the sea. Different rivers will respond differently to rainfall events, depending on a range of factors such as the size and slope of the catchment, the permeability of the soil and underlying rock, the degree of urbanisation of the catchment and the degree to which flood waters can be stored and attenuated in lakes and along the river's floodplains. A storm of a given rainfall depth and duration may cause flooding in one river, but not in another, and some catchments may be more prone than others to prolonged rainfall or a series of rain events. River flooding can occur rapidly in short, steep rivers or after some time, and some distance from where the rain fell, in larger or more gently flowing rivers. Changes in rainfall patterns, such as might be caused by climate change, will have different impacts on flood magnitudes and frequency in different catchments. There have been a large number of fluvial flood events in recent years in Ireland; most notably in November 2009 and December 2015/January Pluvial Flooding Pluvial flooding occurs when the amount of rainfall exceeds the capacity of urban storm water drainage systems or the infiltration capacity of the ground to absorb it. This excess water flows overland, ponding in natural or man-made hollows and low-lying areas or behind obstructions. This occurs as a rapid response to intense rainfall before the flood waters eventually enter a piped or natural drainage system. This type of flooding is driven in particular by short, intense rain storms, such as that which occurred over the Dublin area in October

30 Groundwater Flooding Groundwater flooding occurs when the level of water stored in the ground rises as a result of prolonged rainfall, to meet the ground surface and flows out over it, i.e. when the capacity of this underground reservoir is exceeded. Groundwater flooding tends to be very local and results from the interaction of site-specific factors such as local geology and tidal variations. While water level may rise slowly, it may be in place for extended periods of time. Hence, such flooding may often result in significant damage to property or disruption to transport. In Ireland, groundwater flooding is most commonly related to turloughs in the karstic limestone areas prevalent in particular in the west of Ireland. Extensive groundwater flooding occurred around South Galway and areas of Mayo, Roscommon and neighbouring counties in 1995, November 2009 and December 2015/January2016 due to extended periods of heavy rain. Other Causes of Flooding The above causes of flooding are all natural; caused by either extreme sea levels or heavy or intense rainfall. Floods can also be caused by the failure or exceedance of capacity of built or man-made infrastructure, such as bridge collapses, from blocked or under-sized drainage systems or other piped networks, or the failure or overtopping of reservoirs or other water-retaining embankments (such as raised canals). 28

31 2.3 Impacts of Flooding The most significant types of flooding nationally in terms of both hazard and risk are fluvial and coastal flooding and are being addressed through the CFRAM programme. Groundwater flooding is a significant source of flood hazard in the west of the country, where prolonged flooding can occur from turloughs. Impacts on people and communities Flooding can cause physical injury, illness and loss of life. Deep, fast flowing or rapidly rising flood waters can be particularly dangerous. For example, even shallow water flowing at 2 metres per second (m/sec) can knock children and many adults off their feet, and vehicles can be moved by flowing water of only 300mm depth. The risks increase if the floodwater is carrying debris. Some of these impacts may be immediate, the most significant being drowning or physical injury due to being swept away by floods. Floodwater contaminated by sewage or other pollutants (e.g. chemicals stored in garages or commercial properties) is also likely to cause illnesses, either directly as a result of contact with the polluted floodwater or indirectly, as a result of sediments left behind. Those most likely to be at risk are people living in a single-storey bungalow or below ground in a basement, those outdoors, on foot or in a vehicle, or people staying in a tent or caravan. As well as the immediate dangers, the impact on people and communities as a result of the stress and trauma of being flooded, or even of being under the threat of flooding, can be immense. Long-term impacts can arise due to chronic illnesses and the stress associated with being flooded and the lengthy recovery process. The ability of people to respond and recover from a flood can vary. Vulnerable people, such as the elderly, people with a disability or those who have a long-term illness, are typically less able to cope with floods than others. Some people may have difficulty in replacing household items damaged in a flood and may lack the financial means to recover and maintain acceptable living conditions after a flood. 29

32 Floods can cause impacts on communities as well as individuals through the temporary, but sometimes prolonged, loss of community services or infrastructure, such as schools, health services, community centres or amenity assets. Impacts on Property Flooding can cause severe damage to properties. Floodwater is likely to damage internal finishes, contents and electrical and other services and possibly cause structural damage. The physical effects can have severe long-term impacts, with reoccupation sometimes not being possible for over a year. The costs of flooding are increasing, partly due to increasing amounts of electrical and other equipment within developments. The degree of damage generally increases with the depth of flooding, and sea-water flooding may cause additional damage due to corrosion. Impacts on Infrastructure The damage flooding can cause to businesses and infrastructure, such as transport or utilities like electricity, gas and water supply, can have significant detrimental impacts on individuals and businesses and also local and regional economies. Flooding of primary roads or railways can deny access to large areas beyond those directly affected by the flooding for the duration of the flood event, as well as causing damage to the road or railway itself. Flooding of water distribution infrastructure such as pumping stations or of electricity substations can result in loss of water or power supply over large areas. This can magnify the impact of flooding well beyond the immediate community. The long-term closure of businesses, for example, can lead to job losses and other economic impacts. Impacts on the Environment Detrimental environmental effects of flooding can include soil and bank erosion, bed erosion or siltation, landslides and damage to vegetation as well as the impacts on water quality, habitats and flora and fauna caused by pollutants carried by flood water. Flooding can however play a beneficial role in natural habitats. Many wetland habitats are dependent on annual flooding for their sustainability and can contribute to the storage of flood waters to reduce flood risk elsewhere. 30

33 Impacts on our Cultural Heritage In the same way as flooding can damage properties, flood events can damage or destroy assets or sites of cultural heritage value. Particularly vulnerable are monuments, structures or assets (including building contents) made of wood or other soft materials, such as works of art and old paper-based items such as archive records, manuscripts or books. Soil erosion during flood events could also destroy buried heritage and archaeological sites. A table of Notable or Significant Past Floods in Ireland is provided at Appendix 1. 31

34 3. Prevention The National Flood Policy Review of 2004 identified flood risk prevention (i.e. the avoidance of creating new flood risks) as an area needing further development in Ireland. At the core of 'prevention' as a flood risk management strategy is sustainable development. 3.1 Flood Prevention Policies and Measures Planning and Development Guidelines It is recognised that construction of buildings or infrastructure should not take place in areas prone to flooding and that proper controls are exercised by the Planning and Development Authorities. Planning is about people and place, how future development will be guided to ensure that, together, economic recovery is assured, quality of life is improved and environmental qualities are either protected or enhanced. Shortly after the adoption of the 2004 Flood Risk Policy, the OPW and DHPCLG began developing guidelines to assist planners in taking flooding into consideration in planning and development management. In recognition of the impact of severe flooding events and the need for definitive methodologies to address flood risk within the planning process, statutory guidelines on The Planning System and Flood Risk Management were published by DHPCLG in Importantly, these flood risk management guidelines were issued under Section 28 of the Planning & Development Act, 2000 and Local Authorities are required to have regard to them in the performance of their functions such as preparing development plans and determining planning applications. These guidelines introduced a rigorous approach to flood risk assessment as an essential step in drawing up development plans and making decisions on individual planning applications. 32

35 Under the 2009 Guidelines, developments vulnerable to flood risk, such as new housing, and other residential uses, are not generally permissible in areas known or predicted to be at risk of flooding. However, the guidelines recognise that existing city/town centre areas need to continue to develop and grow and, accordingly, development of such areas is permissible on condition that flood risk is factored in at design stage and steps are taken to mitigate flood risk. Development plans are generally now accompanied by a flood risk assessment for the geographical area of the plan. The Minister for Housing, Planning, Community & Local Government, is a statutory consultee for proposed regional, county and local area plans. DHPCLG examines draft plans for compliance with Section 28 Ministerial Guidelines including The Planning System and Flood Risk Management guidelines and makes statutory submissions on draft Local Authority development plans. Under Section 31 of the Planning & Development Act, 2000, the Minister has the power to direct the Local Authority to ensure compliance with the guidelines. In a number of instances across the country, the Minister has used powers under Section 31 in relation to compliance with the guidelines and directed Local Authorities to delete proposed zonings of land that would be in contravention with these. This enforcement function is on-going as all statutory development plans are reviewed over time. DHPCLG is satisfied with the compliance by Local Authorities with the guidelines and these are routinely reviewed Planning and the Environment The Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs has statutory responsibility under the EU Habitats Directive (92/43/EEC) to designate and advise on the protection of habitats and species identified for nature conservation including Natural Heritage Areas (NHA), Special Areas of Conservation (SAC) and Special Protection Areas (SPA). Together the SACs and SPAs are known as the Natura 2000 network. 33

36 Natura 2000 sites are important, not only for their scientific significance, but for the natural ecosystem services they provide and the economic activities that they support. For example, inappropriate dredging of rivers or streams, while well intentioned, could cause severe damage to elements of river ecology, including salmon spawning grounds and freshwater fisheries, which are protected under the Directive within certain SACs. This, in turn, could harm the angling industry and undermine local tourism. Many of the rivers and low-lying lands affected by the recent flooding (2015) are within or near sites that have been designated as SACs or SPAs. These sites fall within the ambit of the European Birds and Habitats Directives, compliance with which is a matter for all public authorities, agencies and landowners. A key protection mechanism is the requirement to consider the possible implications of any plan or project on the Natura 2000 network before any decision is made to allow that plan or project to proceed. This process is known as an Article 6 (3) Appropriate Assessment. In Ireland, these obligations are reflected primarily in planning law and in the European Communities (Birds and Habitats) Regulations 2011, amongst others. Emergency works could in some cases result in irreparable environmental damage and subsequent property damage if they are not effective, or may result in damage to a neighbouring or adjacent property if their full impacts are not assessed, prior to their undertaking. Therefore, the implications of proposed works need to be properly assessed under the Habitats Directive to ensure they are less damaging or not damaging at all. This approach to flood mitigation: makes sure that both the ecology and hydrology of an area is understood to inform the works to be undertaken to ensure that the proposed works will achieve their intended objective about flood remediation, and provides a reasonable balance to protect the interests of other property owners and communities downstream, as well as the wider environment. 34

37 As a prescribed body under the Planning and Development Acts, the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs (DAHRRGA), through the offices of the National Parks and Wildlife Service (NPWS), also provides observations to Planning Authorities on, amongst other things, County Development Plans and planning applications that may have significant effects on nature conservation. These observations and submissions are based on available scientific and ecological information, and the potential impact of such proposals on any Natura 2000/European (SAC or SPA) site which might be affected by the plans and projects. These observations may highlight where risks of flooding of proposed developments or zoned lands may arise, due to their proximity to or occurrence within habitats and designated sites that flood as part of their natural regime Flood Maps Available on Myplan.ie Planning is a very important function of Local Authorities and is also an important issue for the country and local communities. The development plan or the local area plans of a Local Authority is the framework used in assessing planning applications. There are over 400 development and local area plans across the country. Some are for large urban areas such as the Dublin City Development Plan while some may be for smaller villages, right across the country. People thinking of submitting a planning application or inputting to their assessment through public consultation must consult their local plan. Myplan.ie is a web portal that aims to be a one stop shop for information about plans and also to provide other information which is relevant to planning decision-making. It is not only a benefit to citizens but also assists with co-ordination between Local Authorities. Myplan.ie is an initiative of DHPCLG on behalf of all the planning authorities across the country. The Local Authorities ensure that the information is kept up to date as possible. Definitive information on where lands flood is vital to enable proper planning. Myplan.ie currently contains information from the OPW s PFRA nationally. The detailed Flood Risk maps completed through CFRAM will be incorporated into the Myplan.ie website. This will provide an even greater evidential basis for planning decisions. 35

38 3.2 Land Use Management Forestry Programme The Department of Agriculture, Food and the Marine s (DAFM) Forestry Programme supports the creation and management of a wide range of forest types. Schemes aim to realise a variety of environmental, economic and social benefits. Included in these benefits is flood alleviation when these forests are at sufficient scale and are used strategically as part of a wider response within a catchment to the threat of flooding. Forests can help reduce the risk of flooding in the following ways: trees, and by extension, forests use greater amounts of water than non-forest land thus reducing the volume of flood water at source, the soils in forests have higher infiltration rates reducing rapid surface runoff and flood generation, the greater hydraulic roughness exerted by trees, shrubs and large woody debris along stream-sides and within floodplains acts as a drag on flood waters, slowing down flood flows and enhancing flood storage, and the ability of trees to protect the soil from erosion and interrupt the delivery of sediment via runoff to watercourses helps to maintain the capacity of river channels to convey flood waters downstream and reduces the need for dredging. Drainage is an important aspect of site preparation at afforestation and reforestation to ensure good root development. A key principle of drainage in a forestry context is to ensure the slow release of water from the site. This principle is incorporated in all the appropriate guidance documents for forestry. There are many ways to achieve this in terms of drain design. For example, collector drains, receiving water from smaller mound drains, should be aligned at a maximum slope of 2 degrees. Also, buffer zones are often used to ensure that drains do not feed directly into watercourses. In this way water drained from the site flows through the buffer zone ensuring a slow release into the watercourse. 36

39 The Forest Service of DAFM is Ireland s national forest authority. It is responsible for national forest policy, the promotion of private forestry, the administration of the forest consent system and forestry support schemes, forest health and protection, the control of felling, and the promotion of research in forestry and forest products. The objective of the Forest Service is to develop forestry to a scale and in a manner that maximises its contribution to the national economic and social well-being on a sustainable basis, and which is compatible with the protection of the environment. The Forest Service has published Forestry Standards Manual 2015, the Code of Best Practice Ireland and the Forest and Water Quality Guidelines that provides guidance on the operational requirements of the various support schemes such as Afforestation Scheme and includes guidance measures to be taken by those planting forests to manage flood risk. Coillte and other forestry companies adhere to these guidelines published by DAFM Schemes to Promote Afforestation Ireland recognises that economic, social, environmental and recreational benefits can accrue from a vibrant forestry estate. As Ireland s forest cover is, at 10%, one of the lowest in Europe, the Afforestation Grant and Premium Scheme provides a package to encourage planting of forests by compensating forest owners towards the costs of forestry establishment and for the income foregone during the maturation of the timber crop. As part of the Afforestation Scheme, native woodland establishment supports the creation of new native woodland on greenfield sites. This measure can be utilised for the development of new native woodland on natural floodplains increasing retention capacity in these areas. These forests also help in retaining floodwaters for a longer period upstream, and such areas result in the alleviation of flooding further downstream (mainly in urban areas) and the reduction of damaging high flow rates during spate events. 37

40 The Native Woodland Conservation Scheme promotes the appropriate restoration of existing native woodland (including the conversion of non-native forest to native woodland). The scheme provides grant aid (along with a 7-year premium, for private woodland owners) to undertake the appropriate restoration of existing woodlands and the conversion of conifer forest to native woodland. One possible application of this scheme is the conversion of existing conifer forests into native woodland at strategic points within catchments, accompanied by drain-blocking and other site restoration measures to reinstate natural site hydrology and retention capacities. A new scheme, Woodland Improvement: - Environmental Enhancement: is due for launch in late 2016, and will focus on enhancement of the environmental qualities of existing forests, including the reinstatement or enhancement of water setbacks and other open areas and, appropriate blocking of existing forest drains. These actions can contribute to flood alleviation by slowing down the flow of heavy rainfall into lower lying areas Rural Development Programme The Green Low-Carbon Agri-Environment Scheme (GLAS) is the new agri-environment scheme, part of the Rural Development Programme This ambitious scheme aims to focus on the rural environment, focusing in particular on the preservation of various habitats and species, mitigating climate change and improving water quality. GLAS contains a number of actions which will aid the protection of watercourses including: there is a protection of watercourses action which requires fencing to exclude bovines from watercourses to prevent bank erosion and direct deposition in watercourses, and this action is particularly targeted in High Status Water Areas as well as Vulnerable Water Areas, and a riparian margin action, where a selection of margin widths is available from 3m, 6m, 10m and 30m widths, which aid bank stabilisation, intercepting both nutrients and sediment into watercourses. 38

41 GLAS also provides funding for actions aimed at protecting and maintaining priority habitats, i.e. including riparian SACs including specified callows, machairs, freshwater pearl mussel sites etc. Under this action, farmers must follow a sustainable management plan for the site Cross compliance and Basic Payment Scheme Farmers in the Basic Payment Scheme and other area based Schemes, such as GLAS, must comply with cross compliance rules. Cross compliance includes a set of thirteen specific European legal requirements, known as Statutory Management Requirements (SMRs) and seven environmental standards for Good Agricultural and Environmental Condition (GAEC) which must be adhered to. Several of these SMRs and GAECs are directly applicable to protecting watercourses and also cover the land around watercourses. In the Nitrates Regulations (SMR 1) there are a number of obligations on farmers to minimise the risk of pollution to ground waters and water bodies by regulating the application of fertilizers, providing for buffer zones near water ways etc. Field drains are designated as Landscape Features under GAEC and as such farmers must maintain these to comply with Cross Compliance requirements. Therefore, animals must not be allowed to trample the banks and destroy the drain, as this could lead to a breach of requirements under GAEC Role of Peatlands in Flood Risk Management In the draft National Peatlands Strategy, published by DAHRRGA in January 2014, it is recognised that there is a role for Peatlands in contributing towards flood risk management. Increasing national and international attention is being paid to wetlands for their potential in flood attenuation. However, not all peatlands reduce storm flows, particularly in Winter. Generally, the influence of wetlands in reducing flood peaks is greatest for high frequency, low to medium intensity rainfall events that occur when wetlands have a large capacity for 39

42 storage. It is least for large magnitude events, particularly following a long period of prior rainfall, when soil and wetland storage are saturated. Generally, Bord na Móna cutaway bogs that flood naturally will be permitted to flood unless there is a clear environmental and/or economic case to maintain pumped drainage. The feasibility of using cutaway peatlands for flood attenuation measures is being considered as part of the CFRAM Programme and by the Shannon Flood Risk State Agency Co-ordination Working Group Raised Bog SAC Network Restoration Project Hydrological processes are key drivers of raised bog ecology as raised bogs are predominately fed by precipitation. For Active Raised Bog to develop or be maintained, mean water levels need to be near or at the bogs surface for most of the year. The main aim of restoration on raised bogs is to maintain or improve the quality of existing areas of Active Raised Bog improve the hydrological conditions that will allow Active Raised Bog to develop in suitable areas. The European Commission under its LIFE Programme approved funding for a 5.4m project Restoring Active Raised Bog in Irelands SAC Network The objective of this LIFE project is to effectively increase the area for Active Raised Bog and the national habitat area on 12 selected project sites through a variety of restoration measures. This project will support the objectives of the National Raised Bog SAC Management Plan. Restoration plans are currently being developed for each of the 53 raised bog SAC sites as part of the overall strategy for the restoration of the raised bog SAC network. The draft restoration plans will be developed further in conjunction with local stakeholders and communities. In many instances, bog restoration can return more natural hydrological conditions whereby flow is attenuated and reaches the surrounding watercourses more slowly than when drains were present. 40

43 As part of the restoration plans for the raised bog SACs it is proposed that integrated drainage management plans for relevant bogs are developed in partnership with landowners and relevant public bodies. Restoration measures are also proposed for raised bog NHAs and designated blanket bogs in due course Land Drainage Works Certain flood relief actions, predominately minor in nature such as removal of flooddeposited soil, mud, gravel, sand or minerals on a site may be an activity that requires the consent of the Minister for Arts, Heritage, Regional, Rural and Gaeltacht Affairs. This is generally obtained by contacting the local NPWS official. Land drainage works on lands (other than wetlands) used for agriculture is covered by the Environmental Impact Assessment (EIA) (Agriculture) Regulations 2011 and is controlled by DAFM requiring screening/approval in certain cases. Such drainage works include: installing open drains, installing field drains (not open) such as field drains using plastic pipe with drainage stone or field drains with drainage stone only or mole drains (no pipe or drainage stone) or gravel filled mole drains (no pipe but filled with gravel), and opening of a short distance of watercourse. Where the proposed drainage works exceed 15 hectares, the farmer must apply through a screening process operated by DAFM. In the case of land drainage proposals exceeding 50 hectares, these are subject to formal application for consent and must be accompanied by an Environmental Impact Statement, and where such an activity is deemed likely to have a significant effect on a SAC or SPA, a Natura Impact Statement must be completed. In cases where proposed drainage works are located in, or may impact on, environmentally sensitive areas such as SACs or SPAs, DAFM may require a screening or full consent application, even on areas below the threshold for these general requirements. These Regulations do not affect the carrying out of normal cleaning/maintenance of existing open drains. 41

44 The drainage or reclamation of wetlands which include flood plains, swamps, machairs and peatlands is not subject to the Environmental Impact Assessment (EIA) (Agriculture) Regulations 2011, but rather is regulated by the Local Authorities under the Planning and Development (Amendment) (No.2) Regulations, Climate Change Adapting to climate change is a key challenge facing Governments and societies across the world. It is now clear that, even if the climate change mitigation measures undertaken to date are successful, climate change will not stop over the coming decades or possibly centuries. Adapting to its impacts is necessary to reduce vulnerability across all sectors of society and the natural environment. All flood defence schemes designed by the OPW are adaptable for climate change in line with its policy: The possible impacts of climate change, and the associated uncertainty in projections, shall be considered at all stages of activity under the national Flood Risk Management Programme, and the development, design and implementation of all policies, strategies, plans and measures for, or related to, flood risk management must be sustainable and cognisant of the potential impacts of climate change. Reflecting more general trends at global level, Ireland s climate is changing and the scientific consensus is that further changes are on the way. Incremental changes in climate are already evident in Ireland, including changes in our average temperature and rainfall intensity. Adaptation to the effects of climate change requires action to plan for and manage the risks and to make more climate resilient adjustments to reduce our current and future vulnerabilities. Adaptation is an essential component of our long term, strategic economic planning. In that context, the National Climate Change Adaptation Framework (2012) sets out the sectors which have responsibility for preparing Climate Change Sectoral Adaptation Plans. The Framework sets out, inter alia, the policy on climate change adaptation by the OPW based on a current understanding of the potential consequences of climate change for flooding and flood risk in Ireland, and the adaptation actions to be implemented by the OPW and other responsible Departments and agencies in the flood risk management sector. 42

45 Following the passing of the Climate Action and Low Carbon Development Act in December 2015, the sectoral approach to climate change adaptation is now underpinned on a statutory basis. Work has already begun on the development of a new statutory Climate Change Adaptation Framework. A Sectoral Adaptation Steering Committee is chaired by the Department of Communications, Climate Action and Environment (DCCAE). Following approval of the Climate Change Adaptation Framework (before 10 December 2017) key sectors will be required to develop sectoral adaptation plans. This will require a revised sectoral plan to be prepared by the OPW, covering the flood risk sector. Other sectors identified in the Framework will also be required to take account of flood risk, amongst other risks identified, when preparing their own sectoral adaptation plans and, in particular, where this is identified by themselves as a significant risk to their sector. 3.4 Summary of Flood Prevention Policy Measures in Place DHPCLG is satisfied with the compliance by Local Authorities with the statutory guidelines on The Planning System and Flood Risk Management and these guidelines are routinely reviewed. Natura 2000 sites are important, not only for their scientific significance, but for the natural ecosystem services they provide and the economic activities that they support. Implications of proposed works need to be properly assessed under the Habitats Directive to ensure they are less damaging or not damaging at all. This approach to flood mitigation works provides a reasonable balance to protect the interests of other property owners and communities downstream, as well as the wider environment. The Forest Service has published Forestry Standards Manual 2015, the Code of Best Practice Ireland and the Forest and Water Quality Guidelines that provides guidance on measures to be taken by those planting forests to manage flood risk. Coillte and other forestry companies adhere to these guidelines. The Afforestation Scheme, Native Woodland Conservation Scheme and a new scheme, Woodland Improvement: - Environmental Enhancement each promote flood risk management through good forestry practice. 43

46 The Green Low-Carbon Agri-Environment Scheme (GLAS) is focusing in particular on the preservation of various habitats and species, mitigating climate change and improving water quality. It contains a number of actions which will aid the protection of watercourses. Generally, Bord na Móna cutaway bogs that flood naturally will be permitted to flood unless there is a clear environmental and/or economic case to maintain pumped drainage. OPW flood defence schemes are designed to take account of climate change. 3.5 Summary of Flood Prevention Policy Measures under Development at this Time The detailed Flood Risk maps completed through CFRAM will be incorporated into the Myplan.ie website. The feasibility of using cutaway peatlands for flood attenuation measures is being considered as part of the CFRAM Programme and by the Shannon Flood Risk State Agency Co-ordination Working Group. Restoration plans are currently being developed for each of the 53 raised bog SAC sites as part of the overall strategy for the restoration of the raised bog SAC network. In many instances, bog restoration can return more natural hydrological conditions whereby flow is attenuated and reaches the surrounding watercourses more slowly than when drains were present. 44

47 Following approval of the Climate Change Adaptation Framework (before 10 December 2017) key sectors will be required to develop sectoral adaptation plans. This will require a revised sectoral plan to be prepared by the OPW, covering the flood risk sector. Other sectors identified in the Framework will also be required to take account of flood risk, amongst other risks identified, when preparing their own sectoral adaptation plans and, in particular, where this is identified by themselves as a significant risk to their sector. 45

48 4. Protection Flood protection is the measures taken, both structural and non-structural, to reduce the likelihood and impact of floods. Ireland has a long history of protection works, informed by legislation, including a statutory obligation on public sector bodies to maintain flood defence works they completed. 4.1 Arterial Drainage Local Authority Responsibility Drainage Districts are areas where drainage schemes to improve land for agricultural purposes were constructed under the Arterial Drainage Acts from 1842 up to When a subsequent scheme covered the same ground as one of the earlier schemes, the previous District was abolished. Of the 293 schemes carried out, 170 remain covering 4,600km of channel. The statutory duty of maintenance for these schemes rests with the Local Authorities concerned Office of Public Works Responsibility Following the passing of the Arterial Drainage Act, 1945, the OPW began investigations to determine where Arterial Drainage Schemes would be expedient and economically viable. The implementation of the Schemes began in the late-1940s and continued into the early- 1990s when the last major schemes in the Boyle, Bonet and Monaghan Blackwater catchments were completed. A total of 11,500km of river channel form part of the Arterial Drainages Schemes that also include approximately 800km of embankments. The location and dates of these Schemes undertaken throughout the country is provided in Appendix 2. 46

49 The purpose of the Arterial Drainage Schemes was primarily to improve the drainage of agricultural lands to enhance production. This typically involved lowering or widening river beds to facilitate the drainage and discharge of neighbouring lands and drainage channels. While not the primary purpose of the Schemes, they did also provide enhanced conveyance capacity where they passed through towns, villages and dispersed rural communities that in turn has reduced the flood risk to properties in these areas. The OPW has a statutory duty to maintain the completed Schemes in proper repair and in an effective condition. The annual maintenance programme typically involves some clearance of vegetation and removal of silt build-up on a five-yearly cycle. Works for the maintenance of works and structures carried out under the Arterial Drainage Acts are exempted development for planning purposes. To minimise potential ecological impacts, the OPW undertakes these statutory maintenance works in accordance with a series of Environmental Management Protocols and Standard Operating Procedures, which are published on the OPW website. Over the years, significant environmental improvements have been achieved with Inland Fisheries Ireland (IFI) whom, in conjunction with the OPW, developed the Environmental Drainage Maintenance programme, which is central to the guidance for environmentally friendly channel maintenance operations. A suite of environmental activities is conducted on an ongoing basis, to further devise best practise such as: research and associated publications, scientific monitoring, stakeholder consultations, ecological surveys, environmental assessments, staff training and site audits. In later years, this approach has further evolved and now strives to enhance the ecological value of the drainage channel through the Environmental River Enhancement Programme where OPW, with assistance from IFI, enhance drained channels to maximise the river corridor ecological quality whilst retaining the flood relief and drainage capacity. 47

50 4.1.3 Landowners The Local Authorities and the OPW have a statutory duty to maintain their respective completed Arterial Drainage Schemes in proper repair and in an effective condition. In other areas, the responsibility for the condition of the channel and riverbanks typically rests with the riparian owner. Watercourses enhance people s lives and yet they can also pose a threat when in flood. They need to be respected, protected and improved and that is why there is a significant number of legal safeguards. People that own land or property next to a river, stream or ditch are often referred to as a riparian landowner. Rights as a riparian landowner have been established in common law, but they may be affected by other laws and may need permission for some activities from a regulatory body. The OPW is chairing a cross Departmental Group to clarify the rights and responsibilities of riparian landowners in relation to the maintenance of water course on or near their lands in the context of managing the flood risk. Guidance for these landowners, including those in protected areas, is being developed with advice from the Attorney General s Office with the intention of providing information and clarity around the roles of the relevant authorities, the role of landowners, the possible consents required and the relevant contact information to get further assistance. In addition to the preparation of guidance, other supports for landowners regarding the maintenance of watercourses are under discussion by the Group. 48

51 4.2 Capital Flood Defence Schemes Major Flood Defence Schemes The Arterial Drainage (Amendment) Act passed in 1995 provided the OPW with the powers to implement flood relief schemes to provide flood protection to local communities, as opposed to catchment-wide schemes aimed at improving agricultural production. Flood relief schemes can provide protection by a range of means, such as: storing floodwater upstream, preventing high coastal or river levels from spilling into the community using walls or embankments, allowing more water to pass through a community by increasing the capacity of the river channel, and diverting flood flows around or away from a community. Since 1995 to the end of 2015, the OPW, in co-operation with the relevant Local Authorities, has constructed 37 major flood defence schemes throughout the country, protecting 7,000 properties at a cost of 280m see Appendix 3. As of October 2016, ten major capital flood defence schemes were under construction, two more were due to commence later this year and a further 23 schemes were at design development/ in the pipeline see Appendix 4. No major flood relief scheme has been advanced to date without the benefit of highly detailed analysis both at a scientific (environmental) and engineering (hydrological) level and economically in terms of cost benefit appraisal and with comprehensive stakeholder and public consultations to inform and support all decisions taken. All decisions taken to date in allocating funding to flood relief capital works has had a clear and robust evidence basis with a clear need identified and full justification for proceeding. All OPW major flood defence schemes are designed and built to a standard that protects against the 1 in 100-year flood event. OPW flood defence schemes are designed to ensure they do not worsen a flood risk upstream or downstream of the protected area. 49

52 All OPW completed schemes have performed well in protecting the towns and communities concerned. Of the 7,000 properties protected by the completed major urban schemes only a very small number (< 20) were affected by the flooding of Winter 2015/2016 that recorded the highest river levels in many of these areas Minor Flood Defence Works The OPW continues to work with Local Authorities to support local flood relief projects. Funding of almost 37m has been approved by the OPW to Local Authorities since 2009 under the Minor Flood Mitigation Works & Coastal Protection Scheme in respect of almost 600 local flood relief projects in every county protecting 5,000 properties to date. The Minor Flood Mitigation Works & Coastal Protection Scheme was introduced by the OPW in The purpose of the scheme is to provide funding to Local Authorities to undertake minor flood mitigation works or studies to address localised flooding and coastal protection problems within their administrative areas. The scheme generally applies where a solution can be readily identified and achieved in a short time frame. Under the scheme, applications are considered for projects that are estimated to cost not more than 500,000 in each instance. Funding of up to 90% of the cost is available for approved projects. Applications are assessed by the OPW having regard to the specific economic, social and environmental criteria of the scheme, including a cost benefit ratio. Works that are normally the responsibility of the Local Authorities will generally not be considered for OPW funding. Where such works would also mitigate the risk of flooding to properties, partial funding may be considered by OPW. The Local Authorities must be satisfied that the works will not have a significant impact on flood risk elsewhere. The commencement and progression of any works for which funding is approved is a matter for each Local Authority concerned. 50

53 The standard of protection to which minor works are designed and built would not generally be to the 1 in 100-year level that major OPW flood defence schemes are built to but would offer a level of protection appropriate to deal with the localised flooding problem Review of Minor Works Scheme While the Scheme has been very successful to date, it has been decided to review its operation to see what changes may be appropriate to ensure that the scheme remains relevant to and can continue to support Local Authorities in their work to address smaller scale flooding problems in their areas. The review of the scheme is currently underway with a view to examining the criteria for consideration within the scheme, including for example the various thresholds for the assessment of benefit under the scheme. Consultations are underway with Local Authorities with a view to examining any potential improvements to the scheme, administrative or financial, which will encourage applications under the scheme. The review will be carried out in the shortest possible timeframe and is expected to be completed by the end of Local Authorities will be notified of any changes in the Scheme's criteria and these will be made available also on the OPW's website, Future Funding and Schemes In total and to date, these completed major and minor flood mitigation works protect an estimated 12,000 properties and confer an economic benefit to the State in terms of damage and losses avoided estimated at some 1.2 billion. The Minister for Public Expenditure and Reform in September 2015 announced details of a 430 million 6 year programme of capital investment on flood defence measures as part of the Government s overall Capital Investment Plan During this time, the annual allocation for flood defence schemes will more than double to 100m. 51

54 The flood protection capital programme will build on the very significant investment that has already been undertaken in flood relief works throughout the country over the last 20 years. It will provide the means to provide feasible protection to homes and businesses in major urban areas together with investment in many minor works projects to address more localised flooding problems. The investment allows the OPW's significant existing flood defence work programme to continue to address the most urgent flood risk problems facing the country. This funding will also allow for the prioritised investment in the implementation of the FRMPs scheduled to be finalised over the coming months through the CFRAM Programme. A 200 million long-term loan has been sourced from the European Investment Bank (EIB). This loan in relation to the Flood Prevention Programme is a means of financing expenditure on the OPW's existing programme of flood capital works which has been arranged by the National Treasury Management Agency (NTMA)/National Development Finance Agency (NDFA) under the auspices of the Department of Finance (DOF) as part of normal Exchequer funding operations. The NTMA has sourced this funding from the EIB at lower rates than would be possible through borrowing money on the bond/capital markets, and this loan of 200m will provide up to 45% of the total programme cost Repairs Following Flood and Storm Events A major storm or flooding event is likely to result in damage or change to what is considered to be essential infrastructure, farmland and protected areas. These generally require urgent action to repair or replace the infrastructure. The urgency of works in some cases is reasonable and understandable. In some cases, failure to act promptly may result in the damage becoming irreparable. While repair of these is necessary, repair works can proceed in a way that takes account of legal requirements in relation to planning, watercourse management and biodiversity protection. 52

55 Repair and restoration works, as well as new flood and coastal defences, need to be professionally designed and constructed, informed by ecological advice and assessments. In planning repair and restoration works, national and EU law for the protection of the environment must be complied with. To provide guidance on these requirements, a Guide to Works and Development Consents for Repairing Infrastructure Damaged in Storms or other Emergency Events was prepared in early 2014 in response to the storm and flood events of that time, with input from various Departments/agencies and published by the National Directorate for Fire and Emergency Management. In broad terms, any emergency repair to damaged public infrastructure such as roads and bridges, car parks, piers and harbours and coastal defences on a like for like basis can and should proceed in line with legislative provisions that have been made for such situations. Emergency works are time-critical works that are necessary for dealing urgently with a situation which the relevant County/City Manager considers is an emergency situation calling for immediate action. Public authorities proposing to undertake or authorise emergency repair works need to form a view as to whether such works are likely to have significant effects on the environment. The nature of the works decided upon and the manner in which they are undertaken will often permit such effects to be avoided or mitigated. Single points of contact for NPWS officials are set up on a county basis during and immediately after flood events while the impact of the storms is being assessed and addressed Imperative Reasons of Overriding Public Interest (IROPI) EU Member States, including Ireland, must operate within the legal parameters set out in the Birds Directive and the Habitats Directive, as well as with other Directives relating to water and the environment. These Directives cannot be unilaterally suspended by Member States, which are obliged to uphold them. Failure to do so can result in legal action by the European Commission, and ultimately, to the imposition on a Member State of heavy fines. However, this does not mean that remedial or emergency works are not possible. 53

56 It is possible to carry out a range of works to deal with emerging situations or to put remedial solutions in place with appropriate mitigation or compensatory measures to ensure the protection of habitats and species. Public authorities proposing to undertake or authorise emergency repair works need to form a view as to whether such works are likely to have significant effects on the environment. The nature of the works decided upon and the manner in which they are undertaken will often permit such effects to be avoided or mitigated. Exceptionally, it may not be possible to proceed with emergency works during a flood event without causing damage to the integrity of a designated site, (SAC or SPA). There is some flexibility within the Directives which would facilitate in some cases, for imperative reasons of overriding public interest (IROPI), the carrying out of works or activities to deal with emergencies even if they could cause some damage to habitats. The Directives and Irish law set out the requirements in this regard. The Directives do require an assessment of the options available before a conclusion is reached that such damage is warranted, as well as a consideration of any measures that will be taken to compensate for the damage done to a European site and the coherence of the network of such sites. 54

57 4.3 Catchment Flood Risk Management and Assessment (CFRAM) Programme Overview of CFRAM The PFRA designated in early 2012, 300 areas including 90 coastal areas at potentially significant risk and impact from flooding. In line with government policy, the OPW is in the process of completing CFRAM Programme to give a clear and comprehensive picture of flood risk in these areas and to set out how the risk can be prioritised and managed effectively and sustainably. The CFRAM Programme is being undertaken, in partnership with the OPW's consultants, Local Authorities and other stakeholders. This is a strategic approach that recognises the need, in line with international best practice, to move to a more sustainable, planned and risk-based approach to dealing with significant flooding risks. The Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of FRMPs that set out the preferred feasible measure that can manage the flood risk in each of the 300 areas. The CFRAM Programme is the principal vehicle for implementing national policy on flood risk management and the EU Floods Directive, To date the CFRAM Programme has involved: detailed modelling and mapping in each of the 300 AFAs, including surveying and modelling of 6,700 km of watercourse and 9,400 km2 of floodplain, the production of approximately 40,000 individual flood maps, including those required by the EU Floods Directive, including maps of flood extent, depth, covering three probabilities of flooding, 55

58 extensive and widely advertised public consultations held for all AFAs, meeting local representatives, local populations, community groups to explain the CFRAM Programme, as well as exhibiting and proactively discussing draft flood maps and to gain any additional local insight and knowledge to inform their development, completed, on 23rd December 2015, a statutory public consultation on the draft flood maps, that provided additional comments and feedback. Local Authorities provided comments prior to the end of January All feedback received during the draft flood maps consultation period formed part of the process of finalising the flood maps, and a further round of public consultation in early 2016 in the AFA communities on the engineering options assessed for that area. The final element of the Programme that identified the feasible measures to address the assessed flood risk in each of the 300 at risk areas was launched for public consultation from 15 th July The consultation is very informative to help finalise the FRMPs. Feasible measures in the FRMP range from those that: provide long term sustainable management of flood risk in specific locations, can help to offer protection from the risk of flooding, and would help to promote an efficient response to flooding to reduce its impact. Accordingly, some measures when fully implemented will benefit all areas at risk from flooding, including those that are not AFAs. Feasible measures will not negatively impact on the flood risk to surrounding areas. The OPW is on target to finalise the FRMPs by Spring 2017, for subsequent approval by the Minister for Public Expenditure and Reform. The OPW will continue to work with other statutory bodies and the Shannon Flood Risk State Agency Co-ordination Working Group (for the Shannon CFRAM Study) to inform the FRMPs and their implementation. Further details on the CFRAM Programme are available on the dedicated website 56

59 4.3.2 Prioritising Feasible Flood Risk Measures Amongst the feasible measures that may form part of a flood defence scheme, as part of the implementation of the FRMPs will be structural defences built through the OPW s Arterial Drainage (Amendment) Act, 1995, Local Authorities own powers and/or the Minor Flood Mitigation Works & Coastal Protection Scheme. Prioritising feasible major and minor structural (flood defence schemes) and nonstructural solutions (e.g. flood forecasting and warning etc.) to address the known fluvial and tidal risks will be achieved through a Multi-Criteria Analysis (MCA) framework. The appraisal system developed and tested by the OPW takes into account a wide range of objectives, such as: economic impacts not only in terms of financial damage, but also impacts on transport infrastructure, utilities and agriculture, social impacts such as the risk to people, social infrastructure and local employment, and environmental impacts such as the risk of potential pollution to sites, the flora and fauna and cultural heritage. The aim is to get a balanced view of the overall benefit of any potential measure for each area looking across all of these objectives. The measure that gives the greatest overall benefit per euro would then normally be the preferred measure for that area subject of course to public consultation and the views of the community. The MCA will also help to inform the prioritisation of measures nationally to be implemented. 57

60 4.3.3 Shannon Flood Risk State Agency Co-ordination Working Group The Shannon Flood Risk State Agency Co-ordination Working Group was established by the Government in January 2016 to enhance on-going co-operation across all of the State Agencies involved with the River Shannon. The Group chaired by the Chairman of OPW is represented at CEO level from the OPW, Local Authorities, represented by the County and City Managers Association, Waterways Ireland, Electricity Supply Board, Inland Fisheries Ireland, the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs, Bord na Móna, Environmental Protection Agency and Irish Water. The Attorney General s Office and other Government Departments may also participate, as requested. The Working Group is: building on the existing work and commitment of all the State Agencies involved in flood risk, focussed on ensuring the best possible level of co-ordination between all statutory bodies involved in flood management on the Shannon, and solutions focussed, designed to deliver the highest level of efficiencies to add value to the CFRAM Programme. The Group held three Open Days on its work programme to discuss the role and work of the Group with the public. The Group has identified opportunities for further co-ordination, for example: timing and approach to delivery of individual annual programme of works on channel maintenance and works, sharing of forecasting data from the Electricity Supply Board (ESB) and the OPW, plans for emergency response during flood events, possible additional measures such as lowering lakes levels prior to the Winter and use of cutaway bogs during flood events, and planned delivery of the measures in the FRMPs for the Shannon catchment. 58

61 On 18 th October 2016, the Group agreed to trial the lowering of the lake levels in Lough Allen to help mitigate potential flood risk for this Winter. From the analysis completed, this may have a small positive impact on the extent of certain flood events that might occur during a Winter. This is to be achieved through protocols to be agreed between the OPW, the ESB and Waterways Ireland with input from the relevant Local Authorities. The modelling and analysis completed shows that this action can only be done in specified conditions to avoid causing or exacerbating flooding downstream and this trial will need to be carefully monitored. The Group has also agreed to evaluate the benefits from any short and medium term programme of localised dredging and any future piloting to remove some pinch points along the Shannon. Information about the Group is available on the OPW website, Prioritising Protection for at Risk Properties not part of the CFRAM Programme The PFRA, published in March 2012, was a very cautious and indicative exercise based on initial and not detailed modelling, historical records and consultation. This identified preliminary properties at potential significant risk from flooding. It was not an exercise to confirm that risk, but the objective of this preliminary exercise was to help identify possible locations that would require further detailed assessment, through the CFRAM programme. The majority of the indicative properties identified through the preliminary exercise have benefited from the detailed CFRAM modelling and the FRMPs will identify and inform the feasible solutions for these. The OPW s 2009 Minor Flood Mitigation Works & Coastal Protection Scheme provides a mechanism, through the Local Authorities, to manage the risk from flooding to remaining properties identified through the preliminary assessment in cases where the Local Authorities can identify feasible works. 59

62 For some of these remaining properties (not already protected through the Minor Works projects completed) feasible protection may involve individual property protection. In very rare cases voluntary relocation may be considered, but these have not been identified as measures through the FRMPs. To optimise benefits from state investment to all communities and homeowners structural defences remain the preferred option for Government investment where they are feasible. All other measures should be prioritised by the benefit they accrue from the proposed investment Groundwater Flooding Unlike river or coastal flooding, where the floods are concentrated along a river or coastline, groundwater flooding is more widespread and is controlled by regional and local geology. Groundwater flooding predominantly occurs in the karstified limestone of West and North-West of Ireland and has historically been most severe in the Gort lowlands in Co. Galway. Rural areas are predominantly impacted by floods, which are typically linked with seasonal lakes known as turloughs. Excessive flooding in turloughs rarely poses a risk to life but does cause damage to properties and prolonged disruption due to the relatively long flood duration. Groundwater flooding, such as that from turloughs, has caused extensive and prolonged flooding. The floods from turloughs in the West of the country following the Winter 2015/2016 covered large areas of land, cut off many local roads, and have continued to threaten properties many months after the river floods have subsided. While the numbers of properties at risk from groundwater flooding are small relative to the number at risk from rivers and the sea, the suffering and inconvenience caused is exacerbated by the prolonged nature of the flooding. 60

63 The OPW and Geological Survey of Ireland (GSI) both recognise that the issue of flooding from turloughs needs further investigation to determine more accurately the areas potentially at risk, both now and those that could become at risk in the future given the potential impacts of climate change. The GSI has recently commenced a three-year project on groundwater flooding related to turloughs. This project will both provide an advisory service and collect valuable flood data from high priority groundwater flooding sites in the Shannon Catchment and Gort lowlands. The GSI's collaboration with Local Authorities and the OPW will help to effectively understand the subsurface role in flood risk zones and assess potential solutions. 4.5 Reducing the Timeline for Delivery of Flood Relief Schemes It is acknowledged that in relation to some flood relief schemes there has been criticism for the length of time taken to progress the schemes to construction. Major flood relief schemes are complex civil engineering projects which must undergo many stages of implementation involving technical and environmental assessment, public and stakeholder consultation, design development, Ministerial approval, procurement and construction. Each of these stages takes time and the entire process from project initiation to completion can take many years to complete. It is vital that the best possible solution to the flooding problem is found and this requires very detailed analysis of hydrological data and assessment of all possible options and their environmental constraints. The process of procuring contractors to carry out the scheme can also lead to delays. However, recognising the critical importance of ensuring that the time taken to progress schemes to construction is minimised to the greatest extent possible, the following measures are being implemented to assist. 61

64 4.5.1 Role of CFRAM- Impact on Shortening Timeline The purpose of the FRMP is to set out those prioritised and preferred measures that can address the known flood risk for each AFA. These feasible measures have been decided following five years of planning that involved detailed engineering analysis, assessment of the flood risk and options, initial environmental assessment and extensive public consultation. The initial environmental assessment informing these Plans are a Strategic Environmental Assessment and an Appropriate Assessment under the Habitats Directive. The OPW is satisfied that the draft preferred measures in the draft FRMP comply with the environmental requirements. Once the FRMP is finalised, measures involving physical works (e.g., flood protection schemes) will need a detailed design, including further and more detailed environmental assessment before exhibition or submission for planning approval. The measures may therefore be subject to some amendment prior to implementation. However, the degree of detail of the assessment undertaken to date would give confidence that such amendments should generally not be significant and the work completed through CFRAM for each of these 300 areas may reduce the delivery of capital work measures for these areas. These proposed measures will mean that each of the areas will have been advanced to pre-feasibility stage, thereby reducing the time normally taken to get to that stage by between 12 and 24 months. 62

65 4.5.2 Introduction of Framework Agreements The processes of public procurement can be a significant contributor to the delays in delivering flood risk management projects. For contracts with an estimated value exceeding specified EU thresholds, the time allowed for preparation of tenders must be at least five weeks from the publication of the tender documents, even where a shorter timescale would be reasonable and practical. To assist in speeding up the procurement process, OPW will put in place a number of procurement frameworks for services required in the development and delivery of these projects. The frameworks will include engineering, environmental, archaeological and health and safety consultancy services. Each framework will entail a public competitive tender process where service providers who are suitably qualified and who have the required skills and experience can compete for inclusion on a framework panel. Places on the framework will be awarded on the basis of the most economically advantageous tenders. Once the frameworks are established, it will be possible to invite tenders for individual projects from service providers on the relevant framework. The existence of the frameworks will help to shorten the time required for the procurement process in two ways. Firstly, the time allowed for the preparation and submission of tenders for each project will be appropriate to the specific nature and complexity of the individual project and will not be constrained by any prescribed minimum periods. Secondly, the capability and suitability of the service providers will be established during the process of setting up the framework. It will not be necessary to examine the capability and suitability of each tenderer at project stage, thus reducing the time required for evaluation of tenders. OPW will be publicly inviting tenders to initiate frameworks for consultants for the detailed design and environmental aspects of major flood relief schemes for inclusion on frameworks. This will enable the frameworks to be in place and available for use by contracting authorities both the OPW and Local Authorities when the FRMPs are approved by the Minister for Public Expenditure and Reform. These frameworks should allow speedier procurement and appointment of consultants which will allow some reduction in the lead-in time for projects. 63

66 4.5.3 Triggers for Environmental Impact Assessments Delays have been encountered in undertaking emergency flood relief works in certain instances arising from requirements under the planning code and certain EU legislation. Under the existing planning code, there is a presumption that development works require planning permission. However certain developments (e.g. below specified sizes, such as small works with low impact) are exempt from this requirement. Separately there are requirements under EU legislation the Environmental Impact Assessment (EIA) Directive (85/337/EEC) whereby EIAs must be carried out for developments above certain sizes and scale. There is also an expectation that developments below specified thresholds are checked to verify if they have significant environmental impacts and if they do, an EIA must be undertaken. This sub-threshold checking process, to be carried out by planning authorities, is otherwise known as EIA screening. A cross-government Group of Ministers has been convened this year to explore avenues to accelerate implementation timelines for flood related works. One measure arising from this Group to date from the Minister for Housing, Planning, Community and Local Government has been proposed amendments to the statutory requirements under the planning code with a view to assisting in the acceleration of interim flood related works. On 8th November, the Planning and Development (Housing) and Residential Tenancies Bill 2016 was published which includes a provision to introduce new EIA screening arrangements to streamline the process of determining planning consent for, and the subsequent undertaking of works, including emergency flood relief works to be carried out by the OPW and Local Authorities. New screening arrangements for EIAs for flood related works are proposed and mandatory EIA thresholds will also be reviewed which may result in less mandatory EIAs having to be carried out. For this new screening process to have any significant effect in terms of reducing the number of planning applications and EIAs, DHPCLG will, in parallel with the progression of the provisions of the Bill, develop proposed amendments to the Planning Regulations for the purposes of increasing the flood works related EIA thresholds. 64

67 The overall combined effect of these proposed streamlining changes incorporating a new screening process and increased EIA thresholds will mean a reduction in the number of planning applications and EIAs for flood related works, thereby facilitating flood works to be generally undertaken much more speedily than at present, where EIA is screened out. This may help to expedite flood relief works in some instances but not in all cases as it is generally the environmentally sensitive nature of flood relief works rather than thresholds which determine the need for full EIA. Under the Bill, the new system of stand-alone EIA screening may operate in parallel with the existing system for Appropriate Assessment screening under the EU Habitats and Birds Directives. 65

68 4.6 Non-Structural Measures to Support At Risk Properties The CFRAM Programme has identified that it is feasible to build a flood defence scheme for 95% of at risk properties within the CFRAM area. The Group has considered non-structural flood mitigation measures that can help mitigate the flood risk and damage to other households at risk from flooding and the possibility of Government support for these Individual Property Protection Government s historical approach to the defence of flood risk has focused on publicly funded community-level flood defence solutions involving for example, the construction of flood defence walls or embankments, upstream storage and channel widening and lowering. The benefits of these large-scale flood defence systems outweigh those that may be secured through individual property-level protection. Therefore, to optimise benefits from state investment for flood defence measures, community level structural defences remain the preferred option for Government investment where they are feasible. The introduction of Individual Property Protection (IPP) as a feasible measure may be used to mitigate flood risk to residential property at locations where traditional flood defence schemes are not feasible and possibly are not likely to be constructed in the foreseeable future. There are a broad range of IPP measures that can be categorised as: flood resistance measures where the benefit of each is location specific. Some of these measures include demountable or automatic flood door, air brick cover/selfclosing Air Brick, sewerage bung, toilet pan seat, non-return valve, waterproof external walls and repointing walls, and flood resilience measures are not location specific and typically more expensive options if retrofitted. Some of these measures include tiled flooring with rugs (as opposed to timber floors and carpets), water resistant wall plaster, upvc external and internal doors and frames and skirting boards, raised electrical sockets and supply boards. 66

69 IPP flood resistance measures rely upon a flood forecasting or alert system to allow home owners sufficient time to install IPP measures. IPP cannot guarantee that flood water will not breach the IPP measures. Hence IPP can help to mitigate the amount of damage that would otherwise occur in their absence but they cannot guarantee that the property will not experience some flooding. Importantly, some properties will not be suitable for IPP due to factors such as the duration and level of peak flooding, the condition of the fabric of the building, property isolation, cost/benefit considerations, etc. It should be noted that property level flood resistance measures cannot be assumed to provide protection for all depths of flooding as structural damage to the walls of the property can occur due to excessive differential pressures caused by the loading of the water. In general, a threshold of some 600mm (some 24 inches) is broadly accepted as the standard in this context. Installing IPP on properties above those depth levels could not only lead to flooding but could cause structural damage to the property. The introduction of any support for home owners to install IPP as a feasible flood risk measure is not a replacement for major and minor traditional community-level solutions. Therefore, and in the first instance any Government investment in IPP must be fully informed by the FRMPs and proposals by Local Authorities for future local defence works including those through the Minor Works Scheme. Given the technical complexity to ensure that the IPP flood resistance measures is right for each home, there is no one size fits all IPP solution. Any IPP solution is specific to each property and must be informed by a person with the requisite skills and technical knowledge of industry standards to carry out an assessment of the property to determine if it is suitable for IPP and to recommend the types and specification of IPP resistance measures that are considered necessary and appropriate to protect the property. Some international experience suggests that the average cost of a resistance package for a typical residential property is some 7,

70 Given the complexity of accurately surveying properties for suitable measures and potential costs, the Group is continuing to monitor progress on the two pilot IPP projects announced by Government on 26 th January These are community based pilots to inform the mechanism to deliver IPP as part of a community based approach or scheme and also the potential costs and benefits attached to IPP for areas where a flood defence scheme is not likely to be completed for some time. These pilots are: Kilkenny County Council, with funding from the OPW has procured consultants to carry out a pilot project on improving flood resilience in Thomastown and Graiguenamanagh. The study aims to investigate how a community based response to flood events can be facilitated by improving the resilience and preparedness of the local community to deal with flood events and involves surveying properties to assess the potential for appropriate IPP options for the community. The consultants have commenced the process of carrying out the requisite surveys and are scheduled to produce their initial feasibility report with costed options from the end of 2016, and Mayo County Council and the OPW are working in collaboration to progress a scheme for the installation of flood gates for some properties, identified by the community in Crossmolina, as an interim measure to help mitigate any further flood damage pending the completion of the community wide defence scheme for the town. The flood defence scheme is due to commence in 2018 at the earliest. Mayo County Council has carried out a survey of households in the town and has received expressions of interest from 60 homeowners for the installation of flood gates. The OPW has appointed consultants to carry out surveys of individual properties to determine their suitability for flood gates. This survey is now in the final stages of completion, and the resulting findings will be used by Mayo County Council to procure gates for the selected properties. The outcomes from these Government pilots will be available from the end of This data and analysis will fully inform consideration of the appropriate criteria, costs and administration for all aspects of any Government supported IPP scheme. 68

71 Homeowners and landlords may avail of the Home Renovation Incentive (HRI) which provides tax relief for homeowners and landlords by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a person s main home or rental property. The homeowner or landlord must spend over 4,405 (before VAT) per qualifying property to be eligible. While there is no upper limit on expenditure on qualifying works, the tax credit will only be given in relation to a maximum of 30,000 (before VAT at 13.5%) per qualifying property. The tax relief is by way of an income tax credit, split evenly over the subsequent two years, at 13.5% of qualifying expenditure. Works which are aimed at preventing the risk of flooding, where they otherwise meet the terms of the Incentive, will qualify for the relief. In Budget 2017, HRI was extended for two more years, until 31 December Voluntary Homeowner Relocation Scheme The Government has introduced once off voluntary home relocation schemes in the past. Earlier schemes provided financial assistance per property ranging from 71,000 to 230,000 depending on location; and on average 160,000 per property. These earlier schemes were not informed by a planned and prioritised response to flood risk management. The CFRAM Programme now provides the evidence and opportunity to inform a planned response to managing flood risk. Hence, the introduction of any pre-assigned voluntary home relocation scheme in the future must be prioritised by the benefit to investment that accrues. As with IPP a proposal for a voluntary home relocation should only be considered when all other options that return greater benefit have been fully assessed. It is acknowledged that voluntary home relocation is a measure of last resort for homeowners. The FRMPs identify at risk properties to be protected by community defence schemes. These together with future investment in Minor Works by Local Authorities and the introduction of any IPP scheme will inform cost estimates, criteria and administration for any targeted introduction of a national Voluntary Homeowner Relocation Scheme. 69

72 A scheme would have to be targeted to those properties where flood protection defences or individual property protection are not feasible for social, economic, engineering or environmental reasons and where the property that must be habitable and capable of human occupation, must be unsustainable due to flooding. Hence a scheme that sets out criteria would have to be very restrictive to be able to identify and assess residential properties that would be suitable for relocation. While the Group is continuing with its consideration of the most appropriate policy response to voluntary home relocation to inform its final Report, it may not be feasible or sustainable for Government to introduce a pre-assigned voluntary relocation scheme for the most isolated affected properties. Once off targeted schemes may be the most appropriate policy response Voluntary Relocation for Properties Affected by Winter 2015/2016. Last Winter was the wettest Winter ever recorded in Ireland with rainfall totals at 189% of normal. This gave rise to floods that are considered to be the worst on record. A small number of those dwellings damaged from flooding may be habitable and capable of human occupation, but are unsustainable due to flooding. The Group believes that it is reasonable for Government to introduce a once off Voluntary Homeowner Relocation Scheme targeted at primary residential properties again damaged by floods in Winter 2015/2016. While any once off targeted scheme can be similar to that which operated in 2009 it will have to be informed by the scale of Winter Floods 2015/2016 and any other changing circumstances to inform a prioritised and targeted approach. Given the knowledge and experience of the Department of Social Protection (DSP), the OPW and Local Authorities administering similar earlier schemes, and that are in a position to identify those properties again affected from flooding last Winter, a joint approach by these Departments/Agencies to the administration of any prioritised and targeted scheme is proposed. 70

73 It is important that any voluntary homeowner relocation scheme to address those affected homeowners from Winter 2015/2016 is a once-off temporary scheme and is prioritised to meet the needs of those homeowners at the greatest risk of flooding and would gain greatest benefit from State support to relocate Voluntary Relocation of Farm Buildings As in the case of voluntary homeowner relocation, the relocation of any farm building would also be a measure of last resort. Similar criteria for assessment as to suitability for relocation would also have to be applied, since in some cases the farm building and related domestic dwelling may be located in close proximity. Each farm building would need to be considered on an individual basis to determine what actually needed to be replaced. Some structures, while flooded may be easily protected from future flooding, while there may be elevated areas close to the farm building, such that only a limited number of structures might need to be moved. It would also have to be determined if irregular flooding of certain structures could be accepted. Accordingly, prior to any voluntary farm building relocation scheme for those again affected by last Winter s flooding being introduced, a decision to relocate any potential farm building will need consideration of a range of issues, including: if the prospective farm building is in close proximity to the domestic dwelling (that too may be identified and prioritised for relocation), individual assessment to determine what actually is needed to be relocated/replaced. Some structures, while flooded may be easily protected from future flooding, while there may be elevated areas close to the farm building, such that only a limited number of structures might need to be moved, if irregular flooding of certain structures could be accepted, and evaluate alternative remedial works, such as protecting the farm building in its existing location. The administrative arrangements for any farm building relocation will have to have regard to any State Aid rules that may apply to funding relocation of these farm structures. 71

74 Given the range and complexity of issues involved, introducing any Voluntary Farm Building Relocation Scheme must be informed through a Working Group comprising representatives from DAFM, OPW and Local Authorities to examine in the first instance, the feasibility of a targeted and prioritised scheme for those farm building worst affected by floods in Winter 2015/2016 and where alternative flood alleviation remedial works and measures are not feasible. 4.7 Staffing Resources within the Local Authorities and the OPW Capital Works Local Authorities have had and will continue to play a critical role in the implementation of flood relief measures both in terms of their own initiatives and works and as part of OPW funded measures. However, as in all areas of the public sector which were subject to the recruitment moratorium over the period since 2009, Local Authorities have suffered significant staffing losses. This has led not only to a reduction in manpower available to Local Authorities, but also to the loss of considerable institutional knowledge. Given the large number of projects which will emerge from the CFRAM process to be implemented over a 10-year timeframe, the OPW will not be in a position to undertake all of these by itself with the limited staff resources available to it. It is essential therefore that the Local Authorities are in a position to play a central role in that implementation process. This is particularly the case as the majority of the projects under CFRAM are likely to fall within the Minor Works (< 0.5m) or small works (up to 5m) categories and would be appropriate for implementation at Local Authority level. The OPW and the Local Authorities (through the Local Government Management Agency (LGMA) and the County and City Managers Association (CCMA)) have had some preliminary discussion in this regard. The Local Authorities, while noting their staffing resource difficulties, have given a positive indication of their willingness to play as full a role as possible in the implementation of the flood relief capital works programme. The OPW in turn has indicated a willingness to consider the possibility of funding project specific engineering staff for the Local Authorities on a case by case basis as an integral part of project budgets or costs. 72

75 In this light, it will be important that consideration and clarification is given as early as possible on which of the emerging CFRAM schemes will be identified as appropriate for progression by Local Authorities as this will aid Local Authorities in planning for the resource requirements, and then allocating resources and addressing shortfalls more quickly Other Measures The introduction of any Voluntary Homeowner Relocation Scheme for those again affected by flooding last Winter will have staff resource implications for the Local Authorities also. If introduced, Local Authorities will be actively considering which homes could be suitable for relocation. It will be essential that Local Authorities have adequate staff resources to ensure that they can carry out this work. The OPW has only limited scope to address in a direct way the staff resource problem faced by the Local Authorities in terms of possibilities for funding project specific engineers as an integral part of flood relief project budgets. In more general terms, the serious challenge faced by the Local Authorities in ensuring adequate staff resources to allow them to discharge their wider flood relief functions and responsibilities requires to be addressed through their overall funding body DHPCLG. The LGMA is currently carrying out a survey of its members regarding current resourcing issues. The results of this survey will further illuminate the precise areas that need further resourcing in Local Authorities. 73

76 4.8 Summary of Flood Protection Policy Measures in Place The OPW s annual arterial drainage maintenance works protects 650,000 acres of agricultural lands and Local Authorities maintain 4,600kms of river channel see Appendix 2. Since 1995 to the end of 2015, the OPW, in co-operation with the relevant Local Authorities, has constructed 37 major flood defence schemes throughout the country, protecting 7,000 properties at a cost of 280m see Appendix 3. As of October 2016, ten major capital flood defence schemes were under construction, two more were due to commence later this year and a further 23 schemes were at design development/ in the pipeline see Appendix 4. The OPW continues to work with Local Authorities to support local flood relief projects. Funding of almost 37m has been approved by the OPW to Local Authorities since 2009 under the Minor Flood Mitigation Works and Coastal Protection Scheme in respect of almost 600 local flood relief projects in every county protecting 5,000 properties to date. A 430 million, 6 year programme of capital investment on flood defence measures was announced as part of the Government s overall Capital Investment Plan During this time, the annual allocation for flood defence schemes will more than double to 100m. A Guide to Works and Development Consents for Repairing Infrastructure Damaged in Storms or other Emergency Events was developed and published so that repair and restoration works, as well as new flood and coastal defences, are professionally designed and constructed and informed by ecological advice and assessments. 74

77 On 8th November, the Planning and Development (Housing) and Residential Tenancies Bill 2016 was published which includes a provision to introduce new Environmental Impact Assessment (EIA) screening arrangements to streamline the process of determining planning consent for, and the subsequent undertaking of works, including emergency flood relief works to be carried out by the OPW. This legislation may help to reduce the timeline for delivery of some major flood defence schemes. The Shannon Flood Risk State Agency Co-ordination Working Group has met on five occasions during 2016, published and consulted on its 2016 Work Programme and is solutions focussed and is adding value to the Shannon CFRAM by ensuring the best possible level of co-ordination between all statutory bodies involved in flood risk management on the Shannon. The Homeowners Renovation Incentive (HRI) scheme extended in the Budget 2017 enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work that is carried out on their main home or rental property by taxcompliant contractors. Works include those that may be aimed at preventing the risk of flooding on the dwelling. 4.9 Summary of Flood Prevention Policy Measures under Development at this Time While the Minor Works Scheme has been very successful to date, it has been decided to review its operation to see what changes may be appropriate to ensure that the scheme remains relevant to and can continue to support Local Authorities in their work to address smaller scale flooding problems in their areas. It is hoped to have completed the review by the end of The OPW is chairing a cross Departmental Group to clarify the rights and responsibilities of riparian landowners in relation to the maintenance of water course on or near their lands in the context of managing the flood risk. All FRMPs developed through the CFRAM programme have been published since 15 th July 2016 for public consultation. The Plans identify the preferred feasible measures to address and mitigate the assessed flood risk in each of the 300 at risk areas. 75

78 Over the coming months the OPW will finalise the FRMPs and prioritise the roll out of preferred works informed through a Multi Criteria Analysis giving equal weight to the economic, environmental, social and cultural issues to ensure the FRMPs are consistent with the objectives for sustainable development. OPW will shortly be publicly inviting tenders to initiate frameworks for consultants for the detailed design and environmental aspects of major flood relief schemes for inclusion on frameworks. This will enable the frameworks to be in place and available for use by contracting authorities both the OPW and Local Authorities when the FRMPs are approved by the Minister for Public Expenditure and Reform. These frameworks should allow speedier procurement and appointment of consultants which will allow some reduction in the lead-in time for projects. The work of the cross-government Group of Ministers and officials is exploring ways to accelerate the timeline for delivery of flood-related works during the planning, procurement and construction stages. The Group is continuing to monitor progress and outcomes from the end 2016 on the two Individual Property Protection pilots announced by Government on 26 th January 2016 to inform any support by Government for at risk properties where protection through a flood defence scheme is not feasible. The OPW and GSI have recently commenced a three-year project on groundwater flooding related to turloughs, to investigate the issue of flooding from turloughs, the areas potentially at risk and assess potential solutions. 76

79 4.10 Recommendations The Group recommends that any targeted once-off Voluntary Farm Building Relocation Scheme must in the first instance involve an examination of those farm buildings that were worst affected by floods in Winter 2015/2016 and had flooded previously to identify on an individual basis the feasible alternative flood alleviation remedial works and measures and those that remain unsustainable due to their flood risk. 77

80 5. Preparedness 5.1 Overview Flood risk preparedness, response and resilience is a further area of work that was identified for development by the 2004 National Flood Risk Policy Review. This approach seeks to manage and reduce flood risks when and where flood events may occur, rather than trying to prevent flooding from occurring through flood protection. This approach involves: increasing the awareness and preparedness of the public, businesses, farmers and other stakeholders so that they know what to do prior to, during and after flood events to reduce the damages that can be caused by floods, providing flood warning so that the public and response authorities can prepare for and respond to flood events, and ensuring effective flood event response planning by the emergency response authorities, so that the response is effective and timely to reduce impacts on people and property. Overall, this type of measure enhances the resilience of communities to flood events such that they are better prepared for, and can recover more quickly from floods. Much work has been done since 2004 to enhance the application of this approach in Ireland, including: on data by: o launch in October 2006 of the national past flood event database ( to promote awareness of flooding, and o real time water level information on all main river catchments through OPW s portal The OPW operates surface water gauging stations at 390 river, lake and tidal locations nationwide, and water level data from the majority of these stations are now available in real time every 15 minutes. This website proved invaluable in the monitoring of water levels during the Winter floods. 78

81 on flood forecasting by: o initiation of testing in 2009 of the national Tide and Storm Surge Forecasting Service by the OPW, which now provides Local Authorities with two to three days advance warning of impending coastal surge events, o Ireland joined the European Flood Awareness System (EFAS) partner network in 2010, and the OPW is the formal national point of contact for accessing the EFAS services and receiving flood notifications issued where a high probability for flooding is forecast. This is a medium range operational forecasting system (typically from over 2 days to 10 days out) and is based on meteorological forecasts from a number of European centres. The main purpose of the EFAS system across the EU is to complement national and regional flood forecasting services (which are typically short term forecasts). Upon receipt of flood notifications from the EFAS, the OPW advises Local Authorities to carefully assess EFAS forecast information for their respective area, together with any additional rainfall forecasts issued by Met Éireann to inform their decision on whether to issue Local Flood Warnings, and o undertaking a strategic review of options for flood forecasting and flood warning in Ireland (Final Report 2011), that recommended the establishment of a national flood forecasting and warning service. The Government approved the establishment of this Service on 5 th January on public awareness by: o launch of the Plan, Prepare, Protect initiative early in 2006 ( to provide practical advice to the public on how to prepare for potential flooding (revision issued in 2014), and o at a National level, the annual Be Winter Ready Government Information Campaign launched by the Government Task Force on Emergency Planning (GTF) also addresses issues about flood preparation and planning and links into the lead work of Government Departments and Agencies over the Winter months. 79

82 on emergency response by: o preparation of guidelines and templates for flood event emergency response plans in 2008 by the OPW and DHPCLG under the Framework for Major Emergency Management (revision issued in 2013). A revised Multi-Agency Protocol is currently being prepared, and o following the National Emergency Response to the Winter flooding on record from 4 December to 13 January 2016, DHPCLG s National Directorate for Fire and Emergency Management prepared a report reviewing the response to those flooding events, for consideration by the GTF, including identifying learning points which can further improve and consolidate the response to flooding and other emergencies/ crises. 5.2 Forecasting and Warning National Flood Forecasting Service One very important policy initiative decided by the Government on 5 th January 2016 is to establish a national Flood Forecasting and Warning Service. When fully operational, this will be of huge benefit to communities and individuals to prepare for and lessen the impact of flooding. The Government decision provides the opportunity to proceed with a first stage implementation of the service and will involve the following elements: establishment of a National Flood Forecasting Service as a new operational unit within Met Éireann, and establishment of an independent Oversight Unit within the OPW. The service will deal with flood forecasting from fluvial and coastal sources and when established it will involve the issuing of flood forecasts and general alerts at both national and catchment scales. 80

83 A Steering Group, including representatives from the OPW, DHPCLG, Met Éireann and the Local Authorities has been established to steer, support and oversee the establishment of the new service. The Steering Group has met on six occasions, agreed a Terms of Reference and prepared and agreed an implementation plan comprising a number of phases, including an initial set-up phase (scheduled for completion by Q3 2018) and a development and trial phase (scheduled for completion by Q1 2020). Given the complexities involved in establishing, designing, developing and testing this new service, it is anticipated that it will take 4 to 5 years before it is fully operational. In the interim period, existing flood forecasting and warning systems and arrangements will continue to be maintained and enhanced where possible Existing Forecasting Arrangements Under the Major Emergency Management Framework, the Local Authority is the lead agency for flood emergency response and disseminates flood warnings to the other Principal Response Agencies and to the public, as necessary. During periods of increased flood risk, the Local Authority has access to information from a number of sources, e.g. Met Éireann Weather Warnings, EFAS Notifications, ESB Shannon Lake Level forecasts, OPW Tide and Storm Surge forecasts, and OPW real-time water levels. Where EFAS forecasts a high probability of flooding, a Flood Notification may be issued by the EFAS team, in which case this would be disseminated by OPW to Local Authorities. Where forecasts indicate a significant risk of widespread flooding, the National Emergency Co-ordination Group (NECG) may be convened by DHPCLG which is Lead Government Department for response to flooding at national level. 81

84 When convened, one of the key tasks of the NECG is to monitor the current and forecast conditions and take appropriate action, including disseminating alerts, warnings, public information and advice. In conjunction with the above the following new related arrangements are currently under development: a new system has been put in place to enable Local Authorities to have direct access to the EFAS web portal. This enables Local Authorities to access more detailed, timely and improved information concerning forecast flood events by EFAS and to gain an improved understanding of any associated EFAS Flood Notifications, in recognition of the timescale required to develop the full operational capacity of the service, and mindful of the pressing national requirement for such a service, the National Flood Forecasting Service Steering Group is examining options for accelerated capacity development through collaboration with other national meteorological or related service providers who have experience in operational flood forecasting, and the enhanced arrangements are being introduced to relevant personnel in the Principal Response Agencies at the annual Major Emergency Management conference which was held in advance of the coming Winter. 5.3 National Resilience The Government Task Force on Emergency Planning (GTF) is the top-level structure which gives policy and direction and which co-ordinates and oversees the emergency planning activities of all Government departments and public authorities. It promotes the best possible use of resources and compatibility across different planning requirements. The Office of Emergency Planning (OEP) provides a key support role to the GTF. It is responsible to the Minister for Defence for the co-ordination and oversight of emergency planning. Some key activities of the OEP are to refine and develop the arrangements that exist, to continuously improve them through review and revision and to generally provide the basis for an increased confidence in the emergency planning process. 82

85 The OEP encompasses both civil and military staff and is located in the Department of Defence. The GTF is currently preparing a new suite of documents entitled - Strategic Emergency Management: National Structures and Framework. The primary document and associated guidelines set out the proposed national arrangements for the delivery of effective emergency management. They outline the structures for co-ordinating a Whole of Government approach and the framework for achieving a systems approach to emergency management. These documents are intended to foster, at Government / Public Service level, national resilience in the face of emergencies, thus minimising or mitigating the impact of such emergencies. The primary document also recognises the importance of national and community resilience and highlights the responsibility of citizens, families and workplaces to prepare for emergencies by taking reasonable precautions to minimise (and where appropriate, insure against) the consequences of foreseeable or predictable natural events, through enhancing the resilience of the home and business. Following the review of the Severe Weather events and Flooding of 2009/ 2010, an annual Be Winter Ready campaign has been conducted aimed at enhancing resilience. Specific campaigns have been recommended/ aimed at sectors such as Education, Agricultural and Business. The OPW has also produced specific information to assist communities and householders prepare for and respond to flooding. Following a review of the last Be Winter Ready campaign, this Winter s campaign is targeting flood awareness and preparations and to assist highlighting the Road Safety Authority campaign on driver behaviour during severe weather. The Be Winter Ready campaign was promoted at the National Ploughing Championships and will be jointly launched at the GTF meeting on 9 November 2016 by the Chair of the GTF and the relevant Ministers responsible for flood response and awareness and for road safety. The launch will be followed by a whole of Government information campaign over the following Winter months both nationally and locally across all Government Departments and Agencies. 83

86 5.4 Community Resilience A high level of Community Resilience was visible during the recent flooding events where communities and individuals worked successfully, over a sustained period in many cases, with the Local Authorities and other bodies to defend the homes and properties at risk of flooding. People came to the assistance of their neighbours and helped ensure that normal life continued, as much as possible, in flood affected areas. The Framework for Major Emergency Management, which was developed and approved in 2006, highlights the importance of resilient communities and notes that the Principal Response Agencies (PRAs) can play an important role in the development and strengthening of resilient communities as part of their mitigation efforts. Educating and informing the public on possible emergencies is a vital element of that process. Community resilience is, therefore, one of a range of community development issues that should be addressed at a local and regional level between the Local Government structures available to the State and the PRAs. The establishment of a Flood Forecasting Service will assist with building community resilience in the future. Following the Government meeting of 5th January 2016, DHPCLG has researched how Community Resilience may be advanced within the overall field of emergency management and is further developing this aspect as part of the overall review of the Framework of Major Emergency Management. Some principles which will guide this work are apparent. These include: community resilience and engagement is applicable at each of the stages of emergency management (risk assessment, mitigation, planning and preparedness, response and recovery), building from the work which has been undertaken already including the Be Winter Ready campaign and OPW s flooding information website to strengthen resilience in communities exposed to flooding risk, working with/ engaging with communities should be about understanding/ explaining risk and identifying vulnerabilities, which can vary significantly from place to place, 84

87 those organisations which have the expert knowledge should lead community resilience initiatives for their areas, including OPW in flood risk identification and mitigation measures, and given the localised nature of flood risk and vulnerability, OPW will also need to engage with Local Authorities and the other PRAs so that their generic Risk Assessments and Flood Emergency Plans can take account of the most up-to-date CFRAM information. The EU funded Flood Resilient City initiative which Dublin City Council is leading in Ireland is also providing valuable lessons to inform developing community resilience against flooding. Supporting communities to become more aware of and build resilience to flood events will be an important part of the non-structural solutions for flooding in the future, as well as harnessing the potential of communities in the response phase. It is clear that, in addition to sectoral designations as communities, those who are at risk of flooding in different parts of the country may be defined as communities also and would benefit from a resilient community approach. 85

88 5.5 Response to Flooding Emergencies Local Response to Floods Local Authorities are designated as the lead agency for response to flooding events. The generic emergency response and co-ordination arrangements set out in A Framework for Major Emergency Management have been adapted and honed in light of experience since they were adopted in The generic arrangements in the Framework were used and proved their effectiveness as the response at the local level is acknowledged to have worked very effectively, despite the scale and prolonged nature of the emergency last Winter. In addition to the main Framework, scenario specific arrangements have been developed and Guidance has been published by the National Steering Group on Major Emergency Management, which oversees an on-going programme of development of emergency management among the PRAs. This includes Guidance Document 11 A Guide to Flood Emergencies (July 2013). This is a revision of a 2009 document taking account of previous flooding experience. At local level, in all affected areas, Local Authority Flood Assessment Teams are activated and operate on a daily basis from the beginning to the end of the flood event (for example last Winter from early December 2015 until mid-january 2016 approximately). These teams anticipate problem areas, based on Met Éireann weather forecasts and EFAS flood notifications received, and put local response and co-ordination arrangements in place. Protocols for inter-agency collaboration with the other PRAs, namely An Garda Síochána and the Health Service Executive, are also activated to co-ordinate the local response. Local Authority staff work to protect communities, infrastructure, property and businesses in their area. The Voluntary Emergency Services, Civil Defence, Coast Guard, Mountain Rescue and others are mobilised to assist the Principal Response Agencies. Local Authorities can also be assisted by the Defence Forces who bring considerable resources to bear in assisting in the response and in defending homes and property. They further support local communities by providing transport services in areas that become inaccessible and helping ensure vulnerable individuals are assisted. 86

89 A range of other Agencies provide support and assistance locally as part of an emergency flood response, including the OPW National Response DHPCLG is designated as the Lead Government Department for, inter alia, co-ordinating the response to the Flooding and other Severe Weather Emergencies at national level. In this role last Winter, in response to warnings from Met Éireann and OPW, that Department convened a National Emergency Co-ordination Group (NECG) for Flooding in the National Emergency Co-ordination Centre in anticipation of the adverse weather. It continued to meet on a daily basis, dealing with emergent issues arising which require a co-ordinated Whole of Government national response. The NECG assessed the threat level, based on the weather forecasts and shared information on river levels and flood forecasts across all bodies, especially the Local Authorities. This encompassed work that would normally be provided by a National Flood Forecasting and Warning Service. As demonstrated last Winter, the early activation of the NECG greatly assists the timely and effective response at a local level. Recent events have highlighted issues regarding the necessity to quickly release funds to deal with emergencies such as flooding. OEP reports that as part of the work of the GTF on the drafting of a Strategic Emergency Management (SEM): National Structures and Framework document, it is developing a Chapter on Recovery which will seek to address a number of issues on how the recovery phase is managed. This will include, inter-alia, proposals for addressing how the recovery phase and the transition of response to recovery are managed and how funding for emergencies, particularly recovery costs, may be handled in the future. The Draft SEM document will be brought to Government for its approval later in

90 5.6 Summary of Flood Preparedness Policy Measures in Place Many preparedness measures are in place to manage and reduce flood risks when and where flood events may occur, including: real time data on water levels ( and historical flood data ( forecasting through Met Éireann, the OPW s Tide and Storm Surge Forecasting Service (provides Local Authorities with two to three days advance warning of impending coastal surge events) and OPW s national point of contact for accessing the European Flood Awareness Service (EFAS) that is a medium range operational forecasting system (typically from over 2 days to 10 days out) and is based on meteorological forecasts from a number of European centres, and public awareness through Plan, Prepare and Protect and and the OEP s Be Winter Ready campaign that is focussing on flooding in Winter 2016/2017. DHPCLG is designated as the Lead Government Department for, inter alia, co-ordinating the response to the Flooding and other Severe Weather Emergencies at national level. 5.7 Summary of Flood Preparedness Policy Measures under Development at this Time The National Directorate for Fire and Emergency Management has reviewed the response to flooding events from 4 December 2015 to 13 January 2016 and prepared a report identifying learning points which can further improve and consolidate the response to flooding and other emergencies/crises. Implementation of the recommendations of this Report will be undertaken by the relevant bodies and overseen by the Government Task Force on Emergency Planning. The Government Decision of 5 th January 2016 agreed to the establishment of a National Flood Forecasting and Warning Service (NFFWS), and noted that the Flood Forecasting Service (FFS) would be a new operational unit within Met Éireann with guidance for standards and performance overseen by the OPW. Options are being examined for prompt capacity development through collaboration with other national meteorological services. 88

91 New arrangements have been put in place with the current flood forecasting process to include direct access to the EFAS web portal for Local Authorities. DHPCLG has researched how Community Resilience may be advanced within the overall field of emergency management and is further developing this aspect as part of the overall review of the Framework of Major Emergency Management. The Government Task Force on Emergency Planning is drafting a Strategic Emergency Management (SEM): National Structures and Framework document. This is to include a Chapter on Recovery which include, inter-alia, proposals for addressing how the recovery phase and the transition of response to recovery is managed and how funding for emergencies, particularly recovery costs, may be handled in the future. 89

92 6. Supporting Communities During and After a Flood Event 6.1 Support for Householders- Department of Social Protection s Humanitarian Assistance Scheme Overview of the Humanitarian Assistance Scheme DHPCLG is the lead Department for response to severe weather emergencies and the OPW has responsibility for capital flood relief activities. However, the Department of Social Protection (DSP) has an important role to play in assisting households in the immediate aftermath of emergency events such as flooding under the Humanitarian Assistance Scheme 1 The DSP Humanitarian Assistance Scheme, which is means tested, is available to assist people whose homes are damaged by severe flooding and who are not in a position to meet costs for essential needs, household items and in some instances, structural repair. DSP, in 2012, sought sanction from Government to activate the scheme in any future cases which facilitates an immediate response for householders following such devastating events. The scheme is administered by DSP s local Community Welfare Service (CWS). As part of the emergency response CWS staff provide reassurance to householders that financial support is available and are proactive in assessing and meeting the demand for assistance by the public through making contact with persons affected, undertaking home visits and establishing emergency clinics as necessary. The means assessment for Humanitarian Assistance is more generous than that applied under means tested Social Welfare payments in general. Assistance can be provided to non-social Welfare recipients and even persons on higher income can receive some support under the scheme

93 In dealing with emergency events of this nature, DSP generally adopts a three stage approach as follows: Stage 1 is to provide emergency income support payments (food, essential clothing and personal items) in the immediate aftermath of the event. A relatively small amount of financial assistance is provided initially with payments generally ranging from 100 to 500 depending on family size. Payments can also be made, for example, towards the cost of hiring dehumidifiers and costs of fuel to heat homes/maintain water pumps etc. Stage 2 generally involves the replacement of white goods, basic furniture items and other essential household items. It is not until the flood water abates and houses dry out that the full extent of the damage to homes will become known. Stage 3 is to identify what longer term financial support or works are required. It could take several months before this stage of response commences and this involves a cross Departmental/Agency response. Works carried out can include plastering, dry-lining, relaying of floors, electrical re-wiring and painting. Where appropriate, the Department would liaise with Local Authorities and the OPW. The scheme is demand led and there can be a time lag between the flooding event and actual claims for financial support. Expenditure under the scheme increases significantly as houses dry out and the repair work gets underway. The Government has not set a limit on the amount that can be paid to an individual household under this scheme. Levels of payment depend on the relative severity of damage experienced and the household s ability to meet these costs ensuring that the funding is appropriately targeted. There has been some 4 million spent under the scheme from 2009 to end Assistance is not provided under the Humanitarian Assistance Scheme for losses which are covered by insurance or for commercial and business losses, losses covered by an insurance policy or any loss or damage to private rented accommodation or Local Authority accommodation. 91

94 6.1.2 Background to the Scheme The DSP has had overall responsibility for policy in relation to humanitarian aid since At that time, it was considered that humanitarian assistance would be required where a particular event had caused loss and damage to a large number of people on a widespread scale and the support required was greater than can be coped with by the usual assistance mechanisms. A decision to provide humanitarian aid to people in an area affected by an emergency event would be made by the Government. When circumstances arise that require assistance, the Government would be requested to provide funds. There were several high-profile emergency events post-2004 including flooding in the southern counties in 2004, periodic flooding in Clonmel, and landslides in Mayo in 2003 and again in 2007 and flooding in Fingal, Dublin in At that time, the Department through the response of Community Welfare Officers 2 responded to each of these events through the provision of emergency assistance, including payment of Exceptional Needs Payments (ENPs) and Urgent Needs Payments (UNPs), to meet householder immediate needs. The typical response to these events was to meet the immediate needs of the households in question through the provision of financial assistance towards food, clothing, fuel and household goods. The Department through the CWS would also have been involved in many local emergency events that would not have received significant media attention but nonetheless required a local response. The DSP Humanitarian Assistance Scheme was approved by Government in November The Government authorised the spending of up to 10 million. Payments were made in 2009/10 to householders mainly resident in Galway and Roscommon, who suffered damage to their homes following the flooding in November In the immediate aftermath of the severe flooding experienced in October 2011, the Government activated the scheme to assist households affected by that 2 Prior to 2011, Community Welfare Service was administered by the Health Service Executive 92

95 flooding. Payments in 2011 were mainly to householders in Dublin and Monaghan who suffered damage to their homes following the flooding in Autumn In 2012, the Government again activated the scheme in response to flooding in Cork and DSP received sanction to activate the scheme in any future cases which facilitates an immediate response for householders. In 2012, payments were mainly to householders in Dublin, Monaghan and Cork who suffered damage to their homes following the flooding in Autumn 2011 and June In 2013, the majority of payments were to households in Dublin and in Galway. In response to Winter Floods 2015/2016, records to September 2016 show that payments have been made to 560 households with expenditure of 1.8 million. DSP staff continue to engage with a small number of affected persons in the provision of the necessary longer term supports that are required. DSP has awarded a contract for the provision of loss adjusting services in respect of the humanitarian assistance scheme to support the assessment of damage to individual households in cases where structural repairs are necessary and the cost is estimated in excess of 5,000. To end September 2016, 59 cases had been referred to the loss adjusters as part of the assessment process Who can qualify for the Humanitarian Assistance Scheme The Humanitarian Assistance Scheme, which is means tested, is available to assist all people whose homes are damaged by severe flooding and who are not in a position to meet costs for essential needs, household items and in some instances, structural repair. This includes farmers homes and where the applicant may be self-employed. The means assessment for Humanitarian Assistance is more generous than that applied under means tested Social Welfare payments in general. Assistance can be provided to non-social Welfare recipients and even persons on higher income can receive some support under the scheme. Assistance is not provided under the Humanitarian Assistance Scheme for losses which are covered by insurance or for commercial and business losses, or generally any loss or damage to private rented accommodation or Local Authority accommodation. 93

96 Following an emergency flooding event, the DSP focus is to ensure that persons immediate needs are supported. Emergency stage 1 payments covering items such as clothing, food and fuel will be provided to tenants in rented accommodation. However, humanitarian assistance payments under stages 2 and 3 are not payable to private rented landlords. Emergency payments under the DSP UNP scheme may be considered in exceptional circumstances for landlords to cover essential items that have been damaged by flooding. The normal conditions applying to the UNP scheme would continue to apply, including that any subsequent insurance recovery would be used to reimburse the Department. Consideration would also be given to the ability of the landlord to meet these immediate costs Future Role of the Humanitarian Assistance Scheme DSP staff are highly trained and experienced in providing financial supports, including immediate emergency supports, to persons experiencing difficult and often unexpected circumstances throughout their lives through unemployment, illness and events such as flooding and severe weather, all of which can have serious financial and emotional impacts on householders. DSP will continue to monitor the requirement for financial support for householders affected by serious flooding and will take the necessary steps to ensure that the Humanitarian Assistance Scheme is immediately activated as required and the relevant CWS staff are in place. The assessment of the public need will continue to be monitored including the requirement for home visits and the establishment of emergency clinics. The provision of timely information to householders will also be examined and kept under review. The NECG for Flooding ensures that the necessary information is provided to relevant Departments and Agencies and the co-ordinated efforts between these organisations at both national and local level is key to the provision of swift supports to affected persons. The provision of timely and accurate information to the public and their representatives is essential to ensure that the issue of misinformation and confusion does not arise in respect of the various Government supports available. 94

97 In the aftermath of the flooding in December 2015/January 2016, DSP officials continue to engage with a small number of affected households in the provision of the necessary longer term supports after houses have dried out covering the replacement of furniture and white goods and in some cases, structural repairs. DSP continue to engage with the Local Authorities and other agencies during this process to ensure a consistent and coordinated Government approach. 6.2 Response by Department of Agriculture, Food and the Marine to flooding DAFM has an important role to play in assisting the farming community in the immediate aftermath of emergency events such as flooding. Assistance can be provided through a range of measures ranging from the provision of guidance and advice to the introduction of targeted schemes of financial assistance Assistance Provided for Flooding Event Dec 2015/Jan 2016 DAFM does not have a pre-arranged scheme to provide support to famers affected by flooding. Instead DAFM provides targeted support and assistance to farmers in affected areas. As an example, the support and assistance provided in response to the severe flooding event of December 2015/January 2016 that impacted a number of farmers particularly in the west and counties in the River Shannon catchment area included: i. Temporary Movement of Livestock The Department relaxed a number of the rules around the movement of animals where the welfare of lives of animals was threatened. This facilitated temporary movement of some livestock. ii. Flooded Slurry Tanks In the event of flooding of slurry tanks farmers were provided with guidance allowing the removal of flood water from tanks. 95

98 iii. Farm Inspections Force majeure provisions provided in the EU Regulations were applied by Department Inspectors and sensitivity shown where flood damage is found e.g. fencing missing. Where significant flooding was evident on farms, inspections may have been deferred. iv. Animal Welfare Helpline For all animal welfare issues connected with severe weather, farmers were advised to contact the Department s Animal Welfare Helpline which operated 24/7 every day over the Christmas and New Year periods. v. Advisory Helpline. Teagasc made available an advisory helpline to farmers (including non-clients) to provide advisory support to farmers impacted. vi. Emergency Feed Assistance. Teagasc personnel conducted a survey of the areas worst affected by Storm Desmond. DAFM personnel undertook visits to affected farmers with a view to assessing their immediate feed needs. Arising from these visits, over 130 individual farmers were allocated feed under the Animal Welfare Emergency aid. Assistance from the Defence Forces and the Air Corps, delivered animal feed to 12 farmers affected by the flooding in South Galway. Additional feed was also provided under this emergency response Financial Aid Schemes Administered by DAFM in response to the flooding event of December 2015/January 2016 i. Fodder Aid Scheme 2016 to replace lost/destroyed fodder on farms In view of the protracted period of flooding on farms and the likely long term damage to fodder supplies a Fodder Aid scheme for flooded areas was introduced. The scheme targeted farmers impacted by flooding and offered support based on the replacement value of fodder damaged on the holding. Silage, hay, straw and concentrates were included where there was evidence of damage caused by flooding. 96

99 ii. Emergency Flood Damage Relief Scheme The Emergency Flood Damage Relief Scheme was introduced to cover a very small number of farmers who have experienced extreme hardship, including through the loss of livestock. DAFM allocated additional funds to Local Authorities over the last few years to repair storm damage caused over recent Winters, to piers, slips and harbours owned by them. Further funds have been made available under the 2016 Fishery Harbour and Coastal Infrastructure Development Programme for this purpose. 6.3 Once Off Emergency Humanitarian Assistance Scheme for Small Businesses, Community, Voluntary and Sporting Bodies Assistance Provided In response to the damage caused to business properties as a result of Storm Desmond at the beginning of December 2015, the Government decided on 8 th December 2015 to allocate a fund of 5 million to be distributed as emergency assistance for small businesses which had suffered damage to their property due to the floods. The Irish Red Cross agreed to administer the temporary scheme which was designed to provide emergency humanitarian support to small businesses that were unable to secure flood insurance and suffered flood damage to their business premises as a result of the storm. The scheme provided a once-off ex-gratia contribution towards the costs of returning business premises to their pre-flood condition including the replacement of flooring, fixtures and fittings and damaged stock. The scheme did not provide a contribution to loss of earnings or loss of business good-will, nor was it intended to provide an alternative to insurance cover. The scheme was targeted at small businesses (up to 20 employees) who were trading in a rateable premises at the time of the flooding. The scheme had two stages and the total level of support available for both stages combined was capped at 20,000 per property: The first stage provided an immediate contribution of up to 5,000 per property following a quick verification process undertaken with the assistance of Local Authorities. 97

100 In the event that the business incurred significant damages above 5,000, the second stage provided a means to seek further support. 5,000 was paid immediately on verification of the details supplied. The outstanding balance of amounts up to 20,000 per property was paid following a detailed assessment of the application. On 5 th January 2016, the Minister for Defence informed the Secretary General, Department of Defence that the Government had decided to expand the scheme to include flooding events from all of the storms that occurred in the period from December 2015 to January At that time the Government also decided to expand the scheme to cover the premises and contents of community, voluntary and sporting organisations who could not obtain flood insurance and were flooded during that period. On 1 st February 2016, the Minister for Defence decided to further expand the criteria to allow small businesses whose premises were not subject to commercial rates to receive a contribution under the scheme. It was also decided to allow businesses who had received an initial contribution and had repaired or reinstated their premises and subsequently were flooded again to make a second application for assistance. The scheme remained open for applications for assistance until 21 February Payments totalling more than 3.1m were made by the Irish Red Cross to 357 eligible applicants Future Schemes for Recovery As above, in December 2015 the Minister for Defence agreed, on a once-off and exceptional basis, to bring together proposals and implement the Government decision on administration of this Scheme by the Irish Red Cross. However, the Minister for Defence highlighted the requirement to reappraise the approach for any similar future scheme and that an alternative and preferred statutory basis for implementing such a scheme was in existence. 98

101 The GTF is developing a Chapter on Recovery for inclusion in a Strategic Emergency Management (SEM): National Structures and Framework document which will include, inter-alia, proposals for how funding for emergencies, particularly recovery costs, may be handled in the future. 6.4 Insurance and Flooding Introduction The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. In March 2014, a Memorandum of Understanding was signed between Insurance Ireland, the representative body for the insurance industry in Ireland, and the OPW. This Memorandum sets out principles of how the two organisations will work together to ensure that appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. Insurance Ireland members have committed to take into account all information provided by OPW when assessing exposure to flood risk within these areas. The Memorandum came into effect on 1 June, 2014 with an initial tranche of data provided by the OPW to Insurance Ireland in respect of 12 completed flood defence schemes and showing the design, extent and nature of the protection offered by these works. A further tranche of data was provided to Insurance Ireland in January 2015 covering a further 4 completed flood defence schemes. OPW will continue to provide data to Insurance Ireland as flood defence schemes are completed. The OPW has also shared its programme of capital works with Insurance Ireland, Appendix 4. 99

102 Insurance Ireland estimates that flood cover is included as standard in 98% of household insurance policies throughout the country. Insurance Ireland has carried out a number of surveys among its members to ascertain the extent to which flood insurance cover is available in the areas for which OPW has provided data on completed flood defence schemes. The results of the most recent survey provided in January 2016 indicate that overall 83% of property insurance policies in these areas include cover against flood risk. Where the defences are permanent in nature the percentage is 89%; where demountable defences are used, the percentage is 78%. Minister Seán Canney, TD, Minister of State with special responsibility for the OPW and Flood Relief met Insurance Ireland to discuss matters of mutual interest and concern on 6 th July Minister Canney secured a commitment by Insurance Ireland to assess the risk from the deployment protocols, warning systems and emergency response systems in place where demountable defences are utilised. The OPW is liaising with Insurance Ireland to provide it with the details it requires to inform the insurance sector on the successful deployment of these types of defences in schemes throughout the country Department of Finance Report on Insurance and Flooding The role of DOF in this report was to examine the issue of flood insurance availability, to assess options around this issue and to provide a comprehensive analysis of each option with a view to providing a recommendation to Government. The full DOF report on Insurance and Flooding, can be found at Appendix 5 to this report. This report is in five parts: Part I deals with Insurance Provision generally, the Regulatory Framework and progress under the current strategy. Part II outlines a number of options that could improve the availability of flood insurance. Part III provides an analysis, including costing where possible, of each of the options in Part II. Part IV examines flood insurance cover in other jurisdictions. Part V outlines the conclusions and recommendations. 100

103 6.4.3 Options Considered Following an examination of a number of other jurisdictions it was found that policy around the availability of flood insurance falls, broadly, into three categories: Insurance Pool/State Indemnification, Legislative options (compulsory insurance), and Private Sector provision of flood insurance. In examining each of these, a number of assumptions had to be made due to gaps in the data available. Informed estimations were also made around the cost of the average flood claim, the potential number of houses to be covered by any pool/indemnification option based on data provided by OPW, set-up costs of a pool or agency and potential costs to a State backstop in the case of an insurance pool. Under all options, the construction of flood defences would continue as would the sharing of information between OPW and Insurance Ireland to ensure that households in the areas where flood protection was built, obtained the benefit of flood insurance. i. Insurance Pool/State Indemnification The insurance pool option was found to be one that could potentially lead to a considerable financial exposure to the State in the form of a State backstop and additional levies being imposed on household insurance policies at a time of increasing insurance costs. The cost of the insurance pool levy, of between 3% to 5% per household policy (though this could be as much as between 9% and 17% if the demand on the pool were to increase cover to almost 2% of houses, based on the percentage of houses to be covered by Flood Re), would be a minimum cost for that option and would not include the cost of set up or the on-going operational costs, or the additional levy that would be required to pay for reinsurance contracts or State backstop. In the case of Flood Re in the UK the initial estimate for set-up costs was between 6 and 12 million, but costs were finally 21 million, along with a five year lead in time before it became operational. Also, the need for a backstop of, at minimum, between 97 million to 185 million combined with high set up costs, make this a prohibitively costly option. 101

104 ii. Legislative options (compulsory insurance) From DOF s analysis, compulsory flood insurance will have limited impact on the availability of flood insurance and could result in exorbitant pricing for high risk properties. Government and the regulator are expressly prohibited in EU law from controlling pricing. Compulsory insurance on a proportionate basis would also result in increases in premiums for households at low and medium risk of flooding. It is concluded this would be a very costly option, would not control pricing and carries the risk of some insurance undertakings leaving the Irish market. iii. Private Sector provision of flood insurance Private sector provision of home insurance is the current approach with targeted State emergency humanitarian assistance after flood events. The report concludes that, combined with the current Government strategy in place since 2010, which has been focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to mitigating against flood damage, this still remains the best approach. This option has resulted in a trend of increasing level of flood insurance availability in areas where the State has invested in flood defences, both fixed and demountable. The continuation of the current policy of prioritising flood defences in areas at risk of flooding will see increasing levels of cover for households based on the exchange of information between OPW and Insurance Ireland. This approach also ensures the provision of targeted emergency humanitarian assistance for households affected in flood events, which has been shown to work in the most recent flood event in Winter 2015/ Other matters considered An important part of the overall Government strategy is the Memorandum of Understanding between OPW and Insurance Ireland whereby appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. 102

105 6.5 Summary of Support and Assistance Policy Measures in Place The Humanitarian Assistance Scheme, which is means tested, is available to assist people whose homes are damaged by severe flooding and who are not in a position to meet costs for essential needs, household items and in some instances structural repair. DAFM, while not having a pre-arranged scheme does provide targeted response and support to flooding events to support those areas of agricultural production that are most affected from each event. On a temporary and once off basis, the Government decided to allocate a fund of 5 million to be distributed as emergency assistance for small businesses, community, voluntary and sporting bodies which had suffered damage to their property due to the floods of last Winter. The Irish Red Cross Society agreed to administer the temporary scheme which was designed to provide emergency humanitarian support to small businesses, community, voluntary and sporting bodies that were unable to secure flood insurance and suffered flood damage to their premises. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. A Memorandum of Understanding between Insurance Ireland, the representative body for the insurance industry in Ireland, and the OPW ensures that appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. Insurance Ireland members have committed to take into account all information provided by OPW when assessing exposure to flood risk within these areas. DOF has analysed a number of options including examination of practical examples in a number of jurisdictions, to inform Government s policy on flood insurance for the future. Its report and recommendations are set out in Appendix

106 6.6 Recommendations DOF recommends that the current Government strategy in place since 2010 should be continued, which involves working to improve the availability of flood insurance cover by: prioritising spending on flood relief measures by OPW and relevant Local Authorities, and improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in protected areas, complemented as necessary by targeted State emergency humanitarian assistance after flood events. DOF also recommends that the arrangements for data sharing between Insurance Ireland and OPW be strengthened as well as obtaining additional levels of data on the availability of flood insurance through detailed surveys. 104

107 7. Conclusion The role of the Interdepartmental Flood Policy Co-ordination Group is to have regard to the extent of non-structural solutions that will inform the ten-year implementation strategy of the FRMPs and other policies and measures across the different sectors of Government that can benefit communities and individuals directly - to be prepared for and respond to or live with flood risk - are carefully considered. In this report, the Group has identified the wide range of cross sectoral responsibility and policy initiatives that are positively impacting to manage flood risk. The report highlights the significant amount of work and activity that is being undertaken across all areas of Government to address the problem of flooding in an effective and coordinated way. The report sets out a number of recommendations around voluntary relocation of properties and the strategy on insurance for consideration by Government. The Group will continue to monitor and co-ordinate progress of new policy initiatives to inform flood risk management; and to update Government again when the FRMPs (being finalised through the CFRAM Programme) are approved. 105

108 Appendices 106

109 Appendix 1 Notable or Significant Past Floods in Ireland Date Location Type Impacts Nov 1931 Kilkenny Fluvial 100 properties flooded. March 1947 River Nore Fluvial 350 properties flooded in Kilkenny and Thomastown Rivers Shannon & Tolka Fluvial Record levels on the Shannon prior to Nov Nov 1965 River Slaney Fluvial Extensive flooding in Tullow (60 properties) and Enniscorthy. Nov 1980 South West Fluvial Flooding in Mallow, Fermoy and Kanturk (178 properties flooded). Aug 1986 National Fluvial 'Hurricane Charlie' - Extreme events in South Dublin (over 450 properties flooded) and Wicklow (e.g. Dodder & Dargle Rivers). Jan 1995 Kilkenny Fluvial 70 properties flooded. Jan 1996 Clonmel Fluvial 250 properties flooded. Winter 1995 West Groundwater Extensive flooding over prolonged periods. Affected South Galway in particular. Nov 2000 National Fluvial Extensive flooding in South East (over 500 properties flooded in Carrick-on-Suir, Carlow, Clonmel and Tullow) and around Dublin (over 250 properties flooded). Feb 2002 East Coast Coastal 60m damage & at least 1250 properties flooded in Dublin - Flooding up to first floor level in Ringsend - 30 properties flooded in Mornington. Nov 2002 River Tolka Fluvial Repeat event after Nov 2000 along the Tolka, but more severe. Nov 2009 National Fluvial, Groundwater >1,600 properties flooded nationally, with over 700 in Cork City - Approx. 250m insured losses - Many rivers hit record levels - Extensive groundwater flooding in West. 107

110 Date Location Type Impacts Oct 2011 Dublin area Fluvial, Pluvial 2 fatalities - Nearly 1,700 properties flooded - Appx. 130m insured damages. June 2012 South-West Fluvial, Pluvial Intense storm events - Over 170 properties flooded in Clonakilty. Feb 2014 South & West Coast Coastal (Incl. Wave Action) Flooding of properties in Limerick and Cork City Centre - Extensive coastal storm damage, South and West Coasts. December 2015/January 2016 National Fluvial, Groundwater 37 of 75 hydrometric gauging stations in the network registered their highest flood on record. 108

111 Appendix 2 OPW Completed Major Arterial Drainage Schemes Scheme Counties Duration of Works Benefitting Area (Acres) Brosna Offaly, Westmeath, Laois ,200 Glyde & Dee Louth, Meath, Monaghan, Cavan ,300 Feale Kerry ,500 Corrib-Clare Galway, Mayo, Roscommon ,900 Owenogarney Clare ,100 Nenagh Tipperary, Offaly ,500 Deel & Swillyburn Donegal ,500 Shannon Clare ,800 Ballyteigue / Kilmore Wexford ,300 Maine Kerry ,600 Fergus Clare ,400 Inny Westmeath, Longford, Meath, Cavan ,000 Moy Mayo, Sligo, Roscommon ,000 Broadmeadow & Ward Meath, Dublin ,400 Swilly, etc. Donegal ,200 Killimor / Cappagh Galway ,600 Deel Limerick, Cork ,900 Shannon Limerick ,100 Duff Leitrim, Sligo ,600 Corrib-Headford Galway, Mayo ,400 Owenavarragh Wexford ,600 Carrigahorrig Tipperary, Offaly ,800 Boyne Meath, Westmeath, Louth, Cavan, Kildare, Offaly ,000 Groody Limerick ,000 Maigue Limerick, Tipperary, Cork ,500 Corrib-Mask-Robe Mayo, Galway ,000 Boyle Roscommon, Sligo, Mayo ,800 Bonet Leitrim, Sligo ,200 Monaghan Blackwater Monaghan ,850 TOTAL 647,

112 Appendix 3 Major Schemes completed since 1996 Major Schemes completed since 1996 Fermoy South, Co Cork River wad (Clanmoyle), Dublin Clonmel West, Tipperary Carlow, Phase B Clonmel North & East Mallow South & West River Dodder (Tidal), Dublin Tullamore, Offaly River Tolka (Fingal) Mornington, Meath Johnstown, Kildare Derrymullen, Ballinasloe, Co Galway Fermoy North Carlow, Phase A Mallow North Waterford City, Phase 1 Ennis Upper, Clare Rye Water, Leixlip, Kildare River Tolka, Meath River Tolka, Dublin River Nore, Kilkenny City Carrick-on-Suir, Tipperary 110

113 Spencer Dock, Dublin NewcastleWest, Limerick New Ross, Wexford Harry's Mall, Limerick Morrell River, Maynooth, Kildare Clancy Strand, Limerick Maam Valley, Galway Skinkeen Stream, Hazelhatch, Kildare Dunmanway, Cork Dromcollogher, Limerick Mulkear River, Cappamore, Limerick Mulkear River, Newport, Tipperary Duleek, Meath Gort Town, Galway Sixmilebridge, Clare 111

114 Appendix 4 Major Schemes Underway by end 2016 Major Schemes at Construction by end 2016 Bray, Co. Wicklow River Dodder, Co. Dublin South Campshires, Dublin Ennis Lower, Co. Clare Waterford City, Phases 2, 3 & 4 Claregalway, Co Galway Skibbereen, Co Cork (On site) Bandon, Co Cork (On site) Foynes, Co. Limerick Dunkellin, Co. Galway Northlands, Co Meath Verdant Place (Advance works of King's Island), Limerick Major Schemes at design development/ in the pipeline by end 2016 Arklow, Co. Wicklow Athlone, Co Westmeath Ballymakeera, Co. Cork Bellurgan, Co Louth Blackpool, Co. Cork Camac River, Dublin Carrigaline, Co Cork 112

115 Clonakilty, Co. Cork Clontarf, Dublin Crookstown, Co. Cork Crossmolina, Co. Mayo Douglas /Togher, Co. Cork Ennis South, Co. Clare Enniscorthy, Co. Wexford Glanmire/Glashaboy, Co. Cork Gort, Co. Galway Lower Lee (Cork City) Lower Morrell, Co. Kildare Midleton, Co. Cork Poddle River, Dublin Raphoe, Co. Donegal Skerries, Co. Dublin Templemore, Co. Tipperary 113

116 Appendix 5 Department of Finance Report on Insurance and Flooding 114

117 115

118 Department of Finance Report on Insurance and Flooding For inclusion in Report to Government from the Interdepartmental Flood Policy Co-ordination Group Introduction The current Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to mitigating against flood damage and addressing the increased availability of flood insurance. To achieve this aim there is a focus on prioritising spending on flood relief/defence measures, development and implementation of plans by the Office of Public Works (OPW) to implement further flood relief schemes and the transfer of data in relation to completed flood defence schemes to the insurance industry by the OPW. In return Industry is expected to show evidence of increased availability and reduced costs of insurance in areas benefiting from enhanced flood defences. Other countries have introduced alternatives to this strategy. The Department of Finance has analysed a number of options including examination of practical examples in a number of jurisdictions, where available. Also two Oireachtas Committees 3 have examined the issue of flooding and the role of insurance, a general overview of their findings is outlined in Appendix I. This Report is in five parts: Part I deals with Insurance Provision generally, the Regulatory Framework and progress under the current strategy. Part II is an outline of options that could improve the availability of flood insurance. Part III is the analysis, including costing where possible, of each of the options in Part II. Part IV is an examination of flood insurance cover in other jurisdictions. Part V is conclusions and recommendations. 3 Joint Committee on Finance Public Expenditure and Reform & Joint Committee on Environment, Culture and the Gaeltacht 116

119 Part I - Insurance Provision and the Regulatory framework Insurance Provision in Ireland 1.1 According to the Central Bank of Ireland Insurance Statistics for the three largest insurers in the Irish property insurance market by gross premium income are Allianz, RSA and Aviva. These are the only three insurers with premium income in excess of 100 million in the Irish fire and other damage to property insurance business. Zurich, AXA and FBD are the next largest insurers in this segment of the market with premium income in excess of 40 million. These six firms dominate the Irish home insurance market with FBD being the only indigenous player among this group. The majority are wholly owned subsidiaries of foreign insurers while Aviva, which is authorised by the Financial Services Authority in the UK, operates as a branch in the Republic of Ireland. 1.2 The Central Bank in its 2016 half-yearly macro-financial review of potential risks in the financial system reported that all of Ireland s main insurers reported underwriting losses in 2015, with an aggregate shortfall of 284 million. 1.3 The provision of insurance via private insurance systems is the most common approach to flood insurance in European countries, including Ireland (European Commission in a report on Natural Catastrophes: Risk relevance and Insurance Coverage in the EU in ). Systems are set up and managed by private companies and the cover is financed from premiums that are paid prior to the event. The European Commission report included Ireland along with the UK, Sweden, France and Belgium as having an insurance market that developed most efficiently, as total losses are not large and the level of insurance coverage is high. The Commission commented favourably on Ireland s flood insurance model. 1.4 The provision of insurance in Ireland, including new flood cover or the renewal of existing flood cover, and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks insurance companies are willing to accept and adequate provisioning to meet those risks. The EU framework for insurance, Solvency II, expressly prohibits Member States adopting rules which require insurance companies to obtain prior approval on special policy conditions and scales of premiums Directive 2009/138/EC on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II), Article

120 Current strategy on Flooding Risk 1.5 The OPW is carrying out an assessment of flood risk throughout the country under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme. This Programme includes the production of a comprehensive suite of flood risk maps and the development of flood risk management plans for the areas most at risk. The plans will consider the best possible options, both structural and non-structural, for dealing with the risks on a long-term basis. 1.6 This commitment is underpinned by a significant capital works investment programme with in the area of 200 million spent on flood relief measures over a four-year period from 2012 to The Capital Programme covering the period will see the current annual allocation for flood risk schemes increased from 45 million to 100 million by 2021, representing a total investment of 430 million. These works will be completed on a prioritised basis. Memorandum of Understanding on Data transfer to the insurance industry 1.7 The OPW and Insurance Ireland 7 have agreed upon a system of information sharing in relation to completed flood alleviation schemes via a Memorandum of Understanding (MoU). The outcome of this arrangement is that the insurance industry will have a much greater level of information and understanding of the extent of the protection provided by completed OPW flood defence works and is able to use this data when assessing the provision of flood insurance to householders in areas where works have been completed. It should be noted that this MoU deals with the provision of information and does not contain any commitment from the insurance industry to provide insurance to any given household or locations. 1.8 The MoU negotiated between Insurance Ireland and the OPW became effective from June In relation to the areas for which data has already been transferred to the insurance industry, the effect of defences for any particular location was not fully evident until July 2015, i.e. until one full year s insurance premium cycle was completed. Thus, the current arrangement in July 2016 is just completing only the second full insurance cycle to date from which data can be analysed. 1.9 Insurance Ireland s first report on the availability of flood insurance since the establishment of the MoU came in January 2015 when they wrote to then Minister of State Simon Harris. This was further updated in November In that update they reported as follows: 7 The insurance industry in Ireland is represented by Insurance Ireland which organises and coordinates meetings with the insurance companies and assists them in the development of a joint industry position. However, each insurance company operatives individually and in competition with other insurance companies in the insurance market. 118

121 Insurance Ireland indicated that nationwide, 98% of policyholders have household insurance which includes flood cover. With regard to areas where flood defences have been installed, flood cover is most widely available in areas benefiting from fixed flood defences built to the standard of 1:100 years. This accounts for 12 of the 16 schemes completed by OPW and 86% of policies in areas benefiting from these fixed flood defences included flood cover. In Clonmel, the Dodder Estuary, Fermoy and Mallow, all have demountable systems which require manual intervention. The Irish insurance industry does not rate these at 1:100 year standard and insurance companies are, therefore, less inclined to make flood insurance available. They reported that 67% of policies in these areas included flood cover The Taoiseach held a meeting with representatives of the insurance industry on January 12 th and asked that they revert to him by January 22 nd with answers to specific questions he had on certain issues. The response from insurance Ireland sent to the Department of the Taoiseach on 22 nd January updated the figures on the availability of insurance cover from those provided in November It indicated the following: The figure previously provided for areas with fixed defences was revised from 86% to 89%. The figure previously provided for areas with demountable defences, namely Clonmel, the Dodder Estuary, Fermoy and Mallow was revised from 67% to 78%. Taking all 16 flood defence schemes (fixed and demountable together) the figure was revised from 75% to 83% of policies in all those areas including flood cover. The increased cover figures in each case was explained by Insurance Ireland as being reflective of changes, since the numbers provided previously, as a result of the normal insurance cycle. The letter went on to set out the position of insurers with regard to the provision of flood cover in areas benefitting from demountable rather than fixed flood defences. Insurance Ireland argued in the letter that their members provide an exceptionally high level of flood cover to their policyholders in Ireland when compared to several other EU Member States. The States referred to were Austria, Czech Republic, Finland, Germany, Greece, Italy, Poland and Slovakia which apparently all have a 50% flood cover penetration rate compared with the quoted 98% in Ireland. 119

122 1.11 It should be noted, however, that the 98% quoted by Insurance Ireland refers to household policies that include flood cover. These numbers do not provide the full view of flood insurance penetration rates in Ireland, as the insurance companies will only have information related to properties that actually have insurance policies of some kind in place. The Household Budget Survey conducted by CSO in 2010 highlights this point as it indicates that up to 33% of households may have no household insurance At the most recent meeting between OPW and Insurance Ireland on 22 September 2016 OPW provided an update on current and proposed works while Insurance Ireland agreed to provide updated figures on the availability of insurance cover. 120

123 Part II - Outline of alternative flood insurance options Options to address the improved availability of flood insurance cover are outlined below. These are examined in more detail in Part III. Option 1: Insurance Pool/Indemnification 2.1 This would involve setting up an insurance pool which could be financed by an agreed percentage of insurance premiums being paid into it. In broad terms, an insurance pool would cover flood risk and losses arising from flooding or a significant percentage of such risks depending on the way it was established. 2.2 The insurance pool would be structured to cover claims up to a certain level each year. The level would be actuarially determined on the basis of premiums going into the insurance pool and the likelihood of claims occurring against the pool. In the event the level of claims overwhelms the resources of the insurance pool, extra resources would have to be provided. This could come from the State, which is the model followed in France or industry contributes additional resources, which is the model in the UK. 2.3 The scope of the insurance pool would also have to be determined. One option could be to only provide cover to those households that are in high risk areas. This should meet with the support of Industry as it should have a limited impact on insurance companies due to many of these households not already having access to flood insurance. The pool will then only have high risk exposures with no mitigating lower risk households. Other lower risk households would still have to rely upon the private sector for flood insurance and would have to pay an additional contribution to the insurance pool to enable it provide cover to high risk households. 2.4 The insurance pool could be funded by a levy on all policy-holders in low-risk and medium risk areas, with a contribution also from high risk households. Householders in the high-risk properties could be charged for the flood insurance element of their household policy at a capped rate along with the contribution from low and medium risk households. This is the model followed in the UK and France. 121

124 2.5 The level of contribution would need to be set a rate that would not provide an incentive for households in medium risk areas to opt for the pool, but continue to source insurance from the private sector. The charge on households benefitting from Flood Re in the UK, for the flood element of their household policies ranges from 210 to 1,200 per annum, dependent on which council tax band a household falls in. In France, there is no differentiation in premiums between households on the basis of risk. There is a 12% surcharge on all policies to providing funding for the State sponsored scheme that provides compensation in the event of a flooding event. Option 2: Expand on Current Approach 2.6 This option is the continuation of the current Government Strategy on the availability of flood insurance. This strategy works to improve the availability of flood insurance cover by; (a) continuing to prioritise spending on flood relief measures by OPW and relevant local authorities, and (b) improving channels of communication between OPW and the insurance industry in order to reach better understanding about the provision of flood cover in marginal areas, and how this can allow more effective insurance cover. 2.7 A Government Decision of December 2010, focussed on the work of the OPW appointing it to take the lead in discussions with the Insurance industry. The strategy requires continued communication between the insurance industry and the OPW to ensure that individual insurance underwriters are aware of what is being done in different parts of the country to address flooding problems including timescales, completion of flood prevention measures, level of expenditure and likely completion dates. 2.8 It is also envisaged that a flow of information from the insurance industry would help the OPW and local authorities prioritise remedial works which in turn should provide greater reassurance to the industry that problem areas are being addressed in a structured way and this should lead to a greater willingness to provide cover in marginal areas. The OPW would continue to progress spending on flood relief works for worst affected areas in a structured way to reflect priorities. 122

125 2.9 This commitment is underpinned by a significant capital works investment programme within the area of 200 million being spent on flood relief measures over a four-year period from 2012 to The Capital Programme covering the period will see the current annual allocation for flood risk schemes increased from 45 million to 100 million by 2021, representing a total investment of 430 million. Due to the cost and scale of these types of flood defence works, this approach will see benefits over the medium and long term Alongside with the building of flood defences, in the event of a flood event the State provides emergency humanitarian assistance where needed. For example, following the December 2015 flood event, Government approved the allocation of 5m to be distributed as emergency assistance for small business, which was subsequently extended to community, voluntary and sporting bodies. A scheme to give effect to this decision, to be administered by the Irish Red Cross Society, was established as a matter of urgency 8. Separately, the Department of Agriculture, Food and the Marine oversaw a scheme of assistance to farmers for damage to fodder and to agricultural buildings Both of these emergency humanitarian assistance schemes were paid for out of the individual votes of those Departments and amounted to approximately 3 million. In addition, the Department of Social Protection provided emergency assistance in the amount of around 1.28 million to households under its humanitarian assistance scheme. This is an ongoing assistance scheme by the Department of Social Protection, with a loss adjuster involved in ascertaining payment levels, and it appears to work well The current approach is flexible as it allows reaction depending on the type and location of the flood event. In common with the insurance pool option flood defences would still have to be built, but the private sector would provide flood insurance and not the State. The intention is the increased availability and reduced cost of insurance. Indications are that this is being achieved (Appendix III, letters from Insurance Ireland). 8 It was noted by Government that this scheme was intended only as an emergency humanitarian assistance scheme and was not compensation for loss or replacement for cover provided by insurance. 123

126 Option 3: Legislate for Compulsory Insurance 2.13 Another approach is to make legislative amendments to force the provision of flood insurance by insurance companies to all wishing to obtain cover. The scope of this option is limited as Solvency II expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval by government or regulator of the pricing, or terms and conditions of an insurance product. Thus the pricing and terms and conditions of the policy would have to be determined by the company. Option 3.1 Compulsory provision of flood insurance in all household policies 2.14 One possibility would be to make the provision of flood insurance compulsory. Thus all home policies would have to include an offer of flood insurance as part of their home insurance package, as is the case in France and Norway. Under this option, the availability of flood insurance in household policies may increase, but the cost of the cover could be prohibitive, acting as a disincentive for homeowners, and resulting in no change in the availability of flood insurance There was consideration given to this option in Australia in the last number of years, but a system relying on private insurance companies providing insurance along with increased information exchange between local government and insurance companies was introduced instead. Option 3.2 Compulsory provision of flood insurance in all household policies on a proportionate basis 2.16 Compulsory provision of flood insurance in all household policies on a proportionate basis has the benefit of resulting in a lower cost of insurance for some high risk households. This would be due to the competition between insurers to meet their obligation target of high risk households. As insurers would have to take on higher risk households than what they would have in the past, they will have to ensure they price insurance premiums in a way that reflects the increased risk profile they now face. This approach could mean low and medium risk households experience increases in their premiums to compensate for the higher risk each insurance company would have to take on. The size of this increase would be uncertain, it could change each year and would be determined by the insurance companies. 124

127 2.17 The calibration of the obligation target would be very important in ensuring this option would meet the objective of increasing the provision of household flood insurance. A target that is too high would result in an unachievable target for industry. If too low, it will not achieve the objective of increasing the provision of flood insurance This option of an obligation on insurance companies would result in large administrative costs. It would involve setting up a register of high risk households and establishing a mechanism, which is fair and transparent, to allow homeowners to apply to be added or deleted from the register on production of appropriate documentation In the UK when this option was considered prior to the introduction of Flood Re the estimated one off set up costs were million with an additional 5-9 million per annum in respect of ongoing administrative costs. These costs were 8% higher than the estimated costs of Flood Re This option would require significant information to be available to Government, the regulator and the insurance industry before it could be implemented and would need to be recalibrated each year depending on changes in market share by each company. The calibration of the obligation target would also be important to ensure it is not set too high making it an unachievable target for industry or too low, and not achieving the objective of increasing the provision of flood insurance. There would also be a need to continue to build flood defences with the aim to try and reduce the cost of insurance for all households. 125

128 Part III - Analysis of each of the options in Part II Introduction 3.1 The cost of any proposal for any particular year would be difficult to quantify due to difficulty in forecasting severe weather events. However, over a period of time, it is possible to say that the costs would be significant. The insurance industry has paid out approximately 188 million in flood claims since the year These insurance industry costs would be in addition to the normal infrastructure costs which arise from flooding such as repair of roads, bridges etc. Significant monies are also spent or planned to be spent on flood defences that will need to continue to be built under any of the options examined. 3.3 Our assessment of the potential costs of the options is based on information on the cost of claims in Ireland and in the UK, along with an assessment of the potential number of houses that would need to be covered. Number of Households in scope 3.4 Based on OPW data from the CFRAM analysis, 8,547 properties have been identified as likely to flood at least once every hundred years. Table 1 in Appendix II provides numbers of properties at risk, split into risk profile. We are taking this number of 8,547 properties as the number that would be covered under the pooling option, as they are high risk and would struggle to obtain affordable, or indeed in many cases any flood insurance. Average Cost per Claim 3.5 The average cost per claim we have used for the purpose of our assessment is a range between 13,300 and 25, The lower number is drawn from figures provided by Insurance Ireland relating to flood claims between 2006 and These numbers are detailed in Appendix IV. Due to the lack of granularity in the numbers, these will include a multitude of risks and do not include households that had no household insurance or were unable to obtain flood insurance. 9 Insurance Ireland 26 April

129 3.7 In the U.K., as part of the impact assessment for Flood Re, the calculation of average claim was based on the economic cost of 25,000 per uninsured property. This included not only damage, but other factors such as the cost of alternative accommodation 10 and adverse health impacts related only to flood events. Potential flood claims for high risk properties 3.8 In calculating the expected annual flood claims bill, it is necessary to account for the fact that within the group of 8,547 properties some properties will flood more often. Based on indicative annual exceedence probabilities, it is expected that on average 15% of such high risk houses would be flooded in any one year. (The analysis behind this assumption is outlined in Appendix II.) The expected annual flood claims bill for high flood-risk properties is calculated to be between 17 million and 31 million, i.e. an average claim of between 13,300 and 25,000 per household multiplied by the expected annual number of flooded properties. 3.9 In a worst case scenario of a 1 in 100 year event occurring, with all of the 8,547 highrisk properties being flooded in one flood event, claims against the insurance pool of between 114 million and million 11 could arise. Scope of coverage 3.10 In our analysis we have excluded cover for businesses as is the case in the UK. This also aligns with existing policy in the majority of Irish compensation schemes where only natural persons are covered, such as is the Insurance Compensation Fund, or the case of the Investor Compensation Fund where only retail clients are covered. 10 The UK Department of Environment, Farming and Rural Affairs (Defra) calculated an average cost per household of 8,000 in respect of accommodation. This figure is based on the price of purchasing a new 4-6 berth caravan which is eventually resold for approximately half of the original purchase price. Defra estimated the adverse health impacts and estimate that the average extra cost of health impacts in an uninsured situation would be 12,800. The health and stress impacts included in this assessment relate only to flood events which actually occur, and not any anxiety caused by the perceived threat of flooding. 11 Based on all 8,547 houses being flooded in one event and the average cost per claim in a range of between 13,500 and 25,

130 Moral Hazard 3.11 Policyholder moral hazard arises in a situation where insurance companies are prepared to quote a risk based premium in one location but not in a neighbouring area, which would then be covered by a pool/indemnification. Thus one household is perhaps faced with a high premium while the other qualifies for indemnification. This can create a policy holder incentive to seek not to be quoted for insurance cover as arguably they will be better off with cheaper premiums under a scheme such as the insurance pool. It may also provide a disincentive on the part of the policyholder to take steps to protect his/her home from flood damage or to mitigate against an expensive level of damage. Option 1: Insurance Pool/Indemnification 3.12 The main advantage for the insurance pool option is that it would ensure that all householders would qualify for flood cover. However, the downside is that there would have to be an increase in household premiums for policyholders in low and medium risk areas as well as a capped contribution by the high-risk houses to be covered by the pool As pointed out in the previous paragraphs, we have assumed that on average 15% of high risk houses would be flooded in a year. Based on a cost of between 17 million and 31 million for such events, the pool would require an annual levy of between 13 and 24 per household insurance policy in order to meet the cost of claims. This range of levy is calculated on the basis of 1.3 million household insurance policies in place in Ireland as per data provided from Insurance Ireland In percentage terms a levy of between 13 and 24 would equate to an extra 3% to 5% on top of each household insurance policy. 12 This would be in addition to 3% Stamp Duty and 2% Insurance Compensation Fund levy currently applied to Non- Life insurance premiums Flood Re in the UK has been established to cover up to 500,000 households which is approximately 2% of the 26.7 million households in the UK. If an Irish insurance pool was established and demand led to the percentage of houses covered being pushed up to 2% of households in Ireland, then using the same assumption as above, the average annual levy would range from 39 to which would add an additional 9% to 16% on top of each household insurance policy. 12 This is based on the average cost of a household insurance policy of 468 calculated from the Central Bank of Ireland Insurance Statistics

131 3.16 The levy calculation excludes any administrative costs from handling the claims and any other running costs of managing the pool which would also need to be covered. Arrangements for Backstop 3.17 To ensure that the insurance pool is not overwhelmed by claims arising from an event that would impact greater than 15% of the high risk households in any one year, it will require a form of backstop. The backstop can take two forms, the first is to enter into a reinsurance contract to provide additional cover, and the second would involve a State backstop. (a) Reinsurance backstop: Obtaining a backstop via re-insurance contracts would require premiums to be paid to reinsurance companies. This cost would be in addition to the estimated levies which would not be sufficient to obtain the necessary reinsurance cover in the case of extreme events. For example, where close to all high risk households are impacted in one year, there would be an exposure seven times higher than the annual proposed levy contribution. While Flood Re in the UK 13 managed to avail of reinsurance due to the liquidity of the reinsurance market in the UK, it must be borne in mind that Ireland has a smaller market and much more limited reinsurance options. Entering into a reinsurance contract would only provide a set level of cover. Any losses above that set level would have to be covered from another source. In the UK, if losses exceed the level of re-insurance cover Flood Re has obtained, there can be an additional top-up levy imposed on industry to cover those losses. In France, the State compensates insurers if losses are above a certain level. 13 In the United Kingdom the UK Flood Re model, which began at the start of April 2016, follows a pooling arrangement. Fuller details on this scheme are provided in the next part of this report. 129

132 (b) State backstop: An alternative to entering into reinsurance contracts would be for the State to provide support to the insurance pool if the annual levy and any reserves are insufficient to absorb insurance claims made against the pool The State would then be facing a contingent liability via the backstop it is providing the insurance pool of between 97 million and 185 million at least. This is based on the 8,547 houses (equating to 0.65% of all houses insured) identified as high risk with regard flooding all being impacted by a flood event in one year and taking into account a minimum levy amount of between 17 and 31 million absorbing some of the losses. It is important to note that Flood Re in the UK, while initially covering 350,000 houses (1.3% of all houses) was, in fact, established to cover up to 500,000 houses equating to roughly 2% of all houses. If the number of houses to be covered by a pool in Ireland was pushed out by demand to cover a similar proportion of insured properties we would be looking at a State exposure of between 339 million and 542 million Consideration would have to be given to how such support can be provided within State Aid rules and does not impact the budget debt and deficit numbers. This would require any support from the State to be in the form of a loan with set terms and conditions regarding maturity and interest rates. A precedent for this approach is the Exchequer advances to the Insurance Compensation Fund, which is then paid back with interest over a period of time via levies on non-life insurance policies. However, repayment of State funding over time would require higher levies applied to all household insurance policies, which would further increase the cost of insurance to all non-life policyholders In the US the National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA) which works closely with private insurance companies to offer flood insurance to property owners and renters. The NFIP was designed to be financially self-supporting via premiums collected from policyholders but, faces a current indebtedness of the fund amounting to $23 billion. 130

133 Data requirements for insurance pool 3.21 Consultation with both industry and the Central Bank of Ireland has highlighted that significant historical data would be required on flooding experience prior to the implementation of an insurance pool and extensive statistical work would need to be done to justify the level of premium that would need to be paid into the pool in order to cover flooding costs. Thus the insurance pool would require significant specialist background work to be carried out before it could be considered feasible. Information would feed into the calculation of the level of premium to be charged for such a scheme and, to identify what areas should be covered. This would have to be constantly updated to reflect the introduction of new flood defences or other environmental changes The issue of the lack of proper modelling based on historical data as well as detailed mapping would also be an obstacle in sourcing reinsurance cover. Such modelling would be crucial in terms of persuading the reinsurance industry to provide reinsurance to the pool In the case of the State providing a backstop, this detailed information would still need to be calculated in order to determine what potential exposure the State was taking on The level of background work required to set up a flood pooling scheme can be seen in the length of time required to set up Flood Re in the United Kingdom. Discussions between the UK Government and the insurance industry began in 2011 and with a go live date of April 2016, there was a gestation period of five years. Set up costs/planning/moral hazard 3.25 The analysis we have undertaken does not take into account the potential set-up costs of an insurance pool. The best indication we could obtain is the experience of the UK. The set-up costs of Flood Re were 21 million and these were initially estimated, during the impact assessment stage as being between 6 and 12 million. Any set up costs would have to either be absorbed by the State, which would require the funds are sourced from Exchequer funds, or from the levies collected by the insurance pool over time. The latter option would mean a further additional increase in the size of annual levies. The bulk of the Flood Re 21 million set up costs appear to have been fixed costs e.g. legal and consultation fees to meet regulatory requirements, data systems as well as the non-executive Director requirements and actuarial costs A by-product of the insurance pool option is that it may encourage the building of houses in inappropriate areas because insurance cover would be guaranteed no 131

134 matter what the risk of flooding is. To ensure that the number of houses to be covered by the insurance pool did not continue to rise after set-up, it would be essential to ensure that the number of houses at high risk each year did not continue to increase so this may involve revision of planning laws Another problem with this solution is that of moral hazard or the lack of incentive for the householder to take steps to further mitigate against flood damage in their home The insurance pool has the benefit of providing cover to the high risk households identified under the OPW CFRAM analysis. It does so by imposing costs on low and medium risk households via additional insurance levies. There are also significant set-up costs and running costs that would have to be considered. Also the State may have to provide a backstop to the insurance pool in the case of extreme events. These set-up and running costs, increases on all household insurance policies and backstop or potential contingent liabilities for the State, would be incurred to insure protection against flooding for the target group of 8,547 households or 0.65% of all households As with all of the options we have considered, there will continue to be a need to invest in flood defences across the country even if a flood pooling option was implemented. This would be required in order to reduce the risk of houses being flooded and to reduce the reliance on the insurance pool and any potential State backstop by industry stepping in to provide cover in areas where the risk previously was too high. This is the approach being followed in the UK and Flood Re has been set up as a 25 year scheme with the UK Government continuing to invest in flood defences. 14 Based on permanent private households of 1.65 million from 2011 Census. 132

135 Key Points on Insurance Pool: High set-up costs (potentially 25 million) and ongoing running costs. Additional 3% to 5% levy on all household insurance policies including households in low and medium-risk areas. Potential for State backstop of up to 185 million in a catastrophic flooding event based on 8,547 households covered. Potential that demand could push number of houses to be covered up (UK Flood Re allows for up to 500,000 houses or 2% of all households) from 0.65% to 2% resulting in far higher levy and far higher State backstop. Option 2: Expand on Current Approach 3.30 This approach is the continuation of the current Government strategy that has been in place since This strategy works to improve the availability of flood insurance cover by: (a) continuing to prioritise spending on flood relief measures by OPW and relevant local authorities and (b) improving channels of communication between OPW and the insurance industry in order to reach better understanding about the provision of flood cover in marginal areas, and how this can allow more effective insurance cover. This option also has the advantage of being currently in place and benefits both private persons and businesses. Insurance is provided by the private sector, taking account of Government flood protection works This option has resulted in a trend of increasing level of flood insurance availability in areas where the State has invested in flood defences, both fixed and demountable. The continuation of the current policy of prioritising flood defences in areas at risk of flooding will see increasing levels of cover for households based on the exchange of information between OPW and Insurance Ireland. This approach also ensures the provision of targeted emergency humanitarian assistance for households affected in flood events, which has been shown to work in the most recent flood event in December. 133

136 3.32 This option also includes the possibility, subject to Government decisions, of continued provision of emergency humanitarian assistance by the State in certain cases where households and small businesses have been flooded and they have no flood insurance, such as in December of This cost came to just over 4 million. The State emergency humanitarian assistance system is flexible, within certain legal constraints, and can be targeted depending on the areas/sectors impacted. For example, emergency assistance has also been provided to farmers for damage to fodder and to agricultural buildings. This provides the potential to target emergency humanitarian assistance to the areas worst affected From a cost perspective, the building of flood defences will have to continue in all options. The cost of these defences are not imposed on insurance policyholders as they come from Exchequer funds as part of the capital expenditure programme. The level of capital expenditure is known, with 430m in total spent or planned to be spent This option ensures the provision of insurance in Ireland remains in the main a service provided by private industry. This is the model seen as preferred in the European Commission report on Natural Catastrophes: Risk relevance and Insurance Coverage in the EU This option will also benefit from the work of the OPW Inter-Departmental Group on Flooding. The final report, of which this paper is part, will provide for policy recommendations from the Departments that are members of the group in order to mitigate the impacts of flood events, resulting in a whole of Government approach to the issue of flooding in Ireland. At Appendix III to this report is the letter dated January 2016 from Insurance Ireland to Department of the Taoiseach setting out the up to date position on flood insurance availability and showing a clear improvement on previous updates. 134

137 The OPW / Insurance Ireland MOU 3.36 The 2014 MoU has to date resulted in data being provided from Insurance Ireland three times, January and November 2015 and January The data received in January 2016, has shown an increase in the level of cover in areas with both fixed and demountable flood defences. Updated data has recently been requested The existing process of engagement via the OPW and the Department of Finance should continue, with the issue of sharing and granularity of information an area which requires improvement. There are issues with regard to the provision of data from industry via the MoU and while the provision of flood insurance in areas where the State has spent significant money putting in place flood defences has increased, the rises are small. The full picture of flood availability is as yet less than clear The information provided to date is not very detailed and does not provide the full view of flood insurance penetration rates in Ireland. The returns by the insurance companies only relate to properties that actually have insurance policies of some kind in place. Based on data available from the Household Budget Survey 2010, up to a third of Irish households have no insurance. This is similar to numbers seen in the UK The provision of flood defences is based on mapping undertaken by OPW and constructed on a prioritised basis. However, there is no formal mechanism for transfer of the information that OPW collects during and after flood events which shows the effectiveness of defences, in particular de-mountable flood defences. Information such as this would be valuable to industry in order to feed into their models, allowing them to determine risk and the appropriate price for insuring that risk Also there is a lack of analysis undertaken on the level of flood insurance cover in place prior to flood defences being built. There is reliance, once the defences are built, on numbers provided by industry. This is a gap in information which makes it difficult to determine the benefit accruing to homeowners and the State from the investment in flood defences. 135

138 Key Points on the current approach: This approach has already been proven to be working with the incremental increase in flood insurance provision throughout the country and, in particular, where flood defences have been built. When accompanied by ongoing capital investment in flood defences and the necessary data exchange between the OPW and the insurance industry, the availability of flood insurance will continue to increase. This approach is accompanied by appropriate Government decisions on the State provision of targeted emergency humanitarian assistance in each flood event which is adaptable and flexible depending on the nature of that flood event and the types of properties affected. Option 3: Legislate for Compulsory Insurance 3.41 Legislative options making flood insurance compulsory for all household policies already exist in France and Norway. Two legislative options are considered. Under the first option there is compulsory flood insurance for all and under the second option all policies must include flood insurance, but a number of high risk households are allocated to the insurance sector on a proportionate basis depending on the market share each insurance company has. An obligation target would be set under option two which would be the minimum number of high flood risk households within this group that must be insured at any one time. It is important to note that the pricing, terms and conditions of these policies cannot be set by government or the competent authority as required in Solvency II. Compulsory provision of flood insurance 3.42 The effect of requiring all household policies to include flood insurance is likely to be minimal as insurance companies under Solvency II must price cover in line with the probability of a residence or business being flooded. This would mean that where the risk was high, the premiums would have to be expensive. Therefore, it is likely the premiums insurance companies would have to charge to insure high risk households could be unaffordable for the majority of the high risk homeowners with the result that the level of flood insurance provision would remain unchanged. 136

139 Compulsory provision of flood insurance on a proportionate basis 3.43 Compulsory provision of flood insurance in all household policies on a proportionate basis has the benefit of potentially a less onerous cost of insurance for some high risk households as insurance compete with one another to attract high risk households. Insurance companies could price aggressively in order to attract their quota of high risk households. In order to ensure the insurance company is pricing risk on all its policies in a way that it can meet the potential claims, this approach could mean low and medium risk households experience increases in their premiums to compensate for the high risk policies each insurance company would have to take on. This would mean that low and medium risk households would be subsidising high risk households to a degree. The size of this increase would be uncertain, it could change each year and would be determined by the insurance companies The calibration of the obligation target would be very important in ensuring this option would meet the objective of increasing the provision of household flood insurance. A target that is too high would result in an unachievable target for industry. If too low, it will not achieve the objective of increasing the provision of flood insurance This option of an obligation on insurance companies would result in large administrative costs. It would involve setting up a register of high risk households and establishing a mechanism, which is fair and transparent, to allow homeowners to apply to be added or deleted from the register on production of appropriate documentation. This register, which would have to be based on risk modelling, would also be used in determining the obligation target and an assessment would also be required on what level below 100% to set the obligation at. In order to take account of the high risk households that will refuse or not seek flood insurance In the UK when this option was considered prior to the introduction of Flood Re the estimated one off set up costs were 12-21m with an additional 5-9 million per annum in respect of ongoing administrative costs. These costs were 8% higher than the estimated costs of Flood Re. 137

140 Impact on insurance sector from legislative options 3.47 In Ireland the household insurance sector is dominated by six players, all excluding one are part of foreign groups. As outlined earlier, all the major players made underwriting losses in 2015 and imposing a legislative obligation to provide insurance would be an additional pressure on the sector that could have significant unintended consequences The imposition of compulsory flood insurance could make the Irish market unattractive to market participants. If a company exited the market, there would be fewer firms to share the high risk households under the proportionate option. This could make the provision of flood insurance to high risk households even more expensive, while also increasing the costs on the low and medium risk households, who would be subsidising the high risk households under the option to a degree Both legislative options are unlikely to achieve the aim of increasing the provision of flood insurance significantly and have the potential to add further pressure onto a sector that is facing a significant number of challenges. Key points on compulsory insurance: Making provision of flood insurance compulsory will have no effect on making it affordable. The obligation option would require the setting up of an agency to maintain the database of all houses to be covered and to ensure individual companies are meeting their obligation. Making it compulsory on a proportionate basis would, more than likely, result in a knock-on effect on the cost of insurance premiums for those in low to medium-risk areas as industry will need to re-calibrate its risk modelling to meet its solvency requirements. Potential loss of insurance undertakings to the Irish market. 15 The Central Bank Macro-Financial Review 2016:I outlines some of the challenges facing the domestic non-life sector such as low investment returns, competition for market share and increasing cost claims. 138

141 Part IV - Flood Insurance cover in other jurisdictions Introduction 4.1 Broadly speaking, insurance and compensation systems for flood risk in Europe have been divided into three categories: (i) traditional private insurance systems; (ii) pooling systems in which the government has a considerable role, and (iii) compensation systems fully administered by the government. Our analysis examined a number of jurisdictions which have used differing options regarding the provision of flood insurance and/or provision of compensation for the effects of flooding. These are outlined in more detail by country below. Netherlands 4.2 Generally Dutch insurance companies do not cover flood damage as the country is considered uninsurable following very severe North Sea floods in The Dutch Government has built considerable flood defences with some areas protected to a 1 in 8,000 year probability and has also worked to expand the provision of private flood insurance. In 2012 a subsidiary of Lloyds began offering flood insurance in the Dutch market. 4.3 The Dutch Government provided compensation for flooding on an ad hoc basis in 1993 and In 1998 the Calamities and Compensation Act (WTS) was introduced. The WTS provides compensation when a flood results in a considerable disruption in public safety and requires a coordinated effort of organisation and civil services. The determination of this is made by the Government and is financed from general taxation. 4.4 A drawback of the Dutch system is that their incentives by individuals to minimise damage is sub-optimal. Prevention measures are costly and benefits are minimal when there is an expectation to the Government will unconditionally compensate. United Kingdom 4.5 In 2011 the UK insurance industry formally recommended Flood Re as a long-term flood insurance solution for households in the UK and, after lengthy negotiations, an outline agreement between the Government and the insurance industry was reached in June Since then the industry and Government have been working to establish the framework for its operation. The Flood Re scheme commenced in April The lengthy process involved in setting up Flood Re included lengthy negotiations around every aspect of the scheme. From the insurance industry perspective one issue was their desire to have the UK Government as the insurer of last resort. The UK Government did not agree to this. Other issues which contributed to the delay were the definition of flooding, premium calculation, difficulties around brokers and issues with the Prudential Regulatory Authority in 139

142 terms of authorisation of Flood Re (the Prudential Regulatory Authority wanted the first 180 million in the account first). 4.6 Flood Re is a not-for-profit flood fund managed and financed by the insurance industry. It is being developed to provide affordable flood cover to homeowners in high risk areas. It was established to initially support circa 350,000 of the highest risk households in the UK (circa 1.3% of UK households). 4.7 Under the Flood Re programme, insurers will transfer into the fund those homes at high risk of flooding which they feel they are unable to insure themselves. Under the scheme the flood risk element of house insurance premiums will be capped according to UK Council Tax bands for example, those properties which fall into band A and B will have their flood element capped at 210 while those in band H will be subject to a maximum of 1,200. The insurer will price other risks as normal such as fire, accidental damage or theft. 4.8 It should be noted that commercial properties are not included, which includes rental properties. At the time of the negotiations setting up Flood Re, there appeared to be no difficulties around commercial property owners acquiring flood insurance, even in high-risk areas. However, a mere two months after its set-up, debate is now underway about the possible need to include commercial property in Flood Re. 4.9 Properties built on or after the 1 st of January 2009 are also excluded. Due to a change in planning regulations which means properties can no longer be built in flood-prone zones without being adequately defended Apartment blocks are excluded due to the freehold being owned by a management company resulting in them being considered commercial properties. Rental properties are excluded but, private tenants can be included in Flood Re for their contents insurance Flood Re will charge member firms a total annual charge of 180 million. They will pass this back to all their customers, resulting in an estimated levy (levy I) of on annual household premiums. This levy I will be used to buy reinsurance, pay claims and fund the running of Flood Re. This would be equivalent to an additional charge of circa 3.5 to 4% on each home insurance policy. 140

143 4.12 Under the Flood Re pool, the benefit of bringing households at risk of flooding back into the market for insurance, compared with the do-nothing baseline, is ultimately being achieved through cross-subsidy from those at low or no risk who will pay higher insurance premiums as a result Flood Re is designed to fully deal with flooding events in at least 99.5% of years. Should Flood Re s funds and reinsurance cover be unable to fully meet its outgoings, Flood Re would charge each of its member firms an additional amount to make up the shortfall, known as the top-up levy (levy II). Prior Parliamentary approval has to be sought by Flood Re for each individual top-up levy The set-up costs of Flood Re in the UK amounted to 21 million. Ongoing running costs are unknown to date but the impact assessment carried out prior to the setting up of Flood Re anticipated annual running costs of 6 to 8 million. Australia 4.15 In Australia flood insurance is provided on a commercial basis through private insurance companies with no state involvement. Typically, the availability of cover for flood insurance was very low and according to the Insurance Council of Australia (ICA) was as low as 3% of home insurance policies in In the aftermath of unprecedented flooding in Queensland in 2011, which cost 33 lives and insurers $2.4 billion, the Australian Government proposed making flood insurance mandatory in all insurance policies. Following on from this, insurers began to work with the Federal Government to improve access to flood insurance and to establish a standard definition of flooding. The government did not legislate for compulsory flood cover in the end but many insurers do now offer flood cover and by 2013 the number of home insurance policies which included flood cover had increased to 83% Several years ago the Insurance Council of Australia began working closely with state and local governments to acquire access to flood hazard information in raw form in order to establish an address level flood exposure database using collated government flood information. The ICA established the Property Resilience and Exposure Programme (PREP) to facilitate data sharing between local governments and the insurance industry. PREP centralises and processes raw data in a consistent format in the form of the National Flood Information Database (NFID) for use by all insurers. Where a local or state government has provided flood mapping information of an appropriate standard the ICA reciprocates the data exchange by providing full and free access to the processed data. 141

144 4.18 The National Flood Information Database is fully funded by the insurance industry and provides insurers with estimations for the depth of flooding, if any, at each individual address. Most exchanges of data are carried out under a common datasharing Memorandum of Understanding, however where necessary the ICA can enter a data sharing agreement with a local government to address specific concerns about the use of the data. The ICA monitors the market response to new data closely and reports on any corresponding increases or decrease in premiums. France 4.19 France has a model of property insurance in which flood cover is bundled with all other risks. Insurance coverage against flooding and other natural hazards is mandatorily included in building and home contents insurance and flood insurance arrangements are based on a public-private partnership. This ensures that insurance penetration is almost 100%. The Government provides a guarantee in case flood damage exceeds insurers abilities to pay. Low-priced reinsurance for flooding with unlimited coverage is available from a publicly owned reinsurer The Caisse Centrale de Réassurance (Central Reinsurance Fund) is a reinsurance company entirely owned by the French Republic. It is responsible for designing, implementing and managing instruments to meet the coverage of exceptional risks in the service of its customers and the public interest. These include reinsurance of risks of natural disasters. The CCR provides an unlimited Government guarantee to insurers The State owned Bureau Central de Tarification, CTO, sets the natural disaster surcharge which is currently at 12% of premium and premium differentiation is not allowed. This implies that incentives to reduce losses are suboptimal. Additional measures are undertaken to stimulate building in safe areas. Flood damage is compensated when the Government officially recognises the flood as a disaster. The definition of what constitutes a natural disaster is unclear and is loosely defined as any natural event of abnormal intensity which includes flooding. There are no compensation limits but there are a number of deductibles for example where a property is used for professional use It is also possible to obtain private flood insurance away from the public-private partnership. This insurance would also compensate where a disaster has not been declared. 142

145 Germany 4.23 The average flood insurance take-up rate for residential buildings across the country is estimated at around 38%, according to AIR Worldwide, a catastrophe modelling firm. The firm also pointed out that there are significant regional differences in the take-up rates of insurance with, for example, one region having an exceptional takeup rate of 95% while a neighbouring State has a take-up rate of just 27%. There is no nationwide compulsory insurance for floods and it is typically excluded from standard residential, commercial and industrial policies There is a zoning system in Germany called ZÜRS Geo. This provides an online risk assessment tool for the insurance industry which helps it to assess flood risk and, thus, offer a risk-related premium. Insurers calculate premiums themselves using risk-based pricing. ZÜRS provides statistical return periods for flood events broken down into four risk categories. This is based on flood risk maps provided by the German water authorities under the EU Flood Directive (the Directive under which the OPW CFRAM project is being carried out) and also based on a risk modelling which uses data provided by the insurance industry representative body At the heart of the ZÜRS Geo system is a geo-database which uses address information (road network, house number data etc) After two large flood events in 2002 and 2013 damages were mainly compensated by the Government. This public compensation presumably crowds out private insurance and reduces individual incentives to limit damage. Any compensation that is paid by the Government is paid for by general taxation. Norway 4.27 In Norway, natural disaster insurance (including flood insurance) is a mandatory element of firm insurance policies for properties. To manage the high costs of flood events, Norway has a Government disaster fund, the Norwegian National Fund for Natural Disaster Assistance (NVA) and a pool system for the private insurance companies called the Norwegian Natural Perils Pool (NP) The Norwegian Agricultural Agency (NAA) is a Governmental administrative body responsible for the day to day administration and it has the authority to accept or repeal any natural disaster compensation. The NAA has operated as the Fund for National Disaster Secretariat since 2000 and represents the Fund in court disputes. Approximately 20 disputes are handled in an average year and cases may be appealed to higher courts The NP is a liaison between its participants (all non-life insurance companies will indemnify natural damage) and the NAA. When a company starts to write fire 143

146 insurance in Norway they must collect the natural perils premium. The premiums are kept in a fund by the company. Monthly losses are reported to the administration which then provides a figure to each company of their credit/debit balance. Amounts are equalised each quarter It settles the compensation for loss or damage due to natural disasters between the companies and arranges reinsurance cover for Norwegian natural disaster insurance. As premiums are equal, there is no disincentive for the building of houses in flood risk areas. Denmark 4.31 In Denmark there is a national flood insurance scheme dedicated to coastal flooding. Compensation is paid to landowners, companies or farms that have suffered flood damage due to severe storm events. Funds are collected by an annual tax payment charged through all private fire insurance policies. Whenever a coastal flood takes place, the Danish storm council decided whether or not compensation will be paid out The rate of the Storm Flood Levy increased from DKK30 ( 4) per policy to DKK60 ( 8) per policy within DKK10 ( 1.30) of the increase is a permanent change to the Levy and DKK20 ( 2.70) is a temporary change which it is anticipated will cease by 31 December 2017, although the precise timing will depend on the economic position of the storm surge scheme at the time The increased rate arose on foot of a decision by the Danish Parliament, following the storms of December 2013, to increase compensation payments for damages due to storm surge. Parliament passed the changes in the Storm Surge Bill on 10 April United States of America 4.34 The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA) which works closely with nearly 90 private insurance companies to offer flood insurance to property owners and renters. In order to qualify for flood insurance a community must join the NFIP and agree to enforce sound floodplain management standards. A community is defined as an area that has the authority to adopt and enforce flood management ordinances for the area under its jurisdiction (best interpreted as elected officials). The measures are paid for by local taxation systems. 144

147 4.35 Rates are set and do not differ from company to company or agent to agent. These rates depend on many factors which include the date and type of construction of your home along with your building s level of risk The NFIP is designed to be financially self-supporting, or close to it, but cannot handle extreme financial catastrophes by itself. The current indebtedness of the fund amounts to $23 billion An individual household cannot get compensation from the NFIP if the community is not participating in the program. Therefore, individuals are highly dependent on their communities. If the community is not participating because they cannot afford the consequential measures, or for any other reason, the individual household cannot get insurance form the NFIP and will face the whole loss in case of flood damages In general, the idea of incentivising flood plain measures in local areas appears useful but, in contrast to Ireland, most localities within the United States administer most of their own taxes. Therefore, communities pay for flood plain measures with their own budgets from their local tax The NFIP has been on the United States Government Accountability Office (GAO) High-Risk List since 2006 due to concerns about its long term financial solvency and related operational issues. It was originally intended that the NFIP would be financially self-supporting and funded with premiums collected from policyholders. However, FEMA has been forced to borrow billions of dollars from the Department of the Treasury in order to cover claims arising from the 2005 and 2012 hurricanes. The GAO concluded, in its February 2015 High Risk Series Update that this lack of sufficient revenue highlighted that the programme was, by design, not actuarially sound and suffers from structural weaknesses in how it is funded According the GAO as of 31 December 2014, FEMA owed the Treasury $23 billion, up from $20 billion at the end of November FEMA made a $1 billion principal repayment to the Treasury at the end of December 2014, the first such payment since

148 4.41 The Flood Insurance Reform Act 2012 (Biggert-Waters Act) was introduced due to concerns surrounding the affordability of the NFIP and the very large debts which it had accumulated. The Act contained provisions to help strengthen the financial solvency of the programme by applying actuarial risk based premiums that better reflected expected losses and real risk of flooding and by phasing out discounted and subsidized premiums On 21 March 2014, the Homeowner Flood Insurance Affordability Act 2014 (HFIAA) was enacted. This Act reinstated certain premium subsidies and slowed down premium rate increases that had been included in the Biggert-Waters Act. The GAO reported in 2015 that the HFIAA was intended to address affordability concerns surrounding flooding insurance for certain homeowners, but it may also increase the long term financial burden on taxpayers. FEMA has stated that under the current NFIP operating environment it will be unable to repay its debt within the 10 year time frame set out in the Biggert-Waters Act and is unlikely to generate sufficient revenue to cover future catastrophic flooding 146

149 Part V Conclusions and Recommendations Conclusions 5.1 The options we have considered have all been considered to some degree in other countries. The option of building flood defences and providing information to industry to help increase the availability of insurance has been used in the UK and also recently in Australia. The use of insurance pools with provision of reinsurance from private sources or back-stops from the State is used in the UK, Denmark and France for example. 5.2 The legislative obligation option is more limited in its use, with France having compulsory flood insurance on all household policies, but this exposure is then backed by a State insurance pool. The UK did examine the option of imposing some form of legislative obligation on the provision of flood insurance, but rejected it as too costly. Australia also considered a legislative obligation and rejected it for a model with information sharing between government and private insurers. 5.3 Flood defence works are at the heart of any of the insurance options available, whether the current flood insurance approach, a pooling scheme, or the legislative compulsory obligation, defences would continue to be built in order to achieve a reduction in the risk for households in high risk areas. Regardless of the insurance option selected for Ireland, the current policy of building flood defences will have to continue, along with the exchange of information between OPW and Insurance Ireland. This should continue to reduce the number of houses that are at high risk of flooding. 5.4 The 8,547 households (0.65% of total households) considered to be at high risk should see benefits from the future flood defence building projects. Where households would not benefit from flood defence projects they may well be included in other options under consideration by the OPW Inter-Departmental Group on Flooding, such as individual home protection or relocation. The individual home protection scheme which allows for the provision of funding from OPW for individual home protection measures is already in operation as a pilot scheme. 5.5 With regard to all options, as the flood defence building programme would continue it would be essential to continue monitoring the response of the insurance industry to such defences. It would also be very important to ensure that the acceptance of any option wouldn t impact upon the availability of flood insurance for medium-risk properties that currently have such insurance. 5.6 The cost of the insurance pool levy, of between 3% to 5% per household policy (though this could be as much as between 9% and 17% if the demand on the pool 147

150 were to increase cover to almost 2% of houses), would be a minimum cost for that option and would not include the cost of set up or the on-going operational costs, or the additional levy that would be required to pay for reinsurance contracts or State backstop. In the case of Flood Re the initial estimate for set-up costs was between 6 and 12 million, but costs were finally 21 million and there was also a five year lead in time for the creation of an insurance pool. 5.7 We have been advised by both industry and the Central Bank of Ireland that the lack of any proper risk modelling in Ireland would be a significant stumbling block in trying to source reinsurance cover for any form of insurance pool. There is a need for detailed risk modelling to be carried out by specialist firms, based on both detailed mapping and very detailed claims history data in order to source reinsurance cover. Any reinsurer considering supporting an Irish insurance pool would need to know what level of risk is being reinsured. 5.8 Any new insurance levies would be in addition to the 3% stamp duty and 2% Insurance Compensation Fund levy and would add an additional cost to households who have already seen the cost of home insurance increase by 10% since May In addition, in the event of reinsurance or a State backstop for the insurance pool, additional costs may need to be funded by levy in order to repay the Exchequer lending. 5.9 Flood Re in the UK was established to cover up to 500,000 houses which is roughly 2% of households. If an insurance pool was set up to cover a similar percentage of houses in Ireland it would add an additional range from 39 to or 9% to 16% to the average annual house insurance policy In the example of the US, schemes that are seen at first to be potentially self-funding via premiums have resulted in significant contributions from the State. In the US system certain catastrophic events have forced the fund to borrow $23bn from the US Treasury. 16 Source: CSO CPI data May

151 5.11 The number of households that are high risk in Ireland is 8,547 based on data provided from OPW compares to the 350,000 households that will benefit from Flood Re in the UK. The set-up cost of 21 million with Flood Re are shared by a far greater pool. The small number of households in Ireland that would fall within the scope of an insurance pool raises the questions over the viability of introducing such a scheme. Also Flood Re was established to eventually cover up to 500,000 households equating to 1.9% of households As we examined the differing options it was clear that an examination of planning laws may be required to ensure that new buildings do not add to the number of households that are at high risk to flooding. In the UK, eligibility of households to Flood Re is limited to those that were built prior to the 1 st of January The rationale for this date is that planning regulations were changed on the 1 st of January 2009 which means properties can no longer be built in flood-prone zones without being adequately defended. Recommended Approach 5.13 The expansion of the current policy approach is the option that is recommended for a number of reasons. i. The current policy approach is based on Government policy as agreed in 2010 while the process of engagement between OPW and Insurance Ireland is only in place since The information provided has shown an increase in the availability of flood insurance in areas where flood defences have been installed, both fixed and demountable, between January 2015 and January Thus, the current approach has a record of working, it has been tested and is in place. ii. The level of cost for this option compares favourably with the other options. The current approach is based on detailed research currently being undertaken by OPW under CFRAM and allows for prioritisation of areas that are at risk of flooding. It has already contributed to the increased availability of flood insurance. This approach is currently in place and has shown capacity for a quick and flexible response for households or businesses that are impacted by flooding, as seen in December of last year (while subject to Government decision on a case by case basis, taking account of legal constraints). The flood defences already in place were proven to work and saved a number of households from flooding. 149

152 iii. iv. The example of Australia and the engagement between the Insurance Industry and State Governments highlights that such a model can work and achieve high levels for the provision of flood insurance. The current approach continues to have a high level of private sector involvement in the provision of insurance, with the State s involvement only on the provision of flood defences in prioritised areas and targeted emergency humanitarian assistance in the case of flooding. (It is worth reiterating at this stage that the European Commission report (Natural Catastrophes: Risk relevance and Insurance Coverage in the EU in 2011) included Ireland along with the UK, Sweden, France and Belgium as having an insurance market that developed most efficiently, as total losses are not high and the level of insurance coverage is high). v. This compares to the other options that are untested, have long lead in times, impose new levies on household insurance premiums starting from between 3% to 5% per annum (and potentially as high as 16%), create new structures with significant costs and require additional reinsurance costs or State backstop with unpredictable Exchequer exposure. vi. vii. viii. The minimum annual levies to be raised for the insurance pool option of between 17 million to 31 million per annum and the need for a backstop of, at minimum, between 97 million to 185 million combined with high set up costs, make this a prohibitively costly option. It is important to note that Flood Re in the UK, while initially covering 350,000 houses (1.3% of all houses) was, in fact, established to cover up to 500,000 houses equating to roughly 1.9% of all houses. If the number of houses to be covered by a pool in Ireland were to cover a similar proportion of insured properties we would be looking at a State exposure of between 339 million and 542 million. Imposing the compulsory provision of flood insurance via legislation has many drawbacks, risks an exit of insurance firms, and is unlikely to lead to cheaper insurance. Countries such as Germany with significant state involvement in the provision of flood insurance or providing compensation post flood events show low levels of private sector insurance provision, with levels in Germany at 38%. 150

153 Other Recommendations 5.14 While the expansion of the current approach is our recommended option, measures should continue to improve its functioning The issue of data sharing via the MoU between Insurance Ireland and OPW we believe needs to be strengthened. There is a need to strengthen the requirements on both parties in terms of the type, granularity of data to be exchanged and the pace of such exchange. In this regard, it is recommended that the Insurance Ireland/ OPW Flood Working Group meet on a quarterly basis. The Group should be chaired by the OPW. The Department of Finance will also attend meetings of the Group. It should be noted that this strengthening of the interaction between Insurance Ireland and OPW has already commenced as demonstrated by the recent commitment by Insurance Ireland to assess the risk from the deployment protocols, warning systems and emergency response systems in place where demountable defences are utilised. Insurance Ireland and OPW will begin the work to share information on the performance and deployment procedures of these defences. More regular meetings of the Group should continue to support the information flow and improve the understanding of issues between both parties It is recommended also that there should be surveys on the availability of flood insurance in the areas in which flood defences are going to be built to determine the level of flood insurance in those areas. Once the defences are built, this survey should be followed up months after to ascertain any difference in flood insurance availability. The reason for this is that it will provide an additional level of data over and above that provided by industry and will also identify those households that have no household insurance which are not caught in the data collected by the insurance industry. It would provide a more detailed picture of the benefits of building flood defences than can be provided by industry. 151

154 Appendix I Recent Oireachtas Committees dealing with the issue of flooding and insurance Two Oireachtas Committees have reported to Government in 2015 on the issue of the provision of insurance in areas at risk of flooding. The Joint Committee on Finance, Public Expenditure and Reform examined the situation in Cork City as an example. This Committee pointed out that the flow of information between the OPW and Insurance Ireland should be two-way and should fully inform of the impact of the completed flood defence works on the availability of flood insurance and any changes in premiums. The overall conclusion was that there is no perfect solution, that the State must accept some responsibility for insurance and that there should be an examination of the models in place elsewhere. Compelling insurers to provide insurance cover would be a last resort if no adequate solution can be reached. The Joint Committee on Environment, Culture and the Gaeltacht reported to Government in December 2015 on Flooding and Property Insurance in Ireland. The main recommendations in relation to flood insurance included: o The referral to the Central Bank of Ireland of the matter of the insurance industry s use of geo-coding along with a call for the Central Bank to conduct an inspection into a sample of properties which have no history of flooding but have been refused flood insurance or had their premiums increased. o A need for information on the impact on premiums and the insurance products being offered to customers in areas where flood defence works have been completed. o The possibility of partnership between the Government and the Insurance industry similar to the proposed UK Flood-Re Scheme. o Models in other countries to be examined. This Committee also recommended that, should the various models examined not include a solution suitable for Ireland, as a last resort the State should examine the merits of compelling insurers to provide flood insurance to everyone. 152

155 Appendix II Provisional estimate of the cost of extending insurance cover to high flood-risk households based on analysis by Department of Finance economists. Key points This short note provides an estimate of the cost of extending insurance cover to residential property owners who are unable to obtain an affordable insurance policy as they are considered to be at too high a risk of fluvial flooding. The figures provided should only be considered as indicative. There may be a large of band of uncertainty around the estimated figures. This is due to data measurement issues and the necessity to make a number of assumptions in order to provide a cost estimate. An outline of the approach and some of the key assumptions made in order to calculate the cost estimates is provided below. In summary, based on OPW data, 8,547 properties are likely to flood at least once every hundred years. It appears that this flood risk is considered too high for insurers to provide affordable/any flood insurance for. Accordingly, this group of properties is considered the target group for the proposed insurance scheme. In calculating the expected annual flood claims bill, it is necessary to account for the fact that within the group of 8,547 properties some properties will flood more often. To address this issue, the analysis accounts for differences in the flooding probabilities of these properties. The expected annual flood claims bill for high flood-risk properties is 17 million. This is based on an average claim of 13,300 per household multiplied by the expected annual number of flooded properties. If the 17 million was to be paid for through the imposition of a levy on household insurance policies, it would increase premiums by an additional 13 per policy. In addition, the contribution that owners of high flood-risk properties would make to the scheme is not factored in. It is important to note that this figure does not account for the likely decline in the number of polices due to the premium increase, or the associated costs of administering the levy scheme, but based on UK data this may be of limited impact. Analysis undertaken in the UK by the Department of Environment, Food and Rural Affairs (Defra), showed that there is reasonably strong evidence that insurance is relatively price inelastic. They adopted a conservative price elasticity of demand (PED) of -0.1 which means that for every 1% increase in the price of insurance, demand will decrease by 0.1%. 153

156 In terms of estimating a maximum cost of a flood claim in a single year, based on our calculations, if a one in one hundred year event was to occur and all of the 8,547 properties were flooded, it is estimated that the claims bill could reach 114 million. The UK s Flood Re scheme provides an estimate of the economic cost of suffering flooding whilst uninsured. In their cost estimate, they account for the provision of alternative accommodation and healthcare (i.e. healthcare costs that relate to the extra health and stress effects of a flood experience as result of being uninsured). The economic cost per uninsured property is estimated to be in the region of 25,000. Based on this figure, the expected annual cost to the economy for uninsured high risk flood properties is 31m resulting in a levy of 24 per policy. If a one in a hundred year event did occur, using this cost per claim would result in a claims bill of million. Assumptions and calculation of insurance scheme costs It is assumed that the proposed insurance scheme would be made available to all households whose properties are likely to flood more than once every hundred years. From discussions with industry, this is the level of risk that insurers are reluctant to provide cover to. According to the OPW estimates, 8,547 properties have been identified as likely to flood at least once every hundred years. However, within this group some properties will flood more often. To account for this, a refined classification is constructed allocating properties according to more detailed annual exceedance probabilities ranges (i.e. the probability of a flood happening once every years, 50-21, 20-11, 10-6, 5-3 and 2-0 years). As the distribution of the exceedance probabilities is unknown within each group, the midpoint in each range is taken to represent the average exceedance probability. Multiplying this probability by the total number of properties in each subgroup provides an estimate of the number of properties expected to flood in a year (see Table 2). Adding the figure for each subgroup together indicates that on average 1260 properties are expected to flood each year. The expected annual cost of claims in a year ( 17 million) is equal to the expected number of properties flooded (1,260 properties) multiplied by the average annual flood claim payment which is taken to be 13,300. (i.e. average claim between data was provided by Insurance Industry Ireland). This is assumed to be the average cost of a claim that would be paid out on high flood risk properties. This figure could well be higher when factors such as the likely requirement for the longer use of temporary accommodation by this cohort is considered. 154

157 At present, there are approximately 1.3 million household insurance policies. To cover the annual claims bill of 17 million this would result in a levy of around 13 per policy assuming the number of household polices remains constant. The levy would be lower if high flood-risk property owners were required to make some contribution to the cost of the scheme. On the other hand, administration costs are not included. Taking the UK s Flood Re economic cost estimate of 25,000 per uninsured property would result in an expected annual claims bill of 31 million implying a levy of 24 per policy. Table 1 Cumulative total number of properties at risk of fluvial flooding Flood event probabilities (expressed in years) Total numbers of properties at risk in AFAs fluvial 5,278 3,704 2,324 1,458 1, Total numbers of properties at risk nationally outside of AFAs fluvial 3,269 2,612 1,894 1,409 1, National Total (Cumulative) 8,547 6,316 4,218 2,867 2,097 1,087 Table 2 Total number of properties at risk of fluvial flooding Flood event probabilities (expressed in years) (range) Tota l Midpoint of flood event probabilities Total numbers of properties at risk in AFAs fluvial 1,574 1, Total numbers of properties at risk nationally outside of AFAs - fluvial National total 2,231 2,098 1, ,01 0 1,08 7 Expected number of households flooded in a year Note: Small numerical discrepancies due to rounding Table 3 Expected claims costs of uninsured high flood-risk residential properties (based on average claim) Residential properties Average payout Total payout Households at high risk of flooding 8, ,675,100 Expected number of households flooded in a year ,752,541 Number of household policies 1,310,689 Levy to cover average annual high risk claims

158 Table 4 Expected cost of uninsured high flood-risk residential properties (based on UK Flood Re cost figure) High Flood-risk residential properties Economic cost per uninsured property Expected Cost Households at high risk of flooding 8, ,875,00 0 Expected number of households flooded in a year ,489,738 Number of household policies 1,310,689 Additional levy to cover average annual high risk claims

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