Last-minute effort to secure EU flooding funds

THE Government is to make a last-minute application for EU funds to help with the fallout from the recent flooding, but it can be spent only to compensate public authorities for their losses and work.

The state could qualify for €10 million from the European Solidarity Fund, provided it meets criteria, including specifying how the money is to be spent.

MEP Pat “the Cope” Gallagher, announcing the application, said: “I am confident an application for funding will be favourably considered because of the extent and cost of the damage.”

Ireland would not qualify for funds under the usual criteria which says the direct damage must be more than 0.6% of gross national income which would be over €973 million – damage has been estimated at €400m.

However the Department of Finance is to apply under the extraordinary regional disaster criteria, which has no minimum on damage caused, but the criteria is difficult to meet and two thirds of applications fail.

To qualify they have to show that the damage occurred in a single coherent area where more than half of the population is seriously affected with serious and lasting repercussions on living conditions and the region’s economic stability.

They can claim on the basis of direct damage caused by the floods which includes all physical harm, both public and private, and the cost of the rescue operations.

The funds can pay for emergency operations by the public authorities alleviating non-insurable damages, such as rescue services, putting infrastructures back in operation, provisional accommodation and clean-up.

Private damage and income losses, including in agriculture, cannot be compensated. This month the Irish Insurance Federation estimated that claims will be in the region of €244 million for household, commercial and motor losses.

The state carries out the valuation which is then assessed by the Commission and if approved will result in a payout of 2.5% of the total – which would amount to €10 million if, as sources say, the department believes the total to be approximately €400m.