Flood-hit firms to receive €5m aid within days

Small businesses hit by flooding will start receiving payments within the next 10 days under a €5m government scheme.

Announcing the details, Defence Minister Simon Coveney said the first phase of the scheme will be “based on trust on self-declaration” so funding can be given out quickly.

The second phase will provide funding for businesses that have incurred greater losses and involve compensation of up to €20,000. However this will be a more lengthy and stringent process and will take several months for claims to be processed.

It comes as Cork and Limerick cities and areas along the Shannon up to Althone brace themselves for further flooding over the weekend as river levels continue to rise and more heavy rain is forecast in the coming days.

Met Éireann is expected to put out another weather warning today after a reprieve in the rain yesterday.

Ms Cusack said “at the very least a status yellow or perhaps an orange warning” will be put out today.

Mr Coveney said: “A number of towns have been really hit hard by Storm Desmond, some of the towns have businesses in them that cannot get flood insurance and so Minister Harris and myself were very anxious to put together a scheme that could help those people and do so in as simple and a quick a way as possible.”

Businesses with less than 20 employees will be able to apply online through the Red Cross website and application forms should be available from today.

“We are going to be relying on businesses making self-declarations,” Mr Coveney said. “This is about getting lots of payments out before Christmas and I am pretty confident that can be done.”

Around 100 businesses have been seriously affected by the flooding so far, but this number is expected to rise with more floods predicted in the coming days.

Mr Coveney said the Government may have to look at the size of the €5m fund for businesses at a later date but for now is confident that what is set aside will be enough to fund the scheme.

He said: “Obviously if we have some kind of dire situation where Limerick and Cork have a very large number of businesses that are flooded that don’t have insurance, the Government may have to come back and look at it again.”

To be eligible, businesses must have been flooded between December 4 and December 17.

Separately, OPW Minister Simon Harris said the Government is looking at the issue of insurance for homes and businesses in flood-prone areas. “The Government reserves the right to explore policy changes in relation to the provisions of flood insurance, that is the job of the interdepartmental group on flooding, it’s due to report in the spring. We will be exploring all options including learning from what other countries are doing in the area of flood insurance.”

Mr Coveney said there is now ongoing consultation between the Department of Finance and the insurance sector to look at models adopted in other countries which ensure areas at risk of flooding are able to get cover.

He could not put a figure on the cost of Storm Desmond as the extent of infrastructural and other damage will only be seen when flood waters subside. However, he cited the most recent storms which cost the State €70m.