Oral Answers to Questions

Debate between Baroness Stuart of Edgbaston and Owen Paterson

Thursday 25th October 2012 Commons Chamber

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

5. What recent progress he has made on flood insurance.

[The Secretary of State for Environment, Food and Rural Affairs (Mr Owen Paterson)]

The availability and affordability of insurance in flood-risk areas is an important issue for this Government. We are in intense yet constructive negotiations with the insurance industry on a range of approaches that could succeed the current statement of principles. In the meantime, the Government are continuing to invest in managing the risk of flooding. We are on course to exceed our target to provide better protection to 145,000 households by March 2015.

[Ms Stuart]

The statement of principles expires in June next year. It is extremely important that households and small businesses in my constituency get insurance cover and household insurance. They will find little comfort in the Secretary of State’s answer.

[Mr Paterson]

I am sorry the hon. Lady is disappointed. Within two days of taking office I had a meeting with Otto Thoresen, the head of the Association of British Insurers. We are engaged in detailed discussions, which I obviously cannot reveal, because we do not negotiate in public. However, I reassure the hon. Lady that the Government take this matter very seriously. We know that the statement of principles runs out next year and that it must be replaced—I hope by something that is more comprehensive and effective.