Storm Eva: Local Authority Support

Craig Whittaker Excerpts

Wednesday 20th January 2016 Westminster Hall

[Craig Whittaker (Calder Valley) (Con)]

Thank you, Sir Alan, for calling me to speak. As always it is a pleasure to speak under your chairmanship.

I thank the hon. Member for Halifax (Holly Lynch) for securing the debate on a subject that has affected both of our constituencies on a horrendous scale. In total, 2,700 homes and 1,635 businesses were flooded; three bridges are down; four schools were affected; there was a landslide that affected 17 homes, and a school was closed as a result; and there was major damage to vital roads and other infrastructure all over Calder Valley and indeed all over Calderdale. So far, the bill for the infrastructure damage alone is in excess of £20 million, which is massive, and that is not to mention the pain and misery suffered by many of our constituents.

The Government response to date has been rapid and welcome: a £12 million package for households and businesses to help with initial costs; Bellwin at 100%; and, as has already been mentioned, £5.5 million for Elland bridge, which is in Calder Valley. We have also had £2 million in match funding, which I know has been welcomed by a lot of people locally.

As my neighbour, the hon. Member for Halifax, has already said, we need further help, but I will not go over the ground that has already been covered. Instead, I will raise two main points on relieving pressure on local authorities. First, insurance is a problem for most people in businesses. We know Flood Re takes effect from April. Sadly, it will not help homes that could not get insurance this time before the floods, but it will in future. The major issue is that Flood Re does not include businesses. So many of my well established businesses, despite paying for flood insurance, in some cases for decades, are now finding that they have not been covered for flooding. The results are catastrophic for many. It will mean many businesses in Calder Valley will not reopen, and many jobs and much expertise will be lost.

In reply to a question a couple of weeks ago during Question Time, the Prime Minister said that the insurance industry says all businesses will be offered insurance. That may be the case in some instances, but it is not the case for many.

Those that were offered insurance saw phenomenal premiums with equally high excesses. A local sandwich shop was offered insurance for £10,000 with a £10,000 excess. A local factory owner was offered insurance, but with a £30,000 excess for flooding. A world-renowned British furniture manufacturer in Mytholmroyd was insured for stock but not equipment, and lost more than £600,000. Christmas orders were massive, but there were no facilities to fulfil those orders.

A destination retailer lost £650,000. A fireplace manufacturer and retailer, offered no option of insurance, is facing ruin. A major supplier of coir mats to supermarkets and hardware stores all over Europe lost all its stock. It had no insurance; no stock to supply ongoing; penalty charges for non-delivery; and it is tied into its current lease for three years. If those businesses manage to get up and running again, they face no prospect of being able to get insurance and no prospect of getting out of leases to relocate. If they do relocate, our local valley bottom towns will die: places such as Todmorden, Hebden Bridge, Mytholmroyd and Elland. We need our businesses to stay to feed our local economies and keep the skill set that has grown up with these businesses over decades and generations.

[Julian Sturdy (York Outer) (Con)]

My hon. Friend is making a powerful argument. He is absolutely right to focus on business insurance and the problems that local businesses face. However, is it not also true that many businesses have not been flooded, but are hugely affected because the wider regional economy is affected? Is it not right that we send out a clear message that Yorkshire is open for business? My area and that of the hon. Member for York Central (Rachael Maskell) are certainly open for business, and I know that my hon. Friend’s constituency is definitely open for business.

[Craig Whittaker]

My hon. Friend is absolutely right. I had a call only this morning from a local farm business—Porcus—that supplies pork sausages far and wide, not only in Calder Valley but in many of the flood areas as well. The business is down 75%, even though it has not been hit by the floods.

We are supporting private homes with Flood Re, but to not support businesses with insurance is criminal. Will the Minister consider urgent talks with the insurance industry and look again at Flood Re—if not Flood Re, something else—to include businesses as well? If no urgent progress can be made, will he look at introducing secondary legislation to force insurers to insure companies for floods at a level that is affordable and fair to all?

As I have said, the pain and suffering of Calder Valley residents over Christmas has been horrendous. To have the possibility of losing their jobs as well as their homes and businesses is a bridge too far—if you can find a bridge in Calder Valley still standing. The situation is dire, and the Government could help in a way that would help far more than a simple cash injection. On behalf of Calder Valley business owners, please, please, please can we sort out their plight with insurance? That would also alleviate many pressures that the local authority is currently picking up on.

My second point—I will be brief—concerns planning and co-ordination. The floods happening on Boxing day meant that many people were at home, and help among communities and neighbours was humbling and incredible to see in action. A multitude of agencies and Government Departments were very difficult to contact and get hold of because they were not working, because it was Christmas, or they were on holiday.

Local farmers were saying in November that the moors and hilltops were saturated with water after record rainfalls in November. Some were warning that if we had severe rainfall in December, we would be in trouble, as the only place for water to go when the land up above is saturated is downhill. That is exactly what happened.

It took several days for the recovery to get fully under way because of the lack of agency co-ordination among Yorkshire Water, the Environment Agency, the National Grid, utility companies, including mobile phone providers —we had areas with no phone coverage at all—Calderdale Council, the Canal and River Trust, Network Rail, highways, police, fire, ambulance, the Army, the Department for Environment, Food and Rural Affairs, and the Department for Communities and Local Government. I am sure there are many more.

In areas such as Calder Valley, where we suffer from flooding on a fairly regular basis and where the floods are getting far more frequent and severe—we had floods in 2000, 2007, 2012, and of course recently in 2015—we need one individual or one individual agency to take responsibility on behalf of all agencies, not just to mobilise all agencies as a co-ordinated response, but to flag areas where flooding can be reduced. For example, if Yorkshire Water had released some capacity from reservoirs in November, the flow downhill could have been slowed. The Canal and River Trust could have opened locks at strategic points. The Environment Agency could have warned residents to move cars, for example, in multiple parking areas that were flooded. All that needs co-ordinating through one person or one body. Although it would not have prevented all the flooding, it would have prevented some of it and would have saved millions of pounds’ worth of damage to infrastructure and personal possessions.

To sum up, may we have a serious look at having one person or one body that will be responsible in areas such as Calder Valley for co-ordinating a rapid response from all agencies during disasters like the one we have just experienced, and that will also hopefully help to prevent them on the scale that Calder Valley has just experienced?