Flood Insurance

Debate between Damian Collins and Ian Lavery

Tuesday 26th March 2013 Commons Chamber

[Damian Collins (Folkestone and Hythe) (Con)]

Does the hon. Gentleman agree that it is important that the insurance industry take into account investment in new flood defence schemes, including the one that he has talked about and the new sea wall at Dymchurch in my constituency? Often insurers base their quotes on generic information that does not take into account investment in new defences.

[Ian Lavery]

That is a powerful comment, with which I totally agree.

As has been discussed, the ABI has been in discussion with the Government for several months, perhaps years, on the ending of the statement of principles in June 2013. The clock is ticking. The deadline is fast approaching. People want answers. People in Morpeth have been flooded time and again; hon. Members on both sides of the House have described the experiences of people in their constituencies who have suffered greatly time and again. They cannot get affordable insurance. The excesses are higher than what the properties are worth, so it is meaningless.

Time and again, Members on both sides of the House have mentioned the importance of ensuring that we have a statement that will ensure something affordable and accessible is in place when the statement of principles runs out. We have been told time and again that the discussions with the ABI are at a critical point, that the statement is nearly ready and that things are in place. However, The Times this morning said something completely different. It suggested that there are huge difficulties between the ABI and the Government. Perhaps the Minister, for whom I have a lot of time and who has been very helpful, can explain from the Dispatch Box this afternoon where we are with the ABI and what is likely to happen in the next three months. It is absolutely imperative that we get something in place for the people who have been suffering for some time.

I am sure that the Minister will have much more to say, and it is important that we deal with this issue and that measures are put in place. I hope that we will not hear, “We are still in discussions and we cannot really give any more details, because the matter is confidential and that wouldn’t be right.” We want an answer today for everyone who lives in a property on a floodplain. We do not want to hear, “Something will happen.” Give us the answers, so we can tell our constituents what the situation is and they can feel safe.