Oral Answers to Questions

Gavin Shuker Excerpts

Thursday 7th March 2013 Commons Chamber

[Richard Benyon]

My hon. Friend has a great many constituents who live in flood risk, and we want to be able to assure them that there is something that will continue after the end of the statement of principles. As I said to the hon. Member for Nottingham South (Lilian Greenwood), the new system is better because it will not only be available to all properties that are at flood risk but will have an affordability element. We have in mind my hon. Friend’s constituents and many others around the country who live in flood risk, but we are also responsible to the taxpayer. We want to make sure that what we are doing is fair to the taxpayer and fair to the person living in flood risk.

[Gavin Shuker (Luton South) (Lab/Co-op)]

The Building Societies Association has said that the consequences of failing to get a deal would be “grave”. Potential buyers would find it difficult or impossible to get a mortgage, loan book values would drop, capital requirements would rise, and there would be less money to lend in the real economy. Is sales blight on 200,000 properties an acceptable price to pay for this Government’s inaction?

[Richard Benyon]

The hon. Gentleman is wrong when he says that there is inaction; I can assure him that there is an awful lot of action. Alongside the negotiations that have been going on, we have been producing documents such as one that has been highly recommended by the British Institute of Insurance Brokers Association: “Obtaining flood insurance in high risk areas”. We are also assisting people in flood-risk measures they take for their property at household level so that that will be reflected in the premium. The hon. Gentleman is right to be concerned about the potential impact on mortgages and lenders, and that is one of the main drivers towards the quick result we want to get in this matter.