Oral Answers to Questions

Lilian Greenwood Excerpts

Thursday 7th March 2013 Commons Chamber

[Mr Paterson]

My hon. Friend the Minister of State attended the 100th anniversary celebrations of the National Farmers Union of Scotland, and I have discussed the matter with Minster Lochhead. We both agree that we have a job to do, working closely with the industry, to promote strict traceability and production systems. I was interested to note that at the NFU conference last week in Birmingham that people really had their tails up because there is now an opportunity, with the public being so interested in the supply chain, to stress how good our industry is and how reliable our products are.

[Lilian Greenwood (Nottingham South) (Lab)]

8. What recent discussions he has had on flood insurance.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Richard Benyon)]

The availability and affordability of insurance in flood-risk areas are important issues for the Government. Constructive negotiations continue with the insurance industry, at the highest levels of Government, on a range of approaches that could succeed the current statement of principles. The Government are on course to spend £2.3 billion on reducing the risk from flooding and coastal erosion and delivering better protection to 165,000 households over the four years to March 2015.

[Lilian Greenwood]

On 24 January I asked the Minister how much premiums will rise if he fails to reach agreement with the insurance industry. In response, he assured me that negotiations were at an advanced stage and that he would come to the House with details shortly. I understand that he does not actually have a seat at the negotiating table, but when does he expect to have news of a deal from his Cabinet Office and Treasury colleagues?

[Richard Benyon]

I think that there is a misconception in some parts of the House that the statement of principles represents some halcyon world in which our constituents living in high flood-risk areas are protected from exorbitant rises in premiums. That is not the case. What we want is affordability to be brought into the new system. I am involved in those conversations at the highest levels and want to assure the House that we are working as hard as we can to find a solution that can give comfort to everyone who is at risk of flooding, particularly those on low incomes.