Flood Insurance

Debate between Neil Parish and Jonathan Evans

Tuesday 26th March 2013 Commons Chamber

[Neil Parish (Tiverton and Honiton) (Con)]

It is a great pleasure to speak in this debate. I, too, thank my hon. Friend the Member for Esher and Walton (Mr Raab) for securing it and the Backbench Business Committee for holding it.

Flooding has been a particular problem in the past year throughout my constituency. Tiverton, Cullompton, Seaton, Axminster and Uplyme have all been affected by flooding and Feniton has been flooded several times. We need to ensure that my constituents and people across the country get flood insurance that they can afford.

I have a great deal of respect for my hon. Friend the Member for Cardiff North (Jonathan Evans), but he speaks, naturally enough, on behalf of the insurance industry. It is a wonderful industry, but it is not terribly charitable. It is there to make a profit. There is nothing wrong with profit, but we must not set up a system that puts a levy on all insurance payers in order to pay for those in flood-risk areas.

[Jonathan Evans]

I do not want my hon. Friend to miss the fact that the “Flood Re” scheme, about which everybody has spoken, is a not-for-profit scheme. It is important that everybody recognises that.

[Neil Parish]

I thank my hon. Friend for correcting me about that being a not-for-profit scheme, but that was not the point I was making.

My point is that when we levy all insurance payers to build up a fund that takes the risk of properties in high-risk areas away from the insurance companies, we should not be too generous because insurance companies are all about taking risk. That is what they are in business for. They should therefore be able to take their fair share of risk. I want to ensure that the insurance companies step up to the plate, but also that the Government help those who, in their areas, cannot get flood insurance under a private scheme on the free market. That is the balance that must be struck.