With yesterday’s media Brownfest dominating the news, David Miliband’s common’s announcement (despite probably being his last as head of environmental affairs) on the recent flooding problems went largely unnoticed. Television coverage of northern areas, whilst being sensationalist, revealed a level of devastation and destruction never seen before in modern times. Footage showed scenes that had more in common with Bangladesh and the aftermath of Hurricane Katrina in New Orleans than the leafy countryside and retail metropolis that was Yorkshire and The Meadowhall Centre respectively.
Both the commercial and personal cost of this devastation will run into millions, if not billions. Such is the level of destruction that it has not proved possible to arrive at a stable estimate. Clearly, the rebuilding and reconstruction process cannot begin until the floodwaters have subsided, but who will pay for it? This is where the detail of Miliband’s speech becomes very interesting.
“Emergency financial assistance is available to local authorities under the Bellwin scheme to help with non-insurable clear-up costs incurred in taking immediate action to safeguard life and property following a disaster or emergency in their area. Local authorities have one month from the end of an incident to notify the Department for Communities and Local Government that they intend to apply for activation of a Bellwin scheme. If approved, that Department will usually reimburse an authority for 85 per cent of its eligible costs above a threshold related to the authority's annual budget.”
In simple terms, the Bellwin scheme is like an insurance policy. The council will have to pay an access, and the government will give them some money back but not all of it. The problem here is that these areas haven’t suffered the normal run of the mill insurance scenario; they haven’t had there cars scratched, they haven’t had there home’s broken into and they haven’t had their mobile phones pinched. What has happened is that they have had their lives ruined and the infrastructure around them destroyed. Roads, buildings and homes will now be structurally unsafe. Street lighting, sewerage systems, road bridges and all other municipal concerns controlled by the council will either need replacing or rebuilding. The bill will be extortionate and will continue to rise for months if not years.
Yet Miliband will only refund 85% of costs above a thresh hold. Faced by such a disaster, the likes of Sheffield should not have to pay for reconstruction and rebuilding work. This is not a third world country faced with a non existent infrastructure, we are one of the richest industrial countries in the world, yet we leave areas faced with such problems to face financial rack and ruin.
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