Murphy faces questions over speed of flood compensation payments

Mr Murphy was answering questions at Stormont on Monday, following complaints that the distribution of funding, which was made available following last year’s flooding in Newry and Downpatrick, had been too slow.

The Newry & Armagh MLA’s party colleague, Liz Kimmins, asked the Minister for an update on the payments.

He responded: “Local councils are responsible for making payments under the flood relief schemes funded by the Department for the Economy.

“There were 108 applications to the enhanced flood scheme across two councils. As of 3 June, the councils have issued letters of offer to 27 businesses, with a value of £1·601 million. To date, payments of £310,000 have been made to 22 businesses.

“Further payments will be made to businesses on receipt of a signed letter of offer and any required documentation to evidence costs.“There was a total of 82 applications to the flood hardship scheme across four councils. As of 3 June, hardship grants totalling £135,000 had been paid to 39 businesses.

Ms Kimmins followed up by asking how much funding has the Department released to councils to fund the flood grant scheme.

In reply he said he knew of the urgency of getting funding out to businesses.

“I hope that councils can make every effort to ensure that that happens quickly,” he added.

“I understand that there is a complex process of assessment and verification and a need to protect public funds.

“Ten million pounds was set aside for support. We hope to see as much of that as possible distributed within a short time.

“If there is anything left over, we will certainly examine ways in which we can continue to support businesses in the affected areas.”

Newry & Armagh MLA Justin McNulty asked about issues around the distribution of flood grants by councils.

“Loretta Gallagher of Lorsha Design got an initial payment from the council, but it is now trying to get that back off her because not all of her business is on the ground floor,” he said.

“How can such issues on the distribution of the payments be resolved?”

The Minister said councils “have a responsibility to protect public funding and make sure that funds are distributed appropriately”.

He continued: “I would also like to ensure, however, that there is a degree of flexibility.

“At the outset of our engagement with the councils, we asked them to apply a degree of flexibility to ensure that they understand the real challenges that businesses have suffered as a consequence of the flooding incidents in Newry, Downpatrick and other places last October and that they approach the matter in a can-do way to make sure that they support businesses as best they can.

“There is a requirement on businesses to provide evidence of loss and damage, and I hope that they can quickly get down to that. We want to see support getting out as quickly as possible to all the businesses that were affected.”

Later during questions around climate change, SDLP South Down MLA Colin McGrath asked if the Minister open to applications from the council to help promote and support footfall, which said had been “obliterated since that event last year”?

Mr Murphy said: “The high street task force, which is responsible for a lot of those matters, is led by another Department, and the Department for the Economy makes a contribution to it.

“We are keen to work with all Departments to help the high street, particularly in areas that have been unexpectedly damaged.

“High streets are struggling in general with the economic conditions that we have, and Newry and Downpatrick in particular received a serious blow last autumn.

“While my primary focus is to make sure that councils deliver funding support for those affected by flooding, on the work of the high street task force in a broader sense, all Departments have a duty to try to understand the challenges facing our high streets and to provide cross-departmental support wherever we can.”