NI Secretary reallocates up to £15m to help businesses affected by flooding

Chris Heaton-Harris said the UK government will make the money available through the reallocation of existing Northern Ireland funding.

A view of debris and flood water in Sugar Island as the clear up begins in Newry Town, Co Down (Brian Lawless/PA) (PA Wire)

A reallocation of up to £15 million has been announced to help support businesses affected by severe flooding in Northern Ireland.

Northern Ireland Secretary Chris Heaton-Harris made the announcement during a visit to Newry on Wednesday, which was among the areas worst hit following heavy rain last week.

However, political representatives have warned that the sum may not be enough support for businesses.

Scores of businesses in the Sugar Island area of the city are attempting to revive their livelihoods after the bursting of the canal banks last week saw many properties left under water.

Mr Heaton-Harris said a devolved government in Northern Ireland “could have acted swiftly” to respond following the floods.

The Stormont Assembly remains collapsed amid DUP protest action over post-Brexit trading arrangements.

Senior civil servants, with limited powers, have been leading departments in the absence of locally elected ministers.

Mr Heaton-Harris said the UK government will make available up to £15 million of support through the reallocation of existing Northern Ireland funding.

“The floods have been devastating for all those who have suffered the destruction of their homes and businesses,” he said.

“Those who have suffered damage need reassurance that support will be available. This is rightly something which a devolved Executive should be able to deliver.

“However, in the absence of the Executive which could have acted swiftly, the UK Government will make available up to £15m of support through the reallocation of existing Northern Ireland funding.

“This will help with clean-up costs and support businesses to resume trading.”

He added: “We will continue to work closely with the Northern Ireland Civil Service and local councils to ensure that support gets to those who need it as quickly as possible.”

Sinn Fein MLA Conor Murphy criticised the funding as “not enough to assist with damage from last week’s extreme flooding”.

He added: “Much more must be done to help businesses and families repair the huge damage to their homes and premises. There is little to no detail on how it will be distributed to workers, families and businesses, so we also need urgent clarity.

“Unfortunately, the British Government has brought forward no new money, and today’s announcement simply won’t cover the financial cost homeowners and businesses are facing.

“The British Government needs to fund a scheme that adequately assists those impacted to repair homes, businesses and protect jobs.”

DUP MP Carla Lockhart described Mr Heaton-Harris’s announcement as a “welcome step”, but cautioned that it may not be enough.

“Businesses have been plunged into despair by the unprecedented flooding witnessed last week,” she said.

“They have been crying out for help, and today should offer some hope that support is forthcoming and they will be given that assistance to start to get back to business again.

“This is good news, but it unlikely to be enough. That will become apparent soon, and if more is needed the Government may well have to step up again. Furthermore, we need funding to support alleviation schemes that allow significant capital investment in protecting businesses and households from future flooding.”

Eamon Connolly, the manager of Newry Business Improvement District (BID) was one of the representatives that met with Mr Heaton-Harris on Wednesday.

Mr Connolly said the £15 million was “very welcome” but that more funding would need to come.

Our initial ask was £37 million and that in itself is not finite. As we continue to work and clear up, we discover more losses as we go

Eamon Connolly, Newry BID

“It’s a good start, we had a constructive, engaging meeting with him, but it’s only the start and we certainly hope to see more money come from London,” he said.

He added that Mr Heaton-Harris was “empathetic, supportive and listening.”

“We would be optimistic that he will help us and we will continue to lobby for further support,” he said.

Mr Connolly said their initial request had been over double what the Secretary of State announced.

“Our initial ask was £37 million and that in itself is not finite. As we continue to work and clear up, we discover more losses as we go,” he said.

Mr Connolly further stated that the clean-up bill for Newry would be in the “many millions”.

“We had over 100 businesses in a room last week that were directly impacted in a physical state and we have other businesses that are impacted indirectly,” he said.

“How much it is going to cost to return to where we were, at this stage I can’t give you a figure, but it’s in the many millions of pounds.”

Mickey Brady, Sinn Fein MP for Newry and Armagh, said the £15 million reallocation was “absolutely not enough.”

“It’s totally inadequate and we’re very disappointed in the Secretary of State’s approach to the whole thing,” he said.

“Because Newry needs a lot more, we need much more help, much more money.

“Probably a ballpark figure minimum would be about 38 to 40 million pounds.”

Mr Brady said the shortfall would mean “extreme hardship” for businesses in the town.

“Because a lot of the businesses cannot get insurance and that’s part of the problem,” he said.

“Had they insurance they could at least look forward, maybe it would take a while, but in the short term to have some restoration of hope with their businesses.

“If you don’t have insurance, you’re not getting help, then what else can you do? You may well have to close.”