Business owners in Newry and Downpatrick are expressing frustration as less than half of the allocated flood support funds have been disbursed following severe flooding in autumn 2023. Despite a £10 million support scheme, only £4.7 million has been issued, leaving many businesses in dire need of assistance.
Key takeaways
- Less than half of the £10 million flood support fund has been spent.
- Many businesses report significant financial losses and difficulties accessing funds.
- The council has processed only £3.8 million in claims to date.
Background of the flooding
In autumn 2023, Newry and Downpatrick experienced heavy flooding that caused extensive damage to local businesses. The flooding was particularly devastating, with many establishments facing repair bills that far exceeded the support available.
The Department for the Economy had announced a multi-million pound support scheme aimed at helping affected businesses recover. This included an enhanced flood support scheme providing up to £100,000 to flooded businesses, alongside two hardship schemes.
Disappointment over funding allocation
Business owners have voiced their disappointment over the slow disbursement of funds. Hugh Boyle, who operates several businesses in Newry, including a large snooker and gaming centre, described the situation as "unbelievable". He stated that the funds provided would not even cover a third of the damages incurred.
"We could have done with a lot more money, and I know other businesses who were refused any help or were only getting very small portions," he said.
The financial burden of repairs
The financial burden on businesses has been significant. For instance, Boyle reported that the flooding caused total devastation inside his establishment, destroying pool tables, gaming machines, and cash desks. He highlighted the challenges faced in accessing the support, noting that businesses had to pay for repairs upfront before being reimbursed.
Other business owners have shared similar experiences. Loretta Gallagher, who owns a design shop, was initially granted a £7,500 support payment but was later deemed ineligible. She described the extensive damage to her property, including damp and vermin, which rendered her shop inaccessible for months.
Underspend and its implications
As of now, only £4.7 million has been issued in letters of offer, with £3.8 million paid out to 80 applicants. The council has also processed £162,500 for 46 businesses under the hardship scheme. However, many business owners have reported difficulties in navigating the application process, leading to a significant underspend of the allocated funds.
Eamonn Connolly, head of the Newry Business Improvement District, expressed concern over the underspend, stating, "There are people impacted by the floods who still haven’t got any compensation, and we would be loath to see an underspend not being allocated to those that need it."
Future measures and funding
In contrast, the Department for Infrastructure reported that it had fully utilised the additional £10.5 million allocated for repair works following the floods. This funding was used for various infrastructure repairs, including roads and railway lines.
A feasibility study for Downpatrick is expected to be published soon, outlining potential measures to protect the town centre from future flooding. This study may provide insights into how to better allocate resources and support for businesses in the event of future disasters.
As the situation stands, many businesses in Newry and Downpatrick continue to struggle with the aftermath of the flooding, hoping for a more efficient and supportive response from local authorities in the future.
