Half of flood-hit traders receive financial support

Half of flood-hit traders receive financial support

6 December 2023

A NUMBER of businesses and charities in Downpatrick decimated by last month’s devastating town centre flood won’t receive any financial support from the Government.

It was confirmed this week that less than half of the 236 businesses across the Newry, Mourne and Down area that applied for a share of the £15m support package unveiled by Secretary of State Chris Heaton-Harris were successful.

Only 106 businesses met the criteria for a £7,500 payment and rates holiday until the end of the financial year, with those who have flood insurance told they will not be getting a penny.

However, the business owners have claimed that the pay-outs they are entitled to under their respective policies are nowhere near the required level.

Many businesses waiting on insurance pay-outs fear they won’t receive any money until the New Year at the earliest.

And while proposals for further schemes to support the Downpatrick business community’s longer term recovery are being considered by government departments and local government, businesses say they need help now.

The £7,500 payment is being administered by Newry, Mourne and Down Council on behalf of the Department for the Economy which has the final say on what businesses are supported.

But some traders insist they should not have to “beg” for financial help and that businesses excluded from the grant scheme should be entitled to support.

Traders argue the criteria for assessing grant payments is “discriminatory and flawed”, should be urgently reviewed and is “bogged down in red tape”.

Businesses which have been told they do not qualify for emergency financial support are appealing the decision, along with the Downpatrick and County Down Railway which has been told it is not entitled to any government support.

The railway, which is a registered charity, is facing a £500,000 repair bill and while it does have insurance, its maximum pay-out will cover only half of the estimated damage.

Railway officials are “extremely disappointed” that they will receive no financial assistance at what is a very difficult and challenging time, and that further rates relief will not be of any assistance as it already benefits from this.

Other town centre businesses argue that all those affected should have been paid the £7,500 emergency payment with some traders accusing those responsible for administering the scheme of being “out of touch with the business community”.

There have also been calls for free town centre parking in the run-up to Christmas, with one trader stating they were refused the £7,500 payment as the premises were vacant and not trading, but did contain stock, fixtures and fittings.

Confirmation that businesses have missed out on funding comes in the same week as almost

120 homeowners in the Newry, Mourne and Down area received a £1,000 emergency payment after their homes were flooded last month, with the payments made under the Department for Communities financial assistance scheme.

Householders, including many in Newcastle, who suffered severe inconvenience as a result of flooding were able to claim the one-off payment.

South Down MLA Cathy Mason and Downpatrick councillor Oonagh Hanlon, say businesses and homeowners need more financial support.

Mrs Mason said while 106 businesses have had their applications for the initial £7,500 payment approved “it is simply not enough” as traders are continuing to struggle. 

“The £1,000 payment for homeowners affected by flooding was inadequate and has left families in a dire financial crisis with Christmas just around the corner. They urgently need adequate financial help now to help save their family homes and livelihoods,” she declared.

“We are now one month on from the flooding and businesses have been left with no clarity on the next round of financial support, with some yet to receive any support. This is hugely frustrating and damaging for local traders.”

Cllr Hanlon said the next round of financial support for flood affected businesses should begin immediately and must be substantially more than that the initial £7,500 payment.

“The delivery of any new scheme must be easily accessible and paid directly to affected business owners,” she said.

“Independent local traders at the heart of Downpatrick have been here for decades, and some for generations. These shops will not survive unless they urgently receive a significant compensation package and Sinn Féin will continue to make the case for this.” 

A Newry, Mourne and Down Council spokeswoman confirmed yesterday that 236 businesses had applied for financial support with 106 applications successful as of last Friday.

She added: “Businesses who have not met the essential criteria can make contact with the Council to raise a query regarding their application.”