'Unbelievable' only half of flood support money paid out

Business owners affected by flooding in 2023 have expressed their disappointment after less than half the money allocated to a support scheme was paid out.

There was heavy flooding in Newry and Downpatrick, in County Down, in autumn 2023.

A multi-million pounds support scheme was set up to help affected businesses. Applications closed on 31 March.

Figures released to BBC News NI highlight significant underspend. Only £4.7m has been issued in letters of offer, out of a pot of £10m.

The Department for the Economy announced in February 2024 that up to £10m would be allocated to councils to deliver three flood schemes: an enhanced flood support scheme which provided up to £100k to flooded businesses and two hardship schemes.

"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 so I can't believe money is going back unused, it's unbelievable," Hugh Boyle told BBC News NI.

Mr Boyle runs a number of businesses in Newry, including The Q Club, a large snooker and gaming centre in the Basin Walk area of the city.

He said that the money "wouldn't have covered a third of our devastation here".

Mr Boyle said that it was a "huge cost" to get his business back up and running after the canal behind it flooded.

"There was total devastation inside," he said.

"Everything on the ground floor was completely destroyed - pool tables, snooker tables, machines, our cash desks, everything."

He said they were "glad to hear that the council and government were going to help us, although it was a very difficult process to get that money".

"We had to prove that the work was done, we had to pay for the work before we could get anything back, so that was very difficult," he added.

The scheme was administered by Newry, Mourne and Down District Council.

In a statement, the council said that "a total of £4.7m has been issued in letters of offer with 80 applicants making claims paid to the value of £3.8m to date".

The council added that £162,500, in total, had been processed to 46 businesses as part of a hardship scheme.

The Department for Economy said that it anticipated that the final cost of the three schemes would be about £5m and confirmed that "any unspent money has been reallocated across the department to meet other capital pressures".

In recent months, many businesses in Newry and Downpatrick have spoken to BBC News NI in relation to perceived difficulties in drawing down the financial support.

Others have said they do not wish to go on record until their support claims have been fully processed.

One business owner described having to borrow money from friends in order to buy replacement fittings before being able to reclaim this through the scheme which was "extremely difficult and long winded".

Loretta Gallagher owns Lorsha Design which is situated above a café, alongside the canal.

She was initially given a £7,500 support payment but was later deemed ineligible.

"The ground floor was decimated and the whole building was affected by everything that comes with five feet of Newry canal coming into the building," she said.

"There was damp coming up the walls, vermin, mildew, everything. The only access to my shop was through the flooded café so nobody could come in.

"Our floor didn't flood but lots of my stock and silks were destroyed. I couldn't properly open until May (2024)."

Eamonn Connolly is head of the Newry Business Improvement District.

He told BBC News NI that many business owners had difficulties with the scheme.

"There are people impacted by the floods who still haven't got any compensation and we would be loathed to see an underspend not being allocated to those that need it," he said.

"In one regard, it's not a shock because we know the purse strings have been held tight and I understand why.

"But the extent of the losses far outweighs the funding."

The Department for Infrastructure said it spent all of the additional £10.5m it was allocated for works following the floods.

"The capital funding of £8.6m was spread across the department, NI Water and Translink," a spokesperson said.

"This included repair and remediation work, such as dealing with landslides, repairing storm damage to roads and footways and replacing damaged equipment.

"Other capital expenses included purchasing additional plants and equipment, repairing structural damage to railway embankments and lineside drainage replacement for Translink."

A feasibility study for Downpatrick, which will outline if there are any economically viable measures to protect the town centre, will be published next month .