• Print
  • Send to a friend
  • Comment (0)
  •  

Province to pay out over $100 million for Igor losses

The cost of replacing municipal infrastructure and provincial roadways, along, will cost nearly $100 million. The province is still calculating the cost of compensation for property owners. When it's all added up, Igor will have cost government over $100 million. Packet file photo

The cost of replacing municipal infrastructure and provincial roadways, along, will cost nearly $100 million. The province is still calculating the cost of compensation for property owners. When it's all added up, Igor will have cost government over...

Published on March 31, 2011
Published on March 31, 2011
Adam Randell  RSS Feed

Still hasn't received cheque for Chantel

Topics :
Fire and Emergency Services , Transportation department , Insurance Bureau of Canada , Ottawa

The province is expecting a big cheque, but it could be a while before it arrives.

It will take more than $100-million to pay for Hurricane Igor repairs, and provincial taxpayers are currently footing the bill.

The federal government's Disaster Financial Assistance Agreement could cover up to 90 per cent of the cost.

But the claim hasn't been filed yet.

According to Kevin O'Brien, minister of Municipal Affairs, before the province's federal claim can be filed, all outstanding relief claims have to be taken care of.

O'Brien explained the claims have to documented, reviewed and complied before a final report is submitted.

"Then it is subject to (the federal) auditors process," he said. "(That) is quite stringent, and very detailed in what they will pay and not pay."

From there, O'Brien said, it will come back to a full payment agreement, or scaled down to what the Ottawa will cover.

O'Brien said it could take some time before the payment is received. He said the majority of relief claims were dealt with within six months of Igor, meaning the province is trying to move the process along as quickly as possible.

Looking to the past as an example, tropical storm Chantel hit the province in 2007. More than 800 claims were filed after the event.

O'Brien said the federal assistance agreement is still being processed - four years later.

"It's working its way through the system," he said. "So hopefully we'll get an agreement of final payment on that particular disaster in the not so distant future; ...that should come to finalization in the next number of months."

While the Igor claim could take some time, O'Brien pointed out the province could see some of the money in advance.

"The federal government understands it's a strain on the provincial treasury," he said.

Because of this understanding, O'Brien said it's not unprecedented for Ottawa to make an advanced payment that will cover a portion of the final claim.

In progress

According to Fire and Emergency Services, the department has received 2,007 claims in the personal, nonprofit and small business nature.

As of mid-March 1,476 claims had been closed; 200 remain with the adjustors, and staff is working the rest on.

A spokesperson with the department said this is the highest amount of claims it has ever received for a single disaster.

As a result of Igor, 125 communities received infrastructure damage.

However the department couldn't provide as estimate on the cost of the claims.

The spokesperson said $35-million is the estimate for municipal repairs.

This would cover the cost of damages to roads, pump houses, fire departments and other municipal infrastructure.

The spokesperson said some of the damages have been repaired but because of the onset of winter, the remaining work will be completed this Spring.

Meanwhile, the Transportation department expects to spend approximately $60-million will be spent in road and bridge repairs.

The province in a news release after Igor, said there were approximately 100 road breaches.

Transportation minister, Tom Hedderson, told the Packet in February, that there is a lot of work to be done with regards to getting the roads back in shape, and when the weather is right the department will be doing so.

Insured

Bill Adams, vice-president (Atlantic) Insurance Bureau of Canada, told the Packet last month, about $65-million has been paid out so far for insured losses from Igor.

Adams said the majority of these claims have been paid out.

"There's no question that Igor, combined with other weather-related events that we've seen across the island, it's been a significant year for damages to people's homes.

For the most part, he said, the losses were related to water damage.

Adams pointed out that in recent years water has surpassed fire as the number one contributor to damaged homes.

He said this really speaks to the severe weather events being experienced in the province.

"It also speaks to the fact that the infrastructure we have is not up to the task, particularly in municipalities that have storm and waste water systems," he said. "I would suspect most of them aren't up to the current demands that are being placed on them."

Adams pointed out that the aging infrastructure, combined with increased precipitation, adds additional strain, causing back up, which in turn, floods property.

"A lot of the claims we are seeing is because of that," he said.

Basements aren't what they use to be either, he said, noting these spaces have taken a more social approach in the last 20 years. Adams said instead of a storage space or root cellar, basements are being turned into recreation rooms, bedrooms and washrooms. And that adds up to more costly repairs when water floods the basement.

Because of this, Adams encourages the province to upgrade its storm, sewer and wastewater infrastructure.

"It's one of those things that's out of sight and out of mind almost," he said. "We are suggesting our government continue doing what it does in paving the roads and that sort of thing. But long-term benefits can come from investing in the pipes under the road first."

arandell@thepacket.ca

Submit a comment

Submit a comment (we keep all emails private)
Agreement

We ask that users remain courteous. You may not post insulting, discriminatory or inappropriate content, which may be removed at our discretion. We are not responsible for user content and opinions. Use of this site as well as content submission & ownership are governed by our Conditions of Use and Privacy Policy.

Member organizations should be non-profit in nature, and promote legal activities. Any organization found promoting illegal activities or commercial products or services will be deleted from the site.

I agree with these conditions.

Advertising

loading...

Newsletter

Please enter your email to receive our free newsletter

Subscribe to news alerts

Advertising