Minister addresses issues raised concerning flood assistance

Oliver Langdon, Minister of Municipal and Provincial Affairs and minister responsible for the Newfoundland and Labrador Emergency Measures Organization (NLEMO), responded today to issues raised concerning assistance for victims of Tropical Storm Gabrielle.

Claims for damages caused by Tropical Storm Gabrielle are continuing to be processed in accordance with Disaster Assistance Guidelines established by the federal government. "The rules under the federal guidelines clearly indicate that verifiable receipts and other proofs of purchase must be presented in order for compensation to be considered. We are expecting to spend millions of dollars of taxpayer�s money and are accountable to them for these expenditures. Government will continue to be prudent in this matter," said Minister Langdon.

"I am pleased to report that to date, $1.65 million has been issued to a total of 512 claimants. These people were contacted by NLEMO to discuss their claim and the amount that qualified under the federal disaster guidelines," said Minister Langdon. "A mechanism does not exist within the federal guidelines to establish an independent arbitrator however in situations where major issues were raised, the claimants were given the opportunity to make their arguments, which were then brought to the claims review committee. Depending on the individual case and issue, some people were successful in this endeavor."

"The federal guidelines clearly state that assistance under this program is for essential items and damages to a primary residence. The program therefore excludes rental properties," stated the minister. "While I appreciate the frustration of individuals who have found themselves in varying predicaments as a result of this storm, the guidelines are very specific and to differ would result in a significant increase in the total cost to the province as the federal government will not cost- share on such expenditures."

The deadline to submit a claim under the program was November 30, 2001, by which 1,198 claims were received. Of the total number of claims received, more than 400 were submitted within days of the deadline.

Media contact: Lynn Hammond, Communications, (709) 729-1983.

2002 01 24                         5:20 p.m.