James Delingpole on the British government’s latest announcements on flood policy:
Yesterday it was reported that the Coalition had decided we should all be liable for the cost of flood damage, regardless of where we live. This puzzled me, as the Coalition’s decisions so often do. The only way it would make any kind of sense would be if you believed a) flooding is a new and unnatural phenomenon resulting directly from late 20th century Man Made Climate Change or b) that everyone is now so stupid they cannot be trusted to act in their own best interests and that it is therefore government’s job to hold their hands and wipe their bottoms for them from cradle to grave.
To discount a) you only have to go somewhere like the River Severn, just below Worcester Cathedral, and look at the flood marks on the wall. Many of the most dramatic inundations happened in years long before “man made global warming” was even a sinister glint in Al Gore’s eye. This isn’t to say that the cost of flood damage hasn’t risen to unprecedented levels these last few decades. But that has more to do with our insane practice of allowing property developments to be built on flood plains, together with our unfortunate habit of paving and tarmacking everything (such as the front gardens we would once have kept as front gardens) which means that in times of high rainfall floodwater is likely to accumulate in drains more rapidly. Plus, of course, we’re all richer — so there’s more expensive property for flooding to damage.
But it’s the b) aspect I find more worrying because of the way it rides roughshod over the most basic principles of free market economics. Can we really assume that when anybody buys a house by a river — or near a floodplain — they don’t do so in the full knowledge that flood-risk is one of the prices they pay for their pleasing waterside ambience? The very idea is a nonsense. Buyers, being rational, will factor this into their calculations: “OK, so it will be great for fishing and swimming and boating. But getting insurance will be a bugger and we’d better not keep anything too precious on the ground floor.” These complexities will be reflected by the market. While the value of the property may be enhanced by its attractive location, it will simultaneously be decreased by its flood-damage potential.
