Minister to face grilling after £5.3m flooding fund unspent

Minister to face grilling after £5.3m flooding fund unspent

16 April 2025

STORMONT’S Economy Minister is to be quizzed about why over half a £10m funding cake to help beleaguered businesses in Downpatrick and Newry swamped by catastrophic flooding in November 2023 was returned unspent.

News that Caoimhe Archibald is to be questioned about the issue came just days after it was revealed that only £4.7m of the £10m fund was spent, with the unallocated cash returned to Stormont coffers to be used elsewhere.

Local politicians and members of the Downpatrick business community say they “are at a complete loss” to understand why a single penny of the money had to be returned, especially as the fallout from the devastating autumn flood continues.

South Down Alliance MLA Andy McMurray is demanding that money is found to assist with the economic regeneration of the county town and a full explanation why just half the £10m was spent.

In February last year, the Department for the Economy announced details of the £10m scheme for local councils to deliver an enhanced flood support scheme which provided up to £100,000 to flooded businesses and two hardship schemes.

The scheme — which allocated less than half of the total allocated pot — was administered on the ground by Newry, Mourne and Down Council.

The local authority has confirmed 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.

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

The Department for Economy said 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”.

Some of the town’s traders were perplexed that they had to prove the work they needed to carry out at their flood ravaged businesses was completed and had been paid for, before they could get a penny back.

News of the significant underspend comes three weeks after it was revealed that a report outlining measures to protect Downpatrick town centre from future flooding is expected to be published before the end of this month.

Meanwhile, 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.”

The DfI said other capital expenses included purchasing additional plants and equipment, repairing structural damage to railway embankments and lineside drainage replacement for Translink.

Local politicians say it beggars belief that not all the money earmarked to help victims of the devastating flooding wasn’t spent.

Mr McMurray and Downpatrick SDLP councillor Conor Galbraith say the impact of the flooding is still being felt across the business community.

Mr McMurray said the significant underspend in flood support funding made available by the Department for the Economy for Downpatrick and Newry is difficult to fathom given that less than half the £10m was allocated to businesses which were swamped by the worst flooding in a generation.

“It’s very disappointing to see this substantial underspend and even more so to hear that the unspent money has been reallocated across the government department to meet other capital pressures,” he continued.

“I know of multiple applicants who were turned down and others for whom the funding awarded barely touched the sides of the damage caused. More funding could have made such a difference.”

Mr McMurray said the financial assistance was intended to help businesses in Downpatrick and Newry get back up on their feet. 

“Many shops in Downpatrick remain shuttered today and may never reopen,” he said.

“Given the scale of situation in Downpatrick, I am at a complete loss as to how this underspend could happen. I will ask urgent questions of the Economy Minister to understand the reasons and urge her to allocate further funding to help regenerate our town centre.”

Cllr Galbraith said the impact of the 2023 flood was still being felt in Downpatrick.

“Businesses have found it difficult to reopen, with some forced to move premises altogether and the fact there was money available that wasn’t spent to help those who really need it is unthinkable and impossible to justify,” he said.

“We are already dealing with a situation where many business owners feel let down by this process and the lack of support forthcoming from both the NI Executive and the local council.”

Cllr Galbraith said with millions of pounds being handed back, it was “hard to argue with them”.