Disaster fund rules may change after floods

DISASTER fund rules could be changed by the Scottish Government to help Aberdeenshire Council deal with the aftermath of severe flooding.

First Minister Alex Salmond told MSPs yesterday that Finance Secretary John Swinney will investigate whether the terms of the Bellwin Scheme – which gives emergency assistance to help local authorities meet uninsurable costs – can be altered.

This would aid residents and business owners in towns like Stonehaven and Huntly which were devastated by floods on Sunday.

Mr Salmond’s comments came after a plea from West Aberdeenshire and Kincardine MSP Mike Rumbles, who said relaxation of the rules was essential.

Mr Rumbles claimed Aberdeenshire Council officials have not applied to the Bellwin Scheme due to rules which mean authorities can only claim for assistance if they are forced to spend more than 0.2% of their budgeted net revenue expenditure in dealing with an emergency.

The Liberal Democrat MSP said this equates to the council having to spend more than £1million of money set aside to deal with large-scale emergencies to access funding.

Mr Salmond said: “The finance secretary will see what can be done.”

Mr Rumbles welcomed the news but expressed concern that it could take the SNP months to take action.

He said the government must act as quickly as the Federation of Small Businesses, which is offering flood- hit firms across the north-east £5,000 interest-free loans.

Mr Salmond told MSPs that Mr Swinney is also examining an application from Aberdeenshire Council for £5.7million to stabilise Bervie Braes at Stonehaven.

Rainfall at the weekend caused a landslip – the second in the last few weeks at the unstable cliff.

Mr Salmond also paid tribute to the emergency service response to flooding. He expressed sympathy for affected residents and business owners.