FRANCAIS

March 11, 2004

Water Stewardship Minister Steve Ashton today introduced new legislation designed to ensure Manitobans are compensated for any artificial spring flooding in which the Red River exceeds its natural level as a result of operation of the Red River Floodway.

"This legislation recognizes that springtime floodway operations may occasionally be required to protect the property of thousands of Manitobans," said Ashton. "However, it also recognizes that, in instances of extreme flooding, some individuals may be adversely impacted by spring floodway operations and these property owners will have access to a unique compensation program for artificial flooding that they may face."

The Red River Floodway Act would cover artificial spring flooding damage in the Red River Valley south and north of Winnipeg claimed by individuals, farms, businesses, non-profit organizations and local authorities.

The minister noted that the proposed compensation legislation would be a significant improvement over the existing federal/provincial Disaster Financial Assistance (DFA) program. The new compensation program would be run by the Emergency Measures Organization. It would be in addition to compensation available under other government programs. Claims would be settled in a timely fashion, allowing claimants to rebuild their homes and their lives with less hardship and inconvenience, and would be assessed based on claimants’ proof of loss. Compensation would not be conditional on replacement or repair of the damaged property.

The existing Disaster Assistance Appeal Board would continue to provide an independent, non-judicial review of disputed claims in a timely, cost-effective manner. The board would be modified to handle more appeals in the event of artificial flooding caused by floodway operation during an extreme spring flood.

Damaged property eligible for compensation would include:

• real or personal property damaged in Manitoba by artificial spring flooding of the Red River; and
• property destroyed or made inoperable or less useful, less valuable, less productive or hazardous to health because of artificial flooding.

Compensation could also be claimed for economic loss caused by artificial flooding, including:

• wages, salary or business income lost because the claimant can’t work or carry on business due to artificial flooding; and
• extraordinary costs or expenses associated with working or carrying on business due to artificial flooding.

There would be no claim ceiling and no deductible for claims under the new act. Provisions of the act would cover claims filed after the date of proclamation. Under the act, claimants would have to show compliance with applicable flood-proofing criteria.

"Governments responded to the 1997 flood of the century with a $130 million flood proofing program, including $110 million for residents of the valley, to improve protection long into the future," said the minister. "With this proposed legislation, we are providing guarantees that damages will be covered in the rare event that spring floodway operation causes artificial flooding."

Floodway expansion will ensure that artificial flooding will not occur for residents upstream of Winnipeg until a one-in-250-year flood event is exceeded. In comparison, the flood of 1997 was a one-in-100-year event. Floodway expansion will also reduce water levels for upstream residences, providing higher levels of protection with their existing flood protection works.

"With rural flood-proofing, floodway expansion and the introduction of this new legislation, rural residents will have a far greater level of protection and certainty than they did during the devastating flood of 1997," said Ashton.

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• The Red River Floodway Act would provide a legislated right to compensation for Manitobans who experience loss or damage from artificial flooding caused by Red River Floodway operation during a spring flood.
• Artificial flooding caused by spring floodway operation should only occur when an extreme flood exceeds or threatens to exceed the floodway’s capacity to protect Winnipeg without raising the level of the Red River upstream (south of Winnipeg).
• Artificial flooding is flooding in which the Red River exceeds its natural level as a result of floodway operation during spring flooding.
• With floodway expansion, artificial flooding due to floodway operation should be rare in the Red River Valley south of Winnipeg and be very rare north of the city. Natural water fluctuation cycles won’t change as a result of floodway expansion, but artificial flooding caused by floodway operation should be less common.
• Floods are often identified by a recurrence interval, such as a "100-year flood". A 100-year flood has a one per cent chance of occurring any given year. The risk of a 100-year flood is the same every year, regardless of whether there was another 100-year flood recently.
• The floodway’s current capacity would be exceeded, on average, once in 90 years. The expanded floodway’s capacity would be exceeded, on average, once in 250 years.
• The government would be required to prepare and make public a report about the operation of the floodway every time it is operated during spring flooding.
• The Manitoba Emergency Measures Organization (EMO) would administer the proposed compensation program, which would be in addition to compensation available under other government programs, including Disaster Financial Assistance. By having EMO administer both programs, it could offer an integrated "one-stop" claim procedure for flood compensation.

• Real or personal property damaged in Manitoba by artificial spring flooding of the Red River;
• Property destroyed or, through submersion, made inoperable or less useful, less valuable, less productive or hazardous to health.
• Compensation for economic loss caused by artificial flooding would include:
• Wages, salary or business income lost because the claimant can’t work or carry on business due to artificial flooding;
• Extraordinary costs or expenses associated with working or carrying on business due to artificial flooding.
• Claimant’s responsibilities:
• At the time the damage occurs, all applicable flood-proofing criteria would have to have been complied with.
• The claimant’s acts or failure to act did not otherwise allow the damage to occur or contribute to its occurrence.
• There would be no claim ceiling and no deductible applied to claims under the new act.

• Claimants would not have to wait until they could afford to repair or replace damaged property before making a claim.
• Under the proposed act, claims would be assessed based on claimants’ proof of loss. Unlike DFA, compensation would not be conditional on replacement or repair of the damaged property.
• This should allow claims to be settled in a more timely fashion, allowing claimants to rebuild their homes and their lives with less hardship and inconvenience.

• The existing Disaster Assistance Appeal Board would continue to provide independent, non-judicial reviews of disputed claims in a timely, cost-effective manner. The board would be modified to accommodate more appeals in the event of artificial flooding caused by floodway operation during an extreme spring flood.

• Natural flooding would not be covered in the new act because the proposed legislation deals with the specific issue of artificial flooding caused by operation of the Red River Floodway during a spring flood. It is not intended to cover all forms of flooding that may occur. Flooding due to natural causes would continue to be covered under the DFA program.