1997 Flood Disaster Assistance
Following one of the most devastating events to have hit Manitoba in a century, individuals and municipalities are now left to pick up the pieces. Compensation for affected areas has been announced and this article will review the various sources of compensation available. Many of the programs designed to assist Manitoba during the flood benefit both municipal corporations and individuals. Concrete information is limited as the details of assistance programs are worked out.

Presently, there exists four programs designed to assist Manitoba Flood victims. They are:

1. The Manitoba Emergency Management Organization (MEMO)
2. Canada-Manitoba Agreement of Red River Valley Flood Assistance (1997)
3. The Mennonite Disaster Assistance Program
4. The Canadian Red Cross

"To assist small businesses, certain non-profit organizations and individuals financially when the eligible costs incurred resultants from a disaster exceed an amount which they may reasonably be expected to bear on their own."

The Disaster Financial Assistance Policy is drafted pursuant to the Emergency Measures Act CCSM c. E80 which allows the Lieutenant Governor-in-Council to authorize actions as may be necessary for the protection and / or restoration of property during a state of civil disaster. The Bill under which this policy was passed is Bill 28. The Disaster Financial Assistant Policy provides that individuals, full-time farmers, small businesses, some non-profit organizations and local governments are eligible for claims. Previously, each private claim was limited to a maximum of $30,000 being 80 per cent of the eligible costs allowed. The Hon. Gary Filmon announced an increase in the claim amount on Wednesday, April 30, 1997. The maximum amount of each private claim is now $100,000. Hansard notes from that day reflect Premier Film's comments that, "This (increase) will put us on the same level that exists in the provinces of Quebec, Alberta and British Columbia." Despite strong lobbying, the policy has not been changed to lower or eliminate the deductible of 20 per cent.

Information available from the MEMO office outline eligible and ineligible costs of the financial assistance program. Any recovered costs must be reported to MEMO and will be deducted from the overall claim. Eligible expenditures are defined as those necessary to undertake reasonable preemptive action and to provide basic assistance to the private or public sectors to repair damage or assist with certain losses in order to place the affected persons or institutions back to pre-disaster condition with respect to essential items. Generally, the costs which are eligible for assistance are:

1. Pre-emptive Costs
   a) costs incurred for building temporary dikes; and
   b) costs of operating and / or renting water pumps

2. Evacuation Costs
   a) where evacuation is necessary and reasonable

3. Restoration to Pre-Disaster Conditions
   a) loss or repair of essential items
   b) structural damage to principal residences, farmland restoration, farm outbuildings and driveways
   c) cleanup and debris removal.

1. Insurance losses
2. Costs recoverable through an existing government program
3. Losses recoverable at law
4. Non-essential items
5. Loss of income and opportunity or inconveniences
6. Normal operating costs
7. Upgrading of existing facilities
8. Damages that are a normal risk of trade, occupation or enterprise.

In making a claim, records must be kept of expenses incurred before, during and after the disaster. Before assistance can be applied for, the municipality in which the claimant resides must have already passed and forwarded a resolution (within 30 days) to MEMO requesting disaster financial assistance (DFA). Once a program has been announced, the claimant has 90 days to apply for assistance. Guidelines allow for this period to be extended when extenuating circumstances exist. To apply for assistance, the claimant must obtain a DFA application form from their municipal office, and return the completed form where it will be forwarded to MEMO. An inspector will then contact the claimant to examine and report on damages. Then, the claimant will be evaluated and award amount determined. If there is dissatisfaction with the amount awarded, there is an appeal process.

The Procedure for appeal requires that the claimant files the appeal within 30 days of receiving the notification of the DFA approval / rejection and must send in a written Notice of Appeal with grounds. The Manager evaluates the appeal and may convene a meeting with the claimant. The Manager then submits a report with recommendations to the Executive Coordinator who may approve, reject or amend the recommendations and shall notify the claimant of the decision. The claimant has 30 days from receiving the decision to submit a written request with a $25 appeal to the Executive Coordinator requesting an appeal. The appeal will be reviewed and the claimant will be notified as to the decision, at which point the matter shall be considered concluded.

Under the Canada-Manitoba Agreement, MEMO has provided compensation advances to local governments and individuals, based on need. This agreement is a compliment to the existing Province of Manitoba Disaster Financial Assistance Policy. Under this agreement, the Governments of Canada and Manitoba have committed to provide advanced payments to help cover initial costs incurred by the Province. Ottawa forwarded $25 million to Manitoba on May 1. Upon receipt, Manitoba provided compensation advances to the local governments and to individuals who demonstrated need. Also, the agreement allowed by the Province to provide municipalities with credit guarantees to ensure their ability to meet financial requirements related to the flood. In addition, the agreement raised the limit for costs-shareable compensation to individual property owners to $100,000 to be used for the losses of real and personal property eligible under the Disaster Financial Assistance Agreement (DFAA). The Agreement also provides for flood-proofing and enhanced diking. Agricultural compensation and reconstruction will be covered in a future joint proposal by the Province and Ottawa.

A separate program was created outside DFAA to help address the recovery of the economy of the Red River Valley, including the restoration of business operations. Ottawa's Restart Program, with a budget of $25 million, was announced on May 16, and allows for federal jobs and the Economic Restoration Initiative designed to help businesses, farms and not-to-profit organizations. It's purpose is to restart economic activity, prevent job losses and ensure jobs are returned to the flood-affected areas as soon as possible. The program provides for a cash advance of $5,000 in initial assistance for business people, farmers, and non-profit organizations.

The information package received from Western Economic Diversification Canada concerning the Restart Program reiterates that the federal government will be liable for up to 90 per cent of eligible expenses incurred by the Province because of the cost sharing agreement. The initial payment of $5,000 can be applied to evacuation / relocation costs, repair and replacement of buildings, clean-up costs, operating expenses, ongoing fixed expenses while the operation ceased and extraordinary start-up costs. There is a Registration Form for the Restart Program that requires only minimal information from the claimant.

The Mennonite Disaster Service (M.D.S.) is an assistance program primarily consisting of volunteers. Through M.D.S., volunteers clean up, repair and rebuild following natural disasters such as floods. The assistance is a long-term assistance and M.D.S. cooperates with other agencies such as the Red Cross and the Salvation Army.

The Red Cross has a program where they are visiting municipalities in the affected area and offering assistance at the local level. No details were provided by them about their program other than they "provide for the necessities of life."

Once the crisis has passed, further compensation will have to be addressed as municipalities in the affected areas consider the costs for improved permanent diking and enhanced flood protection. Both the province and municipalities will have to examine and revise land use and zoning criteria to minimize flood damage potential.