Ottawa has made the second of three payments to Saskatchewan to help pay for damages caused by the floods of 1995.
The province received $3.1 million last week under the Disaster Financial Assistance Arrangements program, for a total of $4.7 million so far. A final payment will be made when an audit of eligible provincial expenses is completed.
The spring floods extensively damaged roads, property and agricultural land in northeastern Saskatchewan, including the Kamsack, Yorkton and Langenburg areas. Under the DFAA, federal payments help pay the cost of restoring grid roads, highways and bridges and some personal property not covered by private insurance or other compensation plans.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Hal Swain, Saskatchewan director for Emergency Preparedness Canada, said claims totaled $8.7 million. Of that, $7.5 million was approved, with Ottawa paying $4.7 million and the province paying $2.8 million. The outstanding amount is the subject of the audit.
“We had initially rejected that portion, so we’re having another look at it,” Swain said.
The province has already paid the total amount to claimants, he said.
“Everyone has been satisfied by the province,” he said. “Our negotiations are in reimbursement to the province.”
Under the cost-sharing formula, the province pays the first $1 million. Ottawa and the province then split the next $2 million equally.
The next $2 million is paid 75 percent by Ottawa and 25 percent by the province. After that, the federal government pays 90 percent of all costs.
Swain said it is not unusual for the money to arrive two or three years after a disaster because it takes time to sort out the claims.
“The major hold-up here was the highways department getting their claims in order,” he said.
