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Twenty-eighth Report Adapting Institutions to Climate Change Cm ...

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Chapter 5<br />

5.61<br />

5.62<br />

5.63<br />

5.64<br />

A basic question is whether the costs of flooding and coastal erosion, which are likely <strong>to</strong> increase<br />

with a changing climate, should lie where they fall and, if not, how they should be redistributed<br />

(it is already the case that nationally-funded flood and coastal erosion defences involve a redistribution<br />

of resources through government taxation and expenditure).<br />

Public and political attention at the moment is focused on demands for financial compensation of<br />

those facing immediate property losses due <strong>to</strong> coastal erosion. This could take a variety of forms,<br />

including a simple payment of market value for the property, government initiated or sponsored<br />

insurance schemes, or, where loss of property is not imminent and rental of the property is an<br />

attractive option, a ‘purchase and lease-back’ scheme. Local authority pathfinders are exploring<br />

some of these options (3.94 and 4.99). Compensation, particularly for residential property from<br />

which his<strong>to</strong>rical protection by the state has been withdrawn, might seem an intuitively attractive<br />

response <strong>to</strong> the burdens of coastal change; but this solution is far from straightforward.<br />

Questions of moral hazard (for instance, encouraging development in vulnerable areas) comprise<br />

one of the problems. This difficulty is probably manageable, although attempts at management,<br />

for example, by making compensation available only for property purchased before a particular<br />

date, could have their own blighting effect. The potentially open-ended redistribution of resources<br />

contemplated by financial compensation proposals is a more significant difficulty. The scale of<br />

land abandonment or uninsurable flood damage in the longer term is uncertain, and it reminds<br />

us that compensation by the state may have implications in other areas – money used for compensation<br />

is not then available for investment elsewhere.<br />

Equally significantly, as discussed in Chapter 3, property does not capture the full scale of the<br />

community disruption of flood and coastal erosion, and addressing only property will leave some<br />

of the most vulnerable without assistance. The Commission recommends that the Adaptation<br />

Sub-Committee should explore the range of options available <strong>to</strong> address issues such as the<br />

loss of community, business and employment, and the disruption <strong>to</strong> health, educational<br />

and social services, which may be a direct or indirect consequence of climate change.<br />

5.65 Government might focus on assisting in the rebuilding (literally or metaphorically) or relocation of<br />

affected communities, including community and social services, just as it carries out compensation<br />

‘in kind’ for conservation losses. Whilst there is no clear ‘right’ <strong>to</strong> publicly provided defence from<br />

water or <strong>to</strong> associated rights <strong>to</strong> compensation, simply ignoring questions of property ownership<br />

would be controversial. That does not necessarily imply that full financial compensation for lost<br />

property is the right response, simply that it should be considered alongside other options such<br />

as partial compensation or compensation in kind, and <strong>to</strong>gether with approaches that can apply<br />

equally <strong>to</strong> property owners and those who do not own property.<br />

5.66<br />

Deciding between the full range of the options available cannot be resolved by a technical<br />

analysis or an abstract discussion of existing legal rights and duties. Selecting any single option<br />

(for example, full compensation for lost property) requires a particular approach <strong>to</strong> distributive<br />

justice (or simply fairness) when in fact as a society we take very different approaches depending<br />

on the circumstances. For example, some forms of legal liability require full compensation of all<br />

loss (even beyond property loss); compulsory purchase provides for full compensation of property<br />

losses in limited circumstances; many misfortunes which fall outside the reach of legal liabilities<br />

lead <strong>to</strong> recourse <strong>to</strong> the welfare state; and even welfare state provision varies depending on the<br />

type of assistance being sought. As a nation, our approach <strong>to</strong> distributive justice is inconsistent,<br />

and often a result of his<strong>to</strong>rical accident; it is something society should consider afresh in the light<br />

of the new circumstances created by climate change.<br />

106

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