Newry Woman ‘Sickened’ by Council’s Demand for Flood Grant Repayment

A woman from Newry reported feeling “sickened” by communications from her local council after it requested the return of flood support money, which it claimed was disbursed to her in error. Loretta Gallagher, who owns a textile art and gift shop, applied for and received £7,500 from Newry, Mourne and Down District Council. However, the council has since informed her that she was ineligible for the scheme and asked her to repay the funds. Ms Gallagher was issued an invoice demanding the money’s return but subsequently received an email clarifying that the invoice had been sent in error. A spokesperson for the council stated that it “does not comment on matters relating to individual business application”. In October 2023, heavy rainfall caused the Newry canal to overflow its banks, resulting in severe flooding in parts of the city. Ms Gallagher’s shop is situated on the first floor of a building in Sugar Island, one of the most severely affected areas. “The flood was at about five feet, six feet at the front of this building… it was underwater for the guts of a week,” she said. Ms Gallagher stated she was compelled to close her business for seven months. “It was like an open building site, there was damp running through, there was no electricity, there was no water a lot of the time, there were no toilets, there were lumps falling out of the walls because of the damp.” In November, Ms Gallagher applied for a grant available to businesses impacted by the flood. She recounted, “I had the council’s environmental health officer come out to asses the building and the business,” adding, “He passed it presumably because it went back and then gratefully I received the £7,500 because I was at the end of my tether at that stage.” Ms Gallagher indicated that she received a phone call from the council in the new year, informing her that an error had occurred and the grant needed to be returned. She mentioned that by that stage, she had already spent the money. “To try and get this building up and going… even to help the boys on the ground floor as well… it was to try and keep body and soul together at the time whenever our whole income suddenly dries up in one night.” She asserted, “I made the decision [not to return the money] because I knew I deserved it, I knew I was affected, I knew I was impacted.” Several months passed without Ms Gallagher hearing anything further from the council. Then, “a couple of days before the anniversary of the flooding I got an invoice requesting the money within 14 days”. Ms Gallagher stated that she “can’t pay” the money and that doing so would “end” her business. On Wednesday night, Ms Gallagher received another email from the council, advising that the invoice she had received “should have been withheld pending further discussion with the council”. She expressed that she “didn’t know what to make” of this development and had “no idea” what would happen next. In the immediate aftermath of the flooding, businesses were eligible to apply for rates relief and grants of up to £7,500. The eligibility criteria for the scheme Loretta Gallagher applied for was as follows: In February, the Department for the Economy and two local councils opened the Enhanced Flood Support Scheme, offering up to £100,000 per eligible business. Eamonn Connolly, managing director of Newry Business Improvement District, expressed bewilderment regarding Ms Gallagher’s situation. He commented, “We don’t really know what’s happening.” He stated, “Lorretta was fundamentally impacted by the floods, that’s undeniable.” He remarked, “Mistakes can happen, and if on a technicality Loretta didn’t qualify there should have been a conversation to explain that and engage.” He concluded, “Unfortunately letters went out saying she wasn’t impacted which added insult to injury and there has been a void in the interim and this sword of Damocles of owing money and being chased for it remains hanging over her 12 months later, which hasn’t been good for her mental health.”