The Government has agreed in principle to establish a new weather forecasting system at a cost of €2.5 million.

The proposal, brought by Minister of State at the Office of Public Works Simon Harris, will introduce a longer-term flood forecasting and warning system within Met Éireann.

It will require the recruitment of 15 staff and would cost a €2.5 million to implement.

The Cabinet also agreed on Tuesday to establish a €5 million fund to be channeled through the Irish Red Cross.

The monies will be used to help businesses damaged by the storm but are not covered by flood insurance.

Minister for Defence Simon Coveney said there will be an upper limit for funding but the monies will cover vouched expenses.

He said the funds would be available as soon as possible and would aim to be in place before Christmas.

The Cabinet was also informed about the workings of an inter-departmental group within the Office of Public Works which has been examining the State’s policy on flood insurance.

The committee is examining other international models and whether there can be lessons learnt from other countries.

A source within the Department of Finance said this was a very complex issue that required detailed consideration.

The issue was not discussed in detail due to the absence of Minister for Finance Michael Noonan from the meeting.

Tánaiste Joan Burton said the focus was to ensure householders without insurance are helped first.

She said there is a €10 million fund available to householders through the Department of Social Protection.

A Government spokesman insisted the situation was being kept under constant review and any additional monies required will be provided.

“Those who need it most will benefit. The damage will be assessed over the coming days.”

The Government are eager to stress the €5 million agreed is an indicative figure and will be re-considered if necessary.