Taxpayer to foot bulk of abuse compo bill

RELIGIOUS orders will put up just €41 million in cash for compensation to institutional abuse victims — which could cost up to €1 billion.

The taxpayer will have to foot the vast majority of the bill arising from payments made by the Residential

Institutions Redress Board.

The deal, struck by former Education Minister Dr Michael Woods with the religious orders, is to be probed by a public finance watchdog.

Under the deal, the State indemnified the congregations against claims for compensation from institutional abuse victims in return for a contribution of €128 million.

But according to figures obtained by Labour finance spokesperson Joan Burton, the religious orders will only hand over €41.14 million in actual cash.

The majority of the fund is accounted for by transfers of property already made to the State valued at é40.3 million and future transfers of property worth €36.54 million. The remainder is made up of counselling or other support services to the value of €10 million.

At this stage, it is not yet possible to say how much the board will pay out but the Department of Finance says it could be around €400 million, while other reports suggest it could amount to 1 billion.

The redress board has not made any payments yet, but it is likely the board will begin hearing applications within the next two to three months.

The Dáil finance and public service committee is to examine the details of the deal struck. According to Deputy Burton, the agreement raises many questions.

“While strongly supporting the compensation of the victims of abuse suffered in institutions and wish to see justice being done in relation to these matters, I have serious concerns about the terms of the agreement reached between the state and the religious orders,” she said.

The lack of information available about the arrangements made between then minister Woods and the religious orders is also a cause for concern, Deputy Burton said.

“The agreement takes the form of a legal covenant that was signed by the former Minister for Education Michael Woods, just days before he left office last June.

The approval of the Dáil was never sought for this agreement, but I would suggest many deputies would have been greatly reluctant to vote for an arrangement that left the taxpayer so exposed,” she said.