The Government has refused to provide a Church of Ireland charity with an indemnity for child abuse compensation claims over a group of children's homes it operated.
However, all four homes run by the Smyly Trust are to be covered under the State Redress scheme, in light of allegations of serious physical and sexual abuse dating back to the 1960s and 1970s.
The Irish Times has learned that a request by the Smyly Trust for an indemnity similar to that given to Catholic religious orders in 2002 was rejected because the contribution being offered by the trust was too small.
Following the discussions, two of the homes, Racefield House in DúLaoghaire, and the Boys Home in Upper Grand Canal Street in Dublin, were added by the Government last Friday to the list of institutions covered under the legislation.
Two other homes run by the charity, were already covered under the scheme. Racefield Park had been included from 2002, but under a different name, leading to legal difficulties for the processing of claims.
A third institution, the Mary Immaculate School for the Deaf at Beech Park in Stillorgan, Dublin, run by the Daughters of the Cross, was also added.
The inclusion of the Smyly homes follows a lengthy campaign by former Progressive Democrats councillor Victor Boyhan, who has been representing a group of former residents. Mr Boyhan spent time in the homes as a child.
Former residents have until December 15th - the closing date for all institutions - to make applications. Legal representatives of Smyly Trust Homes were in detailed discussions with officials from the Department of Education in recent months relating to the inclusion of both institutions. As part of negotiations, they offered to make a contribution in the region of €100,000, in return for an indemnity.
Serious allegations from former residents of Racefield House and the Grand Canal Street home have been made, although nobody has been convicted of abuse from either institution.
Former residents have also claimed they made complaints about the behaviour at the time.
Yesterday, the Department of Education refused to detail the amount involved, but confirmed it had rejected an offer from the Smyly Trust.
"The relevant governing bodies of the three institutions which were added to the schedule on 1st July 2005 did put forward a financial proposition which would have resulted in a small contribution being made to the redress scheme," a spokeswoman for the department said.
"These proposals would also have required the provision of a full indemnity against all abuse claims over a period of up to three years after the closing date of the redress scheme. It was not considered appropriate for such a proposal to be accepted in the current circumstances of the scheme."
She said it had always been emphasised that the inclusion of an additional institution in the redress scheme did not require the payment of a financial contribution.
In June 2002, the Government agreed to an indemnity deal with 17 religious orders indemnifying them against abuse claims from residents in homes covered by the scheme, in return for a contribution of €128 million, the majority of which was in property transfers to State bodies and charities. The cash contribution amounted to just over €40 million.