State may face abuse bill of €1bn, says Auditor General

The State may face a bill of more than €1 billion to compensate the victims of abuse at the hands of religious orders, the Comptroller…

The State may face a bill of more than €1 billion to compensate the victims of abuse at the hands of religious orders, the Comptroller and Auditor General (C&AG) said in his annual report today.

In the 54-page section on the Church-State deal agreed in June last year, the report estimates the number of claims may end up in the region of 9,000 to 10,800 with an average pay-out of about €96,600.

An agreement was reached in June 2002 between the Catholic Church and the-then minister for education Dr Michael Woods.

Under the deal, 18 Catholic religious orders pledged to contribute €128 million to the Government fund for the victims of physical and sexual abuse in institutions. About 29,500 people, born since 1930, were committed by the courts to industrial and reformatory schools.

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The report, published this morning, reveals that the Residential Institutions Redress Board is receiving applications at a rate of 50 per week, eight months into its operation.

It also shows the Department of Education estimates are at odds with the C&AG estimates on the number of claimants. The Department estimates the number is "unlikely to exceed 8,000" - between 1,000 and 2,800 less than the C&AG estimate.

The Department also estimates, according to the report, that claim numbers will diminish as the closing date for application draws nearer a little over two years' time. Consequently, the Department estimates the total bill for the State will amount to about €772 million, a figure which includes 15 per cent costs.

Under the June 2002 deal, the Church was to hand over property to the State as part payment of the €128 million contribution towards the compensation to victims. Some properties already given to the State were to be included in this section of the deal.

However, the report said today that the State has not accepted any of the properties listed as being previously transferred.

"The Department of Education and Science says that this is mainly due to deficiencies in the information supplied by the congregations and has raised the matter with the congregations' legal representatives," the report says.

Only one property, worth €570,000, is likely to qualify under the terms of the agreement, a further 12 worth €17.29 million are likely to qualify if the State is satisfied with certain undertakings, while the Department has rejected 10 properties worth €12.73 million.

The report also says the former Attorney General, Mr Michael McDowell, was not represented at negotiations between the Government and the religious orders.

Patrick  Logue

Patrick Logue

Patrick Logue is Digital Editor of The Irish Times