Total cost of abuse cases to be known in 3 years

It will take at least three years before the final cost of compensation for children abused in residential institutions will be known, the Minister of State for Finance, Mr Tom Parlon, said last night.

He told Labour's finance spokeswoman, Ms Joan Burton, that the Institutions Redress Board, which is dealing with claims by those alleging abuse while in care, will be accepting claims until the end of 2005.

It might be possible to make an informed guess once a cross-section of cases had been dealt with by the board.

Referring to the agreement that was reached with the religious orders, he said the Minister for Education had brought the matter to Government "in the usual manner by way of a formal memorandum, and the Government approved the agreement and the signing of the indemnity on June 5th, 2002".

However, earlier the Taoiseach said he could assure the Labour leader, Mr Pat Rabbitte, that a memo was brought to the Cabinet, that the Attorney General advised on it and that these terms were approved.

The Taoiseach also pointed out that the religious congregations looked after people in their care on behalf of the State. "If there were deficiencies and problems, they were partially, and perhaps fully, the obligation of the State."

Mr Rabbitte said the indemnity agreement reached with the religious orders provided for the "greatest exposure in the history of State".

A Sunday newspaper reported that the State's exposure could be €2 billion, and Mr Rabbitte demanded to know who had responsibility for the signing of an "all-embracing" indemnity by the State. He wanted to know if the then attorney general, and now Minister for Justice, Mr McDowell, was involved.

"Why would the Progressive Democrats claim that it will cost €2 billion, since they are partly responsible?" He asked if they were saying that "the Attorney General, while shimmying up lampposts, could not apply his mind to a deal that provides for the greatest exposure in the history of the State".

The Sunday Independent had quoted a memo to the finance committee which made a distinction between the initial negotiations, involving the religious orders, the Department of Finance and the Attorney General's office, and the final agreement in principle concluded by the then minister for education, Dr Michael Woods.