Property deal with religious worth ?50m less, says report

Liam Reid
11/02/2005

The Public Accounts Committee (PAC) is finalising a report on the Government's compensation indemnity deal with religious orders. It is expected to criticise severely the handling of negotiations on behalf of the State.

The report is also expected to recommend new regulations and ethical guidelines for officials and Departments involved in similar negotiations in the future.

It will also claim that the real value of the property and cash contribution from the religious orders to the Residential Institutions Redress Scheme for abuse victims is ?50 million less than the ?128 million figure currently quoted.

The committee has spent almost 18 months examining the controversial deal. In return for their contribution, the Government gave an indemnity from future compensation claims to 18 religious orders which ran residential and industrial schools from the 1940s to the 1980s.

When published the report is likely to back the position of the Minster for Justice, Mr McDowell. He claimed that as Attorney General his office was excluded from negotiations during a key period, late 2001 to early 2002, when the indemnity agreement was reached.

TDs on the committee are also considering making a finding that details of the deal should have gone before the Oireachtas for approval, as it gave rise to an unspecified and ongoing liability.

The report is also likely to criticise the Department of Education for continually underestimating the number of potential compensation cases. The latest figures show there have been more than 5,000 claims to date, compared with a maximum of 2,000 originally estimated.

The PAC is also expected to make a series of recommendations in the final report. These are believed to include the drafting of ethical guidelines on the conduct and suitability of officials involved in major negotiations with non-government organisations.

It is also expected to recommend new regulations requiring the Attorney General's office to be consulted in deals involving significant public funds, together with laws requiring the formal documenting of policy and negotiating positions.

The investigation was sparked by a highly critical report from the Comptroller & Auditor General, which said the potential liability from the scheme was up to ?1 billion, compared with the maximum figure of ?500 million quoted by the Department of Education.

The TDs are expected to conclude that the final sum agreed was reasonable when compared with other jurisdictions.

However, it is expected to find that the ?128 million contribution from the religious is a nominal one that includes property worth ?40 million, which was transferred to State organisations and charities before the deal was signed. This, together with the ?10 million in counselling services, leaves its real value at ?78 million.

? The Irish Times