Late final surge of claimants to redress board

Patsy McGarry, Religious Affairs Correspondent
17/12/2005

Compensation for former residents of orphanages and industrial schools who were abused could now cost the taxpayer as much as �1.15 billion, or more than nine times the �128 million contribution by religious congregations to the State redress fund.

As of midnight on Thursday last, the deadline for acceptance of applications from former residents, the Residential Institutions Redress Board had received 14,768.

In the weeks since November 10th, when figures were last updated by the board, 5,217 applications had been received. This was in addition to 9,551 applications received since the compensation scheme was set up on November 2nd, 2002.

The average value of awards to former residents up to November 10th last was �76,500. Were such an average sustained it would mean the total compensation bill to the State would be over �1.15 billion.

This average level of award is not expected to be maintained, according to legal sources, with a significant proportion of the more recent applications coming from people who have alleged lower levels of abuse or neglect.

This potential figure does not include legal fees, which are estimated to be in the region of �12,500 per case to date. This could add a further �180 million to the final cost facing the Exchequer. The largest award made by the board was �300,000.

In a 2002 deal, 18 religious congregations, who managed the orphanages/industrial schools, agreed to pay �128 million to the State redress fund for former residents, in cash and property, in return for an indemnity against any future legal actions against them by former residents.

Up to November 10th the board had completed the compensation process in 4,267 cases, with 3,154 offers made following settlement talks. A further 1,006 awards were made following hearings. Five applicants rejected awards. A further 17 applications resulted in findings by the board of �0.00/no award after hearings.

Ninety applicants were refused awards, as their applications did not come within the terms of the Residential Institutions Redress Act, 2002.

A report by Comptroller and Auditor General John Purcell in September 2003, which concluded that compensation for former residents of the institutions could exceed � 1 billion, was disputed by the Department of Education.

In 2002, when the department concluded the indemnity deal with the religious congregations on behalf of the Government, it estimated the total cost of the compensation scheme at a maximum of �500 million for a predicted 4,000 applicants.

Responding to the comptroller's report, the department updated the expected number of applicants to 8,000 but said the then maximum estimated cost of �672 million, or �772 million with legal costs, was "likely to be an exaggerated estimate".

The Law Society has disclosed that it referred 22 complaints about double charging of former residents of the institutions to its disciplinary tribunal. Applicants' legal costs are covered by the redress board. The society has received 158 complaints of double charging since last October.

In 36 cases it was found there was no double charging; in 29 it was found deductions were justified; 25 were found not to be relevant to the scheme; and 46 cases are still under investigation.

� The Irish Times