Labour says abuse deal could cost €1bn

The deal between the State and religious orders over compensation for victims of abuse in institutions may now cost the State…

The deal between the State and religious orders over compensation for victims of abuse in institutions may now cost the State close to €1 billion, the Labour Party has claimed.

The party's finance spokeswoman, Ms Joan Burton, said yesterday that new figures obtained by her through the Dáil Finance and Public Service Committee show the deal was "extraordinarily generous" to the religious congregations.

The deal, signed days before the former Minister for Education, Dr Michael Woods, left office in June, involved the State agreeing to indemnify the religious congregations against claims for compensation from those who had suffered abuse in institutions.

According to Ms Burton, the total contribution to be made by the congregations is to be €128 million, although just €41 million has been paid over so far.

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But the Department of Finance believes that the likely exposure of the State may be some €400 million, she said.

"Many observers believe the Department of Finance estimate is on the conservative side, with some suggesting that it could be closer to €1 billion."

Ms Bruton said she strongly supported the compensation of victims of abuse suffered in institutions.

But that "the approval of the Dáil was never sought for this agreement, and I would suggest that many deputies would have been greatly reluctant to vote for an arrangement that left the taxpayer so exposed."