The Minister for Finance, Mr McCreevy, wrote twice in 2001 to the then minister for education, Dr Woods, expressing anxiety over contributions by religious congregations to a State compensation scheme for children abused in residential institutions.
As disclosed in documents released under the Freedom of Information Act, and reported in this newspaper last Friday, on June 29th, 2001, Mr McCreevy wrote to Dr Woods saying the offer by the congregations was "quite inadequate and effectively leaves the State to bear virtually the full cost of the Redress Scheme".
The congregations were then offering a contribution of £45 million. Mr McCreevy felt that "when contrasted with a possible cost to the State of the order of £200-£400 million, the amount on offer - which I understand was presented as a final offer - seems to me a very small price to pay for protection from litigation for the congregations in respect of these claims at the expense of the taxpayer."
He copied the letter to the Taoiseach, Mr Ahern. However, in an earlier letter to Dr Woods, on February 28th, 2001, and copied to then attorney general Mr McDowell, Mr McCreevy was already concerned "to safeguard the State's position in the event that the religious congregations decide not to make a meaningful contribution to the compensation scheme".
The congregations had not yet made any proposal as to a contribution, but at a meeting with government officials on February 21st, 2001, they expressed dissatisfaction with "the degree of validation" required for claims under government proposals. They felt people abused outside residential institutions could bring successful claims. Also there were cases "which the State has effectively brought into being" by amending the Statute of Limitations, they said. They "might not share the view that these should be catered for," they said.
In his February 28th letter Mr McCreevy said State liability should be limited to 50 per cent should the religious not contribute, and the waiver of further action by claimants accepting awards should be "limited to the State only".
In a reply to Mr McCreevy on March 22nd, 2001, Dr Woods assured him it was intended "that unless the congregations contribute to an agreed extent then they cannot be covered by the waiver provided in the draft scheme".
It might be possible to limit awards by the State to 50 per cent of what would be considered the full award, he said. That "would allow the claimant to pursue the congregations for the other 50 per cent", he said.
But this made it more likely claimants would "seek full settlement in court against all parties". His department and the attorney general's office were also considering amending the Civil Liability Act "to leave the claims against the congregations intact".