€250m still outstanding to achieve 50:50 share of costs between congregations and taxpayers.The Minister for Education and Skills, Ruairí Quinn TD, today secured Cabinet approval to continue to pursue a 50:50 sharing of the costs of the redress process between the religious congregations and the State.
The final costs of the redress response are expected to reach €1.46 billion. A 50:50 sharing of the costs between the taxpayer and those responsible for managing the institutions involved require a €730 million contribution from religious congregations. The combination of all contributions offered by the congregations to date, both under the 2002 Indemnity Agreement and subsequent to the Ryan Report, amount to €480 million - a shortfall of €250 million on the target 50 per cent share. Offers from the congregations have comprised cash and property elements.
Following today’s decision, the Government will maintain its position of a 50:50 sharing of the costs and will continue to pursue the remaining funds due. The Cabinet also agreed that every effort will be made to complete outstanding issues relating to properties offered by congregations as part of the settlement. A pragmatic approach will be adopted. For example, some properties will be transferred for use in the public and voluntary sectors, while others will be sold and the proceeds used to augment the Residential Institutions Statutory Fund to provide services to survivors.
Minister Quinn will also be engaging with the four congregations that have indicated a willingness to consider the transfer of educational infrastructure additional to what has already been offered.
Speaking afterwards, the Minister said: “The Government is obviously disappointed that the congregations have not agreed to a 50:50 share of the very considerable cost for redress. Today’s decision represents the most pragmatic way to maximise the level of contributions to be made by the congregations and the management bodies so that the taxpayer does not bear an unreasonable burden of the costs. Following the unanimous Dáil resolution in 2009 on a fair sharing of redress costs, I have actively pursued this approach since taking office.”
The Minister also secured Cabinet agreement in principle to bring forward legislative proposals to allow the retention of the records of the Commission to Inquire into Child Abuse, the Residential Institutions Redress Board and the Residential Institutions Review Committee.
Notes for Editors:
The final costs that will be incurred by the State relating to institutional child abuse had been estimated at €1.36 billion in 2010. These figures were subsequently reviewed and it is now expected that the figures could reach €1.46 billion as follows:
· €1.242bn on the Redress Scheme (and associated litigation);
· €88.6m for the Commission to Inquire into Child Abuse;
· €110m for the Residential Institutions Statutory Fund (including admin);
· €10m provided towards the cost of the Faoiseamh Counselling service; and
· €12.7m towards educational programmes for former residents.
The revised estimate is due to the number of late applications received by the Redress Board during 2011, prior to the removal of the Board’s power to accept late applications received on or after the 17th September, 2011 (provided for in the Residential Institutions Redress Amendment Act, 2011).
The following table summarises the maximum value of the offers made to date, as estimated by the congregations and the amounts realised to date:
Contributions
Offered €m Sums
realised
€m
2002 Indemnity Agreement
Cash - original 28.44 28.44
- adjustment 13.28 13.28
Property – original 76.86 41.37
-adjustment (13.28)
Cash for Education Fund 12.7 12.7
Counselling and Support Services 10 10
Total 128 105.79
Additional Offers2009
Cash 113[1] 68.00
Property (as valued by Congregations) to:
Joint trust with State
the State
the Statutory Fund
the Voluntary sector
127.00
81.86
11.59
15.06
235.51
0
0
1.8
0.20
2.0
Total 348.51 70.00
Plus Subsequent offers and value of property offered by Sister of Our Lady of Charity 4.1 0
Overall Total Contribution 480.61 175.79
[1] This figure includes a €4m contribution to support counselling and support services going to Towards Healing and €2m by way of a rent waiver, which was not accepted by the Government.
[1] This figure includes a €4m contribution to support counselling and support services going to Towards Healing and €2m by way of a rent waiver, which was not accepted by the Government.