Order pays an extra €4m to State

A religious congregation has paid the State an extra €4 million in cash as an alternative to property as part of the €128 million…

A religious congregation has paid the State an extra €4 million in cash as an alternative to property as part of the €128 million Church-State indemnity agreement.

The order, which has not been identified, was unable to offer a property alternative to one rejected by the State last June, and has instead decided to offer €4 million in cash instead. €2 million of it was paid last year and the remainder is due to be handed over in the coming weeks.

Details of the offer were contained in the latest figures from the Department of Education which show that the State has accepted properties worth less than a third of the total value needed under the indemnity agreement.

As part of the indemnity deal, the State provided 18 religious congregations with a full indemnity against all current and future compensation claims for abuse and neglect in industrial schools and orphanages during the 20th Century.

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In return, the congregations agreed to provide the Government with just over 40 million in cash, and a further €77 million in property transfers.

€36.54 million of this would be transfers to State agencies or voluntary organisations after June 2002, and the remaining €40.32 million in properties already transferred between May 1999 and June 2002.

According to the latest figures, the Department of Education has accepted 34 properties, worth €22.6 million, which have yet to be transferred. It has now rejected outright a further 14 properties, while it is still considering a further six.

More than 18 months after the deal was signed, the State has still to accept any of the properties transferred by the orders to voluntary organisations and State bodies between May 1999 and June 2002. These have been valued at €40.32 million.

The State has sought further information, amid concerns that they may not qualify under the scheme. Under the guidelines, properties have to have clear title, and have no restrictions regarding their use.

The fact that so many properties have yet to be accepted is seen as the Government taking a hard line on the deal, following heavy criticism about the nature of the deal, which leaves the State facing a compensation bill of up to €1 billion, in cases which are being taken before the Redress Board.

However Labour deputy leader Ms Liz McManus has claimed the lack of progress is indicative of a bad deal.

"It shows that even something as simple as this isn't delivering. Yet again it shows it was a very bad deal for the State and a very good deal for the religious orders from their point of view. Obviously the properties being offered are inadequate and unacceptable."