The compensation scheme for victims of abuse in religious institutions will finally cost between €200 million and €500 million, the Minister for Education, Dr Woods, has said.
Defending the agreement with the State's religious orders, Dr Woods said the children had been sent to institutions run by them on the State's instructions.
"I would regard the Government as having the major responsibility; governments from the past," said Dr Woods.
Opposition TDs were sharply critical of the deal, claiming the package was insufficient.
Religious orders will make contributions to a value of €128 million to a redress scheme for people whose suffered abuse while in institutional care, following the agreement reached between the Government and the Conference of Religious of Ireland (CORI).
The Government has also agreed to indemnify the religious orders directly concerned against all present and future claims arising from past child abuse and which are covered by the Residential Institutions Redress Bill, 2001.
Victims will be able to get compensation from the Residential Institutions Redress Commission, though they will be unable to sue the orders separately later.
However, the deal covers only religious congregatons, such as the Christian Brothers.
It does not cover those abused by Catholic priests, who are accountable to the Catholic bishops.
A report from an expert group, which has reported recently to the Minister, confirms the compensation to victims will ultimately cost up to €500 million. "They are working not on the basis of payments made in Canada, or in Australia, or in the UK, but on the somewhat higher payments here by the courts," Dr Woods said.
The report recommends the estimated 3,500 victims could get up to €50,000 for less severe abuse, and up to €300,000 for severe abuse and consequent injury.
In addition, it proposes the Redress Board should make awards for loss of opportunity suffered by those sent to religious institutions.
This, according to some Government sources, could increase the State's liability if the board were to place a broad interpretation upon it.
The decision to include in the deal transfers of land and buildings owned by the religious orders to the State, totalling €80 million, was sharply criticised by Fine Gael and Labour.
"The religious orders should be seen to pay an amount which is commensurate with their culpability and with their capacity to pay," said Fine Gael TD Mr Michael Creed.
However, the Minister said the land had "real value" for the State, since some portions could be used to build affordable housing, or facilities needed by the community.
The orders will also make a cash payment of €38 million, of which €12.7 million will be placed in an education trust for former residents of the institutions and their families.
And a contribution of €10 million towards counselling, record retrieval, and pastoral services for people in need will also be made. They have promised to continue to co-operate in relation to property transfers for services to people in need.