The Department of Education has been criticised by a high-level Dáil committee for having insufficient information when negotiating the compensation scheme for victims of institutional abuse.
A report published by the Public Accounts Committee (Pac) today found when the deal leading to the orders contributing €128 million to the Institutional Redress Board was struck, the Department of Education did not use all the data available. The report also criticised procedures involving the Department of Finance and the Attorney General's Office.
The report was particularly critical of the Department of Education's failure to assess the financial position of the orders' during the negotiations, "which clearly put it at a disadvantage in trying to push for a larger contribution".
The Department was mandated to seek half of the likely cost of the scheme from the orders and rejected an offer of €50-60 million. It later agreed to £100 million (€127m) made up of €78 million in cash, €10m in respect of a counselling service set up by the orders and lands and property valued at around €40 million.
It later emerged that the cost of the scheme was likely to be upwards of €610 million and as much as €1 billion. The chairman of the committee, Michael Noonan conceded today that a reliable is estimate is difficult to establish.
"Insufficient use was made by the Department of the information held about the likely final liability," the report found.
Questions emerged about why the then minister Dr Michael Woods struck the deal without having officials from the AG's office present. The deal meant the orders contribution was capped and any increase in liability would be paid by the State.
Opposition parties claimed the orders got off lightly. Mr Noonan today said the committee does not make criticisms on a political level and that "people must make up their own minds".
Today's report criticised the lack of paperwork relating to the negotiations and final agreement: "The documentation of the meetings between the Minister in November 2001 and January 2002, when agreement in principle was reached, was not good. No contemporaneous minute was kept by the State side".
The average paid out to date by the scheme is around €77,000 per case but a High Court award of €370,000 last week for a victim of abuse led to the deferral of the report to consider the cost implications for the scheme.
Mr Noonan said after consideration the committee considered the award exceptional. He quoted psychiatrists in the case saying it was the "worst case of child sexual abuse they had ever come across."
"We don't think the floodgates will open but there could be some cost implications for a defined section of claimants which could lead to additional costs," he said.
The report favoured the establishment of the Redress Board which makes awards from under €50,000 to a maximum of €300,000.
The report recommended
- The strength of the State's negotiating team should be equal, at all times, to those of with whom they are negotiating
- civil servants receive training in negotiation and specialist skills
- Department of Finance accounting procedures for contingent liabilities be brought in line with good practice
- A set procedure be established for involving the Attorney General's Office in matters involving a legal dimension negotiations or large amounts of money.