Members of the Dáil Public Accounts Committee (PAC) will tomorrow question representatives of 18 religious congregations on their controversial 2002 indemnity deal with the State.
The committee is trying to establish why meetings in November 2001 and January 2002 which led up to an agreement in principle with the congregations were attended only by their representatives, the former minister for education, Dr Michael Woods, and the secretary general at that Department, Mr John Dennehy. There was no State legal representation present.
Under the agreement, the congregations agreed to contribute €128 million in cash and property to a State redress scheme for former residents of institutions managed by them.
In return, the Government agreed to indemnify the congregations against future legal actions by the residents.
The comptroller and auditor general in a report last year said the redress scheme may yet cost the State between €887 million and €1 billion.
In the controversy following that report, the congregations made it clear they felt they had made a fair contribution to the scheme.
In October 2000, shortly after the Government announced it was planning a redress scheme for the former residents, the congregations indicated an interest in contributing.
On November 10th, 2000, they agreed in principle to be part of the redress scheme.
In the following months they expressed concern at the process for validating claims of abuse that would require a low burden of proof.
They argued this should mean a lower contribution, and sought a State indemnity "against all further liability" in return.
On June 26th, 2001, the congregations made what they said was their only and final offer of £45 million, £20 million which would be cash payable over five years. They said if not accepted they would end the negotiations.
In a letter to Dr Woods on June 29th, 2001, the Minister for Finance, Mr McCreevy, described the congregations' offer as "quite disappointing" and far short of what he considered a meaningful contribution.
He said the offer effectively left the State to bear virtually the full cost of the redress scheme.
Rather than risk formal rejection and a possible breakdown in negotiation, Dr Woods decided not to bring the offer to Government, but to allow the parties further time to reflect.
The negotiations effectively broke down until November 2001, when the Minister, Mr Dennehy and the congregations had the first of the two meetings at which the congregations reached an agreement in principle.
On January 30th, 2002, it was announced the congregations would contribute €128 million (£100 million) to the scheme.
The deal was signed on June 5th, 2002.
