McCreevy had concerns on Church compensation

The Minster for Finance, Mr McCreevy, expressed serious reservations in 2001 about the deal struck between the Government and…

The Minster for Finance, Mr McCreevy, expressed serious reservations in 2001 about the deal struck between the Government and religious orders to compensate victims of abuse in institutions.

Under the controversial deal, the religious orders agreed to pay €128 million in compensation; the State agreed to pay the rest.

Mr McCreevy

In a letter to the then Minister for Education, Dr Michael Woods, Mr McCreevy expressed concern that the offer made by the Orders was inadequate and would leave the State carrying virtually the full cost of the compensation scheme.

According to documents released under the Freedom of Information Act, the amount agreed by the religious orders was just above the minimum recommended by civil servants.

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The documents reveal that officials advised the State to look for £150 million but not to settle with the Orders for less than £100 million.

It also emerged that Government advisers warned Ministers it was impossible to predict how much the compensation scheme would cost the State.

However, a figure of £400 million, predicted by the Government, was thought reasonable.

Eoin Burke-Kennedy

Eoin Burke-Kennedy

Eoin Burke-Kennedy is Economics Correspondent of The Irish Times