$4 billion needed for abuse victims

The child sex abuse royal commission has estimated a compensation scheme of over $4 billion. Source: AAP

STATES and territories might have to pay almost half of a $4 billion national compensation scheme for victims of child sexual abuse.

IN a landmark consultation paper launched on Friday, the Royal Commission into Institutional Responses to Child Sexual Abuse outlined models for a compensation scheme that would exceed $4 billion across a 10-year period.

In one model governments would be "funders of last resort" - paying survivors when an institution no longer existed or could not afford to pay.This would see states and territories paying $582 million above what they were liable for because of abuse in state-run institutions.The extra would bring their total contribution to $1.971 billion of the $4.3 billion scheme.Private institutions such as churches, charities, schools or other organisations where children were abused would pay $2.4 billion.That model assumes 65,000 eligible survivors would receive payments of $65,000 each.The scheme was modelled across a 10-year period with annual payments peaking at more than $600 million in some years."Although it appears that governments must accept a broader role in providing effective and fair redress, the primary responsibility is with the institution," commission chair Justice Peter McClellan said when launching the paper.He said the commission understood the current economic climate ensures governments must be careful in committing public money to areas not presently funded.But the fundamental object of redress "must be to help those who have suffered to heal and live a productive and fulfilled life".The commission said a single national redress scheme administered by the federal government the ideal scenario would be, with institutions contributing based on their responsibility.However, if that could not be put in place quickly an alternative scheme run by states and territories with oversight by an advisory body would be established.Representatives of survivor support groups say they prefer a national scheme run by the federal government.Leonie Sheedy, chief executive of Care Leavers Australia Network said, "Many people do not want to go back to the state governments to ask for their compensation when they were responsible for neglecting us".She also questioned the caps in the model schemes, pointing out the federal government paid Cornelia Rau almost $3 million for six months' incarceration in a detention centre in 2005.Adults Surviving Child Abuse president Cathy Kelzelman said while the figures presented by the royal commission seem substantial, they are modest when compared with the cost of inaction.She said supporting survivors through redress made good economic sense when "the costs of mental and physical ill health, substance abuse issues, obesity, suicide and attempted suicide ... as well as the attendant loss of tax revenue is enormous".The Truth Justice and Healing Council, which represents the Catholic Church at the commission, said it was crucial all governments in Australia make it clear they are willing to participate in the scheme.Council chief executive Francis Sullivan says the commission's proposal is consistent with his calls for a generous national scheme.Governments across the country have said they need time to go through the 312-page report before responding.The commission has called for community and government responses to the proposals and will hold a three day public hearing in March to consider the feedback before making final recommendations on a scheme in June or July.

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