Anglican Church Short $1m for Abuse Redress

By Megan Neil
Newcastle Herald
May 12, 2017

http://www.theherald.com.au/story/4659269/churchs-missing-million-for-child-abuse-victims/

NEWCASTLE’S Anglican diocese maintains it will pay proper compensation to child abuse victims despite needing to find almost $1 million after underestimating its redress obligations.

The diocese has already paid almost $5 million in compensation to people sexually abused as children by Anglican clergy and lay people. It had budgeted for $1.5 million in redress for 2017 and 2018.

But Bishop Peter Stuart says the estimates for redress funding for 2017 and 2018 may be too low and many of the claims relate to events not covered by insurance, or where the insurer has refused to pay due to the failure of diocesan processes.

The projected funding shortfall for 2018 is nearly $950,000, he said.

A special meeting of the diocese’s 300-member synod on May 27 will be ‘‘grappling with the financial realities arising from redress’’, as more survivors come forward following the child abuse royal commission.

'‘With the evidence before the royal commission, and changes in NSW law, some survivors are rightly seeking to revisit their past redress,’’ Bishop Stuart said.

‘‘Other survivors are also coming forward.’’

Bishop Stuart said the diocesan leadership was considering withdrawing funds from trusts and cutting costs to meet the shortfall, as well as increased financial contributions from parishes.

A letter sent by Bishop Stuart to the synod shows doubling parish contributions would meet most of the shortfall but the diocesan council had said it did not believe that was an appropriate way forward.

Instead, the council has proposed repaying a trustee loan by withdrawing $3.7 million of capital from diocesan trusts and parish trusts that have been boosted by windfall gains from recent property sales. In addition to the redress obligations, the diocese’s finances have been hit by low interest rates.

Despite this, Bishop Stuart still vows the diocese will meet the redress obligations.

‘‘The diocese is committed to do all that it takes to ensure proper, prompt and pastoral redress to those who were harmed in the past,’’ he said.

The royal commission has yet to release its findings but counsel assisting has submitted a network of perpetrators was allowed to operate within the Newcastle diocese for 30 years, between at least the early 1960s and late 1980s.