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Taxpayers could pay millions to abuse survivors if Christian Brothers goes bankrupt, court documents reveal
The Christian Brothers order has told a court is it broke and cannot afford to pay out survivor redress claims. Photograph: Godong/Universal Images Group/Getty Images View image in fullscreen The Christian Brothers order has told a court is it broke and cannot afford to pay out survivor redress claims. Photograph: Godong/Universal Images Group/Getty Images Taxpayers could pay millions to abuse survivors if Christian Brothers goes bankrupt, court documents reveal Catholic order with a record of child abuse could be subject to hundreds of redress claims worth up to $65m Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast Australian taxpayers could be forced to cover up to $65m in payouts to hundreds of abuse victims when a failing arm of the Catholic church disappears, new court documents reveal. Last month, the Christian Brothers, a Catholic order with a shocking record of child abuse, informed a court it was going broke and would not be able to afford to pay out survivors. The move has affected hundreds of cases brought either through the civil courts or through the government-run national redress scheme, which allows survivors to seek capped amounts of compensation without going to court. Curtis waited 60 years for justice over alleged abuse. The Christian Brothers’ legal moratorium will see the trial abandoned Read more An actuarial report detailing the state of the Christian Brothers finances was released to the media on Monday, alongside other court documents. The report reveals there are currently 340 redress claims involving the Christian Brothers, which will cost the religious order an estimated $25m. But the report also predicts the Christian Brothers will be subject to another 590 redress claims, worth $40m, in future years. Sign up for the Breaking News Australia email In total, it is on the hook for 930 redress claims worth $65m. The rules of the redress scheme make the federal government a “funder of last resort”. That means that where an institution no longer exists or is unable to pay, the federal government is forced to step in and cover the costs. The situation has prompted a withering response from the social services minister, Tanya Plibersek. “Victim-survivors deserve to have those responsible for their abuse held accountable,” she said. “Christian Brothers should take responsibility for the harm members of their order have caused. “Funder of last resort arrangements which call on taxpayer funds should be just that – the absolute last resort.” The Christian Brothers is currently proposing a scheme that would sell off its remaining 36 properties and divide up the proceeds between a range of creditors, including survivors and the government. But the proceeds from those property sales will be nowhere near enough to cover survivors’ claims, and are likely to provide a fraction of what survivors are owed. Survivors and plaintiff law firms are angry that the Christian Br