Christian Brothers make abuse survivor payout U-turn

Survivors of child sexual abuse connected with a Christian organisation are set to continue receiving payouts – with private schools planned to foot the bill.

Previously the trustees of the Christian Brothers had sought to put a pause on payments to survivors of historic abuse, citing financial hardship.

However, in a major U-turn, the organisation has now proposed a new payout scheme, to be funded by its schools arm the Edmund Rice Education Australia

In new proposals, the trustees asked the Supreme Court for permission to put Edmund Rice Education Australia in charge of repayments and all future legal proceedings.

It came after the Christian Brothers was granted a moratorium, pausing any potential payments, after claiming the organisation was running out of money.

In a statement published on Friday, the trustees said they had entered into a memorandum of understanding with the trees of EREA to “provide an outcome for all creditors, including victims and survivors of abuse”.

“In summary, this means that not only will current claimants with settlements or judgments be paid in full, but EREA will assume responsibility and liability for all current and future legal proceedings as well as for claims before the National Redress Scheme,” the trustees said.

“By supporting a revised scheme of arrangement we are committed to supporting those who have suffered abuse,” Stephen Brown, chairman of trustees for EREA said.

“This decision will also support the long-term sustainability of the educational ministry, including more than 44,000 students entrusted to EREA’s stewardship.

“EREA is committed to supporting those who have suffered abuse, so today we are seeking to provide reassurance that we will step in to address future funding shortfalls.”

The arrangement has been welcomed by the Albanese Labor Government, with social services minister Tanya Plibersek hitting out at the uncertainty the previous announcement had caused.

“The past few weeks of uncertainty have been difficult for victim survivors of abuse in institutions run by the Christian Brothers,” she said.

“They should never have been put in the position of wondering whether their claims would be met.

“No level of compensation can undo the profound harm experienced by victim survivors of child sexual abuse. But we know that redress – including counselling, apologies and financial compensation – can play an important role in helping survivors feel heard, believed and supported.”