Government compensation scheme for former children in foster care deemed petty

The Victorian government’s offer of compensation to former foster children has been described as an “insult” to victims, with advocates predicting it will lead to a flood of legal action.

Health care dropouts who suffered abuse in the state’s foster care system before 1990 were offered $20,000 by the government.

Former Prime Minister Daniel Andrews promised compensation to victims before leaving office last year, but the amount was only finalized late last month.

Cash payments will be available from December as part of the state’s redress scheme. It also comes with 20 free counseling sessions.

An estimated 90,000 children were placed in institutional care during several decades before 1990, many of them subjected to horrific abuse.

Payments ‘enough to pay for a funeral,’ says ex-abuse survivor

Care leaver Frank Golding spent most of his childhood at Ballarat Orphanage.

He said he and many of his classmates had a “sad childhood where we shared our own pain.”

The orphanage, which operated for more than a century, was identified by several former child residents as the site of horrific abuse during the 1960s.

“The method of discipline was harsh, cruel and punitive. So it was a place I have very bad memories of,” he told ABC.

He said he was shocked by the government’s offer of compensation, noting it would only be “enough to pay for a funeral.”

“I can’t understand the reasoning except that it is petty and the government is not prepared to put the money into the scheme.

“Many who drop out of health care live in poverty.”

Golding said an apology to care leavers presented by Prime Minister Jacinta Allan on behalf of the government in February was an important step and provided vindication for victims, but said the offer of compensation was proof that the reparation scheme was being poorly managed.

“There have been a number of apologies over time and, you know, one of them gets cynical. We want to see action,” he said.

Defenders push for second payment

Disappointment among some care leavers has led to a push by advocate Leonie Sheedy to pressure the government to provide former state wards with a second $20,000 payment.

“Successive governments have failed us and are failing us and betraying us now in our old age,” Sheedy said.

She encouraged care leavers to apply for compensation.

“We see this as a first payment, as a reserve, and we will push for a second batch of funding to be allocated.”

Sheedy runs the Care Leavers of Australia Network and said the government did not consult her when drafting the compensation.

“There was never any consultation about the real value.

“We were called into a meeting last Monday and were told it would be a fixed amount, and we don’t even know who is entitled to that payment yet.”

Sheedy said many care leavers she works with cannot read or write and would be confused about how to access the scheme or seek legal advice.

Reparation payments could lead to new litigation: lawyer

Lawyer Angela Sdrinis said it could be difficult to successfully sue the government for compensation due to the pain and suffering suffered in the foster care system.

But she predicted that people would consider their legal options due to the government’s redress scheme.

“There is a place for redress schemes, but unfortunately what we have seen is that redress schemes have not kept up with the kind of damages that people who were abused as children can recover in the courts,” Sdrinis said.

Sdrinis said recent court settlements and verdicts relating to allegations of sexual abuse and concurrent physical abuse can sometimes reach several million dollars.

“I think the Victorian government may find that with $20,000 all it is likely to do is encourage people to seek legal advice, which is likely to cost the government a lot more,” she said.

“To my knowledge there has not been a recent verdict relating solely to physical abuse of children, but in my experience acting for many hundreds of abused people in care, and I think based on expert evidence we know that physical abuse can be as harmful as sexual abuse of a child.”

The state government said no amount of money could undo or make up for what happened to care leavers.

But he said the government could acknowledge the mistakes of the past and support people to address the effect of abuse and neglect on their lives.

“We are working as quickly as possible to offer redress to people who have suffered a history of child abuse or neglect in institutional settings,” a spokesperson said.

“Registrations should open in December.”

The government said the payment would be accompanied by access to 20 counseling sessions and an acknowledgment or apology from the responsible institutions.