Historic claimants taking up fast-track option

Social Development Minister Anne Tolley says 81 per cent of historic claimants who have been made fast-track offers to date have accepted the offer to settle their claim.

People with unresolved claims of historic abuse in state care have been given the option of a fast-track settlement, or to continue with the normal process.

“We want to ensure people who have backlogged claims relating to historic abuse are able to choose the settlement process that suits them,” Mrs Tolley says.

“These claimants have suffered significant trauma and it’s important we give them the opportunity to reach some kind of closure sooner, if that is their wish.

“So far, 401 offers have been made and 328 have been accepted. 307 payments have been made totalling $5,779,000.

“MSD is still confirming the contact details for a small number of claimants so fast-track offers can be made to them.

This first tranche of fast-track offers has been made to claimants who approached the Ministry directly and are not legally represented.

The Ministry is now working on preparing a second tranche of offers for claimants who are legally represented.

“There is no compulsion for anyone who receives an offer to take it. The normal process is still available and 22 people have so far indicated they will continue with a full assessment.”

The fast-track offers are based on previously resolved claims, and a face value acceptance of the key elements of the claim subject to checking some key facts.

“By basing the financial settlements on claims resolved to date we are ensuring as much as possible that there is equity between past and current claims,” Mrs Tolley says.

“Claimants who decide not to opt for the accelerated settlement will continue to have their case assessed under the existing process. The goal is to conclude all historic claims by the end of 2020.”

The fast-track settlement offer only applies to backlogged claims, and those received after 1 January 2015 will be subject to the normal claims process.     

Notes:

The fast track offer process is being managed in two tranches.

The first tranche was for claims made directly to the Ministry.  The second tranche are claims from people who are legally represented and there is a similar number of people in that tranche.

The Ministry is now working on assessing those claims so fast track offers can be made to the claimants, through their lawyers, in the coming few months.