The Government is addressing a parity issue in the redress settlements some survivors of abuse at the Lake Alice Child and Adolescent Unit received. 

It will see some survivors of torture reimbursed legal fees they were charged during the settlement process more than 20 years ago. However, the amount the survivors will receive won’t be adjusted for inflation, a move the minister in charge said was consistent with other redress payments. 

Erica Stanford, the minister responsible for addressing historical abuse issues, also said it was “unfortunate” previous governments hadn’t addressed what she considered an “injustice”. 

“Many governments over the last 20 years have chosen not to make this payment. It is unfortunate. But we are a Government that is committed to survivors and doing the right thing, especially by Lake Alice.” 

Stanford said that in 2001, the Crown reached a $6.5 million group settlement with 95 survivors. After about $2.6m in legal fees was deducted, individual payments were made. Survivors, on average, received about $41,000 after approximately $27,000 was deducted in legal fees. 

However, subsequently, further claimants received an average of $70,000 as the Crown met the legal costs. Stanford said this was “inequitable treatment” and a “historic injustice”. 

“As a society we should have done better. This Government is determined to do better,” Stanford said. 

Erica Stanford speaks to media about the parity issue. Photo / Mark Mitchell 

She said on Wednesday that survivors are expected to be reimbursed between $15,000 and $55,000. That won’t be adjusted for inflation. 

“We have chosen to take an approach that is consistent with all redress that we pay, that we do not adjust for inflation,” Stanford said. 

“We have been paying redress to Lake Alice survivors over a 20-year period. That is not inflation-adjusted.” 

Stanford said the decision related to recommendation 18 of the Royal Commission’s final report. 

“It recommended an independent person be appointed to review settlements, however, Cabinet agreed this was an unnecessary step. The facts of this matter are clear and it was important to us that survivors be reimbursed as quickly as possible.” 

She said survivors could lodge a claim with the Ministry of Health for reimbursement until June 30 next year. Payments will be made on an ex-gratia basis, meaning they will not be treated as income for tax or benefit purposes, the minister said. 

The Government says $2.6m will address the parity issue, cover Ministry of Health administration of the claims process, as well as meet the costs of additional claims that have been made recently for historic abuse at Lake Alice. 

The minister said most of that money will go towards the survivors rather administration costs. 

Stanford said she had spoken to some Lake Alice survivors prior to the announcement and they were “overwhelmed”. 

“A number of them were really emotional on the phone and they see this as something that’s needed to be put right for many years but finally has been.” 

Lake Alice psychiatric hospital. Photo / Supplied 

Earlier this year the Government formally acknowledged some children and young people at the psychiatric hospital experienced torture. A Royal Commission report found that most of the 362 children who went through the unit between 1972 and 1978 had no mental illness.

Throughout the 1970s, patients were given electric shocks without anaesthetic as well as painful and immobilising paraldehyde injections, the minister said at the time.

“It is clear treatments were not administered for any medical reason. They were used for punishment and emotional control through terror. It is beyond heartbreaking.”

Stanford said in August that Cabinet had agreed to make a rapid payment of $20,000 available to a small group of terminally ill survivors. The Government was also working at the time on a specific redress package for survivors to acknowledge the torture that took place.

The Labour Government formally apologised to 95 former Lake Alice patients in 2001. There were two rounds of settlements subsequently, with more than 200 claims settled, averaging $70,000 each.

Following the publication of the Royal Commission report, the Government acknowledged for the first time that some children and young people at the unit had been tortured as defined in the United Nations Convention Against Torture.

The Medical Council of New Zealand also apologised and said its regulator had failed in holding lead psychiatrist Dr Selwyn Leeks to account.

“Survivors of Lake Alice Child and Adolescent Unit were failed by the Medical Council, and we are deeply and unreservedly sorry for this failure and the intergenerational consequences our actions have caused.”

Jamie Ensor is a political reporter in the NZ Herald Press Gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office.