The historic redress inequities for Lake Alice Unit survivors addressed.
The New Zealand Government has taken steps to rectify a long-standing injustice affecting survivors of abuse at the Lake Alice Child and Adolescent Unit. In 2001, a group settlement was reached with 95 survivors, but law firm GCA Lawyers deducted $2.6 million in legal fees from the total $6.5 million settlement. This resulted in average payments of approximately $41,000 for survivors.
Lead Coordination Minister Erica Stanford acknowledged the historic injustice and stated that this Government is committed to doing better. The decision comes after years of advocacy, with Cabinet agreeing to reimburse survivors without an independent review process. The reimbursement will be made on an ex-gratia basis, meaning payments will not be taxed or considered income for benefit purposes.
Survivors can claim reimbursement from the Ministry of Health claims service until June 30, 2025. An additional $2.6 million has been allocated to cover administrative costs, recent claims related to historic abuse at Lake Alice, and ensure parity among survivors. The Government continues to respond to recommendations from the Royal Commission's final report with respect and care.
The reimbursement marks a significant step towards addressing the harm experienced by survivors, although it does not fully rectify the situation. The Government acknowledges that redress can never fully right past wrongs but remains committed to providing support and making amends.