NZ Commits to Righting Historic Inequities for Lake Alice Survivors in Abuse Settlement

Minister Stanford also highlighted that, in July, the Government formally recognized that some Lake Alice survivors had experienced torture and created an expedited financial assistance pathway for survivors with terminal illnesses.

The New Zealand Government is taking steps to address longstanding inequities faced by survivors of abuse at the Lake Alice Child and Adolescent Unit. In an effort to correct these injustices, a new process has been launched, allowing survivors to receive reimbursements for previously deducted legal fees.

In 2001, the Crown reached a $6.5 million settlement with 95 survivors who endured abuse at the psychiatric facility. Survivors were represented by Grant Cameron & Associates (now GCA Lawyers), a firm that deducted approximately $2.6 million in legal fees from the total settlement. As a result, survivors received an average of $41,000 each after legal fees, reducing their compensation for the traumatic experiences they endured at Lake Alice.

In contrast, survivors in subsequent settlements received an average of $70,000, as the Crown chose to cover legal costs directly. This discrepancy left the original 95 claimants facing a significant gap in compensation relative to others who came forward later. The recent decision to provide reimbursement aims to correct this discrepancy.

Lead Coordination Minister Erica Stanford expressed regret that survivors faced this disparity for over 20 years. "This inequitable treatment has been a historic injustice for over 20 years. As a society, we should have done better. This Government is determined to do better," she stated.

The action responds to Recommendation 18 from the Royal Commission of Inquiry's final report on abuse in state care. While the Commission recommended appointing an independent reviewer for historic settlements, the Cabinet determined that immediate action was preferable, bypassing a prolonged review. "The facts of this matter are clear, and it was important to us that survivors be reimbursed as quickly as possible," Minister Stanford explained.

Survivors eligible for reimbursement can lodge claims with the Ministry of Health until June 30, 2025. Payments will be granted on an ex-gratia basis, ensuring that they are tax-free and do not impact welfare benefits. In addition to reimbursement, the $2.6 million set aside will also cover administrative costs and any new claims related to abuse at the Lake Alice facility.

Minister Stanford also highlighted that, in July, the Government formally recognized that some Lake Alice survivors had experienced torture and created an expedited financial assistance pathway for survivors with terminal illnesses.

"While we can never fully make redress for or right the harm survivors experienced, the Government is continuing to respond to the Royal Commission's final report with the respect and care it deserves," Minister Stanford said.

This latest move underscores the Government's commitment to a more compassionate, equitable approach for survivors, honouring their experiences with overdue recognition and support.