The Government is set to make redress payments to a group of Lake Alice survivors after “inequities” in a 2001 settlement were identified.
From 1972 to 1980, hundreds of young people were sent to Lake Alice Hospital, where they suffered paralysing injections and electric shocks as punishment at the hands of head psychiatrist Dr Selwyn Leeks.
In 2001, the Crown reached a $6.5 million group settlement with 95 survivors. They had been subjected to abuse at the facility.
“Law firm Grant Cameron and Associates (now GCA Lawyers) represented the group and deducted an estimated $2.6 million in legal fees from the total settlement before individual payments were made,” a Government statement this morning explained.
“This resulted in survivors receiving, on average, an estimated $41,000, after approximately $27,000 was deducted in legal fees.”
But since then, further claimants have received an average of $70,000, as the Crown met the legal costs.
Lead Coordination Minister Erica Stanford said: “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.
“This decision directly relates 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.”
Survivors will be able to lodge a reimbursement claim with the Ministry of Health claims service 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,” Stanford said. “$2.6 million 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.
“Since July, we have acknowledged some children and young people experienced torture at the Lake Alice Unit and set up urgent financial assistance to those who are terminally ill.
“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.”
