The Crown is reimbursing survivors of abuse at Lake Alice with $2.67 million to fulfil one of the recommendations in the Royal Commission's final report.
In 2001, the Crown reached a settlement with 95 survivors for $6.5m but the law firm representing the group, Grant Cameron & Associates, deducted an estimated $2.6m in legal fees from what the survivors received in payments.
This meant survivors received, on average, an estimated $41,000 after roughly $27,000 was taken off in legal fees.
Erica Stanford, the lead coordination minister for the government's response, has announced the government will address the issue of legal fees.
Survivors can lodge a claim with the Ministry of Health for reimbursement until 30 June next year.
Each individual survivor will be eligible for between $15,000 and $55,000 depending on their case.
Lake Alice Hospital Photo: PUBLIC DOMAIN./ Pawful
Not all survivors are expected to make a claim. Some will have likely died before Wednesday's announcement.
At a media stand-up, Stanford said: "We are putting right a historical wrong."
She said many governments over many decades had chosen not to put right this particular wrong, "but we have".
Survivors she had spoken to about the reimbursement were "speechless" and "extraordinarily grateful".
She said they were overwhelmed and emotional on the phone, seeing it as something that needed to be put right.
Many survivors were not in good health, and what happened to them at Lake Alice had impacted on their health and wellbeing, she said.
In a more recent settlement claimants received an average of $70,000 due the Crown meetings legal costs in that instance.
"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," Stanford said.
Erica Stanford. Photo: RNZ / REECE BAKER
The $2.67m announced will cover the reimbursed legal fees, the Ministry of Health administration for the claims process, as well as costs of additional claims that have been made recently for historic abuse at Lake Alice.
"Payments will be made on an ex-gratia basis, meaning they will not be treated as income for tax or benefit purposes," Stanford said.
"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," she said.
Today's announcement directly relates to recommendation 18 of the Royal Commission 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," Stanford said.
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