The Christian Brothers, a Catholic religious order operating in Australia, has informed the court that it lacks sufficient financial resources to pay compensation to abuse survivors, according to court filings released this month.
An actuarial report details claims under the government-run National Redress Scheme, which allows survivors to seek capped compensation amounts without court proceedings. The report indicates 340 current redress claims against the Christian Brothers valued at an estimated $25 million, with predictions of an additional 590 future claims worth $40 million, bringing the total to 930 claims valued at $65 million. Under the scheme’s rules, the federal government functions as a “funder of last resort,” meaning taxpayers would cover any amounts the institution cannot pay.
The Christian Brothers has proposed selling its remaining 36 properties to distribute proceeds among creditors, including survivors and the government. However, legal representatives for survivors argue these sales will generate insufficient funds. Survivors and their legal representatives have expressed anger over property transfers made during the past decade, in which the order transferred valuable holdings to a separate entity, Trustees of Edmund Rice Education Australia, for minimal amounts. That entity has resisted efforts to include those properties in the compensation scheme.
Additional court documents reveal that an entity called the Brothers of the Christian Schools of Ireland holds substantial assets currently beyond the reach of survivors and creditors. Those holdings were valued at $57 million as of December last year and approximately $47 million as of May this year.
Australian Social Services Minister Tanya Plibersek has stated the government will pursue a detailed examination of the Christian Brothers’ financial restructuring proposal. She affirmed that the National Redress Scheme will continue processing applications against the Christian Brothers and emphasized the government’s commitment to protecting both survivor interests and taxpayer resources.
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