Labour not yet certain on design, cost of Abuse in Care redress scheme

WARNING: DISTRESSING CONTENT 

The Labour Party is not yet certain of the design and cost of a proposed independent redress scheme for Abuse in Care survivors as National continues to argue the party’s fiscal plan does not add up. 

Labour has called National’s criticism over its lack of costings a disappointing use for political gain of what was a “big win” for survivors. It said the final cost and design of the scheme would be dependent on the input and feedback from survivors. 

“It would be wrong to pre-empt it before working with survivors to do this properly.” 

Willis said establishing an independent redress scheme carried significant costs for establishing a new independent agency and for ongoing operations. 

“Two days after a $90 million error was exposed in Labour’s fiscal plan, another major commitment appears to be missing,” she said. On Tuesday, Labour admitted it had made a mistake in its fiscal plan and promised to correct it. The error did not fundamentally change the make-up of its plan, which encompassed about $38 billion in spending. 

“Labour has committed to establishing an independent redress system for survivors of abuse in care, but appears to have set aside no funding for it in its fiscal plan. So where is the money? How much has Labour costed this commitment at, and why isn’t that cost in its fiscal plan?” 

She claimed Labour’s fiscal plan was “full of holes” that could only be addressed by “hitting every Kiwi with new taxes”. Labour rejects this, and says it can afford its spending commitments. 

“The only way Labour will be able to fill its $18 billion hole is by hitting every Kiwi with new taxes,” Willis said. “Conveniently for Labour, between its own tax plans and those proposed by its coalition partners, at least nine new taxes are on the table. At this rate, Labour will need all of them.” 

Labour’s spokeswoman for social development and employment, Willow-Jean Prime, revealed the redress scheme policy at Whakamanawa 2026 last month, a conference for social service providers. 

In a statement posted to Facebook, Prime said the current system required survivors to engage with the same institutions that failed them. There are seven state agencies that respond to claims of abuse, including the Ministry of Social Development and Oranga Tamariki. 

The Government established a specific redress pathway for survivors of torture at Lake Alice, the Manawatū-Whanganui psychiatric centre where young people, many of whom did not have any form of mental illness, were subjected to painful and traumatising unmodified electroconvulsive therapy (ECT) or paraldehyde injections. 

Under this scheme, survivors could opt for a rapid $150,000 payment or an individualised assessment by arbiter Paul Davison, KC. Davison issued payment entitlements ranging between $160,000 and $600,000. 

An independent redress scheme was one of the recommendations of the Royal Commission of Inquiry into Abuse in State Care, which investigated the widespread and “unimaginable” abuse in state and faith-based settings between 1950 and 2019. 

An estimated 200,000 people were abused, and many more neglected, with Māori disproportionately affected and subjected to overt and targeted racism, the six-year investigation found. 

The commission branded the abuse a “national disgrace” and recommended the Government establish an independent redress system. In July, survivor Keith Wiffin said he was particularly disappointed that the Government had not adopted the recommendation. 

In a statement responding to Willis’ criticism, Prime said Labour would work with survivors to finalise what the independent redress scheme would look like. The final design and cost of the scheme would depend on that process, and it would be wrong to pre-empt it. 

“Survivors deserve a system that works for them, unlike the approach taken by this Government. 

“Once an independent redress system is established, we will shift the funding from the existing schemes across to the new system. Funding for existing claims processes is already provided for in current Budget settings. We would continue to manage that funding through the normal Budget process.” 

Prime said survivors had already waited too long for justice and deserved a system that “puts their needs first”. 

“It’s deeply disappointing and a huge shame that National has chosen to use what is a huge win for survivors for political gain.” 

Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.