The bombshell U-turn announced on Friday by Edmund Rice Education Australia (EREA) has brought hope to survivors of historic abuse by the Christian Brothers. The Catholic order's decision to relinquish its claims to £170 million worth of properties, previously deemed untouchable, marks a significant shift in their stance towards compensating victims. EREA, which had long maintained it was not liable for the Christian Brothers' abuse claims, has now confirmed that it will step in to ensure all survivors receive full compensation.
Last month, the Christian Brothers faced insolvency and were unable to meet civil claims from survivors, leaving a staggering £605 million shortfall. The organisation had proposed selling 36 properties to be split among creditors, but this would have left the majority of outstanding claims unpaid. However, recent scrutiny over property transfers between EREA and the Christian Brothers has led to renewed pressure on the Catholic order.
It emerged that EREA had been gifted lucrative property holdings worth hundreds of millions of pounds from the Christian Brothers for as little as £0.78 (A$1) in 2007. This sparked widespread outrage, with survivors questioning why these assets would not be accessible for compensation claims. The original proposal to sell properties would have meant that victims received only a fraction of their due.
Under the new agreement, EREA will now assume responsibility and liability for all current and future legal proceedings, as well as claims before the government-run national redress scheme. Dr Stephen Brown, chair of the Trustees of Edmund Rice Education Australia, maintained that the organisation is “committed to supporting those who have suffered abuse” and described this decision as “simply the right thing to do.”
Rightside Legal partner, Grace Wilson, hailed the decision as a significant victory for survivors. She credited their tenacity with securing this outcome and warned other religious orders that transferring wealth away would not shield them from their legal and moral obligations.