The news that the Christian Brothers, a Catholic order with a long history of child abuse allegations in Australia, may be facing bankruptcy has sent shockwaves through the country's government and advocacy groups. The revelation raises concerns not only for the survivors of abuse but also for taxpayers, who may be forced to cover tens of millions of pounds in compensation claims under Australia's National Redress Scheme.
The Christian Brothers have informed an Australian court that they are struggling to meet the £34 million ($65 million) in redress claims, comprising 930 cases, including current and pending applications. Under the government-run scheme, if a institution like the Christian Brothers is unable to pay or no longer exists, taxpayers step in as 'funder of last resort', effectively placing the burden on them.
The situation has drawn criticism from Tanya Plibersek, Australia's Social Services Minister. She argues that those responsible for abuse should be held accountable and describes the 'funder of last resort' arrangement as an absolute last resort. There are also concerns about the Christian Brothers' financial conduct, with allegations they have spent the past decade transferring substantial property holdings to a separate entity, the Trustees of Edmund Rice Education Australia, for as little as $1 each. This entity is reportedly resisting attempts to liquidate these assets to compensate survivors.
In response, Minister Plibersek stated that the government will take a 'forensic approach' to the matter. She assured survivors that the integrity of the National Redress Scheme would be maintained and applications against the Christian Brothers would continue to be processed. The Commonwealth is actively participating in Supreme Court proceedings concerning the order's proposed creditors' scheme, with the aim of safeguarding both victim-survivors' and taxpayers' interests.
Further revelations from court documents suggest that the Christian Brothers have allegedly used their dwindling finances to support nine convicted child abusers who remain within the order. Additionally, two remaining properties are reportedly being used to house brothers with histories of abuse, including one who targeted orphans and another who continued teaching for nearly three decades after senior officials were aware of his offences. The documents also reveal that additional property owned by the Brothers of the Christian Schools of Ireland has a net asset value of £24.8 million ($47 million) as of May this year, currently outside the reach of creditors and survivors.