Labour’s uncosted redress promise could leave $1.03 billion hole in fiscal plan

Documents obtained under the Official Information Act have revealed another hole in Labour’s fiscal plan, following the Taxpayers’ Union’s exposure of a $90 million accounting blunder earlier this month.

Labour’s social development spokesperson Willow-Jean Prime has repeatedly committed to establishing an independent redress system for survivors of abuse in state care, but the party’s fiscal plan does not mention or cost this promise.

Official costings put the establishment and operating costs of integrating existing processes at between $98.5 million and $150.5 million over four years.

However, Prime has also committed to working with survivors to implement the Royal Commission’s recommendations. Official costings suggest expanded redress packages could cost between $704 million and $1.025 billion over four years in addition to funding already set aside by the current Government.

Taxpayers’ Union Head of Policy James Ross said:

“Compensation for those who suffered abuse in state care is serious business. Survivors deserve more than empty promises without the funding to back them up."

“Just establishing an integrated redress process without meeting any of the other recommendations comes with a price tag of up to $150 million. But Willow-Jean Prime’s announcement suggests the bill could be as high as $1.03 billion, or $495 per household. These aren’t rounding errors.”

"If Labour is serious about delivering justice, it needs to explain exactly what it’s promising and how it intends to pay for it.”