NZ Government Could Face Hundred Billion-Dollar Compensation Bill for Abuse in State Care

Published on July 31, 2024

New Zealand has become the latest country to reveal widespread abuse of people in state and faith-based care institutions dating back decades. The government, which is set to issue a formal apology, now faces the prospect of potentially paying billions of dollars in compensation to those affected—while already facing a $13.4 billion budget deficit. The UK, Ireland, Canada, and Australia have all conducted similar exercises in 2017/18 with broadly similar outcomes. Still, the New Zealand Royal Commission of Inquiry’s estimate of the number of victims is the first attempt to quantify the extent of such abuse. Its 3,000-page report finds that an estimated 655,000 people passed through state and faith-based care from 1950 to 2019 and that between 17 and 39 percent (114,000 to 256,000) had been abused and/or neglected....