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After more than a year of discussions between churches and the federal government, the settlement proposed by the government last week was decided without church input, church leaders complain.

Deputy Prime Minister Herb Gray, the head of a government team negotiating with the churches, announced on October 29 that the government would pay 70 percent of the compensation destined for 1000 former students of the now-defunct church-run federal institutions.

The offer could apply to thousands more former students who allege sexual, emotional, physical, and cultural abuse at the schools, administered by four Canadian denominations on behalf of the Canadian government from 1820 to 1969. The cost is expected to be about C$1 billion (U.S.$650 million), which, according to the government-proposed settlement, would leave the churches responsible for about C$300 million (U.S.$195 million).

In at least one case, a court set financial liability for the government at only 40 per cent, leaving the church in question to bear the major burden. Although the recent government offer takes more responsibility, churches involved in the cases were worried by what they called the unilateral nature of the government's decision.

Anglican Archdeacon Jim Boyles, chair of the ecumenical team that has been negotiating with the government, said that although the government's offer was "a reasonable first step," the settlement did not address many issues, including allegations of cultural abuse and how the churches could pay their share "in an orderly manner that would not cripple their ongoing social programs."

The four churches that form the ecumenical team—the Anglican, Presbyterian, Roman Catholic and United churches—are urging the government to return to the negotiating table.

They say the solution should take into account both the ongoing needs of Aboriginal communities and the need to find alternative ways for some church organizations to meet their financial obligations.

One Anglican diocese in British Columbia will cease operation on 31 December because it can no longer finance the cost of litigation. The Anglican Church of Canada (ACC) has been selling off assets to meet the national church's estimated C$100,000 (U.S.$65,000) monthly legal bills.

Churches have pointed out that money set aside for legal costs has not helped make amends to those harmed by abuse at the schools.

Canada's biggest church, the United Church of Canada (UCC), has been "spending between two and three million dollars (US$1.3 million to US$1.95 million) yearly, mostly for legal costs—it is not going to the survivors," said Brian Thorpe, pastor and senior adviser to the UCC's Residential Schools Committee.

Thorpe said that because of the centralization of UCC's organization and because it had run fewer residential schools than other churches involved in the cases, the church was named in fewer than 10 percent of the claims. "We are fairly confident that we can continue to meet our legal obligations for the foreseeable future," Thorpe said.

In a statement issued after the government-announced settlement last week, the UCC said: "We would be encouraged by this recent statement from the Deputy Prime Minister if, in addition to addressing the immediate claims against Canada and the church, he had clearly tied the addressing of such claims to a process which would enable truth to be told and reconciliation to be sought."

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November (Web-only) 2001, Vol. 45