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The
Dominion
January 9, 2002

Cash for unproved sex abuse
by David McLoughlin

People who claim to have been sexually abused will be able to get big cash sums from ACC again without having to complain to police under a law change that takes effect on April 1.

ACC sensitive claims manager Gail Kettle confirmed this yesterday when responding to a flier from a Christchurch law firm offering to get sexual abuse victims up to $175,000 compensation in return for a commission.

Ms Kettle said ACC would not pay anything like that sum but agreed that ACC would take the word of victims and their counsellors that abuse had happened and make payments even when there had been no police inquiry or court conviction.

The Injury Prevention and Rehabilitation Act begins on April 1, restoring lump sums up to $100,000 for people injured in accidents and for victims of sexual assaults.

Christchurch-based Wakefield Associates has been offering to get victims compensation in return for a 25 per cent cut of any lump sum plus the entire first-quarter payout from any continuing compensation.

The flier says: "The abuse does not have to be reported to the police. The abuser does not have to be named."

More than 2000 people have telephoned ACC about the fliers, which have been distributed in Auckland, Hamilton, New Plymouth, Palmerston North, Wellington, Christchurch and other places.

But Ms Kettle said victims could get compensation by going to an ACC-approved counsellor, who would help submit a claim at no cost to the applicant.

Lump sums for accident injuries and sex abuse were abolished almost a decade ago after a cost blowout. The number of claims related to rape and sexual abuse rose from 221 in 1988 to 13,000 in 1993.

Most claimants then were automatically paid $10,000, whether or not they had lodged a complaint with police. Critics said many were fraudulent or driven by unscientific therapy methods such as "recovered memory", where a therapist "recovers" from adults "memories" of abuse at a very young age.

But the Government decided to reintroduce lump sums. Though accident victims will be able to claim them only for injuries suffered from April 1, Ms Kettle confirmed that sex abuse victims will be able to make claims for incidents dating back years.

This is because the act says the starting date for a sex abuse claim is the date a victim first seeks help. Ms Kettle agreed that meant that someone could visit a therapist on April 1 and be paid a lump sum for an alleged event 20 years before, while someone who lost a leg in a car crash on March 31 would not be entitled to a lump sum.

Aucklander Gordon Waugh, a long-time campaigner against false allegations of sexual abuse, predicted yesterday that the new law would quickly lead to the number of ACC claims for such cases rising again because of the financial incentive.

The law should be changed to require a complaint to the police, if not a court conviction, he said.

Wakefield Associates partner Garry Wakefield said his firm had mounted its campaign because it had "clear evidence" that ACC did not advise abuse victims of their financial entitlements when claims were accepted.

But Ms Kettle said that was nonsense. ACC gave each applicant a detailed booklet listing all entitlements and counsellors were also familiar with entitlements.

The flier's claim that victims could get a $25,000 lump sum and continuing payments totalling $150,000 was based on an extreme case, she said.