Redress impact on Newcastle Anglicans

ANGLICAN DIOCESE OF NEWCASTLE'S FINANCIAL POSITION AS IT PAYS COMPENSATION TO CHILD ABUSE VICTIMS

WHAT IS THE DIOCESE'S FINANCIAL POSITION?

* Diocesan budget "under considerable pressure"

* Effective deficit of $2 mln in both 2016 and 2017

* Has borrowed funds and accessed trust funds to meet its obligations

* Says it has been managing its finances carefully for a number of years to ensure it can fulfil its redress obligations and meet royal commission and other legal costs

* Says low interest rates are a positive in terms of loan but have significant impact on revenue from endowments

* $145,000 budgeted for royal commission legal costs in 2017

WHAT IS THE PROBLEM NOW?

* Faces a $948,445 funding shortfall for 2018

* Estimated $1.5 mln for redress for 2017 and 2018

* Now says that may be too low

* Many financial claims relate to events for which it has no insurance cover or where insurer has denied claims due to failure of diocesan processes

* Looking at cost cutting, increased financial contributions from parishes and accessing trust funds

* But says doubling parish contribution not appropriate

* Diocesan council suggests repaying trustee loan by withdrawing $3.7 mln from diocesan and parish trusts

HOW MUCH HAS IT ALREADY PAID FOR REDRESS?

* $4.57 mln between 1980 and December 2015

* For 25 payments, after receiving 67 complaints

* Average payment $183,000

* Another $330,000 in total paid between January 2016 and April 30, 2017

* Has received small number of new redress applications and small number requesting review of past payments.