Madam Speaker, one of the questions that is sometime raised in debates and questions on the whole issue of hepatitis C is the substance of the settlement agreement. Based on what we are hearing, there is huge fund in place, but those who need that money do not have access to it.
We hear statements to the effect that the federal government intends to get its hands on the huge surplus in that reserve. However, one should be careful with the opposition's comments. These allegations are often preposterous.
This is why I would like to take a few minutes to talk about the settlement agreement fund for people who were infected with hepatitis C between 1986 and the mid-nineties. I specifically want to comment on the false notion that the federal government will siphon off any surplus.
First, allow me to point out the basic facts concerning this fund under the settlement agreement.
In 1998, the federal, provincial and territorial governments agreed to provide financial assistance to Canadians who were infected with hepatitis C following a blood transfusion between January 1, 1986 and July 1, 1990, and to persons with hemophilia who received blood products during that period.
This led to negotiations involving the federal, provincial and territorial governments, as well as the lawyers representing the plaintiffs in class actions before the courts in Quebec, Ontario and British Columbia.
These negotiations resulted in a settlement agreement, thus probably putting an end to legal battles that would have lasted a decade. All the parties to the dispute, and the courts, approved the settlement.
In so doing, they agreed to set eligibility criteria that are based on consultations with Canadian medical experts on hepatitis C.
Many stakeholders had the opportunity to review the settlement agreement and they provided information to the courts before the latter gave their approval, in December 1999.
The hepatitis C settlement for the 1986-1990 period totals $1.118 billion. The federal government contributed $875 million, or eight elevenths of the total amount.
The provinces and territories are putting the rest of the money in a trust fund set up for compensation and related monthly costs.
Once the settlement agreement was reached, it was widely made public. Announcements were published in Canada's newspapers in April 2000 and once again in January 2001, to tell people who might be eligible for compensation how to obtain the applications or to exclude themselves from the agreement.
Within the settlement agreement, an independent and non government administrator was appointed by the courts. This administrator was Crawford Expertises Inc./The Garden City Group. The administrator establishes the application process. It makes decisions on applications and determines the payments made to applicants according to established criteria.
Thus, people who are eligible for payments and who are the most sick receive the most money. Furthermore, applications may cover loss of income, care costs or other particular expenses.
The first payments were made to applicants on June 20, 2000. The most recent data available are from March 4, 2005. Consequently, at the beginning of that month, the fund had already paid more than $427 million.
But what was the status of the fund and what about a surplus?
On the face of it, it is possible to see something in the applications for compensation. After all, when a report was made on the assessment of the trust fund on December 31, 2004, it indicated there was $890 million left.
The funds must be invested to allow the trust to make payments to eligible people during what is expected to be the next 70 years, since it is easy to imagine that a child who contracted hepatitis C before birth—you understand that he can then have it later on—let us say in 1988, would live much longer and would be eligible for compensation at some point during his life.
Second, we must understand that current levels of payment do not automatically guarantee future levels of payment. The conditions resulting from a hepatitis C infection can worsen or improve. Whatever the case may be, the fund must be able to provide adequate compensation. It must be able to provide compensation for lost income, until these individuals reach the age of 65.
Third, we do not know, currently, just how many people may be entitled to compensation. We continue to receive new applications, and this could continue until 2010.
That said, there is a process for examining the fund's financial status. For example, a group of lawyers representing the claimants, called the joint committee, is overseeing the settlement agreement. This committee is made up of lawyers representing Canadians with hepatitis C in the negotiations on the settlement agreement. This committee, under court supervision, oversees the administration of the agreement.
The joint committee is preparing to present an actuarial analysis of the fund based on the most recent data and experience acquired to date. It will provide the three courts that approved the settlement agreement with the information they need to determine whether or not the trust fund has a surplus.
The date for a hearing on this issue will be set considerably later than June 2005. A decision about scheduling will be made by the courts, but the Government of Canada will try to request that a hearing be held as soon as possible.
What will happen if the courts determine that there is a surplus? Could the federal government, as some seem to be suggesting, grab that money? The answer is simply no.The trust fund does not belong to the federal government. Its purpose is to respond to the needs of the beneficiaries of this trust, and it is up to the courts to determine how the surplus is to be divided.
The courts will make a decision based on a number of factors, one of the most important ones being the range of options included in the settlement agreement to deal with this type of possibility. Should there be a surplus, the courts might decide to allocate it to those covered by the trust fund or to measures that would benefit these beneficiaries the most, such as support for research on hepatitis. It will be up to the courts to decide.
Naturally, they could just leave the surplus in the fund. Whatever happens, it is clear that there is a special process to deal with any surpluses in the trust fund. The federal government is currently preparing for these hearings, in order to be able to put forward a reasonable and responsible position to the courts when the fund sufficiency hearings are held.
This motion is not appropriate, since the Minister of Health has already started to explore options to compensate those victims who contracted hepatitis C before 1986 and after 1990. And I am absolutely delighted by that.