Government compensation deal for bad blood transfusions

The Government is preparing to apologise and pay compensation to 170 haemophilliacs who contacted hepatitis C through contaminated blood products, it was reported today.

The package -- which includes 60 people withdrawing their court action against the Government for failing to have earlier blood screening systems -- has yet to be signed off by cabinet, the Sunday Star-Times said.

The deal followed a threat by the Haemophilia Foundation to circulate a letter of an earlier Labour promise before last year's election.

In 1999 health spokeswoman Annette King said Labour, if elected, would make a fair settlement to those who had contracted hepatitis C from bad blood products in the 1980s and 1990s.

But when Labour became government it set such tight criteria for compensation that few qualified.

The foundation threatened to circulate leaflets including the 1999 King letter in key electorates before last year's poll.

The threat was withhdrawn after the foundation made a deal which includes an apology from Prime Minister Helen Clark who was a minister of health at the time.

It also includes compensation of up to $60,000 a person, financial help for legal fees and for the foundation and better welfare and treatment.

A spokesman for Helen Clark told the newspaper the matter was with the Crown Law Office and the Ministry of Health.

Foundation president Dave McCone said the foundation would recommend its members accept the deal.

- NZPA