The Government has rejected calls to set up an inquiry into the allegations by hundreds of former patients that they were abused in psychiatric hospitals.
Instead, it is creating a special forum to hear the stories of former patients, their families and hospital staff - forcing people who want compensation to go through the courts.
Attorney-General Margaret Wilson said the forum, chaired by ombudsman and former judge Anand Satyanand, would refer people where necessary to the appropriate agencies, such as ACC, the Health and Disability Commissioner or the police. It could also refer people for state-paid counselling.
But the forum's terms of reference do not provide for it to give compensation or apologies, nor to recommend the Government pay compensation or apologise.
However, a spokesperson for Ms Wilson said last night an apology had not been ruled out.
Lawyers representing former patients say the forum will be a pointless talk-shop.
"It's a big slap in the face ... It seems to me to be a complete waste of time," said lawyer Sonja Cooper.
More than 300 former patients have contacted her or Roger Chapman alleging abuse at psychiatric hospitals in the 1960s and 1970s. Around 80 have filed claims in the High Court.
Ms Wilson said the courts were the best place for the compensation claims because of issues of credibility, the historic nature of the claims and the big sums sought.
Some of the alleged abusers denied the claims during a preliminary investigation and must be allowed to defend their reputations, she said.
Ms Cooper said the Government's decision "forces most of our clients to take their cases through the courts, to confront the very people who abused them, and to relive the traumatic experiences they had hoped to put behind them".
Mr Chapman said the costs of taking the claims through the courts would be enormous. "Almost all of our clients are legally aided, so the costs will fall on the taxpayer."
"We were looking for some sort of [Government] investigation ... This forum will be able to do nothing at all except listen to what people say."
A spokeswoman for the Psych Survivors Redress Coalition, Helen Gilbert, said hundreds of former patients were not seeking compensation. "For lots of people it's about being heard and having it acknowledged ... For many the big driver is that nothing like this ever happens again."
THE STORY SO FAR
* More than 300 former patients have alleged they were abused in the 1960s and 1970s at psychiatric hospitals including Porirua, Oakley, Kingseat, Tokanui or Lake Alice. All, except Porirua, have been closed.
* The former patients, mostly eight to 16 at the time, allege beatings and sexual abuse by staff and patients, inappropriate and excessive use of electric-shock therapy, drugs and solitary confinement.
* Around 80 of the claims against the crown have been filed in the High Court. Each seeks up to $500,000 compensation and exemplary damages approaching $50,000.
* Their lawyers wanted a Government investigation as a forerunner to a settlement process.
* The Government yesterday opted instead for a forum to hear the stories of former patients, their families and hospital staff.
No inquiry into alleged psych abuse
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