Joe Costello (Dublin Central, Labour)
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Question 1673: To ask the Minister for Education and Science if the legal advisors of victims of abuse who have been awarded compensation are entitled to charge for the legal services or other services carried out in relation to the preparation of the case; the deductions the legal advisors can make from the award; the reason the State deducts stamp duty from the award; and if he will make a statement on the matter. [29875/08]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I wish to advise the Deputy that there are two means by which former residents of institutions which were subject to State regulation or inspection can apply for and be awarded compensation — The Residential Institutions Redress Board and the Court system.

The Residential Institutions Redress Board was established to make fair and reasonable payments to persons who, as children, were abused whilst resident in industrial schools, reformatories and other institutions which were subject to State inspection or regulation. Awards made by the Redress Board are payable in full to the applicant with no deductions for costs. The Board is entirely independent in the performance of its functions and its operation is governed by the terms of the Residential Institutions Redress Act 2002.

Section 27 of the aforementioned Act provides that all reasonable legal costs and other costs associated with the preparation and presentation of an application to the Board will be met by the Board. In the event that agreement cannot be reached between the Board and the applicant's legal representative, the matter is referred to the Taxing Master of the High Court for determination.

The Redress Board's published guidelines and other publicity material on the redress scheme specifically highlight the fact that all reasonable legal costs incurred in respect of applications for redress are payable by the Board. Furthermore, as solicitors are required by law to fully inform their clients, in writing, of the legal costs payable in their case, it is incumbent on the individual solicitors to inform applicants to the Board that all reasonable legal costs will be met by the Board and that the applicant should not have to pay any legal costs. The Law Society of Ireland is the body responsible for the regulation of the profession and, as such, it is a matter for the Society to investigate complaints about the conduct of a solicitor.

Aside from the Redress Board, victims of abuse also have recourse to the Court system. Claims taken by victims of institutional abuse against the State are handled by the State Claims Agency. Where cases are processed through the Court system, it is the presiding Judge who will decide on liability for payment of costs in the normal course. The issue of legal fees being charged by a Solicitor is a matter between the solicitor and client. However, I understand that there are clear guidelines set down by the Law Society in relation to the charging of fees and, where a client has any cause for concern, s/he can have the matter referred to the Law Society. A document entitled "Information in Relation to Legal Charges" is available to download from the Law Society's website and sets out all relevant information.

In relation to the issue of deduction of stamp duty or other forms of taxation from the awards, I wish to advise the Deputy that, under Section 22 of the Residential Institutions Redress Act 2002, income consisting of an award under the terms of the Act shall be disregarded for the purposes of income tax assessment. In relation to the deduction of taxes from awards made by the Courts, this is a matter for the Revenue Commissioners.