OTTAWA, ON, February 2, 2000 -  Cliff Chadderton, Chief Executive Officer of The War Amps and Chairman of the National Council of Veteran Associations, is pleased to advise that the Minister of Veterans Affairs has announced a $50 million tax-free package for Canada's Merchant Navy Veterans and surviving spouses. Payments will be made to eligible Canadian merchant mariners who served in the First and Second World Wars and the Korean War.

Maximum payments could be:

• $20,000 for war-related service of more than 24 months
• $10,000 for war-related service of between 6 months and 24 months
• $5,000 for war-related service of between 1 and 6 months, or for less than 1 month if captured, killed or disabled.
• An additional 20% will be paid to any veteran receiving these benefits who spent time as a prisoner of war.

INITIAL PAYMENT 60 PER CENT NOT 80 PER CENT

In our view, the Veterans Affairs news release is not entirely clear. Many of the media stories that appeared at the time that Merchant Navy compensation was announced, suggested that the first payment would be in two disbursements -- one of 80% and the second of 20% if funds were available.

In actuality, the initial amount to be paid will be 80% of the $50 million granted. In order to stay within this guideline, and assuming that there will be 7,351 recipients (based on government estimates), the breakdown would be 60% of the agreed upon schedule with the initial payments to be $3,000 for 1-6 months, $6,000 for the second tier and $12,000 for the first tier. The other 40% would be distributed in six months depending on the numbers that are eligible and the amount remaining of the $50 million.

MERCHANT NAVY COMPENSATION MAY REDUCE ASSISTANCE FROM OTHER SOURCES

We have also received enquiries from potential recipients who are in nursing homes or in some other manner in receipt of allowances from sources of other Governments. It would appear that, in some instances, the effect of the Merchant Navy payment would be a suspension from provincial assistance until the compensation grant is depleted.

We have asked the Federal Government to see if there is some way in which the payment can be protected. We have suggested that, inasmuch as the compensation is of the ex-gratia type, a method of payment might be devised which would prevent the compensation from being used as a substitute for assistance under a municipal or provincial program. In some cases, the Federal Government is paying part of the grant, in any case, under the Canada Health Act.

MERCHANT SEAMEN DISQUALIFIED IF SERVED IN ARMED FORCES

A Merchant Seaman who served in any of the Regular Armed Forces will not be eligible to receive compensation under the Merchant Seaman plan.

We are receiving a large number of complaints from persons who had short service in the Army, Navy or Air Force and long service in the Merchant Navy. This regulation seems to be particularly discriminatory against those who normally might qualify for the full $20,000 grant for more than two years Merchant Navy service but only a few months in one of the Regular Forces. They would have qualified for minimal veterans benefits (if any) but are effectively barred from the Merchant Navy ex-gratia payment.

Those wishing to apply, or wishing more information, can call toll-free 1-800-228-7441 or call the TDD toll-free number for the hearing impaired at 1-877-713-7640. You can also refer to the Veterans Affairs Canada Web site for additional information, including an application form.

Please note that these lines and the Web site will initially be very busy due to the number of those seeking information. If you do not get through immediately, please try again.