Head of NCVA Comments on Veterans Trust Fund Lawsuit
OTTAWA, ON, September 22, 2000 - Cliff Chadderton, Chairman of The National Council of Veteran Associations and Chief Executive Officer of The War Amps, was featured Thursday night (September 21) in a report on CBC TV's The National Magazine, concerning a class-action lawsuit which alleges that the federal government owes more than $1billion in interest to disabled veterans.
Chadderton made the following points in the interview with the CBC:
- I hope the Department of Justice brings out the intent and purpose of the Pension Act which mentions veterans, children, spouses and dependent parents. There is no provision under the Act for extended families.
- Veterans organizations have been watching the situation regarding administration of trust funds by DVA/VAC practically since inception of the Act. We think it is scandalous for a Court Action to indicate that DVA/VAC was not doing its job in helping veterans.
- We cannot accept criticism of the way DVA looked after the trust funds. The Legislation was weak.
- Those who are critical are ignoring the set-off principle (see Callie decision).
- One cannot compare a trust company with DVA funds under administration. Admittedly, a trust company pays interest but it also charges for service.
- Why did the lawyers go for a Class Action? This was first raised in the Callie case. If it had simply been the niece who was the beneficiary of the estate, attempting to create an additional liability against the Crown for interest, I doubt that any individual lawyer would have taken the case on.
- Presumably, the idea was to engage the services of a high powered law firm and a PR firm because the only way the lawyers could "cash-in" would be on a Class Action suit.
- Why are we against? We realize if the case is successful it would create a large hole in the VAC budget. This is at a time when we need additional funds for Merchant Navy; Ferry Pilots, etc.... In other words, should I be fighting for distant relatives or for those who actually served, such as Ferry Pilots, Red Cross Overseas Workers, etc...?
- In answer to the question as to why the case came up now, I referred to the Auditor General's report and pointed out that NCVA had requested that interest be paid if this was going to become an issue.
- CBC interviewer said it was "ironic" that I had fought all my life for veterans benefits but was against this one. I pointed out that I did not see my responsibility as that to fight for "extended family" and in fact I was fighting for veterans to conserve the money for Merchant Navy, etc....
- I pointed out that in my correspondence with the Minister, I had suggested an appellate procedure to take care of any legitimate cases.
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