OTTAWA, ON, October 12, 2000 - The National Council of Veteran Associations has asked Prime Minister Chrétien to look into the issue of the payment of interest on trust accounts held for hospitalized veterans by Veterans Affairs Canada.

The current law allows interest as of January 1990, but there was no retroactivity when the law went through.

Cliff Chadderton, Chairman of the National Council of Veteran Associations has opposed the case on what he calls the "common interest" rather than the legalities.

Should the taxpayer be required to pay $1.5 billion in monies administered for disabled veterans by Veterans Affairs Canada, bearing in mind that a 1991 judgement of the Federal Court held that there was a "set-off" in that Veterans Affairs was providing a service in addition to the payment of full disability pensions and allowances, as well as complete medical treatment? In the case of Authorson, it is estimated that he was receiving approximately $1,900 a month while a patient in a Veterans Affairs Hospital.

Chadderton states that the concern of NCVA is to fight for veterans. His colleagues have no mandate to support claims on behalf of distant relatives.

"The very worst scenario that arises from this case," Chadderton said, "is that, if the appeal is not successful, the government will have difficulty finding funds for current cases of veterans who are in need."

He cited, particularly, Merchant Navy personnel, pointing out that a cabinet decision to place $50 million at the disposal of the Minister of Veterans Affairs is proving to be insufficient and current surveys indicate at least another $30 million is required.

Chadderton referred also to legislation, which went through the House of Commons last week, which provides pension benefits to other civilian groups who served in the aid of the military, such as Ferry Command Pilots, Red Cross nurses, overseas firefighters and foresters who were needed to cut pit props to keep the British mines open.

The new legislation is sadly lacking in that it does open pensions if the disabled civilian can prove the case, but the Government has steadfastly refused any retroactivity.

Chadderton also cited the case of Michael Schlueter of Calgary, Alberta, who lost a thumb in an explosion in Edmonton while a member of the regular army. Under the old laws, Schlueter was not entitled to any pension while he remained in the Armed Forces, which he did at the request of his superior officers. He is now eligible for pension, but the legislators have refused to make the pension retroactive. Accordingly, Mr. Schlueter will stand to lose about six years of pension for the disability he carried while still a member of the active forces.

A copy of the letter to the Prime Minister follows. It concerns, specifically, a CBC program carried on The National last evening. Chadderton feels, however, that his letter does indeed bring the Prime Minister squarely into the issues as to whether it is fair and reasonable for Canadians to have to use $1.5 billion in tax money because the Government was prevented by law from paying interest on funds being administered on behalf of these institutionalized veterans.

The text of the letter to the Prime Minister follows: 

October 12, 2000

Dear Prime Minister:

RE: Interest Rates on Veterans Trust Accounts 

It has been a considerable disappointment to my colleagues and I, who comprise the Executive of the National Council of Veteran Associations (38 organizations), that last night and previously on September 21, 2000, the CBC produced news stories which give the impression that the Government of Canada has not been fulfilling the obligation of the people of Canada in respect of the care of disabled veterans.

This refers to a case in the Courts in Windsor, Ontario, in which a judgement was handed down yesterday which, if not appealed, would require, as a class action, that the Government pay retroactive interest on funds administered on behalf of institutionalized veterans whose care is (or was) the responsibility of Veterans Affairs Canada. The cost has been estimated at $1.5 billion.

The record will show that the National Council, over the past two months, has attempted to bring to the attention of the public the facts at issue.

Forwarded herewith is a copy of a Media Statement which I released late yesterday. Following this, I responded to a request to appear on The CBC - National.

From the comments which I have received subsequent to the broadcast, it would appear that I was not successful, in my part of the program, in convincing the public that the CBC's treatment of this case is extremely one-sided.

I have spent many years fighting for the rights of veterans. Notwithstanding, it has not been possible to support this legal action, in that the beneficiaries, in most cases, would not be immediate family members.

I fully realize that it is not within my prerogative to challenge the court decision. I would, based on some 45 years of experience with the Pension Act, have no difficulty in stating that the CBC has attempted to sensationalise this story, particularly in suggesting that disabled veterans have not received proper treatment.

Incidentally, I forwarded more than 150 pages of documents to the CBC researchers. As well I forwarded a major submission to the CBC Ombudsman on September 29, 2000.

It is my view that the public has been given an incorrect portrayal of the facts by the CBC.

I have to bring this matter directly to your attention. I trust that my opinion has some weight in the matter.

Yours sincerely,

H. Clifford Chadderton, CC, O.Ont., OStJ, CAE, DCL, LLD
Chairman, National Council of Veteran Associations in Canada