OTTAWA, ON, July 18, 2003 - The National Council of Veteran Associations, representing some 45 organizations, has expressed disappointment that media reports of yesterday regarding the decision of the Supreme Court which disallowed a Lower Court judgement under which interest could be paid on hospitalized veterans funds, appeared to be stating that this was a failure by the Government to assist seriously disabled veterans.

"This class-action case, which could have required the Canadian taxpayer to shell out some $5 billion to far-distant relatives, was in no way a denial of the rights of the veterans," Cliff Chadderton, Chair of NCVA, stated.

Chadderton has been criticized for indicating approval of the court decision.

Up until January 1, 1990, there was no authority to pay interest and Departmental Officials administered the monies on behalf of the mentally incompetent veterans as a service.

The NCVA raised the issue of interest with the Deputy Minster of Veterans Affairs in October 1990, following which the Government began to pay interest under an amendment to the Department of Veterans Affairs Act.

"We have been challenging subsequent Ministers on this issue, pointing out that the January 1, 1990 commencement date should have been retroactive, at least to the point where genuine cases could be looked after," Chadderton said.

He wrote to Dr. Rey Pagtakhan, the present Minister of Veterans Affairs, immediately after the July 17, 2003 ruling of the Supreme Court, asking that the Government now give consideration to the authority to pay interest at an earlier date, in justifiable cases.

"The Veterans Affairs Act, which authorized commencement of payment of interest, established the January 1, 1990 commencement date. A further proviso which has not been promulgated would have allowed the Government to go back further in time," Chadderton said.

"It is clear to us," Chadderton stated, "that the Department is enabled to establish a committee to consider justifiable cases where interest should be paid prior to January 1, 1990."

"Had the Government acceded to our request for a special committee, there would have been no requirement for a Federal Court decision," Chadderton said. He stated further that with the failure of the Government to enact the "no retroactivity" clause, the way was opened for the class action by lawyers acting for heirs and relatives for whom there is no provision in the Pension Act.

"This is a classic case where, firstly we forced the Government to commence payments in 1990, but then had to oppose the class action because there could never be any justification to make the provision retroactive some 70 years," Chadderton said, noting that much of the public had been misled into believing that he had approved a decision which deprived deserving veterans of benefits. "After all, I feel that I saved the taxpayer $5 billion which would have gone to far-distant relatives. For this action, it seems that much of the public is pointing the finger of blame at me."