OTTAWA, ON, January 30, 2006 - The 55-member National Council of Veteran Associations has today written to the Deputy Minister of Veterans Affairs requesting that the Government establish a review procedure to authorize ex-gratia payments in lieu of interest on administered funds.

The letter is based on an announcement that the Government will appeal the ruling of the Ontario Superior Court of December 29, 2005 that may require payment of $4.6 billion interest on funds in which the Department has entered a custodial arrangement with the veteran.

Cliff Chadderton, NCVA Chairman, stated that his organization had originally petitioned the Minister of Veterans Affairs on May 25, 2005 to provide some relief for veterans or their widows by means of an ad-hoc committee. The basis upon which NCVA has opposed the Judgement of the Ontario Superior Court is that funds are required for bed space and other needs of the war veteran community.

“We have stated to the Deputy Minister that we believe the establishment of a committee along these lines to be an essential step and are asking once again that consideration be given to this suggestion,” Chadderton said.

A group of lawyers commenced the class action going back to World War I. This may result in a situation where a majority of beneficiaries could be ‘distant relatives.’

NCVA, an ‘umbrella group’ which speaks for 55 war veteran organizations, has publicly opposed the class action. It is understood that the position of NCVA has the support of the Dominion Command of the Royal Canadian Legion.

The text of the letter to the Deputy Minister of Veterans Affairs is appended herewith.

January 30, 2006

Mr. Jack Stagg
Deputy Minister
Veterans Affairs Canada

Dear Mr. Stagg:

Re: Class Action Lawsuit

Interest on Administered Accounts

We have learned that the Government will appeal the ruling of the Ontario Superior Court which would authorize payment of $4.6 billion interest on funds administered on behalf of war veterans judged incapable of handling their own financial affairs.

The 55-member National Council of Veteran Associations (NCVA) is in full support of the appeal to the Supreme Court of Canada. It is our understanding that Dominion Command of the Royal Canadian Legion has endorsed the position taken by NCVA.

A letter was forwarded by NCVA to the Minister of Veterans Affairs on May 25, 2005 providing a chronology of events in this case, as well as a transcript of an interview I did on the subject with radio station CJOB in Winnipeg. This CJOB interview may be found on our Web site at www.waramps.ca. In addition, on receipt of advice that the Federal Department of Justice would proceed with the appeal to the Supreme Court of Canada, NCVA filed a further media advisory on January 28, 2006. This may also be found on our Web site.

There has been some misunderstanding regarding the beneficiaries who might qualify for an ex- gratia payment. Our understanding is that no authority exists to make any payment under the legislation of your Department for persons other than the disabled war veteran or his widow in the event that the veteran pre-deceases her. A committee as proposed by NCVA would represent an assurance to veterans and the public that a procedure exists to authorize payments in genuine cases.

Sincerely,

H. Clifford Chadderton, CC, O.Ont., OStJ, CLJ, CAE, DCL, LLD
Chairman