Survivors of thalidomide drug to get payouts

Thalidomide survivors will receive one-off compensation payments of between $75,000 and $500,000 from the federal government.

Thalidomide survivors Lynette Rowe and Lisa McManus in 2019 ahead of the Senate committee handing down its report into the treatment of people left with deformities by thalidomide poisoning. Picture: David Geraghty

Australian thalidomide survivors will receive one-off compensation payments of between $75,000 and $500,000 from the federal government after six years of appealing for assistance.

The government has also confirmed it will offer a national apology and establish a public memorial in recognition of victims, with work under way to choose an appropriate site.

Tabled in parliament on Monday, the government’s ­response to a Senate inquiry into support for thalidomide survivors also agrees to ongoing ­annual payments, which will ­increase over time, so they can buy required services.

The extent of the one-off payment will depend on a person’s level of disability, but will be paid to all Australian thalidomide survivors who have been recognised by Diageo, a UK company that bought thalidomide’s Australian distributer, Distillers, in the 1990s.

An extraordinary assistance fund to help meet major ­expenses, such as home and ­vehicle modifications, will be ­established and a healthcare card developed so survivors can access a broad range of services.

Thalidomide was created by the German company Gruenthal Group in the 1940s and predominantly sold over the counter in Australia between 1960 and 1961 as a sedative and painkiller.

It was also used by pregnant women for morning sickness, causing severe birth defects such as a shortening or absence of limbs and malformation of hands and fingers.

Thalidomide Group Australia first requested a meeting with relevant federal government ministers to discuss their needs at the end of 2014.

Health Minister Greg Hunt said the Morrison government had done “what no other Australian government has done” by providing lifetime support for people affected by thalidomide.

“This is a deep, personal commitment”, Mr Hunt said. “While the funds can never compensate for a lifetime of hardship it is hoped they will provide recognition, support and peace of mind to Australia’s thalidomide victims.”

A Senate committee scrutinising compensation and support was established in August 2018 and its final report handed down in March last year.

Bill Shorten, who as opposition leader declared Labor’s support for a national apology to Australia’s thalidomide survivors and for a government compensation scheme, said they had waited too long to hear the word “sorry”.

“The 18-month wait since the government’s own report is an insult. But if victims get some closure, a belated apology, and compensation scheme, is better than nothing,” Mr Shorten, now opposition government services and NDIS spokesman, said.

Opposition health spokesman Chris Bowen said Labor would continue working with survivors to ensure the response was adequate, compensation was in their hands “as soon as possible” and their experiences publicly acknowledged.

The 2020 federal budget included $44.9m over the next four years to support survivors of the thalidomide scandal and $3.9m annually on an ongoing basis.

The government will recover money from Gruenthal for victims and work with the company to fast-track claims but it did not commit to publishing the Maddocks Lawyer’s advice, which was commissioned by former health minister Sussan Ley about Australia’s obligations to thalidomide survivors.

There are an estimated 100 thalidomide survivors in Australia.