Edmund Rice schools weigh cutting ties with financially strained Christian Brothers

The Trustees of Edmund Rice Education Australia are debating a break with the Christian Brothers after the order, which runs 61 Catholic schools, ran out of money for child-abuse compensation and applied to suspend all related lawsuits. TEREA, which oversees schools serving 44,000 students and received $732.7 million in government funding last year, has taken on responsibility for existing and future payouts under a revised scheme.

Chair Stephen Brown described the coming 12-18 months as a "seminal moment" that could see the Brothers removed from governance, a change that would require Vatican consent. The Brothers had previously transferred property worth hundreds of millions of dollars to TEREA, often for a nominal fee, and now claim they need $1.5 million annually for elderly members, a request TEREA rejected. Survivors, including former student Damian Davies, warn that legal maneuvers may delay settlements for another year or two, adding to their trauma. A binding agreement is being prepared to make TEREA the defendant in the abuse cases if the new creditors scheme is approved.