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In oral evidence, Professor Keel insisted the remit of the Scottish Executive investigation had been agreed with the Haemophilia Society.

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In oral evidence, Professor Keel confirmed that the position in the Scottish Executive, both before and in the aftermath of the publication of the Scottish Executive report, remained one of fundamental opposition to financial support or compensation for those infected with Hepatitis C.

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A draft memo from Ian Sneddon to the Minister of State stated that the main argument against compensation for those infected with Hepatitis C through blood transfusion/blood products was that the treatment offered was the best available in the light of medical knowledge at the time.

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The Department of Health and Social Security in London was aware by this date of the strong possibility that "some sort of virus" (the AIDS virus) was transmitted by blood products.

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The Department of Health sought the views of the Scottish Office on the issue of compensation payments for those infected with Hepatitis C.

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Ian Snedden of the Scottish Office advised the Department of Health that whilst the 'no compensation' position was becoming increasingly untenable the proposed compensation scheme for those infected with Hepatitis C would give rise to a number of complex legal and medical questions.

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The Department of Health prepared proposals for a scheme to compensate those infected with Hepatitis C through blood or blood products but "without any presumption that such a scheme would be desirable or inevitable." Scottish Ministers were asked to agree to respond in terms of a draft letter which identified the difficulties in the proposed scheme and recommended "that pressure to establish a no-fault compensation scheme should continue to be resisted."

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A Department of Health memo raised concerns as to where the funding would come from to meet the proposed scheme compensating those infected with Hepatitis C.

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A Scottish Office memo raised concerns about the cost of a scheme to compensate those infected with Hepatitis C if one was to be introduced.

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The Scottish Office concluded that claims for compensation for those infected with Hepatitis C "should be resisted, at least until the outcome of the Court cases is known and a more precise estimate can be made of the likely numbers and costs involved."

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The Minister of State at the Scottish Office, James Douglas-Hamilton, commented that it "is likely that the view of the layman, and of the electorate as a whole, would probably be that those infected should receive compensation. Those infected had become so through no fault of their own, while being treated by the NHS, and those infected with HIV have already been compensated."

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The CMO of Scotland, Dr Robert Kendall, referred to a statement by the Secretary of State for Health, Stephen Dorrell, which "very strongly" suggested that the Department of Health would resist offering compensation and informed the Minister that in those circumstances it would be extremely difficult for Scotland to attempt to adopt a different policy.

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The Minister of State at the Scottish Office considered a compensation payment of £20,000 to those infected with Hepatitis C, though this was considered to be too low by Scottish Office officials.

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The Minister of State noted the advice from officials regarding compensation and asked for the letter to the Department of Health to be amended to acknowledge "the fact that this is a matter for the collective view of the Government."

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Ian Snedden (Scottish Office) wrote to Kevin McGuiness (Department of Health) to express the Minister's sympathy with the campaign for some form of no fault compensation for those infected with Hepatitis C but expressed concern about the costs and the impact on other health spending. The letter also stated that the general principle of any compensation scheme for Hepatitis C "is a matter for collective consideration by the Government."

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Kevin Guinness responded to Ian Snedden by letter stating that it was important to keep in regular touch over this issue to ensure "a consistent presentation of policy, which as you say is ultimately a matter for collective consideration by the Government."

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James Douglas-Hamilton wrote to Winifred Ewing MEP affirming both the lack of plans to make payments (on the ground of no negligence) and the "best treatment available" line.

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Memo from Ian Snedden to Kevin Guinness noted that if it were agreed that compensation should be made, the only practical option would be to make payment to all individuals, not just haemophiliacs, infected by blood, blood products or tissue.

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Gary Wildridge responded to Scottish Solicitors enquiring about the likelihood of an ex gratia payment scheme being established for patients infected with Hepatitis B or C as a result of NHS treatment. He stated the Government did not accept there had been negligence and there were no plans to make ex gratia payments.

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Andy Nichol advised Sam Galbraith that Mr Dobson, Secretary of State for Health, would be announcing that the Department of Health would not be offering compensation to individuals infected with Hepatitis C through NHS treatment, and recommended that a similar position be adopted in Scotland.

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