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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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Sam Galbraith, Minister in the Scottish Office, agreed to adopt a similar position in Scotland as in England, namely, not to offer compensation to those infected with Hepatitis C through NHS treatment.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, explained the BBC was planning to run a story regarding claims for compensation from people with haemophilia who had contracted Hepatitis C. It was to be claimed that in Scotland the heat treatment required to kill the virus was not introduced until a year after it was applied in England, and that that was negligent.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, stated that although there was a period between 1986 and 1987 when Scottish products were not as safe from Hepatitis C as English products, it was not due to negligence on part of the SNBTS and it was not feasible to import safer English product, because not enough of the product could be produced for domestic English consumption.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, included a line to take in response to a BBC story regarding claims for compensation from people with haemophilia who had contracted Hepatitis C.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, informed her of legal advice in England suggesting that the Department of Health would probably be liable for a failure to introduce for screen for Hepatitis C as quickly as it should have done. The advice suggested compensation should be paid to anyone anyone who contracted the virus between May 1991 and September 1991 when screening became universally available, and this was a considerable shift in policy.

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A memo from Michael Palmer to the Minister for Health and Community Care, Susan Deacon, repeated that "The Government's position has been that there is no fault on the part of the NHS because patients received the best treatment available given the state of knowledge at the time."

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In a press release from the Haemophilia Society, Philip Dolan, speaking on behalf of Scottish members, appealed to the Scottish Parliament "who could decide to act now for Scottish people with haemophilia and HCV."

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Margaret Smith MSP, convener of the Health and Community Care Committee, wrote to Susan Deacon calling for an immediate Executive Inquiry to allay public fear and concerns about the safety of Scottish blood products.

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Michael Palmer informed Susan Deacon, that officials had already written to SNBTS, Department of Health and haemophilia clinicians in Scotland requesting detailed information on events raised by Margaret Smith MSP on 6 August 1999, and provided a draft reply from the Minister to Margaret Smith MSP.

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Susan Deacon told the Inquiry how at this point she had to examine properly what had happened in the 1980s around heat treatment and wished to set out the facts "as best we could in the public domain."

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Susan Deacon's office advised that discussions around compensation were very much a PR exercise and it was unlikely to ever be paid. In her oral evidence, Susan Deacon refuted using these words herself.

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Michael Palmer, Dr Keel, Lynda Towers and Sandra Falconer met Professor Ian Franklin of SNBTS and Drs Robert Perry and Ron McIntosh of PFC to discuss the investigation of circumstances surrounding the safety of SNBTS blood products from Hepatitis C.

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