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The Government had never accepted the case for no fault compensation for medical accidents.

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While there was sympathy for Hepatitis C suffers, Tom Sackville and his colleagues were aware of the arguments against compensation.

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The Government was concerned by the potential costs of a Hepatitis C payment scheme.

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Tom Sackville noted that the distinction between the position in respect of HIV and Hepatitis C was a tricky one and asked for advice and a line to take.

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A memo was provided to Tom Sackville outlining the Government's policy and arguments on no fault compensation at the time.

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A paper was prepared, which set out the Government's resistance to no fault compensation.

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Tom Sackville wrote to David Porter confirming the Government had no plan to extend the HIV payment scheme to those infected with Hepatitis C.

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A memo from Dr Andrzej Rejman and John Canavan to Tom Sackville and to Dr Jeremy Metters outlined the arguments for and against ex-gratia payment. It noted that it was open to ministers to make ex-gratia payment and sought ministers' views on whether it should be further considered.

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Tom Sackville did not approve the principle of ex-gratia payments at a meeting with Dr Andrzej Rejman, John Canavan and Dr Jeremy Metters.

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The settlement scheme for haemophilia patients with HIV would not be extended to cover those that were infected with hepatitis.

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The Haemophilia Society had no plans to seek compensation from the Government for those who were infected with Hepatitis C.

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The Independent reported that another 3,000 adults and children who received blood transfusions "may also have been infected, but are unaware of their condition."

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The Government's line to take was that "patients who may have been infected with Hepatitis C will have received the best treatment available in the light of the medical knowledge at the time."

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A minute recorded that the Government was in a rather difficult position in respect of those infected with Hepatitis C through NHS treatment, because the Secretary of State seemed inclined, contrary to the public Government line, to consider making special payments to people with haemophilia in this group.

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The Government had no plans to extended the HIV compensation scheme to cover those that were infected with hepatitis as only a small proportion of sufferers had had severe problems.

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In a memo it was confirmed that the Government resisted calls for payments to those who had contracted Hepatitis C through NHS treatment.

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In a memo from Rosamund Roughton to Roger Scofield it was stated: "It was agreed that we needed to pursue immediately a positive strategy in respect of haemophiliacs and others who might have been infected with Hepatitis C."

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A memo was sent from John Saw to Roger Scofield with suggested amendments to a submission on Hepatitis C.

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In a memo from Roger Scofield to Andy Hollebon relating to the Government's response to Hepatitis C it was recorded that "everything has been done that could have been done...on the advice of the Advisory Committee on the Virological Safety of Blood".

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In an undated letter from Tom Sackville to Ann Winterton it was recorded that "The Government do not accept that there has been any negligence and have no plans to make payments to such patients."

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