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The Scottish Executive provided a Report on Hepatitis C in response to the Health and Community Care Committee.

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Robert Stock, head of the Scottish Executive's ancillary services branch, felt that the Expert Group on Financial and Other Support had omitted to take into account aspects of their terms of reference.

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A Cabinet paper recorded that Malcolm Chisholm did not feel it would be right to accept the recommendation of the Expert Group as it stood.

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Malcolm Chisholm concluded that accepting the Expert Group's recommendation in principle with a reduced scope was the 'least bad option'.

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In an email from Sammy Sinclair to Charles Lister, Malcolm Chisholm was described as feeling as though he had to offer payments to people once they become seriously ill.

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Letter from Malcolm Chisholm to Andrew Smith, the Secretary of State for Work and Pensions, asked whether payments were within devolved competence and if social security legislation required amendment to disregard any payments that the Scottish Executive might decide to make.

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The Scottish Executive's response to the Expert Group's preliminary report was announced.

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Meeting held between Malcolm Chisholm, representatives from the financial services sector and representatives from the Scottish Haemophilia Groups Forum and Scottish Hepatitis C Group.

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Lord Ross and Philip Dolan gave evidence to the Health and Community Care Committee in support of the Expert Group's preliminary report.

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Prior to Malcolm Chisholm's appearance before the Health and Community Care Committee he was provided with a briefing, including lines to take.

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Robert Stock provided a submission that costed a scheme on the basis of making lump sum payments of £20,000 to all those who had Hepatitis C - with a further £25,000 to those who had cirrhosis, liver cancer or liver failure.

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Malcolm Chisholm put forward the proposal set out in Robert Stack's submission, with the First Minister's agreement, to the Health and Community Care Committee. The position in Ireland was distinguished on the ground that there was fault in Ireland but "no fault here."

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The perspective of a transfusion recipient involved in the work undertaken by the Ross group was that the recommendations "were then almost completely ignored by the then Health Minister Malcolm Chisholm and Scottish Government" with responsibility for financial payments transferred back to Westminster.

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An analysis called "The Ross Report: 10 years on" showed how many of Lord Ross's recommendations were not implemented.

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The new Secretary of State for Health, John Reid, made the decision that some form of payments should be made in England to those infected with Hepatitis C.

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Letter from John Reid to Malcolm Chisholm confirmed that Scotland's proposed scheme was accepted as being within devolved competence, and that officials in England and Scotland would work together over the summer on the scope of the scheme.

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The Department of Health was regarded as very concerned that developments did not leak out prior to the joint ministerial announcement, and believed that the proposal not to make payments to the dependants, relatives or estates of deceased patients "may well be contentious."

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An email chain reported the outcome of the telephone conversation between John Reid and Malcolm Chisholm regarding the Hepatitis C ex gratia payment scheme.

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Malcolm Chisholm was asked about the difference between the payments being made in Ireland and those proposed for Scotland. He said that in Ireland the Government had agreed that "wrongful practices were used" and that the payments in Ireland were compensation. "We", he said, "are making an ex gratia payment."

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A briefing for a meeting between Malcolm Chisholm and Philip Dolan referred to the need to weigh the issue of making a fair and reasonable payment against all the other demands on the health budget.

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