The fund set up to distribute redress funds to survivors of Church abuse, has been asked to start paying its own rent - by another state agency.

The decision by the Office of Public Works means the costs are deducted from the cash available to cover redress payments, by the agency Caranua.

Caranua, whose funds are wholly provided by religious congregations who ran residential institutions, had been given the offices free of charge by the OPW for the first two years.

But the Public Accounts Committee, which has been investigating decisions to move to more expensive accommodation - which will lower the funds available for survivors - today heard that since last year, a change in OPW policy has meant some redress funds had to be diverted to pay rent to its OPW landlord.

The Comptroller & Auditor General, Seamus McCarthy, says he doesn't know why the policy has changed:

Caranua was established with a €110 million budget to be distributed to abuse survivors.

It has been the source of controversy, however, after attempting to limit the amounts being paid to individual claimants.

The fund claimed this was necessary because the first claimants had received more than expected, and limits had to be imposed to ensure all eligible applicants received some funds.

The fund's use of its money has also been called into question, as it spent €2 million of its cash on agency staff, and also spent significant cash refurbishing the premises provided by the OPW, which it knew would be vacated not long afterward.

Of an €800,000 budget to be set aside for counselling services, it spent almost €100,000 on services provided by the Catholic Church - a decision which has met with dismay from some survivors, who feel a Church agency should not benefit from a fund which itself has been created by Church groups and agencies.