Melbourne Archbishop Denis Hart has admitted the Catholic Church buried complaints against clergy accused of sexually abusing children and misled parishioners by allowing paedophile priests to resign for health reasons.
On Tuesday the child abuse royal commission turned its focus to paedophile priests including Nazareno Fasciale, who retired four decades after allegations of child sex abuse against him were first referred to senior church officials.
Archbishop Hart agreed the church suppressed complaints to protect its reputation and that the response by senior officials in the Fasciale case was "totally unacceptable".
Fasciale went overseas on extended leave after a 1954 complaint that he molested two sisters, and a 1960 complaint that he indecently assaulted a third girl.
He returned to Australia and became parish priest at Yarraville in 1973, but was sent for treatment by then Archbishop James Knox after concerns were raised about his conduct with young boys.
In the early 1990s, more complaints were made against him from the 50s and 60s, to then Melbourne Vicar-General Monsignor Cudmore.
The commission was told Fasciale admitted his criminal actions to Monsignor Cudmore and asked not to be stripped of his faculties. He was allowed to resign for health reasons in 1993 and died three years later while due to face multiple child abuse charges.
The church has paid out $753,000 to Fasciale's victims.
Archbishop Hart agreed that previous denials of a cover up by Vicar-General Gerald Cudmore was, in itself, a cover up. He told the commission the mentality of suppressing complaints was done to protect the church's name.
Archbishop Hart said his predecessor Frank Little failed to act on "credible information" about sex abuse by other priests including Wilfred "Billy" Baker, who was moved between parishes after complaints against him surfaced.
"It was totally wrong and it endangered other young people," he said.
The commission also heard notorious paedophile Ronald Pickering was granted an extended leave of absence by Archbishop Little in 1986, after being told about an allegation of abuse against a young boy at St James Parish in Gardenvale.
The Melbourne archdiocese has previously acknowledged in writing Pickering's "proclivity for child abuse", and he has been linked to multiple suicides of victims. Pickering died in the UK in 2012 having never been charged with sex offences.
Counsel assisting the commission, Gail Furness, SC, said the church policy allowing clergy accused of crimes against children to retire on health grounds gave parishioners the impression that they left in good standing.
Archbishop Hart agreed that this was a false and misleading practice that left parishioners exposed.
In the case of paedophile priest Desmond Gannon, parishioners donated $3500 to him upon his retirement in 1993, just weeks after he admitted to sexually abusing children at Melbourne parishes.
Gannon, who abused children for 30 years, was permitted to resign for health reasons on the same day he was granted the title of Pastor Emeritus. The commission heard he continued to receive secret financial backing from the church after he left.
Archbishop Hart described the church's failure to reveal the real reasons paedophile priests resigned as a "serious deception".
The commission also heard that Fr David Daniel received funding from the Priests Retirement Fund despite allegations of abuse against him, which gave the impression he left the church in good standing.
Archbishop Hart said he was "absolutely horrified by the predatory actions, the depravity, and the power play" by paedophile priests over victims.
"I not only apologise profoundly, but it hurts me when members of the church are hurt and are caused to suffer," he said.
Archbishop Hart said he normally attends all priest's funerals but would not be going to the funerals of any paedophile priests in the future.
The hearing in Melbourne continues.
