It has been revealed that police expressed concern about the terms of a compensation settlement between an abuse victim and the Catholic Church.

The documents, which were obtained by the Lateline program, show a victim was required to repay his compensation payment plus 10 per cent a year if he decided to take the matter to the police for criminal action.

A police intelligence report, which was tendered at the special commission of inquiry into sexual abuse in the Hunter region, says police objected to the arrangement between a victim of Father Guy Hartcher of Gresford Parish and the Catholic Church.

But the charges were withdrawn and the trial did not proceed.



The inquiry is investigating Detective Chief Inspector Peter Fox's claims that in 2010 the Catholic Diocese of Maitland-Newcastle and NSW Police tried to protect two priests.

At the time, Detective Inspector Paul Jacob was an investigator with the state's Sex Crimes Squad and he is scheduled to give evidence first this morning.

Detective Superintendent John Kerlatec has already given evidence to the inquiry, describing Detective Jacob as one of the country's best sex crimes investigators.

The court has heard that Detective Jacob told local detectives the squad would not be able to assist but was able to "provide consultancy".

The former manager of Strike Force Lantle, Brad Tayler, yesterday told the court he did not "know of any police officer who would not agree with investigating allegations of child sexual abuse".

Mr Tayler also said claims of a cover-up were "destroying reputations" and "the public's perception" of NSW Police.

And he told the inquiry he was told he should obtain a warrant to search for documents in the office of the Archbishop of Sydney, Cardinal George Pell.

The suggestion was made at a meeting in November 2010 by victims' lawyer Andrew Morrison SC.