Pedophile-priests
scapegoats for colonialism
The pacification and assimilation of the Red Indian was one of the most ruthless acts of modern colonial administration. North American Natives still held-out hope they could escape national and cultural eradication well into the 20th century. Central to this policy was the Residential School System. Children were taken from families, and brought up in 'boarding-schools' to be good English Protestants or French Catholics. This was a brutal, but effective method: Native languages, religions, cultures, nations*, family ties, and so on were broken up.
As the colonial era drew to a close in the 1970s, on the one-hand, the main work of assimilation, or at least marginalization, was finished; and on the other-hand, more liberal values meant that the population, who had been complicit in the massive genocidal and cultural eradication campaign carried out against the Native nations, would no longer be supportive once they understood the full details of the policy.
The state stood on the brink of accusations of genocide. The eradication of a hundred or more Native nations was a thing no longer acceptable in a world now condemning the apartheid regime in South Africa. It was necessary to divert attention away from the role that the state in general, and wide sectors of the population in particular, played in this campaign. A sex scandal is an excellent way to divert attention and criticism; and something very scandalous was going to be needed to keep the quite war and re-education camps from making very big news. And what could be more scandalous than pedophile-priests?
Rape has always been used as a weapon of war. While the sexual abuse of Native children by priests is a very bad thing, it is actually an intentional diversion from the much more serious indictment: total eradication of the North American Native Nations, their culture, their religion, their organizational structures, unique identity, and so on: planned and carried out by the state, with the support and complicity of it's population.
Court ordered abuse compensation to Aboriginals is much cheaper in economic and resource terms than returning the stolen land and nations to the Native -- not to mention the delegitimizing affect that recognizing the ruthless assimilation policy would have on the state that carried it out, and on the majority of citizens who supported it or at least complied. 'Kill two birds with one stone': it also bankrupted the Church in North America, who had long been competition for the state.
*
Politically, this word: "nation", is the most threatening. "United Nations Charter, Chapter 1, Article 1, Part 2: “...nations based on respect for the principle of ... self-determination of peoples...."