Lindsay Mason, one of several campaigners in Melbourne's south-east, had opposed a tender bid by Care Leavers Australia Network because it had joined forces with Wesley Mission Melbourne and Orana Family Services, both of which have run children's homes that have abused care leavers.

The three partners were bidding for a contract with the Department of Human Services to provide a specialist welfare service for care leavers in Victoria.

This month, Berry Street and Relationships Australia Victoria were announced as the successful service providers. They will provide counselling, access to records of lost family members, financial aid, life skills development and links to health, education and employment services.

Mr Mason said it was the right decision because care leavers would be reluctant to seek out help from organisations that committed abuses.

The Doveton resident said CLAN had damaged its standing in Victoria. "They make out they're big in Victoria and wanted to get a really big foot in down here. But they won't get it with the way they went about it."

CLAN vice-president Frank Golding said he was unaware of why his group's bid was overlooked by the Government.

He said the Victorian branch had staged recent rallies at Parliament House and MP's offices, including that of Mulgrave MP Daniel Andrews, calling for a compensation scheme for wards of state.

"There's always going to be a group of care leavers who are not happy with something we so. We're overwhelmingly supported by what we do in Victoria."

Community Services Minister Lisa Neville said the service would open in November in a central Melbourne location.

"The development of this new service is the latest in the efforts of the Brumby Labor Government to support former state wards, acknowledge the trauma and hurt suffered and go come way towards rectifying the wrongs of the past."

The State Government was asked about the reasons behind the tender selection but failed to respond by deadline.

Cameron Lucadou-Wells