The diocese had worked with Catholic Church Insurance to try to estimate how much they may have to pay in compensation claims for historic and current child abuse, Bishop Bird told the Royal Commission into Institutional Responses to Child Sexual Abuse on Friday.

The Bishop –  the final witness for the commission's Ballarat hearing –was "not confident" about the sum, but said he had "doubts that we could meet those claims" as the diocese's finances were "not very strong."

Claims not covered by Catholic Church Insurance were paid out of a fund set up by a bequest in the 1930s. There was $1 million still in the fund, the commission heard.

The diocese also owned "very few" small parcels of land held by a trust and had a more than $100 million development fund, contributed to by the diocese and other investors.

Since January 1980, at least 130 claims and substantiated complaints had been made against the Diocese of Ballarat for child sexual abuse, including seven jointly held with the Christian Brothers.

Counsel assisting the commission, Gail Furness, SC, said this included at least 14 Ballarat priests. Bishop Bird disputed this, saying that while claims had been made against 14 different priests, only about 10 or 12 of those had been substantiated.

Paedophile priest Gerald Ridsdale, who has been convicted of more than 100 child sex offences, was the subject of at least 76 of the claims, which ranged from the 1950s to 1980s.

Asked what he had done to ensure there would be enough funds to pay expected claims, Bishop Bird said; "I've tried to be prudent in our spending so that...our funds don't decline in other areas. I can't think of anything else."

He later conceded that other dioceses could help subsidise their claims but had not yet asked them to for any purpose. He had, however, been able to "give a little subsidy to some other dioceses, not very much, but I have a little."

The Bishop's lawyer, David Gray, SC, asked him: "Is the money in the development fund available to the diocese itself for the diocese to spend or use as it pleases?"

"No, not at all. It belongs to the investors," he replied, saying that investors or depositors to the fund were entitled to take their money back from the fund when required.

Commission chair Justice Peter McClellan interjected: "Well it's a bank isn't it, that's the way it works? Effectively the (Ballarat) diocese can borrow from it and pay interest, is that the way it goes?"

"Yes," Bishop Bird replied.

Ballarat survivors were still required to sign deeds of release, promising not to take further action against the church, in order to claim compensation, he said. But the deeds did not prevent them from claiming future medical expenses from the church.

Bishop Bird denied telling survivors Andrew Collins and Peter Blenkiron that they were intent on destroying his church, or that the church would endure long after survivors had died in about 40 years' time.

"I was shocked when I read his account attributing this to me. Making such a comment to anyone, let alone a victim of sexual abuse, would be extremely hurtful and I would not do so."

The commission will hold a second hearing in Ballarat later this year.