Melbourne, Jan 15: The Australian Government will use the word sorry when apologising to the Aborigines, but ruled out compensating the victims.

Indigenous Affairs Minister Jenny Macklin further said that the money would be spent on improving living standards for indigenous Australians.

She said that she is confident a flood of compensation claims will not follow the apology to indigenous Australians.

"The main reason for that if you look at experience over the last 10 years, the states and the territory have all apologised and you don't see a rush of claims against them,'' The Australian quoted, Macklin, as saying.

"There's evidence to demonstrate that giving an apology does not lead to liability,'' she added.

She said no one had taken the option of a class action against the Government since the children were taken.

An apology will not be made on Australia Day and Macklin would not reveal the timing.

Earlier, Prime Minister Kevin Rudd said that the Government would acknowledge the pain suffered by the stolen children and their families.

But satisfaction that an acknowledgment is at last in the offing is being overshadowed by a row over whether the victims should also receive financial compensation.

Activists want 443million pounds fund to be established, saying that an apology without compensation would be a hollow gesture.

The practice peaked between 1910 and 1971 when an estimated 55,000 children were taken away from their families. (ANI)