CTV News has learned that Nova Scotia’s new Liberal government wants to settle out of court with former residents of the Nova Scotia Home for Coloured Children.

Lawyers for the former residents have been waiting for word on whether a class-action lawsuit can go forward.

Former resident Tony Smith says he was surprised, but pleased, to hear from Premier Stephen McNeil on Wednesday.

“It speaks volumes. This has been going on for almost a century,” says Smith. “It shows that actions speak louder than words and Premier McNeil so far has been, you know, keeping his word and following up by actions.”

“For us, it’s the right thing to be doing at this point,” says McNeil.

“We’ve asked the Department of Justice to reach out to the lawyer for the residents of the Home for Coloured Children to see if we could come to an agreement, a settlement outside of the court hearing that’s presently before us.”

More than 130 former residents are taking part in the proposed class-action lawsuit, alleging years of physical, emotional and sexual abuse by staff.

The suit had originally named the province and the orphanage.

In April, a $5-million settlement was reached with the home and the province fought to prevent the lawsuit from going forward.

McNeil says he is uncomfortable with the way in which the matter was handled.

“You have alleged victims who have the courage to come forward, provide affidavits to the court, then you have government fighting against them to have them squashed or thrown out,” says McNeil. “It’s not what I believe we should have been doing.”

McNeil says he is committed to a public inquiry regardless of whether a settlement is reached outside of court. He also says the settlement will help set parameters around what an inquiry would look like.

Smith says he’s happy to hear the option of a public inquiry is still on the table.

“It’s not just about the money. You can’t say ‘here’s the money, settle it, and you’re gone,’” says Smith. “We’re talking about dealing with the pain. That’s part of it. That’s the acknowledgement that there has been a wrong.”

As for the details on the settlement, McNeil doesn’t have a number at this time, saying that is a conversation for the lawyers involved in the case.

With files from CTV Atlantic's Jacqueline Foster