I think that Morrissey is singing from the point of view of someone who should protect the child and instead of doing so refrains saying "kid you must be bad luck, my sentimental hard hardens." The person from whose point of view is sung could be either police, cardinals, judges and priests all referenced in the song, or possibly even relatives. This is a factually accurate account of institutional sexual abuse in Ireland as the Irish police (Gardai) have been found to have grossly mishandled allegations of sexual abuse against priests and christian brothers of the roman catholic church. i.e. left the church to deal with such complaints as an internal matter for the canon law of the church rather than bringing criminal prosecutions against the alleged abusers.
It was this climate of regarding the church as pedestalized and untouchable that allowed such abuse to continue and I think that this is what Morrissey is getting at, the way everybody turned a blind eye, not just the perpetrators of the abuse.
You are quite right. A recent legal report in Ireland found that the sexual, physical and emotional abuse was "endemic" in Irish catholic institutions dating from the 1930's up until recently. Another recent legal report found that the church were only concerned with covering up these crimes, they relocated priests to different parishes where they re-committed such acts instead of going to the police or expelling the priests from the organisation. Such unconcern went all to the way to the current pope, Razinger, known to others as Pope Benedict. The archbishop of Dublin tried to contact the Vatican to request their co-operation into the inquiry into abuse in Catholic run State institutions in Ireland and were twice told they were using the wrong channel of communication and twice received no reply at all from the Vatican. In fact, the current Pope has wrote more public letters denouncing Harry Potter than he has condemning child sexual abuse.
These two reports I refer to are the Ryan Report and the Murphy report, the latter which can be found herehttp://www.justice.ie/en/JELR/Pages/PB09000504 Both were published this year after Morrissey's "Children in Pieces" although it had been widely believed for some time that such was the manner of the Church's handling of complaints in the past.
p.s. on a lighter note, my great uncle was in a film with James Cagney