Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 196: To ask the Minister for Finance the reason the State Claims Agency has been permitted to recruit new staff in contravention of the moratorium on public sector recruitment; the tasks which these new staff will be undertaking; the further reason the recommendations on the State Claims Agency contained in the special report on public numbers and expenditure have not been implemented; and if he will make a statement on the matter. [14519/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The State Claims Agency has informed me that the State Claims Agency (SCA), the name used by the National Treasury Management Agency (NTMA) when carrying out its claims and associated risk management functions, is not subject to the moratorium on public sector recruitment. The moratorium does not apply to the NTMA on account of the delegation to it of multiple, additional functions. The SCA is currently recruiting two claims managers to augment its existing claims team concerning the management of the Health Service Executive's employers, public and motor liability claims which were formally delegated to the Agency by the National Treasury Management Agency (Delegation of Functions) Order 2009.

The Report of the Special Group on Public Service Numbers and Expenditure Programmes suggested the following in relation to the State Claims Agency:

* Recruitment of an in-house litigation team;

* Imposition of a fixed fee schedule on a residual external panel of defence solicitors and barristers;

* Introduction of Periodic Payment Orders as a mechanism for providing for lifetime care costs in catastrophic injury cases;

* More widespread use of SCA risk management services by Departments generally.

The SCA is currently seeking to recruit additional solicitors to augment its existing in-house litigation team. The Agency has agreed a schedule of fixed fees in relation to its external panel of defence solicitors and has agreed new fee structures with barristers retained by it in the defence of claims. The Agency is represented on the Medical Negligence Working Group, chaired by Mr Justice Quirke, High Court Judge. The Group has set as its task the provision of such draft legislation, regulations or rules of court as may be necessary to give effect to the Group's recommendations regarding Periodic Payment Orders, such drafts to be provided on or by 30 November 2010.

The Agency has widely advertised its risk management services to Departments and a number of Departments are using the Agency to provide risk management advice in relation to health and safety projects instead of outside consultancy firms. This is expected to be a growing trend among all Departments.