Michael McGrath (Cork South Central, Fianna Fail)
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137. To ask the Minister for Finance his views on the operation of the State Claims Agency; its success in limiting costs arising from personal injury and property damage claims against the State; and if he will make a statement on the matter. [32488/14]

Michael Noonan (Limerick City, Fine Gael)
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The NTMA is designated as the State Claims Agency (SCA) when performing the claims management and risk management functions delegated to it under the National Treasury Management Agency (Amendment) Act, 2000.

The SCA's principal objectives are:

- To ensure that the State's liabilities in relation to personal injury and property damage claims, and the expenses of the SCA in relation to their management, are contained at the lowest achievable level;

- To implement targeted personal injury and property damage risk work programmes to mitigate litigation risk, in State Authorities and Health Care Enterprises, in order to reduce the costs of future litigation against the State.

Since its inception in 2001, the SCA has been to the forefront of the State's response to a number of threatened incipient mass actions such as asbestos "worried well", sexual abuse, organ retention and orthopaedic implants categories of cases.  As a result of securing early, precedent, decisions in the High and Supreme Courts, the SCA has prevented the proliferation of mass action claims against the State. 

In addition, in its day-to-day activities defending clinical negligence and non-clinical negligence cases, the SCA continues to make significant savings for the State.  In 2012, an independent actuarial assessment projected that €127. 5 million would be required in that year to cover both the cost of resolving clinical claims and managing ongoing active claims.  The net cost, taking account of successful recoveries from third parties, was €84 million a saving of 34%.  Similarly, in 2013, an independent actuarial assessment projected that €154 million would be required to cover the cost of resolving clinical claims and managing ongoing active claims.  The eventual outturn was €119.7 million a saving of €34.3 million or 22%.

In 2012, the Government decided to establish a Legal Costs Unit (LCU) within the State Claims Agency to deal with third-party costs arising from certain Tribunals of Inquiry.

Approximately 220 cost orders have been made in the Mahon Tribunal.  The LCU received 104 costs claims to end of May 2014 seeking a total of €8.53 million.  Seventy-three of these claims, seeking €3.53 million, have been negotiated and settled at €1.96 million without the necessity for taxation, representing a saving of approximately 44%.

A further 125 cost orders have been made in respect of the Moriarty Tribunal.  The LCU received 27 costs claims to the end of May 2014 seeking a total of €8.55 million.  Twenty-four of these claims, seeking €2.86 million, have been negotiated and settled at €1.41 million without the necessity for taxation, representing a saving of approximately 50%. 

In relation to legal costs, concerning the State Claims Agency and its portfolios of claims, the Agency in an initiative designed to reduce barristers' fees invited barristers to tender competitively for their services in 2012.  This tender competition followed the success of a similar initiative by the SCA in 2011 which reduced the costs of fees paid to solicitors by some 25%.  The new barristers' panels were put in place in January 2013 and are expected to yield legal costs savings in excess of 25% on an annual basis.

Finally, the SCA vigorously pursues all available money recoveries in accordance with best claim practices and as permitted by law.  One such example is the recovery of monies by means of third party/co-defendant contributions.  Whether by adjudication of the court or agreement with the third party/co-defendant, a specified percentage contribution in relation to a particular claim may be paid by the third party/co-defendant to the SCA.  Additionally, in certain cases, an indemnity in full may be received from a third party/co-defendant.  The SCA succeeded in recovering €15.2 million in the calendar year 2011, €3.9 million in 2012 and €1.7 million in 2013.