Michael McGrath (Cork South Central, Fianna Fail)
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150. 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. [29747/15]

Michael Noonan (Limerick City, Fine Gael)
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The State Claims Agency's (SCA) claims management objective is to manage claims efficiently and conscientiously. This has the following practical implications:

- In cases where the State is considered liable or which involve an apportionment of liability, the SCA's approach is to settle such claims expeditiously, in so far as it is possible to do so, and on fair and reasonable terms; and

- In cases where liability is fully disputed by the State, all necessary resources are applied in the defence of such claims.

The SCA manages claims from their initial notification through to final resolution. Claims are investigated in a thorough and timely fashion, in order to facilitate early decision-making in relation to liability and strategy.

Recoveries and Costs Saving Initiatives

The SCA has advised that it vigorously pursues all available money recoveries in accordance with best claim practices and as permitted by law. One such example is the recovery of moneys 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 a third party/co-defendant to the SCA. Additionally, in certain cases, an indemnity in full may be received from a third party/co-defendant.

Recoveries and Third Party Contributions by Year Transacted

The level of legal costs paid to plaintiffs' legal representatives is carefully examined and, wherever possible and by means of negotiations, the SCA seeks to achieve the maximum possible reduction in legal costs. If the SCA cannot successfully agree the level of legal costs to be paid to plaintiffs' legal representatives, the matter is determined by a Taxing Master.

The table hereunder sets out, by calendar year, the legal cost savings achieved by the SCA for the individual years:

Negotiated Legal Cost Savings by year claim finalised

The SCA has advised that it has, in an initiative designed to reduce barristers' fees, invited barristers to tender competitively for its services and barristers' panels were put in place in January 2014. During 2014, this initiative yielded legal costs savings of 22 per cent. A similar initiative was conducted to reduce the SCA's panels' solicitor fees in June 2011 which yielded savings in respect of solicitor fees, in 2014, of 19%.

Alongside the SCA's cost saving initiatives, its Risk Management unit assists and advises State Authorities and Healthcare enterprises on measures to be taken to prevent the occurrence, or to reduce the incidence, of acts or omissions that may give rise to personal injury, property damage or medical negligence adverse events that could subsequently result in claims.

These examples illustrate the proactive and successful actions of the State Claims Agency to limit costs and claims against the State.  I am confident that the recently established Board of the National Treasury Management Agency will fulfil its role of supporting and driving the SCA in making further savings for the State.