The final cost to the State of Army deafness claims is expected to reach u £300 million, far less than the £1 billion predicted by the Government last year.
A pilot scheme agreed between the Law Society and the Department of Defence aimed at speeding up claims has helped to cut down significantly on compensation payments and costs in recent months.
A total of u £125 million had been paid to soldiers up to the end of September, but there are 8,688 claims outstanding, according to the Minister for Defence, Mr Smith. He said the pilot scheme had resulted in the reduction of the average settlement from a high of more than u £30,000 to a current average of less than u £7,500. Legal costs had also been reduced by an average of 50 per cent a claim, he said.
More than a quarter of the u £125 million paid by the State, u £36 million, has been paid in legal costs. In a reply to Dail questions from Mr Sean Ryan and Mr Ivor Callely, Mr Smith said following the Supreme Court judgment in the Hanley case, he now estimated the Army hearing loss claims might be resolved for a total of between u £200 million and u £300 million.
Mr Smith said he was keen to ensure the 8,688 outstanding claims were disposed of using the "speediest mechanism" available. "I believe the judgment in the Hanley case laid down a scale which can apply to the majority of outstanding hearing loss claims and there is no longer a requirement to proceed to the steps of the courts with these decisions."
Mr Smith said 750 claims had been settled through the pilot settlement schemes established under negotiations between the State and the Law Society. If there was willingness on the part of plaintiffs to settle claims under this scheme, Department staff dealing with claims could be redeployed full time to the settlement scheme.