The State has paid more than £26 million so far this year in Army deafness payments and costs, while an average of 100 new claims are still being lodged every month, according to the latest figures.

The Minister for Defence, Mr Smith, revealed yesterday that since January £19,748,09, or almost £2 million a month, has been paid in settlements or awards to members of the Defences Forces. On top of this £6,308,130 has been paid to soldiers in legal costs.

Mr Smith told the Dail that up to October 14th, a total of 14,588 claims for alleged loss of hearing from current or former serving members of the Defence Forces had been lodged. Of this figure, 3,872 cases have been settled or have been the subject of court awards.

Although claims are still flooding in, Mr Smith said the average payment for damages had dropped by more than two-thirds from £30,874 in 1996 to just £12,228 this year.

The Minister said the compensation scheme for Army deafness claims, which would remove the cases from the courts, would be established as soon as the decision in the Supreme Court case of Hanley v the Minister for Defence was known.

A decision from the Supreme Court is expected shortly. He said the case had implications "for all outstanding claims."

Mr Smith said the proposed new scheme would provide a level of compensation which would be "fair and equitable".

"It will also be administratively straightforward, providing a relatively speedy process of compensating claimants based on the Green Book and the Supreme Court's judgment."

Mr Smith said the scheme would also be designed to reduce the high level of costs inherent in resolving claims through the courts.

The figures released show that the vast majority of cases are being settled, with only a handful going to court hearing.

The month with the highest payment was July, when 331 cases were settled while 26 cases went to court. That month £3,706,503 was paid out.