The Taoiseach sharply criticised the increased level of compensation claims throughout the public and private sector. "In every halfcase, people see compensation. Compensatitis must be the worst disease that we have in the country at the moment," Mr Ahern said.

Ways of dealing with the matter were being carefully looked at, but there was no simple solution. "The number of claims against everybody and anything - it is government, newspapers, State agencies and everywhere else - is just horrendous in this country," he added.

Mr Ahern was replying to the Labour leader, Mr Ruairi Quinn, who suggested that in expanding the capability of the offices of the Director of Public Prosecutions (DPP) and the Chief State Solicitor, they were encouraging a litigious culture in the State which "has now come to the conclusion that behind every conceivable human problem there is a legal case waiting to break out and all you have to do is to find somebody against whom you can file a suit. We really need to deal with this matter other than through the courts, which is simply costing us an arm and a leg as taxpayers." Mr Ahern said it was costing "two arms and two legs" but he disagreed that it was happening because of the provision of extra staff. "It is being driven by every claim from every quarter."

He added: "Lest I be accused of attacking any particular individuals, I won't name them.

"But members of the House would do well to have a look at some of the advertisements which have surfaced this week relating to the Army deafness case which are more or less urging people, almost like a sale, to get in before the door is closed on the claims. I do not think that is the spirit of anything. It is like a January sale." Mr Quinn said there had been an explosion in the number of legal cases, which were now characterising all aspects of Irish society. He asked what the Government's intentions were about establishing a national claims agency.

Mr Ahern said the matter was still under consideration, but a number of issues would have to be considered before it was decided to set it up.