Defence Forces deafness claims were now expected to cost the State some £300 million, the Minister for Defence said.

Mr Smith said the original estimate was about £1.25 billion, based on the amounts being awarded by the courts or agreed in out-of-court settlements.

"This represents a substantial decrease on what otherwise would have been an extraordinary burden on the Department of Defence and the Defence Forces."

Mr Smith said the out-of-court settlement scheme was working very satisfactorily.

Up to April 1st, 701 cases were dealt with, offers were made in 250 cases and a number of other cases were developing.