Claims against State down a third

Ian Guider

The actions of the agency have saved taxpayers a fortune in legal costs, according to Michael Somers, chief executive of the National Treasury Management Agency (NMTA), which runs the SCA.

The agency manages claims taken by individuals and public servants against health boards, local authorities, the gardaí and other bodies. Dr Somers said the SCA cut down on legal costs and also ensured genuine claims were being settled quicker.

The SCA is seeking to recover 2.5 million in costs from 500 people who lost High Court cases claiming they had suffered psychiatric injuries from an asbestos scare.

Dr Somers added: "The State is a not a soft though and if you lose we will be looking to recover our costs."

At the end of 2004, the SCA had some 2,600 cases outstanding, with potential liability to the taxpayer of E135m.

Some 35% of the cases are claims for clinical negligence with the remainder dealing with public/employer liability and damage to property. Sine 2001, the SCA had settled 1,100 cases at cost of E12.5m. Around half the cases were settled out of court.

The NTMA also released the latest update from the National Pension Reserve Fund (which come under the NTMA's aegis).

It shows that since the start of the year the NPRF has gained E945m, a 7.9% rise. The fund is now valued at E13.3 billion.

The fund, set up to provide for public sector pensions from 2025, benefited from a strong rise in European equity prices, particularly in May and June.

At the end of June, some E10.1bn was invested in 1,700 companies worldwide, 1.6bn was invested in the international bond markets, E1.4bn was retained in cash and The NPRF invested E137m in property.

Dr Somers said the fund now planned to invest E2bn over the next five years in property in a bid to diversify its assets.

The fund is also looking at getting involved in private equity essentially providing financing for takeover and in the commodity market. Some E75m was committed to a private equity deal, while E120m was invested in commodities.

The NTMA also said yesterday that it spent E1.6bn on interest payments on the national debt, which stood at E37.8bn at the end of 2004.

Dr Somers said the interest payments on the debt, which had stood at a fifth of all taxes collected a decade ago, now accounted for just 4% of the total tax take.

Speaking at the launch of the NTMA reports yesterday, Finance Minister Brian Cowen said he would be upgrading his forecasts for economic growth this year.

The department is finalising its review of the economy and is expected to increase its growth estimate from its 5.1% forecast.