National debt agency takes over personal injury claims

The National Treasury Management Agency, established by the Government three years ago to cope with the country’s national debt, has taken over responsibility for dealing with personal injury and other claims against the state.

The move was confirmed today by Finance Minister Charlie McCreevy with a warning: “The state is no longer going to be the soft touch.”

At the launch of the agency’s annual report in Dublin, chief executive Michael Somers reported that currently the organisation is dealing a total of 1,850 claims, 260 of which have either been settled in or out of court.

Among claims catered for by the NTMA are those lodged against all state authorities, government ministers, the head of the gardaí, prisons and schools.

As many as 25% of the claims now being processed relate to alleged exposure to asbestos.

The agency also said today that Ireland’s debt-to-Gross National Product ratio was second only to Luxembourg within the 15 European Union states last year.

During 2002, the general Government debt-to-Gross Domestic Product ratio fell by 3.8% from 36.8% at the end of the previous year.

Cost of servicing the national debt was 15% lower than initially estimated, coming in at €2,169m for the year.

Ireland’s wholesale prices have fallen by more than 10% in the past year in an indication of a likely continuing drop in the country’s inflation rate, according to figures produced today by the Irish Central Statistics Office.

David Croughan, chief economist with the Irish Business and Employers’ Confederation, said the reduction reflected the low rate of global inflation as well as the strength of the currency. It would ensure even lower consumer price inflation over the coming months.

Ireland’s current inflation rate of 3.5% is at its lowest point for four years, though still well ahead of the EU average.

The Irish state-backed Voluntary Health Insurance Board today reported a profit – but said an 8.5% increase in premiums would go ahead as planned, pending anticipated government approval.

The company said in its annual report that the VHI surplus came to €34m, but the rise was necessary to ensure financial viability.

Profits more than doubled compared to the previous year because of greater efficiency and investment earnings.

Operating costs were cut by almost 1.5%, while investments earned an extra €9m.