The State must be able to provide a structured and coherent response to claims against it, Minister for Finance Mr McCreevy told the Dail yesterday. Outlining the second stage of the National Treasury Management Agency (Amendment) Bill, Mr McCreevy said that the new State Claims Agency would be proactive in the area of risk management and advice. It would adopt a commercial approach to claims management.

The Bill provides for the establishment of a State Claims Agency, a Central Treasury Service and a Fund Investment Service.

The latter two involve the utilisation of cash and risk management skills which the agency already possesses.

The aim of the new services is to make savings and maximise income for the Exchequer.

Society in Ireland was becoming more litigious and "a more businesslike approach to the settlement of genuine claims is also desirable in the interest of claimants and to secure lower costs in the long run," Mr McCreevy said.