A NEW report has recommended the establishment of an Occupational Injuries Mediation Service, based on the current courts system, to reduce legal costs and the level of confrontation in personal injury claims.

The special working group appointed by the Minister of State for Commerce, Mr Pat Rabbitte, believes that, despite the spiralling cost of compensation claims, a radical departure from the courts process would be counterproductive.

The new mediation service would be able to deliver fair and equitable compensation for occupational injury claims up to £50,000, at a reduced cost.

However, some members of the group favoured a move outside the courts system, calling for the creation of an independent Occupational Injuries Compensation Board. The board, they believe, should be allowed to operate a voluntary system of mediation and arbitration of compensation claims, under the stewardship of an independent chairperson, who should be a judge of the High Court or Circuit Court.

Given the dissenting views, Mr Rabbitte has invited the Irish Business and Employers' Confederation and the Irish Congress of Trade Unions to meet him to discuss the two suggested options.

The Minister has said he will also meet the chairperson of the working group on a Courts Commission, Mrs Justice Susan Denham, on how the mediation of occupational injury claims might be advanced.

Despite the dissenting views within the group, the report states that it is in agreement that it would be beneficial to have a speedy, cost effective and non confrontational system other than the law courts to settle personal injury claims.

Mr Rabbitte stressed that the success of any mediation or arbitration system, would be "dependent on a cultural change" among lawyers in informing their clients of the most cost effective and equitable means of resolving particular personal injury disputes.