THE Small Firms Association (SFA) is demanding a radical overhaul of the system to deal with personal injury claims which it says are costing business and the State £400 million a year.

It said the immediate introduction of a personal injuries tribunal, currently being considered by the Government, could go some way to alleviating the "horrendous costs" both direct and indirect faced by small companies in particular. SFA director, Mr Brendan Butler said a schedule of awards should be introduced for general damages and the court system reviewed to improve speed of access and reduce the possibility of frivolous and exaggerated claims.

Mr Butler said his organisation had carried out a survey which showed that almost half of small companies had faced personal injuries claims. He said the survey also "put paid to the myth" that small companies were not serious about health and safety.