The Minister for Justice has introduced the Civil Liability and Courts Bill, which has already passed through the Seanad.
Mr McDowell predicted that the Bill, when in force, would help to alleviate the insurance burden on customers and business and the cost to public authorities of personal injury actions.
"It can do this without compromising the right of persons injured through the wrongful act of another to be compensated for their loss."
He said that one of the "chief negatives" in Ireland was the civil liability culture, which was probably one of the most "generous" schemes in Europe.
Mr McDowell said that many deputies shared his concern that, in some cases, persons had misled the courts on aspects of their claim and yet had walked away with a substantial award.
This, he added, was unacceptable, and the Bill provided that, where a plaintiff in a personal injuries action gave, adduced or dishonestly caused to be given or adduced evidence that was false or misleading, and which the plaintiff knew to be so, the court could dismiss the action unless it would result in an injustice being done.
The Fine Gael spokesman on justice, Mr Jim O'Keeffe, said that while there were some aspects of the Bill which required comment, he would not be opposing it. The Bill, he added, was to be welcomed and his main criticism was "better late than never".
Mr O'Keeffe warned there was a danger of the pendulum swinging too far when talking about the compensation culture.
"I practised as a lawyer, and I am not sure my former clients in west Cork, who are now my constituents, have a greater reputation for honesty than those in the rest of the country, but I certainly believe 95 per cent of the claimants were absolutely genuine."
The Labour spokesman on justice, Mr Joe Costello, said that the money acquired by the CAB should be used to build up communities undermined by drug-pushers and other criminals.
