Fine Gael has attacked the decision by the Minister for Defence, Mr Smith, to abolish the Army deafness early settlement scheme, describing it as a serious blow to morale within the Defence forces.
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Mr Smith made the announcement yesterday, saying that budget restrictions had forced him to cancel the scheme in an effort to save up to €5 million annually. As a result, all future claims for compensation will be dealt with in the courts, as was the case prior to the introduction of the scheme two years ago.
He was speaking after is visiting Irish troops serving with the United Nations peacekeeping force in Kosovo.
The Fine Gael defence spokesman, Mr Dinny McGinley said today that Army morale was being sacrificed for the sake of cost-cutting measures. "The tribunal that was established by the previous Government is being disbanded for financial reasons and discriminates against any future genuine claims," he said.
The Labour Party also criticised Mr Smith’s decision, describing it as a "false economy" that will end up costing the Exchequer in the longer term".
The party’s defence spokesman, Mr Joe Sherlock, said: "Abolishing the scheme may provide some short-term savings to please Minister McCreevy, but it will mean that future claims will have to be fought through the courts with the consequent legal bills that this will entail."
Over 4,200 claims have been settled under the scheme, at an average cost of €10,000. This contrasts with an average pay-out of over €40,000 in cases that were taken before the courts. The total cost of all claims up to the end of June was over €245 million.
There have been over 16,000 claims in the past eight years since soldiers began legal proceedings in the courts. 12,000 of these have been settled, with 4,000 still outstanding. There are still an average of 10 claims a week being received by the Department.
A Department of Defence spokesman insisted they intend to settle "as many as possible" of the outstanding claims, adding that the end of the scheme would not affect the rights of defence force personnel to pursue their claims in the future.
The Defence Forces said they could not comment on decisions of a financial nature.
PDFORRA, the association representing enlisted ranks in the Defence Forces, said it was awaiting future developments before making any official reaction.
