Legislation to provide the National Treasury Management Agency with wide-ranging new powers has been published.

The Bill extends the scope of the NTMA to establish a State claims agency, a central treasury service and a fund investment service.

The claims agency will allow the NTMA to manage personal injury and property damage compensation claims against the State and to provide risk management and advice services. According to the Minister for Finance, Mr McCreevy, the claims agency will allow the State to have a "structured and coherent" response to claims. The main benefits, he said, would be savings in settlement costs and legal charges, as well as a reduction in the incidence of claims.

The central treasury service allows the NTMA to offer deposit and loan facilities to health boards, vocational educational committees, local authorities and other non-commercial public bodies. Each body will decide whether or not to avail of the service.