The State will no longer allow itself to be a soft target for unfounded compensation claims, the Minister for Finance, Mr McCreevy, said yesterday.

The Minister issued his stern warning to unscrupulous claimants as new figures from the State Claims Agency (SCA) showed it is managing 1,850 active claims for damages and monitoring more than 500 incidents of "adverse incidents" reported by State authorities.

The agency is also considering more than 4,000 incidents related to the State's health services.

It has received more than 250 claims alleging clinical negligence under the Clinical Indemnity Scheme.

Responding to the numbers yesterday, the Minister said claimants should be aware that "the State is no longer going to be a soft touch".

Since it was established within the National Treasury Management Agency (NTMA) at the end of 2001, the SCA has dealt with some 260 claims that have been settled or have been the subject of court awards.

NTMA chief executive, Dr Michael Somers, bemoaned the "extraordinary culture of suing" that exists in the Republic.

He said the agency had been shocked at both the level and nature of claims that had come to its attention.

The SCA has been charged with ensuring that the State's liability for claims and contingent expenses is minimised.

Where the State disputes liability, claims are contested vigorously.

A breakdown of claims received by the SCA shows that about one-quarter of cases relate to alleged exposure to asbestos.

Dr Somers said he expected this proportion to drop sharply in the wake of a 2002 Supreme Court judgment which removed the basis for many such compensation claims.