The main military staff association has warned that taxpayers may face a single massive compensation bill over the hearing disability issue.
Military personnel claiming compensation for hearing loss, their lawyers and the military representatives are considering a class action against the Department of Defence, which could lead to as many as 11,000 cases being in effect settled at one go. The total settlement cost could be up to £500 million.
There are 11,361 claims for hearing damage, and the State has so far paid about £65 million in claims and legal costs. The State already has settled 2,585 cases at a total cost of £67.42 million.
The threat has arisen as a reaction to the decision of the Minister for Defence, Mr Smith, to announce the setting up of a military tribunal to settle hearing claims out of court. The Minister is also proposing that settlements before the tribunal be at a flat rate of around £1,500 per percentage hearing loss.
However, the main staff association, Permanent Defence Forces Other Ranks Representative Association (PDFORRA), says the Minister's proposals are being rejected by a large majority of claimants.
The PDFORRA general secretary, Mr John Lucey, has warned that if the Minister sets up the tribunal under the proposed conditions, it will precipitate a class action along the lines of that taken in 1994 by 1,800 married women against the Department of Social Welfare over welfare payment arrears. That case, the first class action of its type in the State, led to arrears payments to several thousand women at costs estimated at up to £130 million.
If some 11,000 soldiers were to succeed in such a class action, with average settlements of between £30,000 and £60,000, the State could face a half-billion pound liability.
The Department has estimated that it will take 14 years to hear the current list of compensation claims. Mr Lucey said this tactic was contrary to natural justice.
He accused the Minister of "sabotaging" PDFORRA's attempts to reach a solution on the hearing issue. PDFORRA was to have presented the Department with its own proposals this week.
A spokesman for the Minister said: "The Minister will be pressing ahead with his proposals which will provide a just and reasonable solution and which will offer fair play to those with genuine hearing disability and which will be fair to the taxpayer."
Mr Smith was said to be delighted that his proposals had been welcomed by the Defence Forces Chief-of-Staff, Lieut Gen Dave Stapleton, and by the association representing the 1,500 officers, RACO (the Representative Association for Commissioned Officers).
The Department of Defence expects to have a hearing tribunal in place by the summer.