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Dáil Éireann díospóireacht -
Tuesday, 2 Mar 1999

Vol. 501 No. 3

Priority Questions. - No-fault Compensation System.

Liz McManus

Ceist:

45 Ms McManus asked the Minister for Health and Children the plans, if any, he has to discuss with maternity hospitals the view expressed by the Master of the National Maternity Hospital in favour of the introduction of a no-fault compensation system to pay for the care of children born with disabilities incurred during birth in view of the recent financial settlement made by the hospital to the parents of a person, details supplied; and if he will make a statement on the matter. [6095/99]

I noted the recent comments by the Master of the National Maternity Hospital proposing the introduction of a no-fault compensation scheme to deal with the needs of infants who may be born with disabilities. Several interested groups and individuals have pressed for the introduction of a no-fault scheme for these cases. Apart from removing the need for parents to sue hospitals and doctors to ensure that the care needs of their children are secured, it would save on the high legal and other transaction costs associated with litigation. It would also represent a move to a compensation system based on needs rather than alleged negligence. Under the present adversarial system the parents of children who cannot establish negligence do not receive any compensation.

My Department has had the advice of a number of experts in this field and has looked at similar schemes in other jurisdictions. As the Deputy will appreciate, the introduction of such a scheme would raise a number of serious legal, constitutional, financial and service issues. In most jurisdictions where such schemes have been introduced parents lose the right to sue for negligence. Furthermore, compensation is restricted to cover care needs, housing, transport and income maintenance. There is generally no compensation for pain and suffering.

I am prepared to further examine the arguments for the introduction of such a scheme as part of a general overhaul of existing arrangements for medical indemnity cover.

Will the Minister be more spec ific about his views on this issue? We are discussing this issue in the aftermath of the Blaise Gallagher case which received much publicity. This case was extremely traumatic for the family and parents of Blaise Gallagher and unnecessarily costly for the State. Many lawyers got fat but the question of fault was not established.

This case should inform the Minister of the importance of providing an alternative scheme. There are constitutional issues involved in this matter. Regardless of whatever schemes or tribunals have been established, people have always had the constitutional right to go to court. However, in certain instances, particularly those involving cerebral palsy, there is no fault but the person's needs will exist for a lifetime. In light of such instances, would the Minister not accept that it is important that the Department establishes a scheme to ensure that those needs are met and that, as far as is practicable, we avoid the costly exercise of going to court? Would he not accept that, for many parents, it is important that a scheme exists to provide for their children's needs, specifically in cases of cerebral palsy, as already indicated by the Master of the National Maternity Hospital?

Does the Minister agree that he should sit down with the masters of maternity hospitals to focus on cerebral palsy to see if it is possible to devise a scheme which is fair, appropriate to needs and, in the view of many, would save the State some money?

A fair amount of work has been going on in the Department on this issue in the overall context of medical indemnity cover. What was publicly stated by one of the masters has been said before and it is an issue which we need to resolve.

Experts have been consulted by the Department, including Mercer Limited, actuaries and insurance consultants. Officials have also met Professor Jeffrey O'Connell, professor of law at the University of Virginia law school. Professor O'Connell has written and lectured extensively on no-fault schemes and has helped draft no-fault statutes for brain-damaged infants in Virginia and Florida. Officials have also met Mr. Randall Boubjerg, principal research associate at the Urban Institute, an independent think tank based in Washington DC. He is joint author of a number of articles on no-fault schemes with Professor Frank Sloan of Duke University. Officials keep in contact with Mr. Boubjerg on developments in this area.

The Department has also been in touch with people in the Harvard law school, such as Professor Paul Weiler and a colleague who are experts in compensation for medical injuries, including no-fault schemes. We have also been looking at no-fault schemes in New Zealand, Virginia, Florida and Scandinavia. Much work is being done to try to devise a method of dealing with the problem in the manner suggested by the Deputy.

There are arguments in favour and against such a system. Arguments in favour include: removing the need for parents to sue for negligence to secure care for the affected child; saving on the huge legal costs associated with such cases; allowing settlements to be tailored to need; looking after the care needs of children in cases where negligence could not be established, an important feature in the consideration for a no-fault scheme and helping prevent obstetrics from becoming an unpopular speciality because of its association with high cost and high profile claims.

The difficulties which arise from such a scheme include: it would be difficult to define the precise group of children to whom it might apply; there would be serious boundary problems in including or excluding particular cases; developments in medical research will always threaten the effectiveness of any boundary based on clinical definitions; there would be constant pressure to extend the scheme to infants with similar needs who have not suffered from a birth-related injury, such as those suffering from organic diseases or accident injuries; most no-fault schemes either have a statutory bar on litigation where the infant falls into a clinical category covered by the scheme, or include a provision that parents forfeit their rights under the scheme if they sue. Either prohibition would be difficult to enforce in Irish circumstances; the State might not be able to guarantee the delivery of an appropriate level of care for the lifetime of the children and such a scheme would be expensive and involve compensating children who do not receive awards under the current system.

A great deal of work remains to be done. I am prepared to examine how, if at all, we can see whether such a scheme can be appropriately incorporated into the general overhaul of medical indemnity cover being undertaken.

Will the Minister be more specific in view of the impressive range of expert opinion he has garnered? The current situation is not satisfactory and has more negatives than positives. Is the Minister saying he wants to establish a no-fault compensation scheme and that is his intention? He talked about pros and cons but is his intention to set up the scheme if particular problems can be sorted out? Is that his policy considering the expert opinion he has received?

I do not want to pre-empt the detailed consideration. This matter is being examined in detail and we are anxious to see what, if anything, can be done. As part of the process I will have to speak to the Attorney General and seek legal advice as to what constitutional and other limitations are placed on us to try to devise a means by which we can develop the arguments. I am interested in trying to find just solutions to these problems.

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