Dublin will be a significant international arbitration centre after legislation covering disputes between companies is updated, the Minister for Justice, Mr O'Donoghue, has said. The Arbitration (International Commercial) Bill 1997, published by his department yesterday, sets out a new framework on resolving international commercial disputes which is in line with the United Nations model law.

"Legislation based on the model law has already been adopted by a substantial number of countries since it was approved by the UN in 1985, and it is widely recognised to have functioned very well in practice," the Department of Justice stated. Mr Roderick O'Connor SC, an arbitrator who acted as an adviser in the drafting of the legislation, said the bill's publication coincided with the start of a new diploma course in arbitration at UCD. "Costs are going to be much less than in Zurich or Paris. Witnesses would have no problem coming over here," he said.

He said that many disputes occurred in the construction industry, relating to the cost of or payment for the work. Ireland already had many international arbitrators who had to perform their work abroad. "These conduct their hearings outside Ireland, sometimes because it is convenient but most often because of the legislative framework here," he said.

Domestic disputes will continue to be covered by the 1954 and 1980 acts.