The resolution of commercial disputes through mediation rather than litigation would have the co-operation of the judiciary, Supreme Court judge, Mr Justice Hugh O'Flaherty, said last night.

He pointed to the explosion in litigation between companies, as evidenced by the number of judges in the commercial courts, and said judges now adopted a "much more hands-on approach to make sure that people get on with their cases".

He was speaking at a presentation by the Centre for Dispute Resolution (CDR) to the Corporate and Public Services Solicitors' Association.

Judges were happy, he said, to see all bodies - mediators, arbitrators and administrative tribunals - seeking to do justice between parties.

"You can look forward to our total co-operation in the matter of encouraging dispute resolution," he added.

Asked whether he believed the advent of mediation services would be "bad business" for lawyers, he said that it was much better for everybody "to have a rapid turnover of things". The CDR chairman, Mr John Daly, said that commercial litigation was costing Irish business £30 million annually and the disputes involved could be resolved more cheaply through mediation.

He argued that about one third of such cases could be settled satisfactorily through Alternative Dispute Resolution which reduced the costs, delay and damage to businesses caused by protracted court procedures.

Ireland was operating in a competitive global marketplace and it was important to be able to respond to the needs of companies operating here.

"In the US, in some cases, mediation is mandatory before going to litigation. Over 50 per cent of companies in Ireland are multinational foreign-based, the majority US and UK," Mr Daly said.