The new director of corporate enforcement will have greater freedom to exchange information with other State agencies following changes to the Bill establishing his office.
The changes were agreed during a meeting of the Select Committee on Enterprise and Small Business, which is considering the Company Law Enforcement Bill establishing the new office.
The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, said the exchange of information would be an integral part of the new office.
She agreed with a suggestion from Labour spokesman Mr Pat Rabbitte that the Bill be changed to allow the passing of information by the Director of Corporate Enforcement to the Competition Authority. Ms Harney also brought forward an amendment to allow officers of the Revenue Commissioners to pass on information to the new office. The Bill already provides for the Garda to pass on information.
Mr Michael Creed asked if the Bill, as amended, exhausted the number of agencies which should be allowed to pass on information gathered in the course of their work to the new office. Ms Harney said he had made an interesting point. "I do believe it is a good suggestion." She said she would see if any other agencies should be included in the legislation. "Do you think the culture can cope with that?" asked Mr Rabbitte. He asked if the Tanaiste did not fear the changes being envisaged would bring the Celtic Tiger to a sudden end.
Ms Harney said she did not think so. What the state needed was blue-chip companies. Those jurisdictions which had the best enforcement of company and revenue law had the best performing economies.
The Tanaiste said an assistant principal and a higher executive officer were currently involved in enforcement but also have other duties. "Effectively, we didn't have enforcement."
Fine Gael spokesman Mr Denis Naughten, supporting Mr Rabbitte's proposal that the director be allowed convey information to the Competition Authority, said it was very difficult to get inside information on cartels. The only way to get this information was from the inside and if the director of corporate enforcement did come across information, he should be able to pass it on.
Ms Harney said an amendment would be introduced at a later stage which would have the effect that reports currently being prepared by authorised officer Mr Gerry Ryan would be produced to her rather than to the new office.
Mr Ryan is not moving to the new office. He is currently working on reports on Guinness & Mahon, Hamilton Ross, Kentford Ltd and College Trustees. The reports involve a lot of "cross references", she said, and it was likely they would be completed around the same time.
When received, the Minister would pass them on to the office of the director, who would decide what should happen next.
Ms Harney said the office would be established as soon as the Bill became law. Mr Paul Appleby, of her department, had been appointed director designate and was involved in organising the new office. The staff will include four solicitors, six accountants, seven gardai including two detective sergeants and one detective inspector, two principal officers, four assistant principals, four higher executive officers, five executive officers and five clerical officers.
