The Government should introduce new arms-control legislation to close loopholes that could enable arms brokers to operate from Ireland.

It should also introduce a new system of checks to identify firms that may be breaching export controls and update the existing penalties for breaches of these controls, a new report recommended yesterday.

Export Licensing of Military and Dual-Use Goods, a Forfás report commissioned by the Tánaiste, Ms Harney, identifies several weaknesses in existing arms control systems in Ireland.

It identifies several major gaps in national legislation particularly governing the activities of arms brokers - individuals who can be involved in negotiating the trade of arms between rogue states. The report says this should be addressed in new primary legislation, although it notes that the definition of an "arms broker" will require careful consideration in drafting.

The report recommends the introduction of a new system of checks by the Government to ensure firms are not exporting illegally. It also suggests that the penalties for breaching export restrictions should be updated and notes that no company has ever been brought to court for non-compliance with controls.

The Government should prepare and publish an annual report on licensing and exporting arms and dual-use products (components that can be used in both military and non-military products). This should be laid before the Oireachtas and include data on the value of annual Irish military exports, the report urges

Ms Harney welcomed the report and described the recommendations as "constructive proposals". She has already signalled that she intends to bring forward new legislation in the area of arms controls. The report was compiled by Fitzpatrick Associates Economic Consultants and the Stockholm International Peace Research Institute.