Seanad Report/Jimmy Walsh: Mr Feargal Quinn (Ind) said he was horrified at the implications of the Companies (Auditing and Accountancy) Bill. Some of the stipulations contained in it would make the State uncompetitive in an area that was very important,foreign direct investment.
We had to compete with many other countries for such investment but we had now come up with a regulatory regime that was tougher than any other in the world.
Mr Quinn was commenting on a proposed obligation on directors of a company to prepare a statement of the company's policies respecting compliance with its obligations under company law, tax law or any other statutory law which would have a material impact on the company's financial statement.
Large multinationals in this country would each have to find two non-executive directors who would have to "sign up" for this.
The Scots would be delighted with this proposed legislation, because they would make sure that every multinational thinking of investing here would know about the need to get signatures to compliance statements saying: "You are guilty unless you prove yourself innocent every year."
Mr Quinn said he believed the Industrial Development Authority would have serious concerns about such an approach.
Those having to sign statements of compliance were to be required to state that they had done everything in their power to ensure that they were complying with all legal requirements. Such an approach was understandable, but the only way it could be done was to hire consultants who were expert in intricate laws.
Mr Quinn said the Government should ensure that these regulations applied only to public companies where there were outside shareholders.
Initiating the second-stage debate on the Bill, the Minister for Trade and Commerce, Mr Michael Ahern, said one of its key features was the proposed establishment of the Irish Auditing and Accounting Supervisory Authority.
This body would have power among other things to: intervene in the disciplinary process of the accountancy bodies where it was deemed necessary; carry out independent investigations of possible breaches of standards of prescribed accountancy bodies by their members; and apply to the courts to compel directors of a company to amend accounts that were not in compliance with the Companies Acts.