Feargal Quinn (Independent) | Oireachtas source

I move amendment No. 63:

In page 275, to delete lines 23 to 27.

Section 282(2) has the potential to be very confusing for businesses. Senator Reilly referred to red tape and bureaucracy and I am aware that the Minister of State has a campaign to avoid these. The section states: "if those records are not kept by making entries in a bound book [I have never heard that term before] but by some other means, adequate precautions shall be taken for guarding against falsification and facilitating discovery of such falsification, should it occur." This implies that having something written down in a bound book is somehow a protection against fraud. It sounds like a contention a law firm might have put forward 50 or 100 years ago. Bound books are no longer used in this, the age of the computer. I would love to see the introduction of the mandatory recording of activities in the banks by outside agencies in order to protect against another collapse. If we use the software which is now available, we could protect taxpayers against another collapse similar to that involving the former Anglo Irish Bank.
Section 282(2) offers no concrete definition with regard to what might actually constitute the detection and prevention of fraud. This aspect is already adequately covered in section 282(1), which states that adequate accounting records should "correctly record and explain the transactions of the company". The word "adequate" implies no falsification of a company's records. My amendment aims, therefore, to simplify the legislation by deleting section 282(2), which adds nothing in the context of combating falsification but which encourages those who keep bound books - I love that term - to take fewer precautions against falsification. This part of the Bill is quite strange. What is proposed could have unintended and potentially risky consequences for smaller companies in particular because it implies that they can take more risks if they keep bound books. I hope the Minister of State understands where I am coming from and I hope he will accept the amendment because it makes a great deal of sense.
Amendment No. 64 proposes the deletion of section 282(6), which states that "any computer (the “server computer”) that provides services to another computer, being services the provision of which to the latter is necessary so that the accounting records, and the other foregoing information and returns, stored in the latter can be accessed at all times, shall be kept in a place in the State." It is sometimes not feasible for companies with operations in a number of locations across the globe to keep in the State a computer on which accountancy files are stored. There are other technical issues which arise, including the emerging area of cloud computing. The latter is rapidly expanding and allowing data to be accessed from any computer in any location across the globe. That fact may make the requirement contained in the legislation redundant in just a few short years. I wish to strongly emphasise the fact that it is likely that no other country has such a provision. Thus, we are putting ourselves at a disadvantage compared to our competitors, even those across the Border. We are making Ireland less attractive as a place in which to do business, especially to big multinationals. The latter is something we should avoid at all costs. I know the Minister of State and I have similar views on this matter. The purpose of the amendment is to delete the requirement to keep bound books and thus place Ireland on a level playing field with its competitors.
I urge the Minister of State to accept the changes to section 282 which I am proposing. He could not accept earlier amendments in my name but he did indicate that he intended to give further consideration to the matters to which they relate. I am of the view that he should give serious consideration to these amendments and I hope he will accept them.