Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I will try to reassure the Deputy but I am not sure I will be able to in this instance. Anyway, here goes. The amendment is similar to the Deputy's previous one. Section 944AF, which is proposed for deletion, is not new law. It is in keeping with the principle of proportionality. The EU audit directive requires the level of administrative sanctions imposed to take into account circumstances such as the financial strength of the director, the gravity and duration of the breach by the director and the degree of responsibility. These circumstances were originally in section 957D(2) and re-enacted in section 944AC(2).

In addition, legal advice at the time of drafting the original provisions in 2016 was that other proportionality considerations should be introduced in respect of financial sanctions, and specifically that the sanction should not cause a director to become bankrupt. This is set out in section 944AF(1) re-enacting section 957G(1). The concern was that, in the absence of this safeguard, financial sanctions imposed under these sections could be vulnerable to challenge in the courts.

Ireland is required to maintain section 944AC(2) to comply with its EU obligations. If section 944AF is proposed to be amended, the views of the Attorney General would have to be sought on the impact on the principle of proportionality. We all want to ensure that directors who break the law are brought to account but we need to ensure that the law is robust and not at risk of challenge. The section gets the balance right, and for this reason I do not propose to accept this amendment.