Seán Sherlock (Cork East, Labour) | Oireachtas source

The review is ongoing. In recognition of the fact that consultation took place on the matter, I wish to read some information into the record of the House. The accountancy profession is, in general, adaptable and agile and is able to respond to new market opportunities and directions. This is, to a great extent, because it is not tied down by layers of regulation. There are detailed statutory provisions relating to auditing and, to a lesser extent, insolvency practice. The Competition Authority holds the view that this is the way things should stay. New regulations should only be introduced where there is clear evidence of market failure or very damaging consumer harm. That has not been established as the position here.

When the matter was reviewed by the Department at the time of drafting, the view was taken that there was no case for introducing a system of regulation for the profession generally. On the contrary, it was felt that introducing such a system would put at risk the flexibility of the profession and its ability to respond to client needs, be it in traditional areas such as tax advice or management accounts or in emerging fields such as succession planning. New layers of regulation could also stultify further growth and innovation. Having examined the issue from the standpoint of the principles of better regulation, the Competition Authority concluded that there was no public interest case requiring legal protection of the term "accountant". In response to the concerns of the industry, however, the Minister has agreed to consult fully on the matter. I am informed that the review will happen this year but we do not have a definitive timeline in respect of it. However, I am not sure whether it was agreed that the review would be completed in advance of the conclusion of the deliberations on this legislation. Perhaps Deputy Calleary has a different view to offer in that regard.

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