Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputies for their good wishes. I also thank Deputies Niall Collins, Quinlivan, Jan O'Sullivan, Mattie McGrath, Danny Healy-Rae and Fitzmaurice for their valuable contributions to the debate on the Bill. I particularly welcome their general expression of support for the overall objective of the Bill, as well as for many of its key features such as further enhancing the powers of IAASA as the competent authority with ultimate responsibility for oversight and having a straightforward, national legal framework for statutory auditors and audited entities.

In reference to the point Deputy Niall Collins raised regarding the ODCE, I am conscious the shortcoming identified by Judge Aylmer in his ruling in the case of DPP v. Seán FitzPatrick has been the subject of significant concern. It is important to understand what factors led to such mistakes being made and we must take appropriate steps to address these shortcomings and ensure they are never repeated. While I cannot publish Judge Aylmer's report, I intend to publish, as soon as possible, an account of the investigative failures identified by the judge and the steps being taken to address them. These include ongoing reform within the ODCE and the establishment, as announced by Government in November, of the ODCE as a new, independent company law enforcement agency to provide greater autonomy to the agency and ensure it is better equipped to investigate increasingly complex breaches of company law.

To respond to Deputy Quinlivan who also raised that matter, the heads of Bill to establish the ODCE as an agency is a priority and is due to be published by the end of June. The final Bill will be published by the end of the year.

I want to reassure Deputies that organisational reforms of the ODCE were commenced in 2012 in order to ensure a more efficient and effective use of its resources. These included reorganising the structures of the office, recruiting additional expertise, including six forensic accountants, a digital forensics specialist and two enforcement portfolio managers. As senior level vacancies have arisen, there has been a reconfiguration of the skill sets, competencies, roles and responsibilities associated with those posts in order to better reflect the organisations needs. This reconfiguration has fundamentally amended the investigative procedures used by the office leading to members of An Garda Síochána taking the lead in all criminal investigations and fostering a greater culture of risk management. The ODCE annual report for 2016 points to a number of key successes during the year.

Several Deputies referred to the loss and audit exemption proposed in the Bill. I am already aware of concerns about the amendment of the audit exemption provision. I have received some representations on behalf of small business regarding the removal of section 347 of the Companies Act 2014. I brought forward this amendment in the Bill because I consider it an appropriate and necessary measure to protect the interests of users, people who look at a company's financial statements, perhaps people who are doing business with the company. Sometimes they are small companies themselves. Nevertheless, I will consider the points made by the Deputies.

Deputy Quinlivan mentioned Brexit. I cannot say for sure but indications from the UK's Financial Reporting Council are that it intends to maintain high standards.

I agree with Deputy Jan O'Sullivan that one important objective of this Bill, and the EU regulation alongside which it sits, is to ensure and support independence and scepticism between auditors and their clients. The caps on non-audit services and rotation every ten years are very important. I believe the public interest is taken into account regarding the new powers and administrative sanctions of IAASA. The ten-year rotation whereby a company must change its auditor is at the lower end of terms that we could have chosen.

Responding to Deputy Mattie McGrath, the White Paper on measures to enhance Ireland's economic corporate regulatory regime was published in early November. It has several actions, each assigned to a Department - Finance, Justice and Equality or Business, Enterprise and Innovation - each with a detailed timetable. The Government is committed to meeting these actions.

There are also other developments and a number of avenues that are being pursued in respect of white collar crime. The Law Reform Commission is examining aspects of it and the Company Law Review Group, which is under my remit, is examining enforcement of company law.

IAASA is not a new quango or agency. It was established in 2003 and has built up expertise over time. The Bill gives IAASA the ability to impose higher fines than previously so that it is certainly not a toothless organisation.

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