Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Many State bodies classified by the Central Statistics Office, CSO, as commercial are already solely audited by the Office of the Comptroller and Auditor General.  While section 1438 of the Companies Act 2014 provides that companies not trading for the gain of their members may be audited by the Office of the Comptroller and Auditor General, only regulated private sector audit firms can act as statutory auditors for companies, including public companies, that have been set up for commercial gain under the Companies Act.

Commercial State companies established for commercial gain are generally held at arm’s length by central government for a number of reasons.  These companies are usually expected to make profits that generate dividend payments that are utilised to fund public services. It is, therefore, an important principle that commercial State companies should be treated the same as their private sector competitors in order that they are not put at a competitive disadvantage. Every commercial State body is expected to meet the highest standards of corporate governance and to follow the requirements set out in the code of practice for the governance of State bodies.

  As the Deputy knows, it is the responsibility of each Minister and his or her Department to manage each of the Minister's shareholdings in each State enterprise. Ministers are supported in managing the shareholdings of many these enterprises by the New Economy and Recovery Authority, NewERA, through its provision of expert advice. There are a small number of State enterprises where there is a dual audit arrangement between the private sector statutory auditor and the Office of the Comptroller and Auditor General.

The further extension of such arrangements would need to be considered on a case-by-case basis by each Minister with policy responsibility for a particular enterprise. That would need to take into account the specific circumstances and commercial responsibilities and environment of the commercial body. If such a review happened, I would then engage with the Comptroller and Auditor General with regard to making the necessary legal and administrative provisions.

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