Michael Ahern (Cork East, Fianna Fail)

I thank Senators for their contributions to this debate in which many interesting points have been raised, of which I will address as many as possible in the time remaining to me. First, I wish to stress that the purpose of the Bill is to promote a culture of corporate compliance in Ireland. I wish to reassure Senators Coughlan and Leyden in relation to their concerns about impositions on businesses, particularly small businesses, by making it clear there is no question of seeking to impose rules, regulations and conditions, the purpose of which serves simply to penalise commercial enterprises. I also wish to make it clear that it is neither my intention, nor the purpose of the Bill, to impose unduly onerous requirements on auditing and accounting practitioners. Above all, the Bill strives to achieve a balance between the need for a climate of minimal State interference with commercial enterprise, at one end of the spectrum and, at the opposite end, the view that all conceivable aspects of commercial operations should be legislated for in detail.

The implementation of many of the requirements that will flow from the present legislation is a matter of good practice and in many instances a restatement or refinement of obligations that are already in existence. Therefore, the effect of the new legislation should not be such as to induce trauma and panic either in commercial enterprises or among the practitioners who are being addressed in the Bill. Most of all, it will introduce a climate of certainty in the commercial sphere.

I agree with the sentiments expressed by Senators Coghlan and O'Toole regarding the move from self-regulation to supervised regulation and on how the balance reflected in the Bill was achieved. Senator McDowell also supported the structure and I am satisfied that the balance is right. However, the authority must have the power to intervene as per sections 23 and 24.

Senators Coghlan, Leyden, O'Toole and McDowell raised points regarding the constitution of the board of directors. It is intended that the board of directors of the supervisory authority will consist of a maximum of 12 directors, in addition to the chief executive officer who will be an ex officio director. The 12 directors will be made up of two persons, nominated by agreement among the prescribed accountancy bodies; two nominated by the Minister and one nominee of each of the bodies set out in paragraph(c)(ii), which are the designated bodies. The provision in section 11 restricts to two the directors appointed by the Minister who can be members of prescribed accountancy bodies. Owing to the fact that there is no restriction as to the profession of the chief executive, the directors could consist of a total of three members of prescribed bodies. These numbers, including the maximum specified in relation to members of prescribed accountancy bodies, can be altered by means of a regulation under section 46 of the Bill.