Michael Ahern (Cork East, Fianna Fail)

Recommendation 10.21 of the report of the review group on auditing recommended that statutory support be given to the investigation and disciplinary regimes of recognised accountancy bodies. Section 35, which inserts a new section 192A into the Companies Act 1990, is designed to achieve this. In the construction of the section the same principles were brought to bear as regards the circumstances in which a supervisory authority has to apply to the court to impose sanctions as would now apply to the prescribed accountancy bodies. I am aware that at least some of the recognised accountancy bodies have expressed reservations about this structure in much the same terms as Senators Coghlan and McDowell.

It is necessary to ascertain the broadest possible spread of views on the matter in order to be in a position to take an informed decision on it. I have asked my officials to liaise further with the accountancy bodies to elicit the information to enable me to do this. In the meantime, I am reluctant to make the change provided for by the Senator's amendment. Furthermore, the provisions of section 25(2)(c) are interrelated and any amendment to section 35 could have consequential knock-on effects which would have to be considered as an element of any decisions. In the circumstances, I am unable to accept the amendment. Senator Coghlan will note, however, that I am having the matter reviewed.