Michael Ahern (Cork East, Fianna Fail)

I thank Senators for their valuable contributions to the debate. Their useful contributions covered an important area for small businesses. I thank Senators Coghlan, White, Quinn and Leyden for their kind words.

The proposal to increase the audit exemption threshold was highlighted in the recommendations of the Small Business Forum. When the 2003 Act was introduced, this was something which we indicated we would keep under review. At the time, Senator Coghlan and his colleagues emphasised that they felt it should be increased. The officials took this on board and this move has been welcomed by all sides.

Senator Quinn signalled a note of caution in terms of businesses that may consider they do not need to have a proper set of accounts prepared, as this could result in business slippage. I concur with this point. The position is that the exemption that may apply to companies would relate to the need for an external auditor. Company directors would continue to have a statutory obligation to prepare accounts that give a true and fair view of a company's financial situation and to lay them before AGMs. Companies are also required to file accounts with the Companies Registration Office. The level of detail required varies according to the size of companies. Effectively, the Bill is removing the requirement for an independent, external auditor but it is not removing the requirement to prepare a true and fair set of accounts. Neither is it removing the requirement for compliance with companies' legislation and regulations. People should be aware of this.

Senator Quinn also referred to cash flow as opposed to profit in respect of successful small companies. In my former job as an accountant, at times I was almost reduced to tears when I saw people making book profits but having no cash because they would not go out and collect money owed to them. Senator Quinn has rightly highlighted this problem. People should ensure they look after their cash flow.

Another point raised by Senator Quinn related to dematerialisation. When this issue came to my attention regarding shares, the first thing that crossed my mind was electronic voting and a lack of a paper trail. There will be a paper trail in this area as a shareholder statement of the shares held will be kept. Shareholders will have up to date information about the dealings that take place. Even though the information will be kept electronically, there will be paper evidence of what is happening in regard to the shares, which is important.

Senator Coghlan referred to the establishment of the national consumer agency. This is at an advanced stage. I hope the Bill concerning it will be available in the next session. He also referred to small, indigenous businesses being the backbone of the economy. Senators Quinn, White and Leyden reiterated this point. If I am correct, in 2005 the number of jobs created in small, indigenous industries was greater than the number of jobs created by multinationals. That has been a feature of job creation in recent years and it is in line with Government policy. Everyone involved in this area has focused on growing indigenous companies and this policy is now coming to fruition.

A reference was also made to co-operation between Departments. I assure the House that is the case in the area of trade. The Department of Enterprise, Trade and Employment works closely with the Departments of Foreign Affairs, Finance and Agriculture and Food. It is not the case that Departments do not co-operate, there is great co-operation across these Departments. A lack of co-operation certainly does not apply in the area of trade. It is important to have all the strands working together in order to be successful.

The provision of broadband is very important for the growth of industry. It is interesting to note that broadband accessibility has been extended to 75% of the country although it is not possible to have 100% on-line accessibility. I am pleased to see greater progress is now being made than was the case heretofore.

Regulatory impact analysis is essential to ensure that any regulations being introduced would not be unduly restrictive or result in burdens being placed on entrepreneurs. The first regulatory impact analysis that was carried out related to directors' compliance statements. That worked well. The discussions that took place in that regard resulted in a formula that ultimately got broad agreement. This shows the importance of having an impact analysis and giving everyone a say.

Before concluding, I wish to add my congratulations to Senator Quinn on his appointment as chairman of Eurocommerce and also on his doctorate. They are well deserved. I am currently reading his book, Crowning the Customer. It is very good and I think everybody should read it.