Changes have been amazing

The corporations and institutions that have opposed transparency and accountability will probably be glad to see the end of this columnist's opinions. But retirement comes to most people - so after more than 30 years writing for The Irish Times, this will be my final Business Opinion column. The changes that have taken place in just that small capsule of time have been quite amazing. It is hard to imagine that the corporate structure is now entirely different.

The 1960s were dominated by publicly-quoted companies such as Sunbeam Wolsey, Seafield Gentex, Helys, Martin Mahony, Jacobs, Irish Distillers, Switzers, PJ Carroll, Dockrells, T & C Martin, McCairns and Glen Abbey. These were difficult times with high corporate debt; some groups failed, others were taken over. Even Guinness lost its independence.

Jefferson Smurfit was starting to flex its muscles, under Mr Michael Smurfit, then a dynamic figure. AIB was being conceived and CRH did not exist. Stockbroking firms were run along traditional lines - the unwritten code of "my word is my bond" was easily embraced by both brokers and clients.

But with economic planning - a la Lemass and Whitaker - showing the way, a quiet transformation was taking place. The doubting, inferiority complex, induced by dominant British companies, was beginning to be questioned.

The necessary financial lubrication and advice was provided by the emerging merchant bankers such as Mr Michael Sheehan at Hill Samuel, Mr Bill Forward at Guinness & Mahon, Mr Kevin Wyley at Investment Bank of Ireland, and Mr Martin Rafferty at Allied Irish Investment Bank. That fertile ground had been well prepared by the Industrial Credit Company, under Mr Frank Casey, which provided vital seed capital to a hungry domestic industry.

An exciting corporate expansion and restructuring followed. This invigorating period, was also helped by the return of analysts such as Mr Frank Shanley and the late Mr Liam Jones, who spearheaded a new research-based stockbroking industry. The subsequent emergence of a new stockbroking company, NCB, set up by Mr Dermot Desmond, provided a refreshing competition in the industry.

While some corporations died, so did guiding lights in industry.

The business community was shocked when 12 leading Irish businessmen, including Mr Con Smith, president of the Confederation of Irish Industries, died on June 18th, 1972, when a BEA Trident on a flight from London to Brussels crashed four miles from Heathrow. There were no survivors among the 118 passengers. They were the cream of industry and I have often thought of further important contributions they would have made in moulding Irish business.

The 1970s also saw Mr Michael Smurfit blazing a trail, first at home, then outside. CRH, following the merger of Roadstone and Cement became a potent force, as did the banks. The Shell game, started by Dr Tony O'Reilly, Mr Nicholas Leonard and Mr Vincent Ferguson, and imitated by many, led mostly to tears.

The period after that will be remembered by most readers as the gains were consolidated. But notable failures which many would like to forget included the State's shipping line, Irish Shipping; AIB's subsidiary, the Insurance Corporation of Ireland; Palgrave Murphy and PMPA Insurance. Incidentally, The Irish Times broke new ground by publishing a twopage spread analysing PMPA and pointed to its insolvency prior to its collapse.

The more recent past has seen the rush of mostly USowned IT companies to set up and expand here, some of which are now cutting back because of slower demand for PCs. There has also been the move toward privatisation of the State's companies - Eircom's shareholders are still howling - and the hot and cold cycle of emerging IT companies bringing millions to many of their promoters. The springboard for the new breed of entrepreneurs has, of course, come from a well-educated, confident and motivated workforce.

But, as everyone knows, values have changed. With the taping of instructions to brokers, "my word is my bond" has long gone. A new cockiness with sometimes unattainable expectations has emerged.

But the move towards greater transparency and accountability, as seen during the DIRT inquiry, can be only good in the decades ahead. Still, last week's decision to turn a public disciplinary hearing of an accountant by the Institute of Chartered Accountants in Ireland to a private session without explanation, was hardly a move in the right direction.

The next 30 years will also see a profound change in the structure of Irish business. Many of the existing companies will be unrecognisable, few will remain as they are - Arnotts and Clerys are among the exceptions of the last 30 years - and others will fail. Take your pick.

PS: I'll return in March with a monthly column.

bmurdoch@irish-times.ie