Cassells warns on accountancy self-regulation

The Leinster Society of Chartered Accountants' system of self-regulation would not last 24 hours if the society was not seen to take action against members who had assisted in fraud or tax evasion, the Secretary General of the Irish Congress of Trade Unions said yesterday.

Address the society, Mr Peter Cassells said that when its own members were "out of order", it was most important for the society "to put manners on them". Most employers, workers, professionals and politicians were "good, decent people", but a minority, including in the accountancy profession had facilitated a process of tax evasion and fraud which raised serious questions for the institute. He was surprised the organisation had not been more to the fore to being seen to be active in self-regulation. "If you do not rid your own profession of the people who are tainting it, then it will be done for you," he said.

If he was "reading the entrails right" the whole question of fraud and tax evasion would raise its head with the Moriarty and Flood tribunals, and the reports of the inspectors appointed by the Minister for Enterprise, Trade and Employment. The same level of change or adaption to change was not apparent in the professions as had occurred among the social partners, he added.

The evolvement of the partnership system represented "a significant turnaround" in the ICTU's strategy and how it exerts influence. It was not just about wages and negotiating levels of pay increases. It was a shared understanding between political parties, employers and workers of achieving high growth and job increases. "From that shared understanding has developed a problem-solving approach to these issues," he said.

The new partnership agreement, for which negotiations were due to begin in autumn, would be "an agenda going forward" which would not be as rigid as previous agreements. "Now is the time to start the debate on these issues," he said.