ISME, the small business lobby group, intends to settle outstanding differences about its finances "amicably" and is likely to move towards participating in future national wage agreements for the first time, it said yesterday.

The organisation was holding its first press conference after months of bitter disputes about its internal finances and the position of its former chief executive, Mr Frank Mulcahy.

Mr Mulcahy now becomes director of communications working with a new ISME press council which will have to approve any press statements he makes on "controversial issues".

Mr Mulcahy denied he has been "emasculated" and said he has learnt a lot from the recent dispute.

The organisation is currently examining its finances to see if Mr Mulcahy was "underpaid or overpaid". Mr Mulcahy said the disputed amount is a few thousand pounds and his accountants advise that he is owed money.

The chairman, Mr Seamus Butler, said it will take at least three weeks to assess the financial situation and where it is found that Mr Mulcahy is owed money, he will be repaid, and if the reverse is the case, he will repay ISME.

Mr Butler said the finance committee of the organisation had found no fraud during its recent investigation, but had found "administrative irregularities", which are currently being addressed.

Mr Butler and Mr Mulcahy agreed that expenses claimed by Mr Mulcahy over the last number of years is the main issue still outstanding.

From now on, all ISME cheques written by Mr Mulcahy will have to be cosigned by one of four nominated members of the organisation.

Another consequence of Mr Mulcahy taking up the new post is that the organisation is now likely to participate in the next set of national pay negotiations.

Mr Butler said yesterday that ISME will consider the issue at its national conference in November and said he expected the majority of members will vote in favour of the idea.

"I see that as the way forward from now on, we need to have a small business organisation involved in the process, not outside it," said Mr Butler. Mr Mulcahy said if the national conference of ISME votes to participate in national wage agreements, he would "have go along with that".

Mr Mulcahy said he shared "some responsibility for the recent problems", while Mr Butler said the organisation was "putting its hands up and admitting it had administration problems".

Mr Mulcahy's salary will not change in his new role, while the incoming director/manager's salary will be "negotiable", said Mr Butler.