The Government said last night it wanted to move swiftly to enforce company law, and has set up a working group to advise it. The group, to be chaired by Mr Michael McDowell SC, will report by the end of November.

The Tanaiste, Ms Harney, said her decision to set up the group had been influenced by the recent emergence of strong indications of abuses of company law.

"The consequential public concerns must be allayed if the social consensus and Ireland's standing as a reputable place to do business - which underlies our present economic success - is to be maintained in the future," Ms Harney added.

Government sources said last night that of the 130,000 companies registered at the end of 1997, only 18,000 had actually filed their returns on time. The Government has become concerned that many of the 250 compulsory provisions of the Companies Act were not being enforced, including obligations and duties of company directors, the sources added.

The working group will review the compliance arrangements and enforcement regimes; consider the respective roles for the parties responsible for compliance and enforcement, particularly the courts, the Minister for Enterprise, Trade and Employment, the Director of Public Prosecutions and the Registrar of Companies; and make recommendations.

The other members of the 20strong group have not yet been named.