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Column 1152
Shaw, David (Dover)Shepherd, Richard (Aldridge)
Smith, Tim (Beaconsfield)
Soames, Hon Nicholas
Stern, Michael
Stradling Thomas, Sir John
Taylor, John M (Solihull)
Taylor, Teddy (S'end E)
Thompson, D. (Calder Valley)
Thompson, Patrick (Norwich N)
Thurnham, Peter
Townsend, Cyril D. (B'heath)
Tracey, Richard
Twinn, Dr Ian
Waddington, Rt Hon David
Walden, George
Waller, Gary
Ward, John
Wardle, Charles (Bexhill)
Watts, John
Wheeler, John
Widdecombe, Ann
Winterton, Mrs Ann
Wood, Timothy
Young, Sir George (Acton)
Tellers for the Ayes :
Mr. David Heathcoat-Amory
and Mr. Irvine Patnick.
NOES
Allen, Graham
Ashton, Joe
Banks, Tony (Newham NW)
Barnes, Harry (Derbyshire NE)
Battle, John
Benn, Rt Hon Tony
Bennett, A. F. (D'nt'n & R'dish)
Bermingham, Gerald
Buchan, Norman
Campbell, Ron (Blyth Valley)
Clay, Bob
Cousins, Jim
Cox, Tom
Cryer, Bob
Cummings, John
Dewar, Donald
Dixon, Don
Dobson, Frank
Fields, Terry (L'pool B G'n)
Flannery, Martin
Flynn, Paul
Foster, Derek
Foulkes, George
Fyfe, Maria
Galloway, George
Garrett, John (Norwich South)
George, Bruce
Golding, Mrs Llin
Gould, Bryan
Hinchliffe, David
Hughes, John (Coventry NE)
Illsley, Eric
Jones, Martyn (Clwyd S W)
Leighton, Ron
Macdonald, Calum A.
Madden, Max
Meale, Alan
Michael, Alun
Michie, Bill (Sheffield Heeley)
Morgan, Rhodri
Nellist, Dave
Patchett, Terry
Powell, Ray (Ogmore)
Quin, Ms Joyce
Reid, Dr John
Richardson, Jo
Robinson, Geoffrey
Ross, Ernie (Dundee W)
Skinner, Dennis
Spearing, Nigel
Taylor, Mrs Ann (Dewsbury)
Wall, Pat
Wareing, Robert N.
Welsh, Andrew (Angus E)
Welsh, Michael (Doncaster N)
Winnick, David
Wise, Mrs Audrey
Tellers for the Noes :
Mr. Frank Haynes and
Mr. Ken Eastham.
Question accordingly agreed to.
Mr. Hanley : I beg to move amendment No. 304, in page 253, line 44, leave out from as' to end of line 45 and insert
auditor under the Companies (Northern Ireland) Order 1986 or under the law of a country or territory outside the United Kingdom where it appears to the Secretary of State that the law and practice with respect to the audit of company accounts is similar to that in the United Kingdom.'.
Ever since statutory requirements on auditors' qualifications were introduced into United Kingdom law in the 1940s, members of the Institute of Chartered Accountants in Ireland have been qualified for appointment as auditors in the United Kingdom regardless of whether their training was received in the Republic or in Northern Ireland. Correspondingly, persons qualified in the United Kingdom have always been able to audit the accounts of companies incorporated in the Republic. The justification for that is that company law in the Republic is similar to that in the United Kingdom. I taught company law in Ireland for many years and the similarities between the Companies Act 1948 and the Irish Companies
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Act 1963 were striking, except for one thing--the Irish Act was twice as long because it was printed in Irish on one side. A common body of accounting and auditing standards also applies throughout the British Isles. The amendment would allow the present situation to continue by enabling the Secretary of State to recognise, for the purpose of an auditor's qualification, training in the company audit work of any country in which the law and practice are similar to that in the United Kingdom. The amendment therefore goes slightly further than facilitating auditors in the Republic. After 1992, qualifications and practice may become increasingly similar in various countries.Mr. John Garrett : Will the hon. Member for Richmond and Barnes (Mr. Hanley) explain what is meant by
"where the law and practice with respect to the audit of company accounts is similar to that in the United Kingdom."?
Is he also saying that accounting standards would to all intents and purposes be the same? Is the hon. Gentleman also making observations on the level of qualifications required so that they are comparable in both countries, so that auditors in Britain and in the Irish Republic would be qualified to the same standards and operating within the same codes of practice?
Mr. Hanley : Exactly that. The qualifications of Irish and United Kingdom chartered accountants are, I believe, exactly the same both in terms of the nature of their training and in terms of the audit work that they carry out once qualified and in order to become qualified.
Although the hon. Gentleman is extremely wise and knowledgeable and may well know this fact, it may interest the House to know that the Institute of Chartered Accountants in Ireland covers both Northern Ireland and Southern Ireland, so part of the United Kingdom already receives qualifications according to a law of Ireland. It therefore seems wholly sensible that the training leading to qualification should be recognised in statute as being exactly analogous. The provision would also facilitate United Kingdom accountants training in the Republic of Ireland.
The provision merely recognises the existing realities of training and qualification and I believe that it will be seen by the Irish Republic as a friendly gesture from our Government.
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