I am delighted to be here today to officially open the Association of International Accountants offices in Dublin.
Today’s opening marks a significant departure for the Association.
Over the past seventy-seven years you have promoted the advance of the accountancy profession both in the UK and internationally. Through your international network of branches you provide support and guidance to students and members and promote awareness of key developments in the accountancy field. And, now with these new offices here in Ireland, you will be in an even stronger position to further your work in this country.
This opening is taking place at a time when there is a significant level of confidence in the Irish economy. And, the good news is that such confidence is well founded, given the growth forecast for the foreseeable future. For both this year and next, it is estimated that real GDP will grow by at least 5%.
Furthermore, our living standards, as measured in terms of GDP per capita are now 23% above the EU15 average, putting Ireland among the top four countries in the world.
That is certainly positive news for an international association opening its offices in this country. That said, I often find on occasions like this that we dwell too easily on the figures without really appreciating what they actually mean for people living and working in Ireland. In this context, it is my belief that the Government’s record on job creation has been amongst our most significant achievements in recent times. A solid supply of quality work enables huge quality of life improvements for all, along with providing a motivational force across our workforce.
Here in Ireland, the prospects for our younger generation have been transformed over the past decade and more. Employment grew by almost 3% last year – equivalent to more than 54,000 new jobs – the highest annual increase since 2001. We have also the lowest unemployment rate in the EU - 4.2% in April - which is half the EU average. Again, we have proven that it is not only in a national, but also in an international context, that we in Ireland can achieve significant success.
I know that the Association of International Accountants has applied to my colleague, Minister Michael Ahern, to become a recognised body of accountants in Ireland in accordance with the Companies Act 1990.
As you will know, the recent establishment of the Irish Auditing and Accounting Supervisory Authority (IASSA) on an interim basis marks a significant development in terms of the granting of recognition to bodies of accountants under the Companies Act. A Draft Work Programme for IASSA, a copy of which I understand has been sent to accountancy bodies, has recently been submitted to Minister Ahern.
The Government is committed to the formal establishment of IAASA as soon as possible so that the body can become fully operational without further delay.
Another issue of particular interest to the accountancy profession at the moment is the International Financial Reporting Standards or IFRS. As and from the first of January this year, all EU listed companies have had to conform to these standards. For many companies, this shift to a global corporate reporting language has raised many challenges.
As we all recognise however, we live today in an increasingly globalised world. And in that globalised world it is imperative that we abide by international norms. This is particularly critical for a small open economy such as the Irish one, where foreign direct investment plays such a key role in terms of our economic growth. Ireland’s acceptance of a globally recognised accounting framework will instil a level of confidence for our investors and maintain our appeal as a location for investment into the future.
As professional accountants, you are keenly aware that the acceptance of norms and standards does not just make good business sense, it is also important in terms of professional ethics. I know that the Association of International Accountants has adopted the International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants – and I commend you on this step.
In a world, where a number of high-profile business scandals have rocked public confidence, we need to drive home the message that adhering to professional ethics is not just about ticking a number of boxes. Instead, ethics – and the principle of doing well by the people we serve – needs to be at the very heart of our business culture. The reality is that the State cannot take a “Big Brother” approach and marshal each and every business to comply with rules and regulations. Businesses themselves must take responsibility to ensure that they comply with an approach that is in the interests both of the public it serves and its own good name. And, as we have seen in recent times, it is the business that is driven by honest, ethical procedures that will gain the trust and confidence of our customers over the longer term.
As we open these offices today, I have no doubt that these are just some of the principles that the Association of International Accountants will be driving forward, both in Ireland and further afield over the coming years. I look forward to hearing about your ongoing development in this country and I wish you every success for the future.
Thank you.
1st June 2005
Ends