Challenges Ahead ICAI Members North and South are Focusing on Economy
Author:
Pat Costello
In June ICAI published the third in our series of business sentiment surveys in conjunction with IIB Bank. The results were quite encouraging. Despite the talk about more difficult economic times ahead, Chartered Accountants working in business remain quite positive about their companies’ prospects going forward. Their concerns centre more on factors outside their control, namely the general economic environment. The language being used to describe this relative slowdown in the economy does give rise to some concern and that is also picked up on in the survey. Nobody should underestimate the competitive challenges ahead, but a reduction in growth along the lines predicted recently by the ESRI, remains just that – a reduction in the rate of growth rather than a downturn.
One particularly bright spot of late has been the settlement in Northern Ireland. ICAI was fortunate enough to have the First Minister, Dr. Ian Paisley MP, MLA perform the official opening of our new Belfast offices. His speech focused on the business challenges facing Northern Ireland and the lessons that could be learnt from the recent success in the Republic.
Corporation Tax
The First Minister particularly welcomed a call by ICAI for the 12.5% Corporation Tax rate enjoyed oin the Republic to be extended to Northern Ireland.
This is an issue that ICAI has been to the forefront in advocating. Our call for the introduction of Corporation Tax equivalence was made on the eve of our very successful conference in Belfast. Since then our Northern Ireland Tax Committee has met with the review team established by Gordon Brown when Chancellor of the Exchequer to look at the tax regime in Northern Ireland. That review is headed up by Sir David Varney.
In late June we issued a detailed paper to the Varney review and we have consulted regularly with a very supportive Irish Government on the issue. In addition to dealing with the headline rate issues ICAI has advocated a series of practical measures that would benefit the border counties in particular. Our thinking on this is very clear: anything that adds to the dynamic of the all-island economy will benefit both economies. And we see it as part of ICAI’s representative function to support this pro-business development as strongly as we can. Expect further developments in the new few months.
Closer to home so to speak there were some significant decisions taken at the June meeting of Council.
Post-Qualification Awards
Of particular interest to business members will be the decision to approve an extension in the range post-qualification awards being offered by ICAI. This is an area that we’ve moved into following the recommendations set out in the Strategy Review Group Report. Already we are running courses leading to Diplomas in Managing People, IFRS and a Masters in Corporate Governance in DCU. In addition we are running an executive leadership programme at INSEAD. These will now be complemented by a further five or six programmes to be rolled out over the next two years. These programmes will be designed to address the needs of members who are dealing with increased specialisation in their working lives. More details when they become available.
Council is also discussing plans to grow the number of CA trainees training directly in business. ICAI has been operating a pilot programme for quite some time now without especially seeking to grow this area of recruitment. Consequently, we have ceded this important arena for training new accountants to our competitors. This state of affairs cannot be allowed to continue.
Finally, a word on the new premises project in Dublin. To date it has been a case of so far so good. The project remains within budget and the final construction contract is out to tender at the moment. As things stand we are still on course to complete this project in the first half of 2009. Our intention has always been that we would not have recourse to members to specifically support this project and I am happy to report that remains the case. Let’s hope the summer improves.
Pat Costello,
Chief Executive