When the Deputy refers to prosecution of fraud, I take it that he does so in the context of companies legislation, because that certainly is the context in which I am addressing the matter.
I do not see the elimination of fraud from Irish businesses as solely or even primarily a matter for direct action by me or my Department; in fact, I consider that other parties who have dealings with companies, whether as members, creditors, auditors, receivers, liquidators or otherwise, have an equally important role to play under companies legislation in eliminating such abuse. The Deputy will therefore appreciate that, while certain powers are provided in company law for the Minister's ultimate use, my policy would not be to have a permanent investigatory section within the Department engaged in the elimination of fraud from Irish businesses. I see it as infinitely more important to provide a framework within which parties dealing with companies who suspect fraud has occurred can use the provisions of company legislation to tackle the problem directly themselves.
In this regard, while neither the Minister nor Department of Industry and Commerce were directly involved in the cases, I understand that there were a number of successful court actions relating to fraud taken under companies legislation subsequent to 1982. At the same time, I have to say it is for the very reason that the existing provisions of the 1963 Act which relate to fraud have apparently proved less effective than might have been expected that these provisions are being refined, reinforced or replaced in the Companies (No. 2) Bill, 1987. In particular, the provisions of sections 115 and 116 of the Bill, which substitute two sections for the existing section 297 of the Companies Act, 1963, and deal respectively with criminal liability for fraudulent trading and civil liability for fraudulent and reckless trading, will, I think, considerably increase the effectiveness of the existing section 297.
Moreover, the provisions of Part II of the Bill, dealing with company investigations, which will in future be undertaken under the auspices of the court and which can include the investigation of the affairs of a company which have been conducted with intent to defraud creditors or other persons, will considerably improve the effectiveness of this aspect of companies legislation.
Finally, Chapter 2 of Part VII of the Bill, which deals with the disqualification of directors who have been convicted of indictable offences, including fraud, will greatly improve the ability of the courts to deal effectively with this problem.
In summary, therefore, I believe that the Companies Bill, when passed, will, in so far as this is possible, contain the necessary provisions to control fraud in business. No legislative provision, here or elsewhere, will ever eliminate fraud in business altogether.
I do not think that the publication of a code of good business practice by me, as suggested by the Deputy, is necessary or desirable. I am satisfied that the provisions of existing companies legislation, as supplemented by the proposals contained in the Companies Bill, breach of which will leave those guilty open to the appropriate sanctions, is the proper way forward. In the circumstances I do not intend to publish a code of good business practice.