The Tanaiste, Ms Harney, has repeated her calls for accountants to act on the McCracken Tribunal finding in an open manner. After a meeting earlier this week between Ms Harney and the Institute of Chartered Accounts, the group has not yet acceded to Ms Harney's request to allow an observer into their disciplinary hearings.

Ms Harney is now likely to go back to the accountants within days and tell them whether or not she is insisting on an observer and thus a change in their rules books.

If they still do not agree, she has indicated that she may have to consider changing the group from self-regulation to regulation on a statutory basis.

Speaking to the Association of Chartered Certified Accountants (ACCA) yesterday, Ms Harney warned that because of the huge privileges they enjoy in society, they must be prepared to give back to society and punish any wrongdoing.

She pointed out that the Dail has now set up an ethics commission which any member of the public can approach, if they have any complaints about a politician. "This has the equivalent of judicial powers and is not just a self-regulatory body," she pointed out.

However, she added, she has met the Institute of Chartered Accountants this week who were very "very helpful".

The ACCA insisted that the current system of self-regulation works "infinitely better than a statutory regime managed by civil servants", in a comment which is likely to anger many public servants.

Mr Brendan Murtagh, president of the ACCA Leinster society, said it is "wrong" that the public confidence in the integrity of the accountancy profession as a whole should be undermined as a result of these "isolated cases".

He insisted that the ACCA is at the forefront of establishing high ethical and professional standards. "ACCA believes firmly in the principles of integrity, openness and transparency and we expect our members to meet these high standards which are required for the profession."

The Institute of Certified Public Accountants said last night it is reviewing what steps it should take to respond to the Minister's concerns on the transparency of disciplinary proceedings.

Ms Harney also emphasised the importance of tax cuts and of rewarding growth. She pointed out that the key to our levels of inward investment is the 10 per cent tax rate on manufacturing and internationally traded services. That proves the points, she said, that tax must be minimised if it is not to act as a disincentive.

At the same time spending must be kept firmly in check, she said.

She also pointed out that unemployment is a very corrosive and real cancer in our society and that there are far too many people who do not have a real and sustainable job. "It is the number one challenge over the next number of years," she said.