Labour enterprise spokesman Mr Pat Rabbitte has expressed concern at what he called the erosion of the position of parliament, with powers being transferred to a number of new authorities.

He made his comments during a meeting of the Select Committee on Enterprise and Small Business, which is considering the Company Law Enforcement Bill.

While accepting Mr Rab bitte's concerns, the Tanaiste, Ms Harney, said the State would benefit from the setting up of an office of the director on corporate enforcement.

An independent director could make decisions based on facts and would be lobbied by vested interests, she said.

An amendment by Mr Rabbitte to make investigations carried out under the new Bill subject to the Freedom of Information Act was withdrawn pending advice from the Attorney General.

The Tanaiste said Section 19 investigations would be difficult to conduct if they were made subject to the Freedom of Information Act.

If such low-key and cost-effective investigations were made public, those in the companies being investigated would seek litigation immediately, causing potential delays, the Tanaiste said.

Mr Rabbitte withdrew the amendment until report stage.