Two of the State's four accountancy bodies have put off a merger vote. The Institute of Chartered Accountants in Ireland (ICAI), the largest accountancy body, and the smaller Institute of Certified Public Accountants (CPA) have decided instead on a strategic alliance.

The ICAI and CPA said they had identified a number of areas where they could pool resources and energies. These include the regulation of the profession when major decisions are imminent, post-qualification training and development, services to members and representation to Government, CPA president Ms Bernadette McGrory-Farrell said.

The two bodies began discussions on a merger last year but a working party considering the issue concluded that a ballot at this time had the potential to be "counter-productive", the ICAI said. "While the proposal for a full merger has many positive aspects in terms of a stronger profession and better services to members, we are aware of a reluctance felt by a significant number of members to seeing their qualification merged with another," ICAI president Mr David Simpson said.

He said the working party, which included the presidents and chief executives of both organisations, felt it was better to make progress on several key issues before asking members to vote.

"If we are successful in these areas, it may create a climate where the full merger of qualifications could be voted on," he said.

The ICAI has 12,000 members in Ireland and would need the backing of two-thirds of those voting in any ballot on a merger. The CPA has 2,000 members and already co-operates with the ICAI on issues such as education and training.