Warning on climate change threat to industry

SIX KEY industries are under threat from climate change, but are not prepared for the risks that it poses, a conference heard yesterday.

Terence O'Rourke, managing partner at KPMG, yesterday told the Institute of Chartered Accountants in Ireland (ICAI) that aviation, healthcare, tourism, transport, oil and financial services all face risks stemming from climate change.

At the same time, these businesses are poorly prepared to face these risks, which include physical, regulatory and reputation, as well as possible litigation.

"It pays to be prepared," Mr O'Rourke said. "Companies which understand their climate risks will be best placed to manage those risks, and they will also be able to grasp the competitive advantage that comes with fuller and earlier understanding.

"There are huge differences between sectors in terms of the relation between climate change risks and risk preparedness."

Also speaking at the conference yesterday, ICAI tax director Brian Keegan argued that excessive penalties do not encourage people to comply with their tax obligations.

He pointed out that the Revenue Commissioners had the power to double interest and penalties in cases where there was no loss to the Exchequer, while this year's Finance Act would increase some VAT penalties by up to five times.

"But the danger now is that tax penalties can be so disproportionate as to discourage taxpayers who have made mistakes from putting matters right," he said.