The Times October 26, 2005
By Liz Chong
ERIC ANSTEE, chief executive of the Institute of Chartered Accountants in England and Wales, called yesterday for changes to the body?s voting rules after its sixth failed attempt at a merger.
In a widely expected blow to Mr Anstee?s strategy of expansion, the 65.7per cent of ICAEW members who voted in favour of a merger with the Chartered Institute of Public Finance Accountants were narrowly defeated by those opposed. Under the body?s rules, a majority of 66.7per cent is required.
CIPFA members voted overwhelmingly for a merger, with 86.7 per cent in favour.
However, the polls were hampered by low turnout, with fewer than half the members of both institutes bothering to vote after heavy canvassing.
Mr Anstee and Diane Colley, president of CIPFA, expressed disappointment, but said that they were determined to co-operate on other projects. These could include cutting costs by conducting joint research in public services, and combining training courses, Mr Anstee said.
Mr Anstee also hinted that he might ask ICAEW members to reduce the requirement for a two-thirds majority to 60 per cent, as he called for the profession?s five other bodies to consider merging. ?It is absurd that there are six separate institutes,? he said, citing the vote as evidence of support for change.
The merger campaign was dogged by complaints from ICAEW members about potential dilution of their qualification, which they consider more prestigious, despite repeated reassurances from Mr Anstee that both institutes would keep separate qualifications.
The campaign?s failure is a blow to Mr Anstee, who came out of semi-retirement to head the ICAEW and has been working 60 to 70 hours a week during the campaign.
The debate was highly charged, leading Mr Anstee to accuse some critics of adopting an ?emotional? approach to an issue crucial to the ICAEW?s long-term survival. He has said that the ICAEW?s influence could wane as members age and concern mounts over a possible funding crisis.
Mr Anstee rejected calls for his resignation by some critics, who complained about the campaign?s ?1.4 million cost.
Bruce Lawson, who ran the website www.stopthemerger.org, said that many who voted against were younger ICAEW members, not those who were older and ?out of touch?.
The campaign was also dogged by complaints from the Institute of Chartered Accountants in Scotland, which publicised a row that erupted over the proposed name for the merged bodies.
APPETITE FOR MERGERS MISCALCULATED
1969: ICAEW members reject a merger with five other accounting bodies
1988: ICAEW members vote in favour of a merger with ICAS, which rejects the proposal
1990: ICAEW members narrowly miss two-thirds majority needed to merge with CIPFA. Eighty per cent of CIPFA members back a merger
1990: Attempt by six accountancy bodies to merge, but fails before before being put to a vote by members
1995: ICAEW and CIMA attempt to merge, but move fails before going to a poll of members
2005: ICAEW and CIPFA fail in latest attempt to merge. But Eric Anstee, the ICAEW?s chief executive, is not put off. ?I would love to enter consolidation discussions with the ICAS, and the five other bodies,? he said
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