Economy
Revival of Sugar Production Would Create 5,000 Jobs Study
The Irish Sugar Beet Bio-Refinery Group has released a feasibility study into the establishment of a bio-refinery plant which it says would create 5,000 jobs and eliminate imports of up to 200m a year. The integrated plant for the production of sugar and ethanol from sugar beet and grain would be located on a new site in the south east, at the centre of the sugar beet growing region. It would cost €350m to build of which around €200m would be spent on Irish services, equipment and expertise. According to the study, the plant could be built within two years of EU approval being granted for the revival of sugar…
Read MoreGlobal economic data better than sentiment – BoI report
Global economic data better than sentiment – BoI report Investor and consumer sentiment are at odds with the facts regarding global economic growth, according to Bank of Ireland’s latest analysis of the Irish and international markets. Author of the monthly Bulletin, Bank of Ireland chief executive Dr Dan McLaughlin, noted that the global economy slowed in the first half of 2011, with annual growth estimated at 3.8pc in the second quarter from 4.4pc in Q1 and over 5pc in 2010. He said the limited data available for the third quarter implies a similar pace to Q2, but that investor sentiment reflects a concern that the pace of expansion has slowed…
Read MoreESRI expecting lower Irish debt levels
The decision to reduce interest rates on EU borrowing, agreed by the EU Council on 21 July, means that Ireland’s public debt levels will be substantially lower than previously estimated, according to a new article from the ESRI. In coming up with the new figures, John Fitzerald and Ide Kearney, authors of ‘Irish Government Debt And Implied Debt Dynamics: 2011 – 2015’, said they make very conservative assumptions on the interest rates available after 2013, “which could well be significantly lower than we have assumed, with consequential beneficial effects on debt sustainability”. The article estimates that the net debt to GDP ratio will peak at between 100pc and 105pc of…
Read MoreMoody’s Downgrades Ireland’s Rating to Junk, Warns of Second Bailout
Moody’s has downgraded Ireland’s rating to junk status. Last night, the credit rating agency said it downgraded Ireland’s government debt one notch from Baa3 to Ba1. The outlook on the ratings remains negative, which means a further downgrade is still possible. The move came as a blow just hours after Ireland was optimistic that Europe had taken moves which would help it out of the financial crisis. Moody’s said it decided to downgrade the debt because of the growing possibility that a second round of financing by the EU and IMF will be needed at the end of 2013. The agency said it is possible that Ireland will not be…
Read MoreCivil partnership tax bill published
Michael Noonan today published a finance bill to allow same sex couples have the same tax rights as married couples. The Minister for Finance needed to change existing tax legislation to bring it in line wit the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010. Civil partners will now receive the same tax treatment as married couples in respect of income tax, stamp duty, capital acquisitions tax, capital gains tax and VAT. In addition, the bill allows for the taxation consequences of the redress scheme for opposite-sex and same-sex cohabiting couples provided for in the 2010 Act. Noonan gave credit to the previous government for its commitment…
Read MoreNoonan defends levy on pension funds
A levy of 0.6pc imposed on pension funds to pay for some of the measures announced in yesterday’s Jobs Initiative has produced an uncalled for “quasi-hysterical” reaction, according to Minister for Finance Michael Noonan. The effect the levy will have on pension funds has been “exaggerated” by the pensions industry, Noonan told reporters at a press conference following the Dáil announcement of the much-anticipated Jobs Initiative. He said the Government were “pulling back a very small proportion” of major tax reliefs that the funds have enjoyed in previous years. It will take very little from the value of the funds, he said. He criticised the “quasi-hysterical” reaction, pointing out that…
Read MoreSilver Recovers While Gold Prices Steady
The price of spot gold steadied today after hitting a record US$1,575.79 an ounce yesterday, while silver recovered from its biggest drop in 29 months. The death of al Qaeda’s leader Osama Bin Laden accelerated spot gold’s drop to $1,540.39 from a record high of $1,575.79 on Monday. Later Tuesday, spot gold was flat at $1,543.89 an ounce. Gold’s bull run has continued as investors look for a safe haven for their money amid worries about the weak US dollar, the ongoing eurozone debt crisis and global inflation. It lost some appeal following the death of Bin Laden but this concern will be short-lived, according to analysts. Silver rose by…
Read MoreNyberg Report blames “unbelievable” Irish actions for banking crisis
Gov publishes the Nyberg report into banking crisis The main reason for the Irish banking crisis was the “unhindered expansion” of the property bubble financed by the banks using wholesale market funding, the Nyberg Report has found. The report of the Commission of Investigation into the Banking Sector , Misjudging Risk: Causes of the Systemic Banking Crisis In Ireland, more commonly known as the Nyberg Report has been considered by the Cabinet and published by the Minister for Finance this afternoon. The investigation was commissioned by the government to establish exactly what happened to lead to the utter collapse of the Irish banking system in 2008. Every Irish financial institute has now…
Read MoreAuditors did not challenge banks’ actions – Nyberg
The authors of the Nyberg Report have said it is “unfortunate” that a challenging dialogue was not used by auditors to influence the business models and lending practices of financial institutions. Investigating the causes of Irish banking crisis, the Commission said that a sufficient, timely and challenging auditor dialogue could have been used to influence the banks’ business models and lending practices. There is no express requirement for an auditor to do so and the report found that their commentary regularly focuses on issues relating to the accuracy of historic accounts. “In practice, this means that auditors look primarily backwards and at technical issues that may influence the accuracy of…
Read MoreBank Shares Up and Deposits Steady – Noonan
Finance minister Michael Noonan said today that the government has succeeded in restoring confidence to Ireland’s banking system. He noted that Bank of Ireland shares had advanced for three days in-a-row and are currently up about 45pc on last week’s trading price. AIB has seen significant increases in its shares, as well, said Noonan. The minister of finance also said that the amount of deposits being withdrawn from the two “pillar banks” has been reduced substantially since Thursday’s announcements. Noonan told the Dáil that Irish 10-year-bond rates peaked to 10.32pc on March 31 but have since fallen back to below 10pc. He noted the positive response from various credit rating agencies and…
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