Noonan warned over Greencore and CRH exits
Fine Gael's Billy Timmins, a member of the powerful Finance Committee has written to Michael Noonan warning that other listed Irish companies may leave the shrinking Irish stock market following the departure of Greencore and CRH recently.
"I realise that trading is more difficult in the current economic climate and that the volumes traded have dropped by about 75 per cent in 2011 from the 2007 level," wrote the Wicklow TD. "However, I feel that there may be other underlining difficulties, which may include the 1 per cent transaction tax in Ireland and the ease of delisting among others. A trend of companies delisting appears to be developing and I am concerned that other companies may leave in the immediate future."
He added, "It is important that the difficult but positive measures being taken by Government are recognised and every effort should be made to ensure that the ISE is a good place to do business."
The Irish stock market is a fraction of the size it was a decade ago. A number of major buyouts -- including the delistings of Eircom, Riverdeep, Golden Vale, Alphyra, Iona, and Conduit -- have trimmed numbers, with the implosion of McInerney also hurting.
Major companies such as CRH and Greencore have sought to attract investors by listing on the more active and higher profile FTSE in the UK. Tommy Breen's DCC is also thought to be examining a listing in the UK.
A number of Irish companies are considering stock market listings over the next year or two including Paul Coulson's Ardagh, Eddie O'Connor's Mainstream Renewables and Liam Casey's PCH. All of the companies are likely to float in the US or Asia rather than Ireland.
Sunday Indo Business