Business Irish

Friday 21 October 2016

What it says in the papers: business pages

Published 28/08/2015 | 06:52

The front page of this morning's Irish Independent business section
The front page of this morning's Irish Independent business section

Here are the business stories you need to know about this morning:

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Irish Independent

*The State is to pay an estimated €2.5m to the 130 former direct employees of Clerys who were made redundant when the iconic store was closed.

But it's not clear how many of the remaining 330 staff who worked for the various concession holders in the Dublin store will receive similar treatment.

The Department of Social Protection said the estimated €2.5m from the Social Insurance Fund is in respect of both redundancy payments and Insolvency Payments Scheme payments for 130 employees.

A Department spokeswoman said concession employees "may" be entitled to similar State schemes.

*AIB is facing the prospect of having to restore 3,000 mortgage holders to tracker rates, a leading expert has calculated.

It comes in the wake of Permanent TSB having to restore almost 1,400 people to trackers and compensate them.

Financial expert Padraic Kissane, who specialises in tracker-restoration cases, said AIB has around 3,000 customers wrongly denied a tracker after a period on a fixed rate. He has written to AIB boss Bernard Byrne outlining the scale of the issue at the bank.

*The company behind 'The Irish Times' newspaper will pay €11m over seven years to enhance transfer values for employees moving from the firm's defined benefit scheme to defined contribution pensions.

The Irish Times Limited closed its defined benefit pension in March this year as well as a separate scheme for senior management. Those moves have helped eliminate the deficit on the group balance sheet.

Irish Times managing director Liam Kavanagh said the changes have 'taken a lot of risk out'.

The Irish Times

*Former Irish Nationwide boss Michael Fingleton will tell the banking inquiry that the building society did not need a bailout on the night of the bank guarantee.

He is expected to strongly defend himself and the building society, the bailout of which would eventually cost the taxpayer €5bn.

Mr Fingleton led Irish Nationwide for nearly 40 years.

*The Central Bank has said it will shortly introduce tougher rules for so-called "special purpose vehicles" (SPVs) - companies set up to keep certain assets of the balance sheets of other companies.

A report from Central Bank economists raised concern about a lack of information about SPVs' activities - making it hard to identify risk.

*Gaeltacht Minister Joe McHugh will meet an Aran Islands delegation next week over his decision to give the island's air service contract to a helicopter firm.

Residents are concerned about the frequency of flights and the uise of a different airport on the mainland.

Aer Arann Islands previously provided the service, and Mr McHugh's decision is expected to lead to job losses at the airline.

Irish Examiner

*The Government will make €10.2m available for road improvement schemes and a section the Cork-Limerick road will get nearly half.

The N20 is poised to get a €4.5m pavement overlay and an 3.5 km upgrade of a section between Mallow and Cork.

A total of 4.65m will go to nine projects across other counties.

*Europe's political system will lead to repeated crises and expelling a member from the euro would have destabilising consequences, according to a top central banker.

ECB executive board member Benoit Coeure said endless negotiations, particularly around redistribution, polarise national debates and hinder a broader strategy for growth.

He said if a country was kicked out of the euro, questions would be raised about who was next.

*Irish house builder Cairn Homes is looking at 11 sites with a combined value of €120m.

The newly floated company said the sites are in Dublin, Galway and Meath.

The 11 sites have the potential for around 1,600 new builds in total.

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