Business Irish

Monday 26 September 2016

What it says in the papers: business pages

Published 16/10/2015 | 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 head of the State's budgetary watchdog went on the defensive and argued that the Department of Finance isn't providing his team with enough information, a day after he was forced to retract a suggestion that Budget 2016 may breach EU rules.

Professor John McHale told the Irish Independent that the "information flow" from the Department to the Fiscal Advisory Council needed to be improved.

He said he was not told that the Government intended to allocate extra spending to plug overruns this year to a range of government departments, not just in Health, and he stood over his claim that Budget 2016 was too expansionary

*Internet retail giant Amazon is planning to spend tens of millions of euro on another data centre at a site in Dublin - just months after completing a facility at the same location.

The cost of the project could easily reach over €100m, adding to the huge amount of money being spent by tech giants on infrastructure in Ireland.

"The proposed development involves the development of a new building as part of an enlarged data centre complex at this location," architects for Amazon have told the local council.

*Former Ryanair deputy chief executive Michael Cawley, who's also the chairman of Fáilte Ireland, has invested close to €250,000 in Homestay.com, an Irish challenger to Airbnb.

Mr Cawley and his wife have made the investment as the company raised €3.5m in funding from new and existing investors.

Homestay's chief executive is Alan Clarke, who was previously an executive with Paddy Power.

The Irish Times

*Ratings agency Fitch said Budget 2016 would probably encourage economic volatility.

It said the stimulus was pro-cyclical, with the stimulus coinciding with stronger-than-expected growth.

However, Fitch said the Budget did not change its expectation that the Irish deficit would be narrowed further.

*The group that took over some of the manufacturing businesses of the Quinn Group lost €4m in its first six weeks.

Newly filed accounts for the six weeks to the end of 2014 show it had a turnover of €9.1m in the period.

The price paid for the assets was €98.2m, the accounts show. Chief financial officer Dara O'Reilly said the group has delivered significant growth since the purchase and expected to grow further.

*Construction group BAM Ireland leads a consortium that has won a contract to build the M11 Gorey to Enniscorthy public-private partnership motorway.

The project is to begin in January and expected to support 2,500 jobs. BAM also built the M11 Arklow to Rathnew project.

Irish Examiner

*More startups will die as a result of the Budget, according to Dublin Startup commissioner Niamh Bushnell.

Ms Bushnell said the Budget failed to resolve serious failings in the environment for entrepreneurs, adding that it was a "massive missed opportunity."

*Discount supermarket Aldi's UK and Ireland profits dipped by £10m despite a surge in revenues and a growth in its market share in both jurisdictions.

Group turnover was £6.89bn, but a spike in administrative expenses brought profits lower.

In this country Aldi's market share is 8.7pc.

*The cashpile at the company owned by Niall Horan and the other members of One Direction more than doubled last year to £42m.

Pre-tax profits increased tenfold to £44.5m on the back of revenues jumping 50pc to £73.7m.

Last year the members paid themselves an average of £109,722, compared with £5.5m the year before.

 

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