What it says in the papers: business pages
Published 06/11/2015 | 06:48
Here are the main business stories from this morning's papers:
***Dublin needs as many as 3,000 new hotel rooms or it will continue to lose out on events like the Web Summit, a new report warns.
The report from property agents Jones Lang Lasalle (JLL) said barely 500 hotel rooms were built in Dublin since 2010 – and only 300 are due to be added by the end of next year.
As a result, occupancy rates in the city stand at 84pc. There are about 19,000 hotel rooms in Dublin at present, but that needs to increase to 22,000.
***The Web Summit is leaving Ireland but Dublin will always be in its heart, its founder Paddy Cosgrave has said.
While the tech conference will now move to Lisbon, Cosgrave insists it will continue to be an Irish company with its headquarters remaining on our shores. Cosgrave told attendees on the final day of the Web Summit that he loves Ireland, his home country. “It is where I will grow old and where I will some day raise a family. Dublin will always be in our hearts.”
***Ireland will be the EU’s fastest-growing economy this year and next, the European Commission has predicted.
In its latest economic forecast, the Commission said Ireland’s economy will expand by 6pc this year. The Commission said the growth would be on the back of buoyant consumer spending, investment and exports.
Ireland’s economic growth will continue to top the EU’s table next year at 4.5pc, but it will drop to joint second place in 2017 at 3.5pc, the Commission predicted.
***Ireland owes its economic success to a lenient approach from its creditors and its low corporation tax rate, according to former Greek finance minister Yanis Varoufakis.
Speaking at the Kilkenomics festival in Kilkenny he said that Ireland “is not a paradigm of successful austerity; it’s the opposite of that.”
He added that Ireland’s corporation tax helped the country, saying: “The Irish model works because nobody else is using it. If we all had it, then Ireland wouldn’t be successful.”
***A farmer who stopped a compulsory purchase order from the IDA for his farm says that he still remains worried despite a positive legal ruling.
Thomas Reid from Maynooth, Kildare, yesterday won his appeal to the Supreme Court arguing against a High Court ruling that would have allowed the IDA to compulsorily purchase his home and farm.
Mr Reid said that the result was a relief but added that he had a feeling that there were those who were already engaged in further efforts relating to the site, which directly adjoins the huge Intel site in Kildare.
***UK-listed Poundland is planning to open 100 Dealz shops in Ireland, going beyond its initial target of 70 when it first moved into the Irish market in 2011.
Poundland chief executive Jim McCarthy made the comment as the company announced its 50th Irish store, which will open on Thomas Street later this month.
He said: “We have reviewed the [target of] 70 [shops] and we now think it’s 100. We did the first 50 in four years and we think we can do the next 50 in less than that.”
***Landlords will only be able to raise rents every two years as opposed to annually, as is presently the case, under new housing rules.
Environment minister Alan Kelly has backed down from his initial proposal of linking rent increases to inflation through the Consumer Price Index.
It is thought that the new measure will be kept in place for four years with annual rent reviews then likely to return after that period.
***New Aer Lingus owner IAG said yesterday that it will expand Aer Lingus’ fleet as it looks to take on Ryanair and EasyJet in Europe.
IAG said it has converted a number of long-haul aircraft options into firm orders for Aer Lingus.
Aer Lingus will now receive two Airbus 330-300, which had a list price of $207m in early 2010, next year.
***A rebound in the euro late last summer, coupled with further falls in the price of oil, partly explains a slowdown in eurozone inflation, the European Central Bank (ECB) said in its economic bulletin yesterday.
The central bank’s top officials also raised concerns that suggested that it may expand its bond-buying programme.
The comments from the ECB are likely to be closely followed by Irish exporters, who have benefitted hugely from the quantitative easing pumped into buying eurozone bonds and assets.