Sunday 21 April 2019

What it says in the papers: business pages

Paul O'Donoghue

HERE are the main business stories from this morning's papers:

Irish Independent

*A couple here with two children on an average wage end up paying effectively almost zero tax, the lowest in the developed world, a global economic think-tank has claimed.

When €270 a month in child benefit and tax provisions are taken into account, a family with two children, on the average wage, takes home 99.8pc of their gross wages, according to the Organisation for Economic Cooperation and Development.

The Paris-based organisation said that after tax and benefits, average single workers take home close to 80pc of their gross pay. But the OECD suggested a married couple with one partner working at the average wage fares much better.

*The European Central Bank could run out of eligible bonds to buy from Eurozone countries, including Ireland, because yields have turned negative, Moody’s Investor Service warned.

To boost the Eurozone economy and prevent deflation from setting in, the ECB announced in January it would buy €60bn of assets a month, focusing mainly on sovereign bonds. Purchases began last month.

One of the conditions of the so-called quantitative easing plan is that the yields on eligible bonds can’t fall below -0.2pc. But, as a consequence of the programme’s announcement, that is already happening and a number of government bonds have become ineligible, Moody’s noted in a report published yesterday.

*Banks have been told to stop living in the past and start doing deals with financially-stricken families.

The warning from the head of the State’s Insolvency Service came as new figures show lenders are rejecting one in four formal restructure arrangements put to them. Each vetoed deal is costing banks an average of €100,000.

Permanent TSB emerged as the mainstream bank most likely to reject deals.

Irish Times

*Ireland could be even harder hit than the UK itself if Britain decides to leave the EU, a leading London economic think tank has predicted.

Open Europe has claimed in a new economic study that in a best-case scenario where a “Brexit” occurs, Ireland would lose 1.1pc of its GDP by 2030, the equivalent of almost €2bn annually by today’s standards.

However, the think tank added that if Britain was to revert to World Trade Organisation rules, that Ireland “could see a  permanent loss to GDP of 3pc by 2030. This means Ireland would actually be worse off than the UK in such a scenario.”

*An Irish-founded microchip company have raised almost €38m in one of  Europe’s biggest venture capital funding rounds so far this year.

Movidius, which makes chips for camera sensors, is now to create as many as 100 jobs at its Dublin office, where it currently employs 15 people.

It brings the total amount that the company has raised in funding to date to €82.5m.

*Aer Lingus staff are looking for the return of €100m that was used to prop up the airline’s salary-linked pension plan, according to the Irish Times.

Unions say that a supplementary scheme that staff paid into when the airline floated in 2006 is no longer needed and the fund’s should now be redistributed among the workers.

They estimate that €70m has been put into the fund, which could now have grown to €100m.

Irish Examiner

*Operating profits at Shannon airport and its two subsidiary property and tourism firms rose last year.

That is according to the chief executive of the Shannon Group, Neil Pakey, who said yesterday that the group is planning “an ambitious investment programme” throughout the Shannon group.

In 2014, the airport enjoyed a 17pc increase in passenger numbers to 1.639 million passengers largely on the back of new Ryanair services. Mr Pakey said that the airport is now projecting single-digit growth in passenger numbers in 2015.

*Taxpayers’ stake in Permanent TSB may be cut below 75pc to smooth the first major stock listing of an Irish bank since the financial crisis.

The bank said yesterday that it will issue new shares to raise cash to repay €400m of so-called contingent convertible capital, a high cost loan that is owed to taxpayers.

The Government’s stake will automatically fall when new shares are issued and the bank said it may ask the State to sell additional shares to meet stock market requirements that at least 25pc of a company’s stock is freely available to trade on the markets.

*A complex described as a labour of love for the late Ryanair founder Tony Ryan is on the chopping block with an asking price of €6m.

The Village at the Lyons complex, which links up with the Ryan family's 600 acre Lyons Estate in Celbridge, Kildare, was previously offered  for sale less  than a year ago but was  removed  from the market by the Ryan family.

Features of the Village include  several two story buildings, some of which are hundreds of years old, a restaurant, four apartments and nine houses.

Online Editors

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