Monday Newspaper Review - Irish Business News and International ...

Last Updated: Aug 20, 2012 - 3:23 PM

---

The Irish Independent reports that Ryanair is in talks with a host of airlines, including Richard Branson's Virgin, in an effort to ease competition issues that could prevent its takeover of Aer Lingus.

The so-called budget airline has held talks with Virgin about the UK carrier taking on Aer Lingus's Dublin-London routes if Ryanair successfully buys Aer Lingus.

One of the potential roadblocks to Ryanair's takeover is that Aer Lingus and Michael O'Leary's carrier control about 80pc of routes out of Ireland.

If Virgin or another airline took on the London routes, that would reduce this percentage substantially.

News of the negotiations came as Ryanair confirmed it is in talks to complete what would be the biggest aircraft order ever made by a European airline, with the potential delivery of up to 300 new planes.

The order -- which could exceed ?10bn in value -- is set to underpin the budget airline's determination to achieve 130 million passengers in traffic within the next five years.

Ryanair has confirmed it will now take delivery of its final batch of Boeing 737-800s secured under a record 100-aircraft order placed back in 2002.

A total of 11 new 737s are due for delivery by early 2013 from Boeing's US assembly plant.

Deputy chief executive Michael Cawley confirmed that negotiations about a new order are underway -- though the airline refused to reveal if the talks involve the giant US aircraft manufacturer or their bitter rivals Airbus.

Leverage

Ryanair has even tried to leverage down the asking price by courting fledgling aircraft manufacturers Irkut in Russia and Comac in China.

However, Ryanair -- with an all-Boeing fleet -- is understood to be keen to strike a deal with the US manufacturer, which could include options on long-haul aircraft that would allow the airline consider entering the transatlantic market.

The airline is interested in up to 300 new aircraft which, over a phased 10-15 year delivery period, will allow the gradual sell-off of older planes within their existing fleet.

However, Ryanair's Michael O'Leary has twice walked away from negotiations with Boeing in 2008 and 2010 after the US firm refused to match the Irish airline's discount demands.

Despite the fact Ryanair now boasts one of the youngest fleets of any European carrier -- with an average age of less than three years -- the airline is determined to secure its future expansion with a major fleet order.

However, unlike 2002, Boeing has strong orders for its short-medium haul aircraft.

It has received over 4,000 orders for the Boeing 737-800 series aircraft, with just over 2,500 delivered.

The new Boeing 737-900 series plane is also selling well, and the US firm has refused to grant Ryanair similar discounts to the 2002 deal.

The problem for Ryanair is that Boeing has received 737 orders from new Asian airlines and, after a spate of consolidation in the US airline sector, from American carriers.

This has kept aircraft prices high with a new Boeing 737-900 priced at ?72m. For bulk orders, however, airlines rarely pay the list price, and usually get a discount of some 40pc.

The Irish Independent also reports that one landlord has paid a staggering ?120,000 in property taxes on 400 houses and apartments they own, the Irish Independent has learned.

And new figures show such payments are not unique as top payers with multiple properties fork out on the double.

Seven landlords who each own more than 200 individual properties have stumped up ?300 on each unit.

This is made up of the controversial ?100 household charge, and the ?200 second-home tax.

Most of the top payers are individuals and not property investment companies, the Irish Independent has also learned.

Details of the large amounts paid have emerged as thousands of homeowners face prosecution for refusing to pay the household charge.

The figures also show:

• Two owners of between 300 and 400 properties each have paid the charge.
• Four others who own as many as 1,200 homes between them have also paid.

Only one company figures in the list of the top payers, with the remainder on the list being individual landlords -- according to the Local Government Management Agency, which is compiling a database of those who have registered for the tax.

The owners of multiple properties have already been hit with the ?200 charge on each of their properties under the second-home tax.

The owners were identified using the non-principal private resident database and the register of private-rented accommodation held by the Private Residential Tenancies Board.

Most of the 103,000 homeowners, mainly landlords, who got warning letters for not paying the controversial ?100 household charge ignored them and now face prosecution within months.

Fewer than 40,000 of them paid the charge after getting postal warnings at the start of last month.

They will receive a second warning letter, followed by the threat of court proceedings.

Fines

Non-payers face fines of up to ?2,500 -- plus another ?100 penalty per day if they refuse to pay after their conviction.

A second round of reminder letters is due to be sent out to another 100,000 households.

The majority of homeowners who got warning letters for not paying the controversial charge ignored them and now face prosecution.

Anti-household charge campaigners have promised to provide legal advice and support for anyone taken to court for non-payment.

Cash-strapped councils have begun to cut back on vital services because Environment Minister Phil Hogan is holding back their money until collection rates improve, and around ?160m is raised nationally.

Almost ?100m has been collected from property owners.

The Irish Times reports that the Coalitionrow over PRSI contributions reignited yesterday as a Fine Gael Minister suggested cutting social welfare rates would be better than raising taxes in the budget.

Minister of State for Finance Brian Hayes became the latest senior politician to voice objections to Labour Minister for Social Protection Joan Burton?s plan to increase PRSI.

?A general reduction in social welfare might well be the way to go,? Mr Hayes said.

An actuarial review to be presented to Government is expected to warn that the social insurance fund that provides for social welfare payments will face a significant shortfall.

Ms Burton favours plugging the fund?s shortfall by increasing PRSI contributions, a stance which has previously resulted in a public clash with Fine Gael Minister for Jobs and Enterprise Richard Bruton.

Mr Hayes yesterday said Ms Burton was correct to highlight the deficit in the fund but insisted increasing taxation rates was not the best way to fix the problem.

?Joan Burton is right to highlight the fact that there is a significant deficit in the social insurance fund which was established in the 1950s,? he said. ?She rightly points out we have got to fix that problem. It does not necessarily follow that a rise in taxes is the solution.?

He said his view was that the focus should be on the expenditure side, and a general reduction in social welfare spending might be a more appropriate response.

Mr Hayes said the Cabinet would look at the actuarial report when it was produced but stressed the overall priority for the Government must be to reduce the tax burden as far as possible.

?If we tax the hell out of people, it?s a disincentive to work,? he said.

Mr Hayes conceded the Government would face ?a very difficult balancing act? as it approached work on December?s budget.

?If the priority is to get people back to work and keep those who are in work in their jobs, you don?t achieve that by ratcheting up tax,? he said.

In a recent interview with The Irish Times, Ms Burton warned cutting social welfare rates in the budget might hinder rather than help the State?s economic recovery.

Taoiseach Enda Kenny said Budget 2013 would be ?the most challenging of the lifetime of this Government?. There were no ?personal ministerial decisions? about the budget, he added.

The Irish Times also reports that the Central Bank has taken witness statements from former staff of Irish Nationwide as part of its investigation into reckless lending by the former building society during the tenure of chief executive Michael Fingleton.

Former employees of the building society received letters from the Central Bank containing detailed questions about how Irish Nationwide approved loans and whether they were signed off by the society?s credit committee.

The Central Bank has followed up the letters, sent earlier in the year, and staff responses to the correspondence with detailed interviews from which witness statements have been taken.

Some former staff members sought assurances from the Central Bank in advance that their legal costs would be covered but these requests were refused.

The investigation, which is at an advanced stage, is focusing on specific customer accounts as examples of reckless lending by the building society, while lending practices within Irish Nationwide?s commercial loans department are also coming under examination.

The Central Bank investigation, led by the regulator?s enforcement division, is looking in particular at lending by the building society at the height of the property boom, 2004-2008, when most of the building society?s losses, which have led to a ?5.4 billion Government bailout, were incurred.

The Central Bank said the investigation was being conducted under its ?administrative sanctions procedures into historic lending practices at INBS?.

?Until this has concluded, no decisions may be made as regards any future potential action,? the regulator said in a statement.

The Central Bank said it could not comment further or provide additional details for legal reasons, citing confidential obligations under its own regulations.

Mr Fingleton ran the building society from the early 1970s until April 2009 when he stood down following pressure over his refusal to hand back a ?1 million bonus paid in the weeks after the Government introduced the bank guarantee covering Irish Nationwide and the five other financial institutions. The investigation is being guided by two reports compiled by accountants Ernst Young and Dublin law firm McCann FitzGerald into lending practices and corporate governance failures at Irish Nationwide.

The Central Bank can fine firms up to ?5 million and individuals up to ?500,000 but these will double under new legislation, the Central Bank (Supervisions and Enforcement) Bill 2011.

Minister for Finance Michael Noonan said last October that his department had received the two reports but they were ?of an interim nature?, confidential and subject to legal privilege.

?In view of the sensitive nature of their reports and their potential, if made public, to prejudice any future actions that may arise, I do not propose to publish the reports referred to at this time,? the Minister said in response to a parliamentary question.

Mr Noonan said in February the reports had also been passed to the Garda and they could not be published before the conclusion of the Central Bank?s investigation, any Garda investigation and civil legal proceedings taken by the former Anglo Irish Bank, which is winding down Irish Nationwide.

Irish Bank Resolution Corporation, previously known as Anglo, issued legal proceedings against Mr Fingleton and other former directors of the building society at the end of March over breach of contractual obligations.

The Office of the Director of Corporate Enforcement told The Irish Times last year that it had no power to investigate Irish Nationwide as building societies do not fall under company law.

The Irish Examiner reports that Philip Lynch pocketed over ?2.51m in payments last year from One51, the investment firm which sacked him last summer.

According to the Dublin-headquartered environmental and niche investment group?s latest annual report, which has just been published, total remuneration for Mr Lynch, who was ousted as chief executive in July 2011, amounted to just over ?2.514m for 2011. Mr Lynch?s total remuneration for 2010 ? his last full year in charge of the company ? came to just shy of ?1.48m.

In basic salary terms, Mr Lynch received ?355,750 for last year?s truncated period in charge. Benefits in kind added another ?30,666 to that and he received ?623,700 in "payments related to share transactions".

These related to deferred convertible shares held by Mr Lynch but bought by the company at the time of his departure.

What really ballooned Mr Lynch?s 2011 remuneration total, however, was a ?1.5m compensation pay-out for loss of office. This package included compensation for his car allowance, health insurance premium, and lost salary.

According to notes accompanying One51?s latest accounts: "Pursuant to Mr Lynch?s contract of employment, Mr Lynch was entitled to two years? emoluments on termination of employment. Accordingly, Mr Lynch was paid two times his annual salary plus two times his annual company car allowance, plus two times his annual health insurance premium.

"The total of this amounted to ?1,504,000."

Alan Walsh ? who was made interim chief in the immediate aftermath of Mr Lynch?s removal and became permanent chief executive last November ? was paid a basic salary of ?218,833 last year. However, that has since risen to ?300,000.

One51 made an after-tax loss of ?109.6m last year; up from a loss of ?104.6m in 2010. Turnover rose from ?375.7m to nearly ?422m.

Foreign news reviews and more comprehensive coverage of Irish news is available in our Daily News Digest in the Global category on Finfacts Premium.

Check out our new subscription service, Finfacts Premium , at a low annual charge of ?25 - - if you are a regular user of Finfacts, 50 euro cent a week is hardly a huge ask to support the service.

It's a simple fact that in the prevailing economic climate, the provision of high quality content cannot be sustained through advertising alone.?

Business executives who put a premium on time and value high quality information, should use our service.

? Copyright 2011 by Finfacts.com

Top of Page

Source: http://www.finfacts.ie/irishfinancenews/article_1024781.shtml

caucus stanford vs oklahoma state occupy rose parade vesta williams stanford stanford oklahoma state university