News Archives - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

Just over half (3,404) of the 6,185 complaints made to the Financial Services and Pensions Ombudsman (FSPO) last year were about banking, with customer service and disputed transactions the main reasons for such complaints.

Despite this, the 2024 FSPO Complaints Overview says the number of banking complaints was down by 12% on the previous year.

Complaints relating to insurance products rose by more than a quarter (26%) to 1,818 between 2023 and 2024, with the most common complaints about the sector concerning motor and private health insurance.

There were 411 investment complaints last year, representing an 11% year-on-year decrease.

6% of complaints (348) received related to pension schemes, with maladministration accounting for well over half of these complaints.

5,907 complaints closed during 2024, which was an increase of 14% on 2023.

According to the complaints report, over €4.2 million was agreed in mediated settlements during the year through the FSPO’s Dispute Resolution Service.

In addition, €1 million was offered in settlements with complainants during investigations, €308,750 was directed as compensation by the Ombudsman in legally binding decisions, and €152,273 was offered in redress.

Financial Services and Pensions Ombudsman Liam Sloyan said: “It is clear from the complaints received in 2024 that some providers have been very successful in reducing the number of complaints received by the FSPO in relation to their services.

“This shows that positive changes that avoid complaints arising or that resolve complaints internally can bring about change that benefits consumers.

“Those providers who have not succeeded in reducing the number of complaints being submitted to this office should take note of the changes and improvements successfully implemented by providers in their sector and consider what they can do to achieve similar results.”

The FSPO initially deals with complaints informally, but when early intervention doesn’t resolve the dispute, the FSPO investigates and issues a decision that is legally binding on both parties (subject to appeal).

The Ombudsman can direct a financial service provider to pay compensation of up to €500,000 to a complainant and/or to rectify the conduct that is the subject of the complaint, with no limit on the value of the rectification.

Article Source – Over half of complaints to FSPO in 2024 related to banking – RTE

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A new report from the Sustainable Energy Authority of Ireland (SEAI) estimates that Ireland’s energy transition will drive up to €19 billion per year of new business by 2030.

It said Irish based companies have the potential to capture up to 42% of that amount.

The report is being launched at the SEAI Energy Show in the RDS.

The report examines in detail how well Irish enterprises are positioned to capture new business opportunities arising from the ongoing transition to sustainable energy systems in Ireland and beyond.

It found that the main opportunities for Irish companies will be in construction, engineering, and financial services, as well as service and equipment delivery by local enterprises.

Apart from the power sector, Ireland’s main focus is the decarbonisation of transport, buildings, and industry.

This is being driven by measures such as electric vehicle incentives, building energy efficiency upgrades, and support for industrial fuel switching.

Underpinning these efforts is a key focus on enhancing Ireland’s energy security by reducing reliance on imported fossil fuels.

The report said the total capital expenditure by 2030 associated with this transition could amount to between €17bn and €19bn per year in Ireland alone.

The majority of the investment is anticipated to be in low carbon transport, energy in buildings and renewable electricity generation.

The report highlights Irish companies have the potential to capture €2.5bn of new business in efficient construction, almost €1.7bn in electric vehicle business, and a similar amount of new business in the provision of sustainable biomass heating for buildings.

It also highlights big opportunities for Irish companies in the provision of smart grids, solar panels, smart buildings and homes, and biomass anaerobic digestion.

Although Ireland is unlikely to manufacture the key components of the technologies highlighted in the report, the SEAI said local enterprises could still capture a share of the market by providing some services and equipment.

However, for that to happen the report said it is essential to direct sufficient funding towards enhancing and expanding local manufacturing facilities and service businesses.

Looking beyond Ireland, the report also points to new business potential in EU-27 and UK markets, which it estimates could grow to more than €1.5 trillion per year.

It said this growing international market offers an export opportunity for Irish suppliers of sustainable energy products and services.

However, it notes that Irish companies currently have limited capabilities to effectively engage with those EU and global markets.

Nevertheless, it found that Ireland has a wealth of wind and ocean energy potential and that building a strong local market can help create a springboard for Irish companies to start exporting to wider markets by showcasing Irish products and services and enabling companies to establish revenue streams.

Minister for Climate, Environment and Energy Darragh O’Brien said the report highlights that this energy transition will deliver for both our planet, and our economy, creating significant opportunities for Irish businesses in the supply chain where Ireland is well positioned to capitalise.

“I look forward to collaborating with my colleagues across government, and industry partners to deliver on this opportunity, and continue to position Ireland as a leader in the energy transition,” he said.

Article Source – Energy transition could generate €19 billion a year – SEAI – RTE

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There is still room to lower European Central Bank interest rates further, and the 2.5% deposit rate could fall to 2% by the end of the summer, French central bank chief Francois Villeroy de Galhau told a German newspaper.

The ECB has cut rates six times since last June but has given little guidance about its next move, even if policymakers tend to agree that more easing is still likely and only the timing of the next cut was up for debate.

“I believe there is still scope for further easing. However, the pace and extent remain open,” Frankfurter Allgemeine Zeitung quoted Villeroy as saying on Tuesday.

“Seen from today, markets expect an ECB interest rate of around 2% in the summer,” Villeroy said. “It is a possible scenario, considering that summer in Europe lasts from June till September.”

ECB board member Piero Cipollone and Greek central bank Governor Yannis Stournaras have both made the case for further policy easing in recent days, firming up market bets for a cut as soon as April. But Ireland’s Gabriel Makhlouf and Slovakia’s Peter Kazimir have taken a more cautious stance.

Markets see a 65% chance of a cut in April, but a move by June is fully priced in. Another cut is then expected later in the year between September and December.

Further cuts may be justified by easing price pressures, as there is a trend for disinflation and price growth is approaching the ECB’s 2% target.

Another consideration is that the recent surge in yields, particularly in Germany, has tightened financing conditions, undoing some of the ECB’s past effort to lower borrowing costs.

“All other things being equal, this rise in long term yields means a tightening of financial conditions, which we have to incorporate in our monetary assessment,” Villeroy said.

Borrowing costs surged after Germany unveiled plans to boost spending on defence and infrastructure to fill the void created by the apparent retreat of the US, particularly in defending Ukraine from Russia’s invasion.

This extra spending could boost growth but could also raise prices, especially if the spending is financed by new debt.

But Villeroy appeared to downplay the potential impact on prices when asked if the spending would fuel inflation.

“No, not necessarily, as domestic demand remains weak in Europe, and if it is accompanied by the expansion of industrial supply,” Villeroy said.

Article Source – ECB rates could fall to 2% by end of summer, Villeroy says – RTE

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The Central Bank has published a new consumer protection code aimed at modernising the set of rules that businesses must abide by when dealing with consumers.

The regulator said the code “reflects the way financial services are provided in a digital world”.

It enhances consumer protections in areas such as digitalisation, mortgage switching, fraud and scams, as well as greenwashing.

The updated code follows an OECD review of consumer protection in Ireland late last year, which recommended more customer engagement by the Central Bank when devising policies, and other measures to beef up consumer protection.

Under the changes announced today, firms will have to be customer-focused when designing and implementing digital services.

They will also have to meet new disclosure requirements on switching options and the cost of incentives on the overall cost of credit of a mortgage.

Meanwhile, companies will have to ensure customers can have no impression or misunderstanding that they are purchasing regulated products and services, where that is not the case.

Under the revised code, companies must also be vigilant of the evolving risks of frauds and scams, and take appropriate actions to protect customers.

To tackle the risk of greenwashing, firms will be required to ensure they communicate clearly on climate and sustainability features of products.

Firms have a year to put the revised code in place, and so the provisions will apply from March 2026.

It follows a review that included a discussion paper, public survey, public consultation and engagement with consumer and industry stakeholders.

Central Bank Governor Gabriel Makhlouf said that “the ways in which we as consumers buy, use and engage with financial services are changing significantly”.

“These changes reflect new preferences, provide new opportunities and meet different needs on the part of individuals, households and businesses. But they also create new challenges and new risks in the financial sector that we supervise and for the consumers we protect. In the face of this changing ecosystem, we need to adapt, evolve and transform.”

Article Source – Central Bank announces new consumer protection code – RTE

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Asking prices for homes nationally rose by an average of 3.7% during the first three months of 2025, according to the latest Daft.ie House Price Report.

The study suggests the typical listed price across the country in the first quarter of the year was €346,048, which is 11.6% higher than the same time last year and 35% higher than at the onset of the Covid-19 pandemic.

It found that the current rate of inflation in the market is the second-highest seen in the ten years since mortgage market rules were introduced, exceeded only by the spike in prices seen in early 2017.

According to Daft, the surge in inflation is being driven by Dublin and the rest of Leinster.

It said inflation in the capital is now running at 12.2%, the highest rate in eight years, while in the rest of Leinster, the annual increase in prices is 13.4%, also the highest since early 2017.

The report found that Galway (13.2%) and Limerick cities (13.8%) are also seeing rates of inflation above the national average, while the rate seen in Waterford (11.2%) and Cork cities (9.2%) is slower.

Daft said the average list price for a home in Dublin is now €460,726, compared with €409,482 for Galway city, and €358,676 for Cork city.

The sharp increases in asking prices are coming at a time of very tight supply, with the study finding that the number of second-hand homes available to buy across the country on 1 March was fewer than 9,300.

This figure is down 17% year-on-year and also marks the lowest total ever recorded in a series extending back to January 2007.

Report author and economist at Trinity College Dublin Ronan Lyons said the increases are “clearly linked to the lack of second-hand supply.

“Even as transactions of newly-built homes increase, the second-hand market is at its tightest in a series going back almost two decades.

“The latest surge in inflation is due, at least in part, to the well-flagged increase in interest rates, which saw existing homeowners fix their rates, often for many years, with consequences for liquidity in the second-hand market.

“But while the increase in interest rates has played a role, the underlying issue remains the housing deficit.”

“The mortgage market rules were introduced a decade ago to prevent a repeat of the loose lending that drove Ireland’s Celtic Tiger bubble and crash. Nonetheless, prices are up 75% since then, not because of too much credit but because of too few homes,” Mr Lyons added.

Article Source – Asking prices for homes rise by average of 3.7% in first quarter – report – RTE

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The body which manages the electricity grid says demand is expected to grow by 45% from its 2023 level to 2034 and the peak requirement for power will rise by 24% over the same period.

EirGrid says there will be a “challenging outlook” between this year and 2027 until new sources of power come on stream.

It adds much of the growth in demand will come from data centres, electrification of heat and transport from increased use of heat pumps and electric vehicles.

New technologies which use significant amounts of power in the information technology sector will also add to the requirement for more energy.

In its All-Island Resource Adequacy Assessment report, EirGrid says in order to manage the increased demand it has access to temporary emergency generation capacity.

It says this can be “called upon in the event of a shortfall in capacity and where alerts on the system are likely.”

This means that power stations in Dublin at North Wall and Huntstown, Tarbert in Co Kerry and Shannonbridge in Co Offaly can be brought online with 15 minutes notice.

EirGrid can also use power from Moneypoint in Co Clare until March 2029.

It is expected that access to power will be boosted when the Celtic Interconnector between Ireland and France becomes operational along with new gas capacity in 2027 and 2028.

EirGrid says data centres and new technologies will use 27% of electricity this year but will rise to 31% of demand by 2034.

The proportion of overall electricity demand from heat pumps is estimated to increase from 3% in 2025 to 10% by 2034, while the proportion of overall demand from electric cars will rise from 1% to 8% during the same period.

The report says the electricity industry will have to find new ways to meeting the increasing need for energy without relying mainly on burning fossil fuels.

It also notes the Programme for Government puts emphasis on accelerating housing supply which will increase electricity requirements.

Ireland recorded a new peak demand in electricity of 6,024 megawatts on January 8, 2025. This was the first time the peak electricity demand passed the 6,000 megawatt mark.

Demand first passed 5,000 megawatts during the extreme cold snap of December 2010.

By 2034 EirGrid’s analysis shows demand will be above 7,000 megawatts.

Article Source – Electricity demand set to grow 45% between now and 2034 – RTE

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The case for another European Central Bank interest rate cut is strengthening, ECB board member Piero Cipollone said today, just days after another prominent policy dove made a similar argument.

The ECB has cut interest rates six times since last June but provided few signals about its next move after the most recent reduction at its March meeting, arguing that uncertainty is simply too high for the bank to guide markets.

Economic conditions have shifted since that meeting, however, Cipollone argued, and inflation may be coming down quicker than expected.

“Key issues have arisen that have strengthened the arguments in favour of continuing to lower rates,” he said in an interview with Spanish newspaper Expansion. “We are likely to reach our inflation objective sooner than our latest projections indicate.”

Greek central bank chief Yannis Stournaras made a similar argument on Friday, arguing that everything was pointing in the direction of a cut in April.

Cipollone said that energy prices have fallen significantly since the March 6 meeting, the euro has appreciated and real rates have increased, all contributing to a faster drop in inflation.

“And if the United States were to impose tariffs on European exports, that would have a negative impact on demand, which would further strengthen the downward trend in inflation,” he said.

“Trade tensions between China and the United States could lead to China redirecting its products to the European market, increasing the downward pressure on prices,” he added.

Financial markets see a roughly 60% chance of a rate cut in April but a move by June is fully priced in. Investors then see another cut, probably in December, taking the ECB’s deposit rate to 2% by the close of 2025.

Article Source – ECB board member makes case for more interest rate cuts – RTE

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Euro zone business activity grew at its fastest pace in seven months in March, supported by an easing in the long-running manufacturing downturn despite slower growth in services, a survey showed.

The improving business climate in the common currency bloc could gain more traction over the coming months as plans for a spending splurge in infrastructure and defence, particularly in Germany, raise optimism for a turnaround in Europe’s economic fortunes.

HCOB’s preliminary composite euro zone Purchasing Managers’ Index, compiled by S&P Global, rose to 50.4 this month from February’s 50.2, its highest since August.

It has remained above the 50 mark separating growth from contraction since the start of this year.

Growth in activity was still meagre, however, and the index was below a prediction in a Reuters poll for a rise to 50.8.

An index measuring the bloc’s dominant services industry declined to 50.4 from last month’s 50.6, below the Reuters poll forecast of 51.

But a near three-year-long contraction in manufacturing eased and its headline PMI increased to an over two-year high of 48.7 from 47.6 in February. The Reuters poll had predicted it at 48.2.

An index measuring factory output that feeds into the composite PMI showed expansion for the first time in two years. It jumped to 50.7 from 48.9, its highest since May 2022.

“Just in time with the beginning of spring we may see the first green shoots in manufacturing,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.

“While we should not be carried away by a single data point, it is noteworthy that manufacturers expanded their output for the first time since March 2023.”

Faced with higher costs, manufacturing firms raised prices charged. Both input and output inflation hit their highest in seven months. However, prices grew at a slower pace in the services sector.

In a sign of improving sentiment among businesses, employment generation gathered pace this month. The composite employment index rose to 50.1 from 49.2, above breakeven for the first time in eight months.

Article Source – Euro zone economy growth accelerates to seven-month high in March, PMI shows – RTE

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At least half of housing commencements in 2024 were due to uncertainty over the extension of the development levy waiver or water connection charge refund, according to the latest Housing Market Monitor for the fourth quarter of 2024, published today by Banking & Payments Federation Ireland.

More than 69,000 new homes commenced in 2024, more than the total number of homes started in 2022 and 2023 combined.

The report shows around 75,000 housing units could be completed in the next two years, based on commencement activity.

But it said inefficiencies in land, capital and labour issues must be addressed to increase housing output in the short term.

The BPFI noted that about 95,000 apartments were given planning permission between 2018 and 2022 but only 44,000 apartments were completed between 2018 and 2024.

“Today’s report shows that while there was a 6.7% decline in housing completions in 2024, solely driven by the fall in the level of apartment completions, more than 69,000 new homes commenced in 2024, more than the total number of homes started in 2022 and 2023 combined,” the chief executive of BPFI Brian Hayes said.

“Some 43% of those housing starts were apartments. However, we estimate that at least half of the total number of homes commenced during 2024 were due to the uncertainty about the extension of the development levy waiver in April (later extended until December) and water connection charge refund arrangement expiring in September,” he said.

“We believe that the completion date for the units commenced last year as well as some of the commencements from the end of 2023, will span the two-year period of 2025 and 2026, and hence we forecast a total housing output of around 75,000 units in the next two years,” he said.

“We expect a significant increase in output, particularly in the first half of this year but to reach the output levels required to meet demand, key labour, land and capital issues will need to be addressed,” he added.

Earlier this week the Central Bank said fewer homes will be built over the next two years than it had forecast earlier, due to a fall in residential construction last year.

The number of commencement notices lodged for new homes fell to 1,017 in February from 1,178 in January, new figures from the Department of Housing, Local Government and Heritage also showed this week.

Speaking on Morning Ireland, Bank of Ireland’s chief economist Conall MacCoille there was a surge in developers rushing to take advantage of waivers on development levies, local authority charges and water infrastructure charges, leading to a big rush big rush of commencement activity.

“I suppose developers typically go face by phase in a large housing development. What they’re doing or what they did last year was effectively was commence the entire development to make sure they can avail of that waiver,” he said.

“We’re really in the dark about where housing completions are going to end up this year. Obviously last year was a little bit disappointing and hopefully they pick up,” the economist stated.

He said he does not think that anyone expects 70,000 houses to be built, adding that the debate is really around if we will see 35,000 completions this year.

Whether that figure is 35,000 or 40,00, he said we are only “scratching the surface” of the kind of demand that is out there for housing.

Article Source – Land, capital and labour issues must be addressed to increase housing output – BPFI – RTE

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The Federal Reserve held interest rates steady today, as expected, but US central bank policymakers indicated they still anticipate reducing borrowing costs by half a percentage point by the end of this year in the context of slowing economic growth and, eventually, a downturn in inflation.

Taking stock of the Trump administration’s rollout of tariffs, Fed officials actually marked up their outlook for inflation this year, with their preferred measure of price increases expected to end the year at 2.7% versus the 2.5% pace anticipated in December.

The Fed targets inflation at 2%.

But they also marked down the outlook for economic growth for this year from 2.1% to 1.7%, with slightly higher unemployment by the end of this year.

Policymakers said risks had increased, with a near unanimous sentiment in saying the outlook for the year was muddled.

“Uncertainty around the outlook has increased,” the Fed said in a new policy statement that accounts for the first weeks of the new Trump administration and the initial rollout of what White House officials say will ultimately be global tariffs on imported goods.

The Fed left its policy rate in the 4.25%-4.50% range.

US stocks extended their gains slightly after the release of the Fed’s policy statement and projections, with the Dow Jones up 0.5% and the tech-heavy Nasdaq Composite up 0.7%.

US interest rate futures priced in a cut of just over half a percentage point this year, with traders seeing a 62.1% chance of the Fed resuming rate cuts at its meeting in June, according to LSEG estimates, compared with a 57% chance before the announcement.

The dollar pared some of its earlier gains, with an index of major currencies up 0.5%. US Treasury yields also eased slightly, with the benchmark 10-year note yield up 1.7 basis points on the day to 4.298%.

“The Fed is as lost in the wilderness as the rest of us trying to decipher the continual shifts in economic policy from 1600 Pennsylvania Avenue,” said Inflation Insights’ Omair Sharif, referring to the street address of the White House. “Beyond the cut to median growth this year and the boost to median inflation, the most telling aspect of the (projections) is the shift higher in uncertainty.”

Lower growth, higher unemployment

The Fed also said it will slow the ongoing drawdown of its balance sheet, known as quantitative tightening.

Fed Governor Chris Waller dissented from the policy statement because of the change in balance sheet policy.

The rate projections matched the expectations set by financial markets ahead of the meeting, and kept intact the Fed’s general outlook that gradually slowing inflation will allow further monetary policy easing.

But it may be a rockier road getting there. While not mentioning President Donald Trump or tariffs in the statement, the Fed projections for higher inflation this year coincide with the unveiling of his tariff plans.

It appeared, though, that the Fed for now is looking through the price shift involved in those import taxes, treating them as a one-off change rather than a persistent source of price pressures.

Underlying inflation beyond 2025 was unchanged from the Fed’s projections in December, expected to return to 2% by the end of 2027.

The projection for rate cuts beyond this year was also unchanged, hitting 3.1% by the end of 2027, near the level seen as having a neutral effect that neither encourages or discourages spending and investment.

The Fed cut its benchmark interest rate by a full percentage point last year, but has kept rates on hold this year as it waits for further evidence that inflation will continue to fall, and, more recently, for more clarity about the impact of Trump’s policies.

Compared to Trump’s promise of a coming economic “golden age” because of his push to impose tariffs, deport large numbers of immigrants and loosen regulations, the Fed’s outlook forecasts growth at 1.7% this year and just 1.8% in both 2026 and 2027, with the unemployment rate at 4.4% this year and 4.3% in 2026 and 2027.

The unemployment projections are above the lows of recent years and the latest reading of 4.1% in February.

Article Source – US Fed holds interest rates steady as expected, as Trump tariff fears buffet markets – RTE

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