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

Irish employers are least likely to use artificial intelligence (AI) in the workplace, according to new global research.

The survey of 79,000 businesses across Australia, Canada, Ireland, New Zealand, and the UK was conducted by HR firm The Peninsula Group.

The research found that employers in Australia and New Zealand are the most likely to use AI regularly, while Irish employers are the least likely.

Nearly one-in-four Irish employers said they were fearful of the unknown when it came to AI and over half of Irish SMEs said they were concerned about the risk AI poses to security.

The research also showed a big increase in the number of Irish employers who were concerned about the reputational impact of AI.

Globally, a third of SMEs believe AI has the potential to positively transform the workplace, while one-in-ten believe it will be highly detrimental.

The study showed that use of AI remains low across small and medium businesses; despite a 50% year on year increase, only one-in-ten SMEs say they are regularly using AI in their workplace.

Almost half of those surveyed reported concerns about the security risks posed by AI, a 60% year-on-year increase.

Significant year-on-year increases were also seen in concerns around reputational impact, risks of breaking the law, loss of intellectual property and the impact on work quality and productivity.

Meanwhile there has been a 6% decrease in the number of businesses believing that AI has the potential to transform many workplaces, alongside a 19% increase in the number saying AI is useful but will not overtake traditional ways of working.

The survey also found a 21% increase in the number of employers saying they were fearful of the unknown when it comes to AI.

Where businesses have incorporated AI into the business, the majority are using it for administrative tasks or creative writing.

“AI continues to dominate the headlines, but it’s clear that businesses are still unsure of the balance between risk and potential,” said Peninsula Group Chief Operations Officer Alan Price.

“As usage increases, so do the concerns. This shows that there is still considerable work to be done to reassure SMEs around the world,” Mr Price said.

Article Source – Irish employers least likely to use AI – global survey – RTE

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Construction activity was flat for the second month in a row in August, according to the latest Purchasing Managers’ Index from BNP Paribas Real Estate Ireland.

The construction PMI showed a reading of 50 – the no-change mark – and which was broadly in line with the figure of 49.9 posted in July.

The latest index showed a very slight contraction in housing activity, while commercial activity expanded.

Input costs continued to rise sharply in August and BNP said the rate of inflation remained above the series average despite easing to a three-month low.

Building companies reported general material price increases, as well as higher charges from sub-contractors.

Meanwhile, employment levels fell for the first time in eight months – though demand for builders remains high, with wages up 11.7% year on year.

John McCartney, Director & Head of Research at BNP Paribas Real Estate Ireland, said that construction employment has been on an almost unbroken upward trend since the economy re-opened after Covid.

“However, for only the second time in 20 months, hiring went into reverse in August. This triangulates data from the recent Labour Force Survey which indicated a fairly pronounced pull-back in
construction employment,” he said.

“Paradoxically, there does not appear to be any lack of demand for builders – wage growth in the sector has gone from -2.2% per annum one year ago to 11.75% currently, which suggests intensifying
competition to recruit scarce workers,” he said.

“Likewise today’s PMI indicates that order books are expanding and the vast majority of building firms expect to be at least as busy this time next year. Therefore taking everything in the round, the data suggest that the sector may now be encountering labour constraints,” he added.

Article Source – Construction PMI flat for second month in a row in August – RTE

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Wind Energy Ireland said that wind generation here hit the highest on record for the month of August.

Its figures show that wind power generation in August totalled 1,068 gigawatt-hours (GWh), an increase of 3% when compared to the previous record set during the same month last year at 1,042 GWh.

Wind Energy Ireland said that strong winds in recent weeks also meant that, at 34%, Irish wind farms met just over one-third of Ireland’s electricity demand in August, surpassing the previous record of 33% the same time last year.

It noted that solar power and other renewables accounted for 6% of the country’s electricity in August, meaning that 40% of Ireland’s electricity came from renewable sources.

Today’s report shows that the average wholesale price of electricity in Ireland per megawatt-hour during August was €100.04, down slightly from €106.46 last year.

Wind Energy Ireland noted that prices on days with the most wind power saw the average cost of a megawatt-hour of electricity decrease by nearly 10% to €90.67 per megawatt hour and rise to €125.96 on days when the country relied almost entirely on fossil fuels.

The report also shows that Kerry wind farms produced more electricity than any other county last month at 129 GWh. It was closely followed by Cork (100 GWh), Galway (91 GWh), Mayo (84 GWh) and Donegal (70 GWh). The top three counties provided over a quarter Ireland’s wind power last month, Wind Energy Ireland added.

Noel Cunniffe, CEO of Wind Energy Ireland, said it was fantastic to see the positive contribution that renewable energy made in August, with wind and solar energy providing 40% of Ireland’s electricity.

But he noted that while Ireland is making progress on emissions reduction, it is still falling short on renewable energy targets.

“Only two turbines in the entire country with a capacity of 7 MW have been granted planning permission in the last six months. To put this in context, we need to get planning permission for, and build, an additional 3,800 MW if we want to achieve our 9,000 MW onshore wind target by 2030,” Noel Cunniffe said.

“These projects need planning approval by the end of 2026 to have a chance of hitting this goal and we are running out of time. To meet our Climate Action Plan targets, we really need to accelerate the delivery of new wind farms and to do this we need the Government to continue to invest in our planning system to ensure applications are thoroughly, but quickly, examined,” he added.

Article Source – Irish wind farms set new August generation record – RTE

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The domestic economy grew by almost 2% in the first six months of this year, according to latest figures from the Central Statistics Office.

Today’s CSO figures show that personal spending on good and services are continuing to grow and rose by 1.1% in the second quarter of 2024.

Wages grew in the quarter by 0.7%, while government spending was up 1.5%.

Overall figures for the quarter showed a mixed picture, but economists said that today’s figures confirmed robust growth for the Irish economy.

Professor John FitzGerald of Trinity College said wages, corporation tax and job creation all showed strong growth.

The figures for the second quarter of 2024 were dragged down by a big drop investment of 65% – which is due to changes in relation to intellectual property.

Today’s CSO figures show Gross Domestic Product, a measure of activity which includes multinationals, dropped in the second quarter of this year by 1% while Modified Domestic Demand slipped 0.5%

Finance and insurance fell by 9.8% in the quarter while the professional, administrative and support sectors fell by 2.9% compared with the first quarter.

Distribution, transport, hotels and the restaurant sector fell by 1.1% and the arts and entertainment sector dropped by 10.1%. Construction fell by 1% while real estate posted a modest increase of 0.9%.

Commenting on today’s CSO figures, the Minister for Finance Jack Chambers said that in terms of the domestic economy, Modified Domestic Demand – the preferred metric of Ireland’s economic performance – declined on a quarterly basis, but recorded positive growth of 1.5% on an annual basis.

“I am pleased to see that consumer spending contributed positively to this growth, with consumption increasing by 1.3% on an annual basis. The growth in consumer spending, alongside robust exchequer figures released yesterday and the strength of our labour market highlights the relatively healthy position of our domestic economy at present,” Mr Chambers said.

“Looking ahead, inflation has now eased back significantly and is expected to remain on a stable trajectory over the short term. This will help boost real incomes which should further support growth in our domestic economy in the second half of the year,” he added.

Article Source – Domestic economy grew by almost 2% in first half of 2024 – CSO – RTE

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77% of companies expect to grow their business in the next five years by developing new products and services, research from Deloitte shows.

The survey of 128 businesses involved in ‘Ireland’s Best Managed Companies’ programme reveals that 63% plan to increase their headcount, while 56% are planning mergers and acquisitions.

Just 2% of the companies surveyed aim to achieve an IPO in next five years.

When it comes to sustainability, 12% of companies said they are “very ready” to implement new reporting regulations, while 33% are “ready”.

Half of the companies said they were “somewhat ready”, while 5% are “not ready”.

When asked to identify the sustainability measures they are already undertaking, 64% said they tracked the success of their ESG policies, just over half said they reported carbon emissions and 52% said they had a sustainability manager in place.

Over a third have availed of grants or schemes related to retrofitting, and 46% have built targets into their business plans.

Meawhile, the survey found that over two thirds of Irish companies believe talent retention will be a significant challenge in the coming year.

A total of 67% listed retaining staff as a potential obstacle, putting it ahead of supply chain disruption, environment and sustainability challenges, cybersecurity threats and access to capital.

Article Source – New products and services to spur growth for 77% of firms – RTE

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Fixed broadband subscriber lines increased to 1.67 milllion between April and June, up over 3% on the same time last year.

The latest data from the Commission for Communications Regulation (ComReg) reveals that over 45% of these lines were fibre-to-the-premises (FTTP). This was up from 35% the same time last year.

ComReg said FTTP is the most purchased broadband technology, and is available at 68% of all premises in the country, as measured by aircodes.

Meanwhile, FTTP and or cable broadband is available at 81% of all premises here.

The data shows that the average residential fixed broadband subscriber used 433.1 GB of data on a monthly basis, up 13% on the same time last year.

In terms of mobile usage, 164 mobile minutes were used on a monthly basis, down 5.2%, while 32 texts were sent, down 1% and 13.7GB of data was used, up 0.5%.

5G subscribers increased to 1.71 million in the second quarter of the year, up 32% on the same time last year.

Article Source – Fixed broadband subscriber lines increase 3% – RTE

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The State’s fiscal watchdog has issued a stark warning to the Government about its management of the public finances with less than a month to go before the last budget ahead of the general election.

The Irish Fiscal Advisory Council has warned that ministers are “needlessly” adding pressure to the economy by repeatedly breaking a rule of limiting spending growth to 5%.

The council issued its pre-budget statement this morning and criticised the Government for spending too much of windfall corporation tax generated by mulitnationals.

The State has set up two funds to save half of those windfall gains but the Fiscal Council said all of the money should be set aside.

It also said the coalition was not keeping to its spending commitments which it made on budget day.

This was due to overruns and items which are not included in the expenditure commitments.

Minister for Finance Jack Chambers said the Government will “engage with the feedback” from the Fiscal Council and that it is “putting significant surpluses aside to protect progress for the future”.

The budget for the Department of Health was “set below the costs of delivering the same services but for a larger population and with higher prices,” it said.

The Fiscal Council said several items were being left out of the Government’s forecasts although the Cabinet agreed to fund them every year.

It added that these included: “The payment of the Christmas Bonus – something that the Government continuously pays out, but never budgets for.”

Excessive spending by ministers adding to inflation – Fiscal Council

The council said that excessive spending by ministers have added to inflation and costs for Irish households.

It said work by the Central Bank suggested that by not keeping with the spending rule consumer prices would rise by 1.9% by 2025.

“This adds about €1,000 to a typical household’s yearly outgoings and makes it harder for people to afford everyday essentials,” it said.

It was also critical of the Government’s handling of taxes paid by multinationals which was frequently generated by profits from abroad.

These taxes were allowing the Government run large surpluses, it said.

However, the tax receipts are “incredibly concentrated” as only three multinationals paid 43% of the tax in 2022.

The Fiscal Council said without these windfall tax receipts the country would be running a deficit which would require €3,600 in taxes increases per worker to close the gap in the public finances.

Chairperson of the Irish Fiscal Advisory Council, Seamus Coffey, has warned the Government could push domestic prices up if it breaches its own spending rules in the upcoming budget.

He said inflation has fallen but much of this was due to external factors and price pressures were continuing to build domestically.

This can be seen in areas such as housing, hospitality and rent, said Mr Coffey.

Speaking on Morning Ireland, Mr Coffey pointed out that Central Bank research has found additional spending was adding to inflation and costing the average household €1,000 annually.

Mr Coffey acknowledged that there are some areas where additional services should be provided, including health and housing.

However if the economy does not have the capacity to produce more, then additional demand will push up prices, he added.

Article Source – Government warned by Fiscal Council over management of public finances – RTE

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New figures from the Department of Finance show that the amount of tax collected by the State in the first eight months of this year rose by 12.6% on the same time last year on the back of higher income tax, corporation tax, VAT and excise duty.

The latest Exchequer figures from the Department of Finance show that tax receipts of €59.8 billion were collected for the eight months to the end of August, an increase of 12.6% on last year.

Corporation tax receipts amounted to €3.7 billion in August, a jump of 108.7% on the same month last year, with most of this monthly growth due to a timing factor, with the increase offsetting a decline earlier in the year.

On a cumulative basis, corporate tax receipts of €16.3 billion are up by 28.4% on the same time last year.

Today’s figures also show that income tax receipts of €2.6 billion were up on August last year by 3.3%.

August is not a VAT-due month with receipts of €0.4 billion were collected, ahead of the same time last year by €0.1 billion. VAT receipts to the end of August amounted to €14.5 billion, 7.5% higher than the same time last year.

The figures also show that excise duty receipts of €0.5 billion were up on August last year by 9.5%. On a cumulative basis, excise receipts of €4.1 billion are up on the same period in 2023 by 14%.

Meanwhile, stamp duty receipts of €978m for the eight months to the end of August are up 7.3% on the same period last year, while capital gains tax receipts stood at €393m, down by €18m and capital acquisitions tax receipts of €208m are up by €26m on last year.

Today’s figures show that an Exchequer surplus of €3.8 billion was recorded to the end of August, compared to a deficit of €0.3 billion the same time last year, an improvement of €4.1 billion.

But the department said the annual comparison is distorted by the transfer of €4 billion to the National Reserve Fund last year.

Today’s figures also show that total expenditure to the end of August amounted to €69.1 billion.

Spending in the Department of Health is running 10% ahead of the Government’s own forecast for the first eight months of this year.

Minister for Finance Jack Chambers said the latest tax figures are evidence of the resilience of the Irish economy.

“The most notable feature of the August performance was the substantial increase in corporation tax receipts,” he said in a statement.

“While much of the increase in August relates to a technical timing factor, and offsets a decline earlier in the year, in the year-to-date this revenue stream is now well ahead of last year,” he added.

However, Minister Chambers again cautioned that these receipts are subject to “exceptional volatility”.

“Put simply, there is no guarantee that these revenue streams will remain at this level indefinitely, and it is crucial that we do not build permanent spending commitments on the back of these,” he added.

Article Source – Tax take in first 8 months 12.6% ahead of last year – RTE

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One in three companies are struggling to find staff with the right skills, new research shows.

InterTradeIreland’s latest All-Island Business Monitor reveals that the business landscape across the island is mostly positive.

56% of the 750 companies surveyed said they are stable, while one third are growing.

However, access to skilled labour is putting pressure on firms.

Over half of these companies are experiencing long term vacancies, while nearly a quarter are dealing with short term skills gaps.

The findings show that certain sectors including construction, manufacturing and leisure, hotels and catering are most impacted by the tight labour market.

This is in addition to companies reporting growth, and those with 11-49 employees.

When asked about the steps that firms are taking to address any skills gaps, 31% of all businesses with more than three staff said they are embracing new technologies.

For those that are struggling to access skilled labour, just over half are increasing recruitment activity and widening their search.

Just 16% are investing more in training and development.

Over a quarter of the businesses surveyed saw sales rise between April and June, while one in three expect sales to rise in the next six months.

Seven in ten said they are profitable, although cost pressures remain the most important concern for businesses.

The survey also asked businesses how they have adapted to Brexit.

A third of companies said they are not impacted, while 46% indicated they have adjusted in full or to a large extent. 21% said they have only adapted to a small extent or not at all.

Over 60% of businesses surveyed said they have no knowledge at all of the Windsor Framework.

“InterTradeIreland has developed a Trade Hub which is a powerful resource for businesses looking to trade effectively and efficiently between Ireland, Northern Ireland and GB, with a fully funded trade health check available,” said Martin Robinson, Director of Strategy for InterTradeIreland.

“It also contains information for SMEs who want to know more about customs, VAT, regulation and cross-border employment,” he added.

Article Source – One in three companies struggling to find skilled staff – RTE

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Dublin Airport looks set to breach its cap of 32 million passengers this year, its operator daa has warned.

In a statement this morning. the company said that despite efforts to dampen airline demand, it now forecasts that passenger numbers in 2024 will be closer to 33 million.

Daa said 3.46 million passengers went through Dublin Airport’s terminals in August, making it the busiest month ever in its 84-year history.

That brought the total number of passengers using the facility so far this year to 22.7 million, 5.5% ahead of last year, a trend which it said is set to continue into September.

Daa said a dampening of demand in late autumn is expected due to a decision by the aviation regulator to cap winter slot allocations, limiting passengers for the season to 14.4 million.

It added that some airlines have already decided themselves to reduce their operations because of uncertainty around the passenger cap.

Daa has also made extensive efforts to reduce passenger numbers to comply with the limit, it claimed.

These include the removal of an incentive scheme for airlines and the launch of a scheme to encourage carriers to grow capacity at Cork instead of Dublin.

It said its actions have reduced passenger numbers by approximately 650,000.

However, it is now forecasting for the first time that it will breach the cap this year, by as much as 1 million passengers.

“Overall, I’m optimistic about the future except for one thing: the fact that growth at Dublin Airport is now being stalled by an outdated passenger cap, a very lengthy planning process and a lack of joined-up thinking on critical infrastructure in Ireland,” said Kenny Jacobs, chief executive of daa.

“This leaves Dublin Airport caught between a rock and a hard place. We want to grow so we can continue to connect Ireland with the world and support FDI, tourism and jobs.”

“But while we wait for planning to be granted, we are doing everything we can to comply with existing planning conditions.”

The cap was put in place in 2007 as part of the planning permission granted for the second terminal at the airport and restricts passenger numbers to 32 million a year.

If it is breached, it is unclear what if any consequences the airport could face as a result from Fingal County Council, which imposed the cap.

Daa has submitted an infrastructure application for planning permission which if approved would enable it to grow passenger numbers to 40 million a year.

But that is expected to take some time to get a decision on, so the airport operator is also preparing a separate application that would seek to lift the cap only, without the additional infrastructure.

“It is in no one’s interests to curtail tourism and investment at a time when so much public and private money is being spent to do the complete opposite,” Mr Jacobs said.

“We are a small, open, island economy on the edge of Europe that has always punched above our weight but we need more joined-up thinking in the development of critical infrastructure.”

“It’s time to all come together to realise an ambitious vision of Ireland that sets us up for the future. This includes support for growth at Dublin Airport, so we can keep delivering for Ireland, and growth at Ireland’s great regional airports at Cork, Shannon, Knock, Kerry and Donegal.”

Speaking on RTÉ’s Morning Ireland, Kenny Jacobs warned there will be a loss of aviation jobs next year due to the inability to increase the number of flights into Dublin Airport.

In relation to what the Government can do on the issue, he said this issue goes beyond transport.

“I think what needs to happen is faster planning. I also think what needs to happen is more joined up infrastructure thinking that gives Ireland the infrastructure with that we need,” he stated.

He said he welcomed the recent news by the Taoiseach that there may be a Department of Infrastructure set up.

“I think this would be a good thing, but ultimately this is about planning, not just transportation, and it’s about the speed at which Ireland moves to get critical infrastructure built,” he said.

Mr Jacobs said that airlines are annoyed about the cap as they want to grow at Dublin.

On travellers possibly being impacted by flight availability, he said it is not an issue in the coming months.

“The slots for the winter have been determined. The two big carriers here, Aer Lingus and Ryanair, have the same slots that they had last year, so I don’t expect any difficulty in the coming months in terms of people getting home for Christmas,” he said.

He also said he does not expect fares to be that much higher than last year, adding that it will be the summer of 2025 when a million passengers will come out and fares will go up.

“There may be one or two or several more routes that will fall off, so there’ll be a drop in connectivity,” he said.

“We are flagging no issue in the short term, but a significant impact next year,” he added.

He also acknowledged that daa should have tackled the cap sooner.

Environmentalists and some local residents are opposed to any further growth of Dublin Airport because of the impact it would have on emissions and also on noise.

Ryanair and other airlines are pushing hard for the cap to be lifted, saying it is impacting on their ability to grow their businesses at the airport.

Recently Ryanair warned the cap could lead to there being a million less passenger seats in and out of Dublin Airport next summer and that it could push up flight prices between Dublin and London considerably over Christmas.

CEO Michael O’Leary has repeatedly called on the Minister for Transport to act by removing the cap.

But Eamon Ryan has reiterated many times that he cannot legally intervene in what is an independent planning process.

Dermot Crowley, the chief executive of Dalata Hotel Group, said the passenger cap at Dublin Airport is an important issue for its business, and he remains hopeful that it will be resolved in the short term.

“The ability of Dublin Airport to continue to increase passenger numbers is critical to support further growth in the Irish economy, particularly in the hospitality and tourism sectors which are a key source of employment for the island of Ireland,” he added.

Dalata owns the Clayton Hotel and Maldron Hotel brands and is the biggest hotel group in Ireland.

Article Source – Dublin Airport set to breach 32m passenger cap this year – RTE

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