News Archives - Page 4 of 526 - Pat Carroll PCCO - Chartered Accountants & Tax Advisors

Lack of state support a barrier to fintech expansion – report

A lack of government support for growth and innovation has been identified as a major barrier to expansion in the financial technology, or fintech, sector in a report carried out by Ibec group Financial Services Ireland.

Fintech is defined as the use of new technology to improve and automate the delivery and use of financial services.

The study examines developments in the sector and as part of it, Amárach Research surveyed a range of firms, from long established companies in the financial services sector – who are adapting product delivery to meet the demands of the digital age – to fintech start ups.

Both categories said government support for growth and innovation was lacking.

Among established financial services enterprises, “regulations governing the financial sector” was the most commonly identified challenge followed by skills shortages and staff costs.

For newly-established fintechs, the biggest challenge was sourcing skilled workers followed by regulations.

Despite the challenges, companies operating in the sector were optimistic about the growth outlook as well as staffing intentions.

86% of start-ups said they expected to grow turnover in the coming years with the average expected growth in excess of 72%.

Among established firms, 73% were expecting expansion in turnover with average expected growth of 17%.

70% said of all firms said they expected to increase headcount over the coming years, despite the challenge in sourcing adequate skills.

The report recommends the establishment of a ‘fintech hub’ to enhance the development of new fintech firms, while also fostering collaboration and the sharing of knowledge about financial services technology.

Article Source: Lack of state support a barrier to fintech expansion – report – Brian Finn – RTE

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Euro zone economy grew just 0.1% in second quarter

The euro zone economy grew by a mere 0.1% in the second quarter, lower than previously estimated, official data showed today.

The European Union’s Eurostat data agency had previously put growth at 0.3% between April and June compared with the previous quarter in the countries that use the euro currency.

Eurostat also revised its first-quarter figures, saying the economy grew 0.1% and did not stagnate as previously thought.

“The European economy is generally stagnating. It is suffering from high interest rates, energy prices and the global slowdown,” said Charlotte de Montpellier, analyst at ING bank.

The European Central Bank has hiked rates in efforts to tame soaring inflation.

Europe’s top economy, Germany, slipped into a recession at the turn of the year and stagnated in the second quarter.

Eurostat maintained its estimates for the 27-nation EU, with zero growth in the second quarter and output grew by 0.2% in the first quarter.

Article Source: Euro zone economy grew just 0.1% in second quarter – RTE

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Texts and phone calls down, data usage up

A new report reveals that mobile phone users are sending less texts and making less calls, but using more data.

New figures from the Commission for Communications Regulation, ComReg show on average people make 145 minutes of calls every month, down over 26% on the same time last year.

The amount of text messages being sent also dropped, with the average user sending 31 texts per month, down almost 15% on the second quarter of 2022.

On the other hand, the amount of data being used jumped almost 9% to an average of 13.6GB per month.

When it comes to broadband, the report shows that fixed broadband subscriber lines increased to 1.62 million between April and June.

This was an increase of 0.3% on the previous quarter and a jump of 1.7% compared to the same period last year.

ComReg said fibre-to-the-premises (FTTP) is now the most commonly purchased broadband technology in Ireland, representing almost 36% of fixed broadband subscriber lines.

The data shows that on a monthly basis an average residential fixed broadband subscriber line used 384.7 GB of data, an increase of almost 12% since the same three month period last year.

Article Source: Texts and phone calls down, data usage up – Gill Stedman – RTE

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Higher mortgage rates, oil costs push inflation to 6.3%

Inflation rose at an annual rate of 6.3% in August, up from 5.8% in July, according to the latest Central Statistics Office figures.

Inflation took a step in the wrong direction last month with the increase mostly driven by higher mortgage interest rates and higher prices for home heating oil and motor fuels.

The recent increases in food prices stalled on average and the annual rate slowed to 7.7%.

But the price of services continues to edge up. The overall annual rate of service inflation was 7.3%.

Prices for package holidays, although discounted in August, are 58% higher compared to a year ago.

Hairdressing, home insurance and health insurance are also higher. Motor insurance, which had seen falls in recent years, also edged up last month.

Prices in restaurants, bars and hotels are all higher than a year ago and are up by around 6% on average.

While recent announcements by energy companies of long-awaited falls in electricity and gas prices will be welcomed, the reverberations of last year’s energy price shock still seem to be rumbling on.

Today’s CSO figures show that the Consumer Price Index was up 0.7% on a monthly basis, compared to a rise of 0.2% the previous month.

Minister for Finance Michael McGrath has said the overall trend over time had been downward pressure on inflation, and he anticipated that trend would continue over time.

He said it was important not to read into data from one month as “it is the trend over a number of months that really matters.”

“We will keep this under very careful review now over the next number of weeks leading up to the decisions that we have to make in the budget, in particular around the cost of living supports.

“We do believe that households will need some additional help in the budget in relation to temporary or one off measures to assist them with the cost of living,” Minister McGrath said.

He added that the reduction in energy prices are very welcome, but said they only go a small way to offset the increases seen over the last 18 months.

“And so we will take on board where we are at with inflation, where we are at with energy prices being charged to consumers when we make the decisions in the budget about what is the right blend, the right mix of supports for households, but there will be supports for people coming in a number of weeks’ time once we announce the budget”.

A report published yesterday by the Central Bank stated that Government interventions last year to assist households with the rising cost of living appear to have added to demand, helping to push up inflation.

However, today, Minister for Public Expenditure Paschal Donohoe said that is not the case.

“We are seeing inflation in some parts of our economy still higher than we would want, but public expenditure growth has not been higher than the rate of inflation within our economy. So if it is having an effect on inflation levels, I think it’s going to be on a low level,” he said.

“The very reason we had a series of one-off measures is so that we could avoid big permanent expenditure increases that might have a bigger effect on inflation within the economy.”

Minister Donohoe said the big ticket items that were designed to help people with the cost of living were one offs in November, December, January and February.

He said “any effect that they might have had on inflation, if they did have one is well worn out of the figures by now. So overall I don’t believe it’s having a contributory effect on inflation at the moment.”

Article Source: Higher mortgage rates, oil costs push inflation to 6.3% – Robert Shortt – RTE

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Women encouraged to consider construction careers

The shortage of construction workers is one of the biggest challenges facing the building industry amid warnings that there is not enough skilled labour to meet the demand for housing.

Efforts are under way to try to encourage more women to enter the sector.

Samantha Kelly works for Glenveagh Construction

Programmes have also been launched aimed at boosting interest in construction careers among school children.

On a building site in Co Kildare, construction management graduate Samantha Kelly is carrying out her daily site inspections.

She may be working in what is still a male-dominated industry but Ms Kelly said she has always felt welcome on the building site.

“There is actually quite a few female construction workers here on site,” she said.

Barbara Robinson said construction is ‘not all about mucky boots’

“We have a lady that drives a big dumper, we have another intern doing construction management and we have a woman in health and safety. Overall it is still male-dominated but women are coming up into it now.”

“You never feel out of place. It is very diverse and you are always included.”

“Women should definitely look at construction as a career. There are different stages and you don’t have to work on-site if you don’t want to,” Ms Kelly said.

Ms Kelly works for Glenveagh Construction which is focussed on creating a broader and more inclusive workforce as a way of tackling the labour shortages that it is currently facing.

“It is a challenge. We are looking for project managers, programme managers, site leaders but also lots of roles inside the office such as in learning and development,” said Barbara Robinson, Training and Organisational Development Manager with Glenveagh.

The shortage of skilled labour is one of the biggest challenges facing building companies

“There is a misperception about what it is like to work in construction. It’s not all about mucky boots, it’s a good place to work.

“We foster diversity and inclusion, we have great policies in place and my role wouldn’t have been there a few years ago. I look after nurturing and developing talent, offering mentoring and coaching,” Ms Robinson said.

Encouraging more women to take up jobs in construction is a key part of the Government Action Plan aimed at boosting employment in the sector.

The shortage of skilled labour is one of the biggest challenges facing building companies.

It has led to rising wage costs which in turn is contributing to increasing tender prices.

The Society of Chartered Surveyors Ireland said more than 100,000 additional workers will be needed across property and construction over the coming decade to meet demand.

President of the Society of Chartered Surveyors Ireland Enda McGuane said: “I think what we see across all aspects of the industry is that there are shortfalls everywhere and that gives people opportunities”

“There is everything from block layers to carpenters and the Society of Chartered Surveyors also has a range of disciplines such as quantity surveyors, building surveyors, planning and development professionals, as well as people at the other end of the process, like property and facility managers who run people’s homes.”

“In addition, we need architects and engineers as well as an array of skills across all areas,” Mr McGuane said.

There are in-person tutorials as well as virtual reality demonstrations

Educational programmes have been launched designed to encourage school children to think about careers in construction.

The National Construction Training Campus in Mount Lucas, Co Offaly has developed a mobile training unit that travels to schools showcasing construction and retrofitting skills.

There are in-person tutorials as well as virtual reality demonstrations.

Among those taking part in a recent session was Eimear Evans, a 6th ear student at Tullamore College.

The National Construction Training Campus has state-of-the-art simulators to train people how to operate plant machinery

“Since I was a child, I always loved making things with my hands and I am thinking of doing architecture in college,” Ms Evans said.

“I have noticed there are a lot of more men in construction but I would love to change that if I got the chance.”

The National Construction Training Campus also has state-of-the-art simulators to train people how to operate plant machinery.

“The simulation hub has construction plant machines from tower cranes down to mini diggers,” said John Kelly, Manager of the National Construction Training Campus.

Mr Kelly said: “It is about showing people that if you don’t come from a construction background, you can still learn to operate these machines. We will train people up, put them through all scenarios before they move on to the real thing.”

Away from the classroom and back on the building site, construction management graduate Samantha Kelly said it is an industry that has so much to offer.

“I love it, it is very active. You don’t have to sit at a desk if you don’t want to,” she said.

“Construction is a great place for women.”

Article Source: Women encouraged to consider construction careers – Brian O’Donovan – RTE

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Commercial vacancy rate hits 14.1% – highest on record

There were 29,798 vacant commercial units recorded across the country between April and June.

There were 29,798 vacant commercial units recorded across the country between April and June.

By Gill Stedman

The commercial vacancy rate in Ireland has hit 14.1%, the highest level since GeoDirectory started recording the data ten years ago.

GeoDirectory is Ireland’s official complete database of commercial and residential buildings.

The rate increased by 0.2 percentage points in the twelve months to June.

There were 29,798 vacant commercial units recorded across the country between April and June, a rise of 557 when compared to last year.

“Businesses are clearly still struggling with the increasing costs of doing business in regard to energy costs and food inflation,” said Dara Keogh, Chief Executive of GeoDirectory.

“An additional challenge this year has been interest rate increases which are generating some pressures for commercial owner occupiers and tenants,” he added.

The report which was prepared by EY Ireland, found that commercial vacancy rates increased in 20 out of 26 counties.

At just under 20%, Sligo was the county with the highest commercial vacancy rate, followed by Galway at 18%, Donegal at 17.9%, Mayo at 17.3% and Roscommon at 16.9%.

The county with the lowest commercial vacancy rate was Meath at 10.2%, followed by Wexford at 10.6% and Kerry at 12.2%.

The commercial vacancy level in Dublin increased by 0.5 percentage points to 13.1% in the second quarter of the year.

This trend continued in the Greater Dublin Area where vacancy rates increased from 12.6% in the second quarter of last year to 13% during the same period this year.

Galway recorded the largest increase in vacancy rates, increasing by 0.8 percentage points from 17.2% in in the second quarter of 2022 to 18.0% this year.

All four provinces in Ireland reported an increase in overall vacancy rates, with Connacht having the highest rate at 17.9%

“After several years of strong construction activity in the commercial sector, the increases we are seeing in commercial vacancy are to an extent unsurprising, with trends such as working from home, sustainability and energy efficiency likely having some impact,” said Annette Hughes, Director, EY Economic Advisory .

“While there have been increases in the cost of doing business for some companies, the overall Irish economy remains in a good position, with further growth and increases in the numbers employed forecast,” she added.

As part of today’s report, GeoDirectory also examined the commercial vacancy rates across a sample of 80 towns across the country in June.

It found that Ballybofey, Co Donegal, remained the town with the highest commercial vacancy rate in Ireland at just under 30%.

Shannon, Co Clare and Edgeworthstown, Co Longford, recorded the second and third highest commercial vacancy rates in the country at 29.4% and 29.2% respectively, followed by Boyle, Co Roscommon at 27.6% and Sligo Town at 25.4%.

Greystones, Co Wicklow now has the lowest vacancy rate in the country at 6.8%.

Carrigaline, Co Cork had the second lowest vacancy rate at 7.5%, followed by Gorey, Co Wexford at 9.3%.

Today’s report highlights the importance of the services sector to the economy.

Although this sector had the largest reduction in the number of commercial units since the second quarter of last year, it still held the highest share, accounting for just under 50% of the total commercial sites across the country.

Within the services sector, the accommodation and food services sector accounted for over 14% of all commercial address points in Ireland in June 2023.

Retail and wholesale remained the second-largest sector in terms of occupied commercial premises.

Article Source: Commercial vacancy rate hits 14.1% – highest on record – Gill Stedman – RTE

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Banking industry’s new support measures for mortgage customers

The main Irish bank and non-bank lenders have agreed a new set of criteria designed to provide clear guidance to mortgage holders whose loans are managed by credit servicing on how they could potentially switch their loan to another provider.

The criteria lay out agreed requirements that borrowers whose mortgages are with credit servicers would have to meet, in order to be able to transfer to a bank or non-bank to avail of lower rates.

It is estimated that around 80,000 mortgages are currently managed by credit servicing agents on behalf of investment funds.

As many as 30,000 of those customers are not in a position to move their loans because of their poor credit history.

Because credit servicing firms do not in the main offer fixed rate mortgages, it means that these customers have seen the interest rates on their mostly variable rate loans sky-rocket over the last year, in some cases to as high as 10%.

The development of the criteria is backed by the main credit servicing firms, as well as Brokers Ireland and the Association of Mortgage Advisors.

Among the requirements agreed by the lenders are that customers would need to be making full capital and interest repayments on their mortgages.

In addition, customers must have no arrears on their home mortgage or any other lending in the past two years.

The Banking and Payments Federation Ireland (BPFI), which has been central to the co-ordination, said once customers meet these and other initial criteria, their applications to switch will be assessed on a case-by-case basis in line with individual lender credit policy.

BPFI has published an information leaflet which outlines the various elements of the agreed initial criteria that will be taken into account during the switching application process.

“While we acknowledge not all customers will be eligible to switch due to their individual circumstances, our key objective today is to provide clarity on the initial required criteria to switch,” said Brian Hayes, BPFI’s chief executive.

Brian Hayes, the CEO of BPFI

“If customers of Credit Servicing Firms wish to explore their switching options, we encourage them to consider their individual circumstances against the initial eligibility criteria and, if they feel they meet them, to contact our retail banking members via their dedicated phonelines to discuss their options further,” he said.

As part of the second phase of its Dealing With Debt campaign, the BPFI also said credit servicing firms and the Money Advice and Budgeting Service (MABS) have collaborated to expand a streamlined customers engagement framework.

The aim of this is to accelerate the agreement of sustainable repayment plans for customers who are in financial difficulty, BPFI said.

Credit servicing firm Pepper Advantage Ireland has already successfully implemented the plan.

It includes bi-weekly forums with MABS regional offices to discuss individual cases and affordable solutions for customers struggling to meet mortgage repayments.

It also involves an escalation process for cases which are particularly sensitive.

The latest phase of the campaign has also seen AIB, Bank of Ireland and Permanent TSB put in place dedicated phone numbers with specialist support teams for customers of credit servicing firms who wish to discuss switching options.

Avant Money, Finance Ireland and ICS Mortgages also have teams in place to deal with any queries from customers looking to switch.

“The principal aim of our campaign is to make sure that anyone who is worried or struggling with their mortgage or other loan repayments knows there is help available from their provider including a wide range of short and long-term repayment solutions which can be tailored to each borrower’s circumstances,” said Mr Hayes.

“It is important to emphasise that this applies to those who may already have missed a repayment as well as to those customers whose payments are fully up to date but feeling under financial pressure,” he stated.

“Our key message today is that the most important thing you can do is to contact your mortgage lender or financial services provider as soon as possible or indeed a trusted third party such as MABS among others,” he added.

The developments have been welcomed by the Association of Irish Mortgage Advisors (AIMA) and Brokers Ireland.

“It has been clear for some time that there is a need for customers of credit servicing firms to be offered greater assistance when switching mortgage providers,” said Trevor Grant, Chairperson of AIMA.

“This has been particularly relevant for the past 12 months or so as we have seen a significant increase in variable and tracker mortgage rates.”

“The new eligibility criteria agreed by mainstream mortgage lenders should give many of these customers the opportunity to switch to more affordable mortgages.”

“However, there will inevitably be some customers who will be disappointed that they fall outside the scope of the criteria for switching – and cannot therefore switch to a mainstream lender.”

Rachel McGovern, Director of Financial Services at Brokers Ireland said the earlier a mortgage holder in in difficulty seeks help the better, because the outcome is likely to be more favourable.

“If you are paying some of the highest rates of interest, and if you have been in arrears you may be able to switch to one of the pillar lenders if you meet certain criteria,” she said.

She added that it was a positive development to see credit servicing firms working with MABS to accelerate the agreement of sustainable repayment plans.

Article Source: Banking industry’s new support measures for mortgage customers – Will Goodbody – RTE

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Euro zone August downturn deeper than was thought – PMIs

The decline in euro zone business activity accelerated faster than initially thought last month as the bloc’s dominant services industry fell into contraction.

This is according to a survey which suggests the bloc could drop into recession.

HCOB’s final Composite Purchasing Managers’ Index (PMI), compiled by S&P Global and seen as a good barometer of overall economic health, dropped to 46.7 in August from July’s 48.6, a low not seen since November 2020.

That was below the 50 mark separating growth from contraction for a third month and shy of a preliminary estimate for 47.

“The euro zone didn’t slip into recession in the first part of the year, but the second half will present a greater challenge,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“The disappointing numbers contributed to a downward revision of our GDP ‘nowcast’ which stands now at -0.1% for the third quarter,” he added.

The headline services PMI sank to 47.9 from 50.9, below the flash 48.3 estimate, as indebted consumers feeling the pinch from increased borrowing fees and high living costs reined in spending.

The new business index, a gauge of demand, dropped further below breakeven to 46.7 from 48.2, a low not seen since early 2021.

Still, the downturn in manufacturing eased last month, suggesting the worst may be over for the bloc’s beleaguered factories, a sister survey showed on Friday.

Indicating firms were not expecting an imminent turnaround they barely increased headcount last month. The composite employment index dropped to 50.2 from 51.4.

“Employers weren’t too keen on beefing up their teams. The way things have been going down lately, it’s a sign they’ll be moving towards job cuts sooner, not later,” added de la Rubia.

Article Source: Euro zone August downturn deeper than was thought – PMIs – RTE

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National Broadband Plan marks 50,000th connection in Cork

The company marked the latest milestone in the NBP rollout at a farm in rural Co Cork.

Peter Hendrick, the chief executive of National Broadband Ireland, the number of of homes, farms and businesses connected to the NBI network has doubled in the last nine months.

“Over 180,000 premises are ready to connect by signing up with one of our 62 retail partners,” he said,

Minister Ossian Smyth, Minister of State with responsibility for Public Procurement, eGovernment and Circular Economy, said the National Broadband plan has seen a much higher take-up rate from Irish people than we had originally forecast.

The Government’s broadband plan first began in 2019 and is meant to finish in 2026 at an estimated cost of €5.5 billion.

Speaking on RTÉ’s Morning Ireland, Ossian Smyth said 45,000 homes were due to be connected by June and this has been surpassed.

“It is very ambitious, more ambitious than other European countries are doing for their rural broadband,” the Minister said.

“We are going to bring fibre broadband to every single home, farm and business in rural Ireland outside of an area where it’s not commercially feasible to develop,” he added.

The Minister said it is expected that 80% of people who are offered the service will take it up eventually.

“The reason for that is because we’ve set the price at a level for rural Ireland that is at the same price level as if you were living in a city. So we’re offering people that equality of opportunity,” he stated.

Mr Smyth said that no county is fully connected, but added that every county is being connected at the same time.

“We have 1,000 workers working across the country connecting fibre and it is absolutely transformative for those for people who’ve received the service,” the Minister said.

“It means that when it comes to your village, it means that you can live in your village. You can stay there. It brings jobs,” he added.

Article Source: National Broadband Plan marks 50,000th connection in Cork – RTE

Copyright and Related Rights Act, 2000

Banking industry’s new support measures for mortgage customers

The main Irish bank and non-bank lenders have agreed a new set of criteria designed to provide clear guidance to mortgage holders whose loans are managed by credit servicing on how they could potentially switch their loan to another provider.

The criteria lay out agreed requirements that borrowers whose mortgages are with credit servicers would have to meet, in order to be able to transfer to a bank or non-bank to avail of lower rates.

It is estimated that around 100,000 mortgages are currently managed by credit servicing agents on behalf of investment funds.

As many as a third of those customers are not in a position to move their loans because of their poor credit history.

Because credit servicing firms do not in the main offer fixed rate mortgages, it means that these customers have seen the interest rates on their mostly variable rate loans sky-rocket over the last year, in some cases to as high as 10%.

The development of the criteria is backed by the main credit servicing firms, as well as Brokers Ireland and the Association of Mortgage Advisors.

Among the requirements agreed by the lenders are that customers would need to be making full capital and interest repayments on their mortgages.

In addition, customers must have no arrears on their home mortgage or any other lending in the past two years.

The Banking and Payments Federation Ireland (BPFI), which has been central to the co-ordination, said once customers meet these and other initial criteria, their applications to switch will be assessed on a case-by-case basis in line with individual lender credit policy.

BPFI has published an information leaflet which outlines the various elements of the agreed initial criteria that will be taken into account during the switching application process.

“While we acknowledge not all customers will be eligible to switch due to their individual circumstances, our key objective today is to provide clarity on the initial required criteria to switch,” said Brian Hayes, BPFI’s chief executive.

BPFI Brian Hayes

“If customers of Credit Servicing Firms wish to explore their switching options, we encourage them to consider their individual circumstances against the initial eligibility criteria and, if they feel they meet them, to contact our retail banking members via their dedicated phonelines to discuss their options further,” he said.

As part of the second phase of its Dealing With Debt campaign, the BPFI also said credit servicing firms and the Money Advice and Budgeting Service (MABS) have collaborated to expand a streamlined customers engagement framework.

The aim of this is to accelerate the agreement of sustainable repayment plans for customers who are in financial difficulty, BPFI said.

Credit servicing firm Pepper Advantage Ireland has already successfully implemented the plan.

It includes bi-weekly forums with MABS regional offices to discuss individual cases and affordable solutions for customers struggling to meet mortgage repayments.

It also involves an escalation process for cases which are particularly sensitive.

The latest phase of the campaign has also seen AIB, Bank of Ireland and Permanent TSB put in place dedicated phone numbers with specialist support teams for customers of credit servicing firms who wish to discuss switching options.

Avant Money, Finance Ireland and ICS Mortgages also have teams in place to deal with any queries from customers looking to switch.

“The principal aim of our campaign is to make sure that anyone who is worried or struggling with their mortgage or other loan repayments knows there is help available from their provider including a wide range of short and long-term repayment solutions which can be tailored to each borrower’s circumstances,” said Mr Hayes.

“It is important to emphasise that this applies to those who may already have missed a repayment as well as to those customers whose payments are fully up to date but feeling under financial pressure,” he stated.

“Our key message today is that the most important thing you can do is to contact your mortgage lender or financial services provider as soon as possible or indeed a trusted third party such as MABS among others,” he added.

Article Source: Banking industry’s new support measures for mortgage customers – Will Goodbody – RTE

Copyright and Related Rights Act, 2000