Irish economic crisis among the world’s worst for developed countries, say researchers
Ireland has suffered one of the worst financial and economic crises ever experienced in a developed country, according to a new research paper by two central bank economists.
The pair, Maria Woods and Siobhán O’Connell, compare Ireland’s economic/financial crisis with four others crashes, all of which began 20 years ago. The crises took place in Finland, Norway, Sweden and Japan. More recent crises, such as those of Iceland and the Baltic economies are not included.
The research finds the decline in Irish house prices has been bigger than those experienced in any of these four economies studied. Following the crises in the Nordic three and Japan, residential property prices took 11-22 years to return to peak levels. If prices in Ireland follow the pattern in the worst-affected of the four countries (Japan), they will return to 2007 levels only in 2028.
Ireland’s jobs crisis is similar in magnitude to Finland’s in the 1990s, and much more serious than the three other economies.
Although not discussed by the authors, the long-run effects on employment of large financial crises are illustrated by Finland’s experience in the decades since its crisis. In 2011, the numbers at work in the Nordic economy were below levels in 1989.
Irish share prices also suffered the largest peak-to-trough fall among the five. A decline of more than three-quarters over a three-year period was marginally bigger than the fall in Japanese equity prices, whose fall took place over a period of 14 years.
They find credit growth before the crisis was higher in Ireland. Ominously, the average decline in peak-to-trough bank lending among the four comparator economies was more than one-fifth. Bank lending in Ireland peaked just three years ago and has fallen by only 8.5 per cent. This suggests the credit contraction could remain severe for some time.
The study finds that Irish banks’ proportion of non-performing loans is higher than the peaks recorded in any of the Nordic economies but lower than the worst point in Japan’s crisis. The paper is titled Ireland’s Financial Crisis: A Comparative Context.
A pensions supermarket’ to offer workers low-cost options for retirement funds
Workers saving for a pension are set to get a new low-cost option to help them put money aside for their retirement.
Stockbroker Davy is aiming to become the ‘Ryanair of pensions’ with the launch of what is being called a supermarket for pension funds — with the company saying people will be able to start a retirement fund for as little as €500.
The wealth management company is aiming for mass appeal with an online offering of 10,000 investments that pension savers can choose from.
There will be no set-up fees, no dealing fees and no exit fees — although there will be a management charge.
Pensions experts said the new offering had the potential to shake up the pensions industry, which has been heavily criticised for high charges and poor investment returns.
The new Davy Select pensions option will allow consumers to switch between hundreds of funds with no switching fees and no exit charges.
The launch came as a new survey revealed that members of pension schemes have been besieging their employers over fears their pension will not be what they had expected and are also complaining about high charges.
The survey — by pension advisers and administrators IFG Corporate Pensions — found that 87pc of firms say their staff have criticised the performance of the company pension and the lack of visibility on charges.
It asked human resources and finance professionals in charge of corporate pension schemes to indicate the change in the behaviour of pension savers.
Fionan O’Sullivan, of IFG Corporate Pensions, said: “Employees are finally realising that with the growing levels of negative equity, their pension represents their primary and, in some cases, their only asset.”
Davy’s new online pensions supermarket is a change of direction for the stockbroker, which until recently only ever targeted the very wealthy.
For the first time, people investing in a pension will have access to a range of investments run by highly-regarded US money manager Blackrock.
Davy’s Ciaran O’Donoghue said the new offering will be available from brokers.
His firm would give back all the normal fees charged by pension fund providers. The annual management charge would be 0.75pc of the assets in the retirement, compared to a more usual 1.5pc to 2pc charge. Some fees for Davy Select funds would be higher. People using the new service would have the choice of paying slightly more to get financial advice.
Chief executive of Davy Stockbrokers Tony Garry said pensions were under huge pressure in this country.
One in two people did not have a private pension, while eight out of 10 defined-benefit schemes were in deficit.
Traditionally, defined-benefit funds promise to pay out a pension based on the final salary and the number of years the member was in the scheme.
And Mr Garry said the Government was not helping matters because of a lack of leadership and direction on pensions policy.
Minister Reilly still under pressure and still defending his strokes of primary care sites choices
Health Minister James Reilly has again denied any impropriety on his part in the circumstances surrounding the selection of a site in his constituency for a primray healthcare centre.
Dr Reilly’s position is under renewed pressure after today’s media relevelations that a political supporter, developer Seamus Murphy, owns the land on which the centre in Skerries is to be built.
Dr Reilly said the site was under the control of the National Asset Management Agency (NAMA) and therefore NAMA and not the developer would gain from the project if there was any gain.
The Minister said NAMA represented the people as regards trying to get back the monies that were lost.
He said the Balbriggan site was chosen by the HSE around 2008. “Both it and Swords were brought to the board of the HSE in 2008, and both were approved,” he added.
However, the Minister said said the lease for the site may have been signed during his tenure as Minister.
Dr Reilly said he had no business connection with Mr Murphy, had had no discussions with him about the primary care centre, and had no role in the selection of the site.
However, responding to Minster Reilly’s statement, Fianna Fáil Health Spokesperson Billy Kelleher called on the Minister to clarify when exactly the Balbriggan site featuring in press reports today was actually chosen.
“Despite our best efforts this afternoon, the truth behind this primary care centre debacle remains elusive. In the opening remarks of a performance that was at times evasive and at times bizarre, Minister Reilly appeared to suggest that contrary to everyone’s understanding, the site in Balbriggan was not chosen by the former Minister for Health, but by him.”
He claimed this this contradicted the Minister’s own account on the Pat Kenny Show earlier today and Education Minister Ruairi Quinn’s contention that the previous Health Minister Mary Harney chose the site.
Mr Kelleher said that he had asked Dr Reilly him twice in the Dáil to spell out when the site in Balbriggan was chosen.
“Twice he refused to answer. Rather than clear up the issue, Minister Reilly’s performance today has further confused matters.”
The protracted political row over the choosing of primary care centre sites led to the resignation of junior helath minister Roisin Shortall last week.
Irish companies using cloud computing are more engaging and innovative with customers
Irish companies that are operating and using cloud technology are more innovative and are more likely to work collaboratively, both internally and with customers, a new study has shown.
According to research from the Irish National Software Engineering Research Centre Lero, firms that have moved to the cloud are more likely to engage closely with their customers and listen to their feedback, and have core team engagement in-house.
An international study on cloud computing and its benefits is “badly needed”, researchers said, and the Lero study is the first empirical evidence of claims surrounding the technology.
“You can find lots of web articles out there, but real academic papers with empirical data is lacking,” said Dr Lorraine Morgan, senior researcher with Lero at NUI Galway.
The study looked at both providers and customers, spanning 12 companies. It found that companies who use cloud computing are not only more transparent and open on an internal level, but also are more involved with customers.
“Even with those companies who are only dipping their toe in water, this is what they’re saying they want,” Dr Morgan said.
The study, which is ongoing, is also looking at the challenges of the technology. A follow-up study is looking at the barriers to adoption of the technology.
The cloud sector is growing globally, and figures from Gartner estimate that the worldwide market for public cloud services will increase by 19 per cent to $109 billion this year, before increasing by more than 100 per cent to $207 billion by 2016. That outstrips the overall global IT market, which is forecast to grow by only 3 per cent.
Scientists say there is no proof that vitamin D stops colds
Supplements may help if you are deficient in the vitamin or nutrient, Scientists say they can find no convincing evidence to show that taking vitamin D supplements will fend off a cold.
A New Zealand team did the “gold standard” of tests – a randomised placebo-controlled trial – to see what impact the supplements would have.
The 161 people who took daily vitamin D for 18 months caught as many colds as the 161 who took fake pills.
The study was reported in the Journal of the American Medical Association.
But a leading UK cold expert said vitamin D was useful.
Prof Ronald Eccles, of the Common Cold Centre at Cardiff University, said it can give the immune system a much-needed boost during winter when vitamin D reserves may be low.
Supplements do not work for everybody because people’s immune systems are different”
He said he takes it every year as a precaution.
“There is sufficient information to indicate that vitamin D is a vital vitamin for the immune system.
“Supplementation might help to support the immune system over the winter when we are short of vitamin D.”
He said echinacea supplements may also help ward off coughs and colds, but added: “Supplements do not work for everybody because people’s immune systems are different. It’s not a case of one size fits all.”
They are pointless unless you are deficient, he said.
We get most of our vitamin D from sunlight on our skin, but it is also found in certain foods like oily fish, eggs and breakfast cereals.
Most people should be able to get all the vitamin D they need by eating a healthy balanced diet and by getting some summer sun.
The study, carried out in New Zealand, which gets more sunshine annually than the UK, found the vitamin D supplements increased blood levels of the vitamin.
But this had no significant impact on the rate or severity of colds.
The vitamin D group caught an average 3.7 colds per person compared with 3.8 colds per person for the placebo group.
There was no significant difference between the two groups in the number of days missed off work as a result of cold symptoms or duration of symptoms.
Adults catch between two to four colds a year and children up to 10 a year.
Digital TV switch over surge as 50,000 Irish update their system
There has been a late surge in those switching to digital TV, with 50,000 making the changeover in recent weeks before the old analogue signal is switched off.
New figures show one-quarter of those who still had an analogue TV service this summer have now switched to a digital service in advance of the October 24 move to digital-only broadcasts.
However, this leaves 150,000 people who still have to make the switch before the analogue signal is switched off. And TV installers yesterday predicted many of those would leave it till after the deadline of October 24.
Tony Moore, of installation service satellite.ie, said he expected it to be “like Christmas shopping” after the changeover.
“I spoke to a colleague in Germany who told me they were actually busier after their switchover a few months ago, because so many people didn’t do it in time,” he said.
Digital switchover packages, including installation of an aerial and Saorview box, are available from €219, and viewers then have no ongoing monthly costs as the Irish stations are received free of charge.
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