Repaying most of Ireland’s IMF debt early will save the State €2.1bn Euros interest
Finance Minister Michael Noonan has previously said the deal would save taxpayers about €1.5bn over a five to seven year period.
Repaying the bulk of Ireland’s IMF debt early will save the state €2.1bn in interest payments, the troika has said.
Finance Minister Michael Noonan has previously said the deal would save taxpayers about €1.5bn over a five to seven year period.
But a document prepared by the troika said that if Ireland was to repay €18.3bn between the end of this year and next year in three equal tranches, the interest saving would equate to €2.1bn.
“IN light of currently very favourable market conditions, an early repayment of IMF credit can generate significant savings on government interest expenditure for the Irish sovereign,” the document states.
It also said that the early repayment of the IMF debt would measurably improve the sustainability of Ireland’s public finances.
The deal was approved by Europe’s other 27 Finance Ministers at a meeting in Milan earlier this month.
But it warned any improvement in the debt position would be diminished by using the savings to boost spending or cut taxes.
Credit union alliance with post offices gives hope to Ireland’s villages
A COMBINED LOANS TRIAL IS THE FIRST STEP IN A NEW FINANCIAL SERVICES ALLIANCE.
The plan has the potential to revitalise both organisations and could breathe new life into smaller towns and villages around the country.
The Credit unions and post offices are forging an alliance which will help secure their futures and present a viable alternative to banks in local communities.
The plan has the potential to revitalise both organisations and could breathe new life into smaller towns and villages around the country.
A trial in Limerick will see post offices and credit unions jointly offer small loans for the first time. The funds will be provided by credit unions with money available through post offices.
If the initiative gets rolled out nationally, it will be the first step towards a stronger alliance, with plans for a wider pooling of services nationwide.
The deal could lead to the possibility of credit unions taking over post offices in rural towns.
Such a third force would help offset the effect on communities of bank branch closures, emigration and the closure of hundreds of pubs and shops that were once the heart of village life.
An Post, the Irish League of Credit Unions and the Irish Postmasters’ Union all said they were in favour of the coming together of credit unions and the State post office network to offer financial services.
Such a move would counter the contraction of banks’ branch networks, and provide a boost to credit unions and post offices, as both bodies are under pressure in rural areas.
Banking expert Professor Ray Kinsella told an Irish Postmasters’ Union conference recently that an alliance between the post office network and the credit unions could provide a radical new model for delivering financial services.
“Together they could provide social and community-focused banking, greater competition and also strengthen a domestic banking sector that is still in crisis,” he said.
The Irish Independent has learned that six credit unions and 15 post offices in Limerick are seeking permission to launch a trial to offer loans of up to €1,000 to jobseekers.
The aim of this plan is to steer low-income groups away from moneylenders.
A spokesman for the Irish League of Credit Unions said the initiative was at an early stage. But he stressed other areas where the two bodies can pool their offerings are being explored.
“The participating credit unions in Limerick and An Post are also examining whether there may be common ground to explore other methods of cooperation, which would offer mutual benefit.”
The spokesman added that credit unions were now looking at a number of other areas where co-operation can be fostered nationwide. The proposals include:
Credit unions using An Post’s Post Point terminals to offer members a range of bill-paying services.
An Post accepting cash lodgements and loan repayments from credit unions members.
Seeing if post offices could be housed in credit unions, and vice versa, in certain circumstances.
Loans offered from cash-rich credit unions via post offices.
The proposals would be implemented on a phased basis over the next year, following pilot projects. There are 386 credit unions in the State but they are under pressure due to low demand for loans, despite being flush with cash, and strict new regulatory rules.
They are also grappling with loan arrears and they are under pressure to perform mass mergers across the sector in order to bulk them up.
There are 1,100 post offices, but they are overly-dependent on processing social welfare payments to make an income.
The planned link-up between six credit unions and 15 post offices in Limerick involves allowing people on social welfare access to loans worth up to €1,000 each.
The funds would be provided by the credit unions, but loans would be granted through the post offices.
To get a loan people would have to sign up to An Post’s household budget scheme, and make repayments weekly.
This scheme allows people to pay regular amounts towards household bills, deducted from social welfare payments.
The idea is to give families on low incomes cheap access to small amounts of credit for the likes of Christmas and communions.
The Department of Social Protection told the Irish Independent it was happy to consider any proposal that progresses financial inclusion.
“Such a proposal would also have to be examined for compatibility with the existing legislation that governs the household budgeting scheme and any implications for modification thereto considered.”
Irish property prices up 14.9% this year to August
NEW CSO FIGURES SHOW THAT IRISH RESIDENTIAL PROPERTY PRICES ARE NOW 14.9% HIGHER THIS YEAR THAN IN AUGUST 2013
Residential property prices increased again last month, according to new figures from the Central Statistics Office.
The CSO figures show that national prices were 14.9% higher in August compared to August 2013 – the 15th annual increase in a row.
Residential prices across the country rose by 2.3% in the month of August compared to July.
Dublin saw property price increases of 3.5% in the month, while they were 25.1% higher than a year ago.
In the rest of the country, prices rose by 0.8% in August on a monthly basis, while they were 5.6% higher than this time last year.
The CSO said that Dublin house prices rose by 3.5% in the month of August, and were 24.7% higher compared to the same month last year.
It also noted that Dublin apartment prices were 32.6% higher on an annual basis, but it added that apartment transactions are based on low volume levels and therefore suffer from greater volatility.
Today’s figures show that house prices in Dublin are more than 39% lower than at the peak of the market at the start of 2007. Dublin apartments are 45.8% lower than their 2007 peak.
The price of residential properties outside of Dublin are 44.6% lower than their highest level in September 2007.
Today’s CSO figures are based on mortgage draw-downs and do not include cash transactions.
But they show that the number of transactions increased markedly over the past year. Between January and July 2013, 11,800 houses and apartments changed hands. During the same time this year there were almost 20,000 transactions.
Alan McQuaid, chief economist with Merrion, said August’s numbers represented the 15th annual increase in a row.
He pointed out that the underlying housing market was a lot more robust than the official data would suggest as the figures are based solely on mortgage draw-downs.
“Although cash sales are not as high now compared with the start of the year, they are still significant, with three to four of every ten transactions a cash purchase,” he said.
“The generally improving economic backdrop should help to sustain the house price recovery in the short-term even with limited credit availability for potential buyers.”
“Longer-term, however, the flow of credit needs to be a lot higher than it is now. Following an average increase of 1.8% in house prices last year, we are now looking for an increase of around 13.5% in 2014.”
Conall Mac Coille, chief economist with Davy, said there appeared to be little evidence that the recovery in Irish house prices was abating.
He pointed out, however, that the market was exceptionally illiquid with just 15,688 residential property market transactions in the first half of 2014, comprising around 0.8% of the housing stock.
“This suggests that the average house is being sold once every 64 years at current transaction rates. That said, year-to-date transaction levels are up almost 50% on 2013,” he said.
“The pick-up in house price inflation increasingly reflects negative factors, preventing the Irish economy from achieving its potential. Specifically, activity and employment in housing construction remain at moribund levels, holding back the supply of fresh homes to satiate demand from first-time buyers,” Mr Mac Coille concluded.
“Good News” Sligo to host the 2015 All-Ireland Fleadh for another year
THE ALL IRELAND FLEADH CEOL NA EIREANN 2015 WILL BE COMING TO SLIGO AGAIN, IT WAS CONFIRMED YESTERDAY.
The dates will be from August 9th untill the 16th.
Martin Enright of the Fleadh committee, said that it is tremendous news for Sligo.
He said: “We are delighted that it is coming back, this has worldwide implications for the region.
“It is not just for the week, for the long-term.
“I have been getting messages from America, Russia, all over about how well Sligo did.
“It has been a real positive for Sligo.” He said that the Ard Comharlas, that grant who gets the Fleadh, met at the weekend and had a vote.
“In principle it is fully ratified, depending on whether the Fleadh committee can come up with the required funding by early December.”
He said that the pressure is on now to get these funds, through grants and various stakeholders, such as the vintners and hoteliers.
“We are delighted that it is coming back,” Martin added.
Typical children in Ireland are eating more than 16kgs of treat type foods each year
Foods such as biscuits, sweets and crisps are now an every-day staple of kids’ diets, making up a fifth of their daily calorie intake.
As part of its campaign to take on childhood obesity, Safefood is urging parents to tackle the amount of “treat foods” that their children are eating.
“At present 20% of children’s daily calorie intake is from these foods with little or no nutritional value,” it said.
The body estimated that on average a child typically consumes over 16kgs of treat foods per year – the equivalent of 140 small chocolate bars, 105 tubes of sweets, 36 packets of jam-filled biscuits and 118 bags of crisps. And this doesn’t include foods like ice-cream, cakes, pastries and buns and puddings that a child would typically eat.
Figures show that approximately one-in-four primary school children is overweight or obese. The prevalence of excess weight is also beginning earlier in childhood, with 6pc of three-year-olds currently being obese.
“We are giving our children treat foods every day and in many cases several times a day. These nutritionally poor foods, which are often referred to as ‘empty calories’, are given at the expense of nutritionally-rich foods in our children’s diets. Eating patterns developed in early childhood tend to last,” said Dr Cliodhna Foley-Nolan, director of human health and nutrition with Safefood.
“Parents need to be aware of the health risks associated with over-consumption of these types of foods. It’s simply a matter of cutting down on treat foods to a more sensible level, basically much smaller amounts and not every day.
“One of the big things we are trying to get across is the difference between a snack and an indulgence. The difference has become blurred.”
She suggested that fruit or a slice of toast, depending on the age of the child, is suitable if they are hungry.
In addition, quantities are another big issue for parents to cut down on, according to Dr Foley-Nolan.
“The other thing we are saying is in general not to have a ‘treats’ cupboard at home.
“If it is there, you are tempted, they are tempted,” she added. “Treats should be a luxury.”
Meanwhile, in relation to meal size and quantity, she said: “If you look at a plate of food, a good third should be vegetables, a third should be the starchy food, whether rice, pasta and potatoes, and a third should be the meat or fish.”
John Sharry, a senior lecturer in the School of Psychology at UCD, added: “Parents want what’s best for their children and no one wants to take the fun out of childhood. But we’ve reached a point where these so-called ‘treat’ foods are consumed far too frequently and just aren’t treats any more.
“As parents, we’ve lost the ability to say ‘no’ to our children and we need to re-learn that setting these clear boundaries is an important step in our children’s well-being and development.”
The Safefood campaign will feature on TV and poster advertisements.
Irish teenagers bag top prize at Google Science Fair 2014
The Google winners – Ciara Judge, Émer Hickey and Sophie Healy.
The 18 finalists were selected from over 5,000 entries in 90 different countries.
It marks a remarkable 12 months for Ciara Judge, Sophie Healy-Thow and Emer Hickey who have literally conquered the world of science competitions.
The Cork trio won the BT Young Scientist title in January 2013 before heading to the Czech Republic last September and winning the €7,000 top prize in the EU Young Scientist competition.
As if that wasn’t impressive enough, last September Ciara scored a whopping 12As in her Junior Cert.
In a remarkable twist, Ciara’s older sister, Ashling, was the 2006 Young Scientist champion.
Ciara’s proud parents, Eamon and Maureen, admitted that it has been an astonishing 18 months for the girls and their school.
The girls’ project on seed germination has already received worldwide plaudits.
It revolves around their discovery that bacteria which occur naturally in the soil can help kick-start the germination of some crops by as much as 50%.
The Cork girls’ winning project examined how a particular bacteria, a diazotroph, can increase germination rates and crop yields.
Experts believe the commercial applications of their discovery are absolutely enormous.
“It has been an absolutely fantastic couple of months,” Ciara admitted.
Their top prize for winning the US title in California is a €30,000 scholarship from Google and an all-expenses paid field study trip to the Galapagos Islands where Charles Darwin formulated his theory of evolution.
They will also get the chance to sample astronaut training with NASA.
Ciara has already set her sights on studying veterinary science in university after her Leaving Cert.
Former EU Commissioner Geoghegan-Quinn said she was very impressed by the Kinsale girls and their project.
“The future is bright if this is the level of talent we are producing in Europe. It is particularly great to see the mix of curiosity-driven research and more applied projects,” she said.
The Kinsale Community School triumph continues a remarkable Irish success story in the EU Young Scientist competition with Irish entries having won the overall prize 15 times in 25 years.
Ciara’s parents, Eamon and Maureen, said their daughter, who is now in Fifth Year, is ultimately hoping to study veterinary in university.
KCS principal Fergal McCarthy said they were absolutely delighted by the girls’ latest triumph.
It was the third time in seven years that the Cork school won the overall national title.
The school proudly held the joint record this year for the greatest number of entries and had a remarkable total of 38 students participating.
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