Donie's news Ireland Blog Saturday

1,500 jobs to go at the Bank of Ireland ‘in cost cutting exercise’

   

Bank of Ireland has signalled that up to 1,500 more jobs may have to go to reduce costs and reflect its reduced size, but the lender has ruled out any branch closures.

 Richie Boucher, chief executive of Bank of Ireland, would not be drawn on the exact number of redundancies being sought by the bank, but said costs would have to be cut by a third to €1.5 billion by 2014 from their peak in 2009.

The bank, which is 15 per cent owned by the State, had close to 16,000 employees at that time but has since reduced staff numbers by 3,700, which could mean up to 1,500 more jobs are at risk.

Mr Boucher said the bank would base the decision on costs rather than actual staff numbers, as measuring cost cutting by reducing staff can be “deceptive”.

“A headcount thing is an important measure but it isn’t the only measure. It is actually reducing the full cost. You could have one highly paid person for four people at a lower paid level,” he said.

The bank set aside a €66 million provision to cover job cuts as it restarts its redundancy programme. The decision to cut jobs would be based on a business-by-business review, said Mr Boucher.

He rejected the suggestion that this method would feed uncertainty among staff rather than saying the number of staff to go.

“If you come out with some dramatic number, then everyone is spending six months around coffee machines wondering who is next, am I going to get it?” he said.

Mr Boucher said the bank did not intend closing any of its 254 branches as it needed them to sell products to customers to increase its revenues. The lender would instead reduce costs by changing work being done in the branches.

The bank’s shares fell 3 per cent to 9.5 cent yesterday after Mr Boucher said it would be “very challenging” for the bank to meet its target net interest margin, the difference between what it pays for funding and charges for loans, of 2 per cent by 2014. The margin fell to 1.2 per cent in June from 1.33 per cent a year earlier.

Including the cost of the guarantee scheme, the margin was 0.88 per cent in the first half of the year down from 1 per cent in June 2011.

The bank’s pretax loss more than doubled to €1.25 billion in the first half on the same period last year. Operating profit, before bad loan charges and other items, fell 65 per cent to €58 million.

Loan impairment charges rose to €941 million from €842 million due to the charge for bad residential mortgages almost doubling to €310 million from €159 million.

The number of impaired mortgages rose by 61 per cent to €2.4 billion over the six months, while the number of properties repossessed increased by just 34.

Mr Boucher said the bank would take action on mortgages that customers could not afford but it would work with customers first to find amicable solutions. “It is a regrettable but unfortunate fact of life that repossessions are going to increase,” he said.

He described as “an isolated case” the write-off of €152,000 in mortgage debt owed by Dublin nurse Laura White last April.

Arrears of 90 days or more on owner-occupier mortgages rose to 7 per cent on June 30th from 5.6 per cent six months earlier, while buy-to-let mortgage arrears rose to 14 per cent from 10.8 per cent.

Total impaired loans increased to €15.4 billion or 15 per cent of total loans at the bank at the end of June from €13.5 billion or 12 per cent at the end of last December.

Asked whether the bank had, like AIB, misreported arrears cases to the Irish Credit Bureau, Mr Boucher said that based on a review he had requested he “didn’t think that is an issue” for the bank.

On potential computer problems, such as those recently experienced by Ulster Bank, Mr Boucher said that Bank of Ireland had invested in “disaster recovery systems”.

An aspirin a day ‘keeps the risk of cancer away’

  

A daily dose of aspirin for over-60s can cut their risk of cancer by up to 40 per cent and may offer protection after just a few years, researchers claim.

A study of more than 100,000 healthy people found that those who took a dose of aspirin every day were two fifths less likely to develop and die from stomach, oesophageal or colorectal cancer in the following decade.

They also had a 12 per cent lower risk of dying from other cancers, adding up to an overall 16 per cent lower risk of death from cancer of any type.

Although earlier research had found similar results, the new paper adds to the evidence in favour of taking the drug as a protective measure.

Doctors have previously called for low doses of aspirin to be taken from middle age, especially for people with a family history of cancer or heart disease, which it is also thought to protect against.

The authors of the latest study, published in the Journal of the National Cancer Institute, said: “Even a relatively modest benefit with respect to overall cancer mortality could still meaningfully influence the balances of risks and benefits of prophylactic (protective) aspirin use.”

The researchers, from the American Cancer Society, studied data on more than 100,000 healthy men and women, most of whom were over 60, and questioned them about their use of aspirin at regular intervals over the next decade.

They found that those who used aspirin every day were less likely to die from cancer in the following eleven years, with the biggest effect on cancers of the gastrointestinal tract.

Unlike previous research, the study found there was no difference between patients who had been taking the drug daily for less than five years, and those whose use was longer-term.

Referencing a separate study, the scientists said there was “some suggestion” the protective effect of aspirin could begin within three years of daily use.

In an editorial accompanying the article Dr John Baron of North Carolina University said the health benefit of aspirin estimated by the study could be “conservative”, adding: “The drug clearly reduces the incidence and mortality from luminal gastrointestinal cancers, and it may similarly affect other cancers.”

But Dr Eric Jacobs, who led the study, emphasised people should not take aspirin every day before discussing the potential side effects, such as stomach bleeds, with their doctors.

He said: “Although recent evidence about aspirin use and cancer is encouraging, it is still premature to recommend people start taking aspirin specifically to prevent cancer.

“Even low-dose aspirin can substantially increase the risk of serious gastrointestinal bleeding. Decisions about aspirin use should be made by balancing the risks against the benefits in the context of each individual’s medical history.”

Connacht Gold wins a Oscar food award for its butter

   

Connacht Gold has been awarded the highest accolade of three stars for its Softer Butter at the prestigious UK and Ireland Great Taste Awards 2012.

Repeating the success of the last two years which saw Connacht Gold butter achieve gold star status, the Connacht Gold Softer Butter was singled out among the top one per cent of products to achieve the coveted three star award in this year’s competition.

Out of almost 9,000 food products entered by 1,800 companies, just 123 products were awarded three stars – the definition of “an exquisite food that has that indefinable something extra.”

Known as the Oscars of the food world, the Great Taste Awards saw 350 expert judges blind taste the best products on offer across the UK and Ireland over an intense 45 day period. Before gold is awarded, a minimum of 12 experts taste, discuss, and agree on the most outstanding products. The awards will be presented in London in early September.

Announcing the award, the judges noted the creamy qualities of Connacht Gold’s Softer Butter and commented: “A large rustic block of creamy looking butter; creamy on the palate with a salt back note. Tastes fresh and melts well with no greasiness on the palate.”

Eoghan Sweeney, general manager of the Connacht Gold Consumer Foods Business, said: “We are thrilled to have achieved such high recognition for our butter in such a prestigious competition. It is testament to the quality of milk from our suppliers and the dedication of employees in consistently churning and packing a product of internationally recognised quality and taste.”

A humble hero is our Katie who is not afraid to show her faith

‘Katie’s St Mark’s Pentecostal church celebrates her victory’

 

Katie Taylor’s strong religious faith has been on plain view during the past few momentous days, with the boxer crediting her extraordinary Olympic success to her relationship with God.

Around 100 supporters gathered in Katie’s St Mark’s Pentecostal church in the city centre to cheer on our new Olympic gold medallist yesterday.

Her supporters joined Sean Mullarkey, pastor at St Mark’s Church on Pearse Street, to wish the boxer well and say prayers for her.

The pastor is now planning a special thanksgiving service with Katie and her family to celebrate her victory.

“I’ve been here 11 years and for the last eight I’ve been senior pastor and Katie and her family have been part of all that’s going on during that time,” he said.

“She’s one of the most genuine people you’ll ever meet. You’d run out of superlatives and descriptives for Katie, she’s a very, very genuine person.

“I hope she enjoys the success and gets to savour it and that she receives the plaudits that she deserves. We were definitely praying for her here.”

But pastor Mullarkey has said he would now like to see Katie retire from boxing, as does her father Peter.

“It’d be my preference and I know it’s Peter’s preference that she finishes now while she’s healthy, and that she finds whatever is her next calling.

“She’d be such a great ambassador on so many levels for so many helpful organisations if she doesn’t go into training other girls in boxing.

“On the last Sunday before she went to the Olympics she came up on stage and I said thanks for being a great role model for my kids. My kids are crazy about her.”

He added: “Her faith isn’t something that she does on Sundays, it’s a weekday relationship with God and it impacts on her every day.”

Meanwhile, young supporters of Katie described her as a humble hero, who is never afraid to show her faith.

Sarah Doherty (19) from Buckingham Street said: “She’s Christian and I love the way she’s so open about it. People respect that as well.”

And Des Curtis from Greystones, a youth worker at the church, added:”That was a tough fight. But Katie really deserved it and I’m just delighted for her.”

Sandpiper male bird sacrifices sleep for sex, a says study

  

The male pectoral sandpiper left: avoids sleeping to meet mates like the female on the right.

By analysing sleep patterns and testing the paternity of chicks, a team of researchers from Germany and Switzerland have found that male individuals that sleep less sire the most offspring’s.

IF YOU snooze you lose, at least that is if you are a male sandpiper. You meet more females and mate more often if you are willing to keep sleep to a minimum.

Things can get pretty competitive during the Arctic summer when male pectoral sandpipers (Calidris melanotos) battle it out for access to females.

And while in most circumstances sleep deprivation is a bad idea, the strategy of staying awake longer pays dividends for the male sandpiper, who wants to father more offspring.

Researchers from the Max Planck Institute for Ornithology studied mating and brain activity in Alaskan male and female sandpipers during the frantic few weeks, when mating takes place under the constant daylight of the Arctic summer. They published their findings online yesterday in Science Express.

Males court females but also have to fight to keep potential competitors out of the way. Some males though take the short road to success by taking the long road in getting there. The researchers used a combination of tags that monitored movement, male and female interactions and both muscle and brain activity to keep tabs on how courtships progressed.

They also used DNA paternity testing to track the winners and losers in the battle for mates.

They quickly found that males willing to forgo sleep or take less of it were the more successful suitors, mating more often and producing more offspring.

This group also pursued the avian equivalent of the “power nap”. Brain activity monitoring showed these birds slept less but the sleep they took was deeper.

The finding runs counter to the long-established assumption that sleep deprivation is universally a bad thing, the researchers note.

The sandpiper under study is not a native nor does it overwinter here, according to Birdwatch Ireland. There are occasional sightings of the bird, off course on its way to warmer climes in South America.

Donie's Monday news Ireland Blog

A big cull of credit unions in Ireland expected & it could shut down some 300 offices

      

Last weekend’s annual conference of the Irish League of Credit Unions (ILCU) took place as the community-based banking movement faces unprecedented changes after decades of near-inertia.

Less than a quarter of the more than 400 credit unions currently in existence will still be around in 10 years’ time, experts have predicted.

The sector faces a radical shake-up with a recent report recommending widespread mergers as the only way for it to survive a financial meltdown.

In the wake of this wave of amalgamation, around 100 unions will survive in the long term, predicted Justin Callaghan, executive director of FTI Treasury, which has been providing advisory services to the movement for eight years.

He based the figure on the fact that there are only 109 credit unions with assets over €40m, which is “probably the smallest assets size to lend itself to a feasible restructuring plan”.

A senior credit union insider we spoke to agreed with this assessment. “I would say 100 max will exist independently in 10 years,” he reckoned.

Another source with deep knowledge of the sector, who also did not wish to be named, foresaw an even more radical culling.

“Depending on government policy either none or 25 will still exist,” he said. “If credit unions are not considered a component of a post-crisis banking system, none will survive. If they are to survive, the system has to rationalise into bigger operations that must also integrate, similar to European networks,” he said. “Hence the figure of 25. And maybe even fewer would do. Perhaps 10.”

However, weaker credit unions that are amalgamated won’t necessarily shut down. They could still remain open as the local branch of a larger operation.

Consolidation of credit unions was the key recommendation in the recent report on the Commission on Credit Unions, which is being discussed at this weekend’s ILCU gathering in Killarney.

The report shows that unions have weathered the financial storms relatively well — compared to the carnage in the banking sector.

Average liquidity in December 2011 stood at 47.38 per cent while the loan-to-asset ratio in the sector was 40.76 per cent for the year as a whole.

However, it warned, in the absence of “corrective action” (ie, amalgamations), the “financial position of a significant number of credit unions will deteriorate markedly between now and 2013, due mainly to rising bad debts, poor governance and inadequate buffers of reserves”.

The report does see a future for restructured credit unions, particularly in social lending.

Justin Callaghan agrees: “I believe there is a future. To what extent there will be local or centralised balance sheet remains to be seen,” he said. “But the ethos is very strong. They have an important role for the local community. People are very comfortable with the credit union ethos.”

This loyalty translates into a “stickiness in shares”, which has spared the unions from an even greater outflow of funds in the face of falling dividends and worries about solvency.

Another fan of credit unions is Eddie Hobbs, who often steers financially troubled borrowers towards credit unions on his mobile clinics for RTE’s The Consumer Show.

“I always check the financial situation of the local credit union in question. If I’m happy with that, I’d certainly send people to them,” he said.

“Where credit is available, for example, in a recent clinic we did in Nenagh, the local credit union did a student loan at 6.25 per cent. That’s very good.”

When asked about the falling level of dividends paid on savings to a current average level of around 1 per cent, he pointed out: “You throw money into a credit union in order to be able to borrow money, not for the level of return.”

Eddie also likes credit unions because of their “humane” approach to lending.

“They are good with people. You can hear that as soon as you talk to them on the phone. That’s because they have hundreds of thousands of real human interactions every day, which is very different to how banks operate.”

Wind farms can affect local weather in the immediate locality 

            

Wind turbines can affect local weather, the study confirms – but not further afield

Wind farms can affect weather in their immediate locality, raising night-time temperatures on the ground, researchers working in Texas have shown.

They used satellite data to show that land around newly constructed wind farms warmed more than next-door areas.

The result – published in the journal Nature Climate Change - confirms an earlier, smaller study from 2010.

The scientists believe the effect is caused by turbines bringing relatively warm air down to ground level.

They suggest that turbines in other places might not produce the same value of ground temperature change.

The study area, in west-central Texas, saw a major turbine building programme in the middle of the last decade, with the number soaring from 111 in 2003 to 2325 just six years later.

Researchers used data from the Modis instruments on Nasa’s Aqua and Terra satellites to measure ground temperatures across the study region and between the beginning and end of the construction boom, defined as as the difference between the average for 2003-5 and that for 2009-11.

The entire region saw a rise, but it was more pronounced around wind farms.

The researchers looked for other factors that could have affected the results, such as changes in vegetation, but found these were too small to produce the observed change.

Limited reach

The change was not identical across all of the wind farms. Having averaged the data, the researchers say the scale of the effect they saw is equivalent to a warming of about 0.72C per decade.

Recognising that this could wrongly be interpreted as suggesting the local temperature will continue to rise, lead researcher Liming Zhou cautioned: “The estimated warming trend only applies to the study region and to the study period, and thus should not be extrapolated linearly into other regions or over longer periods.

Could the local weather changes affect farming?

“FOR A GIVEN WIND FARM, THE WARMING EFFECT WOULD LIKELY REACH A LIMIT RATHER THAN CONTINUE TO INCREASE IF NO NEW WIND TURBINES ARE ADDED.”

At night, air above ground level tends to be warmer than the ground. Dr Zhou and his colleagues believe the turbine blades are simply stirring up the air, mixing warm and cold, and bringing some of the warmth down to ground level.

“The result in the paper looks pretty solid to me,” commented Prof Steven Sherwood from the Climate Change Research Centre at the University of New South Wales in Australia.

“Daytime temperatures do not appear to be affected. This makes sense, (and) this same strategy is commonly used by fruit growers who fly helicopters over their orchards to combat early morning frosts.”

The 2010 study, also from the US, used data from a single location and computer modelling to show that wind turbines could produce local warming.

Dr Zhou, from the State University of New York in Albany, US, now plans to look across bigger scales and to decipher the mechanisms better.

“This article is a first step in exploring the potential of using satellite data to quantity the possible impacts of big wind farms on weather and climate,” he told BBC News.

“We are now expanding this approach to other wind farms, and building models to understand the physical processes and mechanisms driving the interactions of wind turbines and the atmospheric boundary layer near the surface.”

Connacht Gold reports a 16% increase in turnover and profits for 2011 

‘sales now up to €345m’

       

Aaron Forde, the CEO of Connacht Gold.

Connacht Gold has reported a 16% increase in turnover in 2011. Turnover reached €345m compared to €296m in 2010. Operating profit for the dairy, consumer foods and agri-business co-operative was €3.29m, compared to €3.24 in 2010.

The increased turnover was driven primarily by a substantial increase in the value of dairy ingredients sales and a record year for sales in its livestock marts business.

Dairy Ingredients turnover rose almost 40%, from €60m in 2010 to €83.5m while sales at the co-op’s four livestock marts increased by 30% to €90m.

The co-op’s net debt was down from €18m to €7.8m. The main drivers were an improved working capital position, continued focus on operating costs and proceeds of a share disposal. Capital expenditure in 2011 amounted to €7.2m.

Connacht Gold chief executive Aaron Forde said the figures represent a steady performance.

“Our operating profit was modest, but is reflective of our commitment to maximising returns to our members and the strong investment programme pursued in 2011.

“We continued to invest heavily in the company across all business units. The acquisition of the milk and retail stores businesses from Donegal Creameries at the end of the year will grow the business significantly and consolidate our position in consumer foods, dairy ingredients and retail stores. The emphasis in 2012 will be on consolidating the enlarged business and ensuring our customers, members and suppliers benefit,” he said.

Highlights: The following are the highlights for the main business units in 2011:

Agribusiness: Agribusiness sales were maintained at €88m, in spite of a national drop in feed and fertiliser sales. The investment in stores continued during the year with a new multi-purpose store opening in Swinford, Co Mayo. Major investment was also undertaken in a new store in Westport and in relocating the Longford store to cope with increased sales.

The acquisition of the Donegal Creameries businesses has increased the number of Connacht Gold stores from 30 to 41 in the five counties of Connacht as well as Longford, Westmeath, Donegal, Fermanagh and Tyrone.

Livestock Marts: The co-op’s four livestock marts, at Balla, Ballinrobe, Ballymote and Mohill, achieved record sales of over €90m, up from €69.6m in 2010. Average prices for cattle and sheep increased by 23% and 14%, respectively, in 2011. The marts also grew their share of business in the region, with throughput of sheep up 17% and cattle throughput up almost 5%.

Consumer Foods: Consumer foods sales climbed almost 10% to €45.7m in 2011, with increased volumes being recorded, particularly in the butter and yellow fats area. The launch of ‘Connacht Gold Spreadable’ and ‘Connacht Gold Spreadable Light’ contributed to this success against a value-driven market backdrop. The Donegal acquisition creates a strong market position for the future.

Dairy Ingredients: Volumes of milk processed at the co-op’s dairy ingredients business increased by 20% in 2011 and this, combined with stronger product prices, led to an almost 40% increase in sales to €83.5m. Connacht Gold expanded its markets for dairy products during the year. Fat-filled milk powder is now being exported to the Middle and Far East, Africa, Pakistan and there are growth opportunities in Central America.

The average price received by Connacht Gold milk suppliers surpassed the previous peak achieved in 2007.

Joint Venture: The Connacht Gold joint venture timber processing company, ECC Timber, reported a strong export performance in 2011 which helped to counteract the continuing poor domestic demand. The raw material price did not reflect market reality for much of 2011. Based in Corr na Mona, Co. Galway, ECC Timber accounts for almost 20% of timber processing in Ireland. Investment in a finishing line was completed during 2011.

Connacht Gold Chairman Padraig Gibbons said; “Connacht Gold is entering a pivotal period and the increased scale of the business will be vital to ensuring efficiencies and customer relevance as we seek to strengthen our brands and play a vital role during a positive outlook for agriculture in Ireland.

“With the ending of quotas in 2015 now only three years away the co-op is engaged in planning for the changes that will bring. As the planning phase progresses, we will maintain communications with the shareholder base.

The FF leader Michael Martin dismisses 

Eamon Ó Cuív proposal of a Sinn Féin coalition

  

The Fianna Fáil leader Michael Martin has rejected a suggestion by his former deputy leader that Sinn Féin would be the party’s preferred future coalition partner.

Micheál Martin said yesterday that he would not share Éamon Ó Cuív’s analysis in terms of Sinn Féin being a republican party. “I would challenge that point,” he added.

Mr Ó Cuív made his remarks to the Connacht Tribune before yesterday’s attack on Sinn Féin by Mr Martin at the Fianna Fáil 1916 commemoration in Arbour Hill, Dublin. Mr Martin said Sinn Féin’s economic platform and its policy on Europe would not commend the party to him or Fianna Fáil at this stage.

Mr Ó Cuív resigned as deputy leader and from the front bench last month after defying the party’s support for the fiscal treaty referendum. Mr Martin had made it clear to Mr Ó Cuív that his role in the party had become untenable.

The former deputy leader said yesterday he favoured coalition with Sinn Féin in the future because the two parties basically came from the same tradition.

“The reality also is that Fine Gael and Labour have had a symbiotic relationship over many, many years,” he added. “You could say they are nearly just two wings of one group and, therefore, there is very little compatibility between Fianna Fáil and either Fine Gael or Labour.”

Asked about Mr Martin’s rejection of his views, Mr Ó Cuív said it was not “the first time we have disagreed on policy issues”. He was informing people of his views on the treaty. “There seems to be a lot of misunderstanding out there.”

He added that people campaigning for a Yes vote were saying there was no choice.

After his speech in Arbour Hill, Mr Martin said he was putting across a clear message that the pasts of all parties were up for inquiry. “I think, at this juncture, it is important that the activities of the Provisional IRA are articulated . . . the barbarity they engaged in and the need for accountability.”