Donie's Ireland daily news BLOG update

AIB to cut variable mortgage rates by 0.25% for all customers

Bank reports H1 profits of €1.2bn on back of significant writebacks

  

AIB said on Friday that it will cut its variable mortgage interest rate for both new and existing customers by 0.25 %, as it announced first half pre-tax profits of some €1.2bn, up by 50% on the same period in 2014.

AIB said on Friday that it will cut its variable mortgage interest rate for both new and existing customers by 0.25 per cent, as it announced first half pre-tax profits of some €1.2bn, up by 50 per cent on the same period in 2014. It is the third rate reduction from the bank in recent months and follows pressure from Government and public interest groups alike to bring variable rates in line with Euro zone norms.

Customers on a € 200,000 mortgage should save €27 a month or € 325 a year from the latest cut AIB said, which will bring the bank’s standard variable rate down to 3.65%; the rate at Haven will fall to 3.72%; and at EBS to 3.7%. Some 156,000 customers across AIB, EBS and Haven are expected to benefit from the reduction which will come into effect on October 1st. AIB’s chief executive, Bernard Byrne, said, “We committed to keep mortgage rates under constant review and to reduce these rates for both new and existing customers if and when AIB’s funding conditions allowed. Fortunately, we are again in a position to do so today.’’

The bank also announced its H1 results for the six months to June 20th 2015, revealing pre-tax profits rose by €0.8 bn to €1.2bn, on the back of signifcant writebacks of some €540m. AIB said the writebacks reflected “progress in case by case restructuring of impaired loans and the improved economic environment”.

The bank’s net interest margin, excluding the eligible liabilities guarantee (ELG), rose to 1.92 per cent, up from 1.60 per cent in the same period in 2014. Fees and commissions rose by 6 per cent due to increased levels of customer activity. Lending rose by 21 per cent to €6.9bn, while impaired loans fell to € 18bn, down € 4.2bn since December 2014 and by € 11bn since December 2013.

AIB chairman Richard Pym said: “The financial outcome for the half-year is significantly ahead of the expectations we had at the beginning of the year and reinforces our endeavours to see all of the €20.8 billion invested in AIB by Irish taxpayers repaid. Whilst any decision on a future sale of AIB is entirely one for the Irish Government, the results so far this year significantly improve the prospects for a successful transaction whenever it happens.”

The bank said its loan to deposit ratio of 99 per cent was broadly unchanged since December 2014, and net loans were also broadly in line with December 2014 at €64bn.

Minister for Finance Michael Noonan welcomed the results, noting the performance puts the taxpayer in a “strong position” to recoup its € 20.8bn investment.

“I welcome the strong set of results announced by AIB today and their confirmation that they are well positioned to start returning material amounts of capital to the Irish State. This morning’s comment from the bank’s CEO that subject to regulatory approval, the bank is strong enough to do this now, means that the State’s finances should receive a significant benefit in the coming year independent of any decision to sell some of our shares in the bank.”

Inspection of children’s homes is criticised by Ombudsman

Monitoring appears to be ‘discretionary’

  

The way in which children’s residential homes are inspected and monitored has been severely criticised by the Ombudsman for Children.

There are currently around 100 private and voluntary children’s residential centres in Ireland, which cater for some 340 children. They are monitored by Tusla – the Child and Family Agency – and formerly the HSE.

However, an investigation by the Ombudsman found major gaps in how these centres are registered, monitored and inspected. These gaps included:
-Delays in inspections due to a shortage of inspectors
-Little evidence of unannounced visits
-No evidence of visits at night or weekends
-No national protocol on how often monitoring visits should take place
-No agreed policy on access to inspection reports, which are not published in any format.

In fact, the Ombudsman, Dr Niall Muldoon, said that the monitoring of these centres appeared to be viewed as a ‘discretionary activity’. He has recommended that inspections should be transferred to the Health Information and Quality Authority (HIQA) ‘without delay’.

HIQA is already responsible for the inspection and monitoring of State-run children’s residential centres, with Tusla providing the same service within non-statutory children’s centres.

“The process of inspecting, registering and monitoring these residential centres is an important safeguard for children who are living there. Failure to carry out these functions effectively can potentially have an adverse effect on those children. By seeking to have HIQA take over this process I am looking to create confidence in the independence and consistency of the process for overseeing the homes of some of our most vulnerable children,” Dr Muldoon commented.

As part of the investigation, the Ombudsman assessed inspection reports from 49 centres and monitoring reports from 60 centres. These all related to the period between January 1, 2012 and August 31, 2013.

“It is hoped that this investigation will positively influence the ongoing reforms of Ireland’s child and family support services. Given the importance of independent inspection and of ensuring that all children in the care of the State receive the same standard of care, it is important that the transfer of these functions to HIQA is progressed without delay,” Dr Muldoon added.

Meanwhile back in Co Mayo:

Aras Attracta unit given 28 days to avoid closure

Hiqa issues closure notice for five bungalows at Co Mayo facility

  

Part of the controversial Áras Attracta home for people with learning disabilities has been given 28 days in which to make improvements by the State’s health watchdog or else face closure.

The Health Information and Quality Authority (Hiqa) has issued the facility with a notice of a proposal to cancel the registration of one of the centres on the campus.

The notice was issued last Tuesday following a two-day unannounced inspection by Hiqa staff of the facility in Swinford, Co Mayo, on July 12th and 13th. This followed previous critical reports on the facility published by Hiqa over the last two years.

The closure notice affects one of the three centres at Áras Attracta, comprising five bungalows. Bungalow 3, which featured in an undercover television documentary last year showing residents being abused, is one of the units affected.

The issues raised in relation to the centre largely relate to governance shortcomings and poor management, it is understood.

The HSE, which operates the facility, has 28 days in which to show it is remedying the fault identified in order to avoid closure.

Staff were expected to be briefed on Thursday on developments.

Six people are facing charges of assaulting residents as a result of a garda investigation begun after last year’s documentary, which showed residents being force-fed, slapped, kicked, physically restrained and shouted at.

Homeless families kicked out of temporary accommodation as council credit card is maxed out

  

The homeless crisis in Dublin

It has emerged that a number of homeless people were kicked out of temporary accommodation in Dublin this week after the credit card used by the local authorities to secure temporary accommodation was maxed out.

The incident highlights how vulnerable many people have become in the homeless crisis gripping Dublin.

Cllr Jack Chambers (FF) was contacted by one woman who was forced to sleep in an industrial estate with her three children last night as a result.

The Homeless Executive, which processes all homeless accommodation requests on behalf of the four local authorities in Dublin, have confirmed that their credit card was maxed out for two days.

Cllr Chambers called it an extremely disturbing development.

“Homeless families were literally turfed out onto the streets this week because the funds were not there to provide temporary accommodation.

“This is a damning indictment of the Government’s attitude to the homelessness crisis,” he said.

Cllr. Chambers said that Dublin is facing a shortfall of €18.5 million in funding from the Department of the Environment for homeless services this year.

“This will have a ripple effect right across the Capital.  Unless it is addressed, more and more families will be forced to sleep rough,” he said

The family of man who died on daughter’s wedding day express thanks

‘To all who helped on tragic occasion’

   

Kilronan Castle.

The family of a man who collapsed and died on his daughter’s wedding day have expressed their thanks to everybody who helped on the tragic occasion.

Sean McCauley (70) walked his daughter Anne up the aisle, just hours before he collapsed and tragically passed away.

The tragedy struck the McCauley family of Co Donegal on their big day at Kilronan Castle in Ballyfarnon, Co Roscommon.

Mr McCauley’s brother-in-law Liam McGowan expressed thanks on behalf of the family to all who helped on the tragic occasion and noted in particular the attendance of three members of the staff of Kilronan Castle Hotel at Sean McCauley’s funeral.

“Given time, I’m sure the family will get over their great loss”, he told the inquest.

The band had finished up playing at the wedding reception and the disco had started after midnight on May 17 last.

“We were having a great day and about 1.20am the disco had started and we went to say goodbye to Sean and the family. Sean was on the dance floor with his wife and as I turned away a man behind me went to shake Sean’s hand”, Mr McGowan said.

At that moment Sean collapsed and emergency medical help was summoned.

Dr David Swan, who was a wedding guest, attended him as well as two paramedics who arrived following an emergency call for an ambulance.

The medics worked on Sean for 30 minutes, but he was unresponsive and he was pronounced dead shortly afterwards.

Consultant pathologist, Dr Caroline Brodie carried out a subsequent autopsy and told the inquest that Sean had a previous history of cardiac problems. He had suffered a heart attack.

He had a complete blockage of the right coronary artery and Dr Brodie determined the cause of death to be cardiac failure.

The inquest jury returned a verdict in accordance with the medical evidence and Roscommon Coroner, Desmond O’Connor expressed his sincere sympathy to the McCauley family.

Mr O’Connor described it as “an unfortunate and very sad start to married life” for Mr McCauley’s daughter and he hoped that the family could put it behind them in time and look forward to better days.

Mr McGowan said the family wanted to express their thanks to all who had helped on the tragic occasion.

New shrimp-like species found off southwest coast of Ireland

Deep-sea crustaceans have ability to strip a pig carcass of meat in a matter of days

   

The paracallisoma alberti species of amphipod.

Two new species of shrimp-like crustaceans have been discovered off the south-west coast of Ireland by British researchers.

The two species are amphipods, small scavenging crustaceans around 3mm in length. Their discovery was reported in the scientific journal Zootaxa, in a paper by researchers Dr Tammy Horton and Dr Michael Thurston of the National Oceanography Centre in Southhampton.

What the researchers say is most notable about the newly identifed species, given the names Paracallisoma idioxenos and Haptocallisoma lemarete, is their scavenging patterns.

Amphipods generally move in swarms to strip the carcasses of marine animals including whales and fish, and these new species have the ability to strip a pig carcass in a matter of days.

Dr Horton named the species in honour of the late taxonomist Roger Bamber, who died in February of this year.

“I gave the species name ‘lemarete’ to one of the amphipods because it translates from Greek to ‘Bold and Excellent’, which is the motto on Roger Bamber’s coat of arms.”

Dr Horton described amphipods as “incredibly diverse and adaptable”, with over 10,000 known species.

Professor Andrew Gooday at the National Oceanography Centre said that amphipods like those discovered are highly common and found in large numbers. “They occur from shallow waters to the deepest part of the ocean.”

These newly discovered species are only found in deep waters, over 2.5 km below sea level.

“There’s no danger of paddling in the sea and encountering flesh-eating crustaceans,” Prof Gooday added.  

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Sean Quinn Junior pledges to help Anglo get back €500m of assets

      

Sean Quinn Jnr wants to help the former Anglo Irish Bank recoup up to €500m of overseas assets, the High Court was told yesterday.

Mr Quinn’s new legal team said he had given “unequivocal” instructions to purge his contempt of the court orders not to interfere with the family’s International Property Group (IPG), which had led to him serving three months in jail.

Ms Justice Elizabeth Dunne, who jailed Mr Quinn on 20 July last, said this “sounds very promising” after being informed of Mr Quinn’s intention by Ross Aylward.

Given the continuing exchange of correspondence between lawyers for Irish Bank Resolution Corporation (IBRC) and the Quinn side, Shane Murphy SC, for the bank, said the sides had agreed the contempt proceedings against Mr Quinn Jnr, his father Sean Snr and his cousin Peter Darragh Quinn could be further adjourned.

Those contempt proceedings arose in the context of the bank’s proceedings against the Quinn children and some of their spouses, as well as against Peter Darragh Quinn and several companies, aimed at protecting up to €430m assets in IPG.

Mr Murphy said new lawyers had come on record for the Quinn children and some of their spouses, but not for Sean Quinn Snr or Peter Darragh Quinn.

The court heard yesterday there was still no appearance by or on behalf of Peter Darragh Quinn, who was jailed in his absence at the same time as Sean Jnr was sent to prison.

A warrant issued by the judge for his arrest remains unexecuted as he continues to live at his home in the North.

Sean Quinn Snr was jailed last month for nine weeks, and the judge was told by Karen Nolan BL that he had instructed his lawyers on November 7 that he no longer wished them to represent him.

The bank’s counsel, Mr Murphy, also said yesterday that correspondence from IBRC had been sent to the Quinn side related to its intention to “recalibrate” some 30 coercive orders made by the judge last July aimed at reversing asset-stripping measures.

The bank has initiated that “recalibration” process in light of a Supreme Court decision that the High Court was not entitled to jail Sean Quinn Jnr indefinitely on foot of those orders in circumstances where there was no actual findings that he was involved in most of those asset-stripping measures.

Developments

Also yesterday, Mr Justice Frank Clarke ruled that a “material change of circumstances” justified granting a separate application by IBRC to set aside a previous court decision referring a legal issue raised by the Quinns to the European Court of Justice.

That issue was whether the courts here or in Cyprus should determine the dispute between IBRC and the Quinns about their international businesses.

The Quinns had argued that the Cyprus courts should decide the matter, but the judge directed the reference should be set aside given several developments in the case, including the loss of a court action in Cyprus by the Quinns.

In the changed circumstances, the legal proceedings here will be over long before the Quinn Cypriot proceedings can even get significantly off the ground, he noted.

Department of Health criticised by Ombudsman over disability scheme

      

For the second time in less than a month, the Department of Health has been severely criticised by the Ombudsman for its handling of a disability scheme.

Last month, a report by the Ombudsman, Emily O’Reilly, revealed that the department had been acting illegally by failing to remove the upper age limit on the Mobility Allowance scheme for people with disabilities.

The payment of up to €208 per month is made to people who cannot walk, but who would benefit from trips outside the home. Failure to remove the upper age limit of 66 years is contrary to the Equal Status Act, the Ombudsman said.

This latest criticism centres on the Motorised Transport Grant, a means tested HSE payment made to people with disabilities who need to purchase a car in order to retain employment. It is also aimed at people with disabilities who need to have a car or other vehicle adapted, again for the purpose of having a job.

The office of the Ombudsman carried out an investigation following a complaint by a young man with severe disabilities, who had been refused the grant.

The office upheld the complaint and found that the HSE’s operation of the grant ‘reflected an approach to disability which is unduly restrictive, improperly discriminatory and fails to have proper regard to the Equal Status Acts’.

The Ombudsman insisted that these ‘defects’ in the operation of the scheme ‘reflect a failure by the department in its responsibility to oversee the implementation of the scheme and a failure to provide the HSE with adequate and clear guidance’.

One of the main problems identified by the Ombudsman is that eligibility for the scheme is confined to people who cannot walk because of a physical disability.

“The Ombudsman’s view, echoing that of a 2009 equality officer decision, is that the scheme should have regard also to the consequences for mobility of psychological or intellectual disabilities,” the office explained.

The HSE has since approved payment of the grant to the young man who initially made the complaint. However, the department has rejected a recommendation from the Ombudsman, which sought changes to the scheme in order to make it complaint with the Equal Status Acts.

The department insisted that acceptance of this recommendation would have serious financial implications for the State.

However, Ms O’Reilly stated that there could be ‘no justification for allowing this disregard for the law to continue’.

“We are a society ruled by law,” she insisted.

State Street investigation over overcharging of Irish pension funds

   

UK regulators are investigating allegations that State Street overcharged Ireland’s state pension fund and several big UK corporate pension funds, including those of the Royal Mail and J Sainsbury, billing them for fees not included in their contracts, according to people familiar with the matter.

Ireland’s national debt agency said on Thursday it had notified Irish police that the big US custodian bank had reaped €3.2m in improper fees and trading profits from the national pension fund which was selling €4.7bn in assets to generate cash to invest in and rescue the country’s banks.

“What happened here was fraudulent in nature and totally unacceptable,” John Corrigan, chief executive of the National Treasury Management Agency, told an Irish parliamentary committee.

State Street said it had reimbursed the Irish debt agency and several other clients. People familiar with the matter said they included the Royal Mail and Sainsbury pension funds. The bank also sacked three staff linked to the transactions and reported the matter to the UK Financial Services Authority in September 2011.

“In a limited number of instances, we charged commissions on transition management mandates that were not consistent with our contractual agreements,” State Street said in a statement.

“The actions of these former employees and their interaction with a limited number of clients do not reflect the high standards of conduct, communications and transparency that State Street expects. We took swift and appropriate disciplinary actions in response to this conduct,” the bank added.

Mr Corrigan said the debt agency was awaiting the outcome of the FSA investigation before deciding how to proceed and whether to press for additional compensation. He said a separate state contract for the management of €900m pension fund assets with State Street was also under review.

The FSA, Sainsbury and the Royal Mail all declined to comment.

The overcharging allegations are centred in State Street’s “transition management” unit, which helps large pension funds sell assets. The bank sometimes charges a management fee and sometimes charges commission.

In Ireland’s case, the pension fund had agreed to pay a fixed fee of €698,000, according to a report by the debt agency. But the bank then applied commissions of €2.6m and also became involved with the trade as a participant, earning a further €600,000 in profits.

The debt agency said it only became aware of the improper commissions in late 2011 when it read media reports about similar problems faced by other State Street clients in the UK. Mr Corrigan told members of parliament it had been an “eye opener” when dealing with an institution of international reputation to find cash had been “siphoned off” improperly.

State Street is being sued by the state of California which alleges the bank improperly charged state pension funds for foreign exchange services, and several US authorities including the Securities and Exchange Commission are also looking into the matter, the bank has said in regulatory findings.

Coillte harvest ash trees early to help Irish Hurley makers

  

Coillte has announced an early ash tree harvest, in order to help hurley makers get around tough new ash import regulations. 

The new rules mean ash can only be brought into the country if it is from an area that is free from ash dieback disease, or if it is kiln-dried or if the outer surface is sawn off.

Coillte have said it is already harvesting ash in one of its forests in Co Westmeath, to ensure the ongoing survival of the hurley-making industry.

No cases of ash dieback have been found in the Republic to date.

The island that vanished off the face of the earth?

It’s a mystery worthy of James Bond. A tiny island in the Pacific which appears on a range of maps seems to have disappeared without a trace.

Australian scientists who went in search of Sandy Island – which appears midway between Australia and the French-governed New Caledonia on Google Earth among other world maps – found nothing but sea when they arrived.

The Times Atlas of the World appears to identify the sizeable phantom island in the Coral Sea as Sable Island, and weather maps used by the Southern Surveyor, an Australian maritime research vessel also say it exists.

But when the ship, which was tasked with identifying fragments of the Australian continental crust submerged in the Coral Sea, steamed to where it was supposed to be there was nothing there.

The island supposedly sits in an area of very deep sea, making its existence something of a geological oddity that researchers wanted to investigate.

However, when they got there, it was nowhere to be found.

‘We wanted to check it out because the navigation charts on board the ship showed a water depth of 1,400 metres (4,620 feet) in that area – very deep,’ said Dr Maria Seton, of the University of Sydney, after the 25-day voyage.

‘It’s on Google Earth and other maps so we went to check and there was no island. We’re really puzzled. It’s quite bizarre. ‘How did it find its way onto the maps? We just don’t know, but we plan to follow up and find out.’

The island’s appearance on Google perhaps should have sparked suspicions. Compared with nearby islands on which the undulations of ground are visible, Sandy Island appears merely as a dark blob. News of the invisible island sparked debate on social media, with tweeter Charlie Loyd outpointing that Sandy Island is also on Yahoo Maps as well as Bing Maps ‘but it disappears up close’.

On www.abovetopsecret.com, discussions were robust with one poster claiming he had confirmed with the French hydrographic office that it was indeed a phantom island and was supposed to have been removed from charts in 1979. daily times monitor