CENTRAL BANK REDEEMED MORE THAN €2.5m WORTH OF PUNTS IN 2012 - The Central Bank redeemed more than €2.5m worth of Irish punts last year - a decade after the euro came into being, says the Irish Independent. The amounts redeemed have hardly changed each year despite the passing of time, with €232.9m still outstanding. Some €2.4m was redeemed in 2011, €3.3m in 2010 and €3.2m in 2009. The Central Bank said anybody who still had old notes or coins could still redeem them. "You do hear stories of people finding money from elderly relations where you go in and find money in very odd places, like behind wallpaper, stuffed in drawers and so on. There would be a certain amount of that," a spokesman said. "There's no time limit set on redeeming." Bank note amounts of up to the value of IR£100 may be exchanged for their same-day value in euro subject to the approval of Central Bank staff. For bank notes totalling more than IR£100, proceeds from the exchange can only be paid into a bank account, usually within 15 days. Exchanges can also be made via post.
***
BANK DEPOSITS OF OVER €100,000 MAY BE AT RISK - Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week. The Irish Times says that discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan. “We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday. Under a compromise text proposed by the Irish presidency, uninsured deposits of over €100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down. In this scenario - known as “deposit preference” - depositors would rank at the very end of the process, with other creditors first absorbing losses. However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under €100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected by the deposit guarantee scheme.
***
EMPLOYEES SET FOR PAY RISES OF 1% TO 2.5%, FINDS SURVEY - Employees of Irish firms can expect pay rises of 1% to 2.5% this year, according to Mercer’s Salary Movement Snapshot which surveyed about 150 companies. The Irish Examiner says that according to the report, which surveyed Irish companies in February, 20% of businesses in the life sciences sector can expect a pay rise this year. Other sectors set for pay hikes include consumer goods (17%), hi-tech (13%), finance/banking (10%), insurance (8%), and energy (5%), said Mercer. Noel O’Connor, senior reward consultant with Mercer, said: “Businesses in Ireland are still keeping a tight rein on salary increases. “While private sector employment has grown modestly in recent quarters, the economic situation remains precarious and organisations remain cautious with their fixed costs, such as salaries. Our survey suggests there are some signs of movement in specific industry groups like insurance, energy, and hi-tech.” The survey also includes responses from a range of companies in industries such as durable services, retail, and others. The survey participants typically include local subsidiaries of multinationals and leading indigenous multinationals, it added. The Mercer report is part of a much broader survey of 570 companies across 76 countries in Europe, the Middle East, and Africa. The countries where wage freezes have been most common are in periphery eurozone countries, including Ireland.
***
MICROSOFT PREPARES U-TURN ON WINDOWS 8 - Microsoft is preparing to reverse course over key elements of its Windows 8 operating system, marking one of the most prominent admissions of failure for a new mass-market consumer product since Coca-Cola’s New Coke fiasco nearly 30 years ago. “Key aspects” of how the software is used will be changed when Microsoft releases an updated version of the operating system this year, Tammi Reller, head of marketing and finance for the Windows business, said in an interview with the Financial Times. Referring to difficulties many users have had with mastering the software, she added: “The learning curve is definitely real.” Analysts warned that changing course would be a significant admission of failure for Steve Ballmer, chief executive, who called the October launch of Windows 8 a “bet-the-company” moment as Microsoft sought to respond to the success of Apple’s iPad. “It’s a horrible thing for this to happen to your flagship product - he’ll take a hit for that,” said Mark Anderson, an independent tech analyst. “But he’s also responsible for a renaissance inside the company. There’s a level of risk and creativity going on that would never have happened two years ago.”
