Today in the press

Wednesday 18 December 2013 08.09
Today in the press
Today in the press

DEBT DEAL REDUCES IRISH CASH PILE - The State's cash pile could drop as low as €16bn heading into the end of the year after a portion of the money was used to redeem bonds early, reports The Irish Independent.

That total was set to reduce to €20bn by year end - down from €25bn in November.

However, the Government yesterday repaid €4.1bn of bond debt early, a surprise move that will reduce the national debt at the end of the year - but also means less cash in the National Treasury Management Agency coffers at the end of 2013.

The NTMA declined to say what the price size of the cash pile stood at last night.

The total cash pile can change based on the rate that tax is being paid in at, or on how quickly government departments are spending cash.

Last month ministers said the then €25bn cash pile built up by the National Treasury Management Agency was one reason behind the decision to exit the bailout without a so-called "precautionary credit line" from Europe.

The cash pile is made up of money raised on the markets through bond deals early in the year, tax receipts and rescue loans drawn down under the bailout.


INTUNE LEAVES STAFF WITHOUT DECEMBER PAY - The Irish Times reports that a technology company, whose backers include Dermot Desmond’s IIU, the State and Bank of Ireland has told workers it is laying off this week that it cannot pay their December salaries or statutory redundancy entitlements.

Shareholders yesterday appointed Brian McEnery of BDO as receiver to troubled telecoms company Intune, which has an estimated €10 million deficit between assets and liabilities.

The company is letting go about 70 workers from its Dublin and Belfast offices in a round of compulsory redundancies it announced internally in October.

Yesterday it told staff in Dublin who are losing their jobs this week it would not be able to pay either their wages for this month, or their statutory redundancy entitlements, as the company is insolvent and had to be placed in receivership.

The Belfast operation, which is a subsidiary of the Republic- based parent, will be placed in liquidation with the loss of most of the jobs based there.


IRISH EMPLOYMENT COSTS FALL AGAINST EU AVERAGE - Eurostat figures show that the cost of employing workers dropped substantially in Ireland compared with other EU countries for the third quarter of this year, reports The Irish Examiner.

Tax revenues continued to increase across OECD countries, as countries recover from the economic crisis. 

Total tax revenue for Ireland is estimated at 28.3% of GDP last year, up from a low of 27.6% in 2009. 

Wages in the mainly non-business economy saw a reduction of 4.5%, the highest cut after Cyprus which has just begun its austerity programme 

Nominal hourly labour costs were down 1.6% with wages and salaries down 1.4% and other costs, such as social welfare contributions paid by employers down 4.4%. 

Overall, hourly labour cost in the euro area and the EU28 rose by 1% in the year to the third quarter of 2013 — 0.1pp less than for the same period the previous year.