BANK OF IRELAND BLASTS CENTRAL BANK OVER SME LOAN PROPOSALS - Bank of Ireland has strongly criticised proposals from the Central Bank that would require lenders to increase the amount of information they give to small and medium-sized businesses looking for credit.
The Central Bank launched a public consultation period earlier this year as part of a review of the Code of Conduct for Business Lending to SMEs. Under the proposed changes, lenders would be required to provide reasons for declining credit that are specific to the application, says the Irish Independent. But in its response to the consultation, Bank of Ireland argued the proposed measures are "unparalleled in an EU and international context", would have a negative impact on customers, and will do little, if anything, to improve the flow of credit to the SME sector. It also accused Dame Street of failing to carry out an impact analysis on the proposed revisions. "It is the view of the bank (of Ireland) that these proposals - which are not grounded in an appropriate analysis of their potential impact on SMEs or lenders - may have a number of substantive, negative consequences should they be introduced," Bank of Ireland said in its submission.
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NOVEMBER ELECTION LOOMS AS KENNY REVEALS KEY MANIFESTO PLEDGE - Taoiseach Enda Kenny, who is leaning strongly towards calling a November general election, will tonight unveil a key element of Fine Gael’s manifesto by pledging no one will receive more in welfare payments than they could earn at work. Mr Kenny’s decision to announce the “working family payment” plan at the Dublin Chamber of Commerce annual dinner will further fuel speculation he intends to call a general election shortly after the budget, says the Irish Times. It means a November election is now very much on the cards but the precise date will depend on the timetable for getting the Finance Bill and the Social Welfare Bill through the Dáil. Officials in the Department of Finance have already been told to draw up a slimmed down version of the Finance Bill giving effect to the budget changes that can be passed quickly through the Dáil. In his speech tonight Mr Kenny will pledge to change the welfare system to ensure people at work can be sure of being better off than if they were on welfare. A similar commitment was included in the British Conservative Party’s successful general election platform earlier this year. A new “working family payment” will be aimed in particular at families with one or more children.
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FOSSETT'S CIRCUS TO BREAK EVEN AFTER EXAMINERSHIP - Fossett’s Circus is set to break even in 2015 after exiting examinership earlier in the year, says the Irish Examiner. That is according to Fossett Brothers marketing manager, Charles O’Brien who said yesterday that the examinership process had been “humiliating, humbling and traumatic,” for the business, “but we are proud to have come out the other side of it and to be in a position to pass the business on. It is a heritage we don’t take lightly”. Mr O’Brien was commenting on new accounts, filed by Fossett Brothers Circus Ltd, showing that the company booked a profit of €177,668 in the 18 months to the end of October last, chiefly arising from creditors taking a hefty write-down from the examinership of the firm. The family-owned business emerged from the examinership process in February and the accounts show the amount owed to creditors was written down by €213,713 from €253,369 to €39,656.
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SONY EYES SALE OF STAKE IN MICHAEL JACKSON TIE-UP - Sony is exploring a potential sale of its 50% stake in Sony/ATV, the music publishing group it co-owns with the Michael Jackson estate, according to people familiar with the matter. A clause has been triggered in a contract between the two owners that clears the way for them to buy each other out, one person said. It is unclear if Sony will sell its stake or seek to acquire the holding controlled by the family of the late pop star - or whether the Jackson estate will want to add to its own stake, writes the Financial Times. Sony/ATV represents 3 million songs ranging from the Motown catalogue to hits by The Beatles, Bob Dylan, Taylor Swift and Lady Gaga, and musicals such as Singin’ in the Rain. The songs under management include works represented by EMI Publishing, which was acquired by a Sony-led consortium for $2.2 billion. Music publishing is a steady, cash-rich business, with top tracks continuing to generate revenues decades after they were released. However, the music industry has endured 15 years of turmoil because of piracy and the transition to digital distribution, and music publishers have not gone unscathed. The industry’s evolution from the sale of physical goods - CDs - to downloads and now to online streaming has been tough for publishers to navigate. Sales of CDs have fallen sharply over the past decade. In the past 18 months downloads have also slipped, falling more than 10% in 2014, as digital streaming and services such as Spotify have grown in popularity.
