MASSIVE STATE POWER CONTRACT OFFERED - The Irish Times reports that one of the largest individual electricity contracts in the State has been put out to tender by the Department of Finance.
The Department has asked energy companies to pitch for the contract to supply electricity to eight Government departments, Garda stations, Revenue offices, the Irish Prison Service and various health boards.
The value of the contract was not disclosed, but the paper quotes industry sources as suggesting that it would be one of the largest in the Republic.
Several of the contracts are held by the ESB, but the Irish Times says rivals like Energia (the supply arm of Viridian), wind energy group Airtricity and possibly Bord Gáis are likely to take an interest in the contract. Another company headed by former telecoms executives, Direct Energy, also recently entered the market.
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NEW INVESTOR TAKES TYRONE CRYSTAL STAKE - The Irish Independent says a new investor has taken a 50% stake in Tyrone Irish Crystal, just over a year after a management buyout at the company.
The paper reports that June Burgess, an architect and designer, acquired the stake from former finance director Tom Williamson and an investment company.
Managing director Peter Nunn said yesterday that the new shareholder would have a part to play in turning Tyrone into a contemporary company. Ms Burgess has not yet taken up a position on the board.
The company has gone through a rationalisation process and staff numbers have been reduced from 100 to the equivalent of 60 full-time jobs. The company has a turnover of €4.4m and is on track for a return to profitability next year.
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DIAMONDS GIANTS CUT DEAL IN PROBE - The Financial Times says De Beers and Alrosa, the biggest diamond producers in the world, have offered to scale down their business relationship in a move likely to end a long-running competition investigation by the European Commission.
The Commission had launched its probe after an agreement in December 2001 that committed Alrosa, Russia's state-owned monopoly, to sell $800m worth of rough stones to De Beers every year.
The Commission argued that the deal would strengthen De Beer's commanding position in the world market for rough diamonds, and could breach EU competition rules. It could also stifle the emergence of a viable Russian competitor to Alrosa, Brussels said.
Under the terms of the deal, Alrosa, the world's second largest producer, would have sold half its annual production to De Beers. In an attempt to address the Commission's concerns, the FT says the two groups have now offered to reduce the shipments to $275m worth of diamonds over a period of six years.
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BRITISH BORROWING COULD FORCE TAX RISES - British newspapers report on warnings that Chancellor Gordon Brown may have to raise taxes following a deterioration in the country's finances.
The Times says economists are warning that Gordon Brown may have to raise taxes by up to £10 billion after a surge in public spending and disappointing tax revenues sent the country deeper into the red.
The cash measure of British government borrowing, its public sector net cash requirement (PSNCR), hit £8.97 billion last month. That was £3 billion more than expected and marked the worst November figure since 1984.
