SMALL FIRMS WAITING TOO LONG TO GET PAID - Despite these hostile times for companies, small and medium businesses are waiting an average of 73 days to get paid for the services they provide from clients - including the Government. According to an ISME members' survey this morning, some firms can wait four months to get invoices paid.
ISME's chief executive Mark Fielding says that when the Prompt Payments Bill - which he describes as a complete failure - was brought in in 2002, SMEs were waiting about 50 days on average to get paid. That has now gone up by a dramatic 46% to 73 days on average. He says that 45% of business are actually experiencing delays of more than three months with large, accountancy-led big businesses and state bodies the worse offenders. This is despite the Tánaiste's recent initiative which said that central departments would pay their bills within 15 days. However, he adds that Minister Coughlan failed to mention the HSE and FAS and other semi-state bodies which 'are just as bad as the large businesses'.
Mr Fielding says that firms' cash flow is being affected dramatically as they wait to get paid for the services they have provided. He explains that because VAT has to be paid within an average of one month and with the banks refusing to extend credit limits at the moment, many businesses are finding themselves unable to pay their staff wages and in some cases, to actually close down.
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RYANAIR AND AER LINGUS BOTH FUMING OVER PROPOSED INCREASES IN PASSENGER CHARGES - Ryanair and Aer Lingus have found something they can agree - their shared loathing of increases in passenger landing charges at Dublin Airport. The Aviation Regulator yesterday said he was proposing to allow the Dublin AIrport Authority to increase landing charges per passenger by more than 13%, or 96 cents, a head from the start of next year with further increases to come once Terminal 2 begins operating. That decision is not set in stone and there is still time for debate with the airlines. Both Ryanair and Aer Lingus are already burdened with the €10 travel tax and they are both very unhappy with the regulator on increased passenger charges too. Ryanair says the regulator is 'hopelessly out of touch with economic reality' and said the rises meant that further traffic and tourism declines in Ireland were inevitable. Aer Lingus expressed 'disappointment' that the regulation had proposed an increase in an environment of collapsing traffic and economic upheaval in the aviation industry. Both airlines said some countries in Europe were cutting or scrapping passenger charges in an effort to boost demand.
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MORNING BRIEFS - Already facing a massive civil action from US regulators over an alleged $8 billion Ponzi scheme, Texan billionaire Sir Allen Stanford has surrendered himself to the FBI in Virginia on criminal charges and is expected to appear in court later today.
*** Porsche says sales of its luxury sports-cars fell 15% in the first nine months of its fiscal year to €4.6 billion. Seven Porsche models were sold by the end of May in Ireland, that compares to the 49 sold last year. If a second hand model is required, Ronaldo is selling his for £70,000 sterling in a garage sale ahead of his move to Real Madrid.
*** On the currency markets, the euro is worth $1.3927 US cents and 85.18 pence sterling.
