BOVALE TO EXPAND FINGLAS CENTRE - The Irish Times says Bovale Developments, the Irish property group owned by the Bailey brothers Tom and Michael, has announced plans to spend €135m to expand its Charlestown shopping centre in Finglas.
The Irish company, which made a record settlement with the Revenue in 2006, said the extension would lead to the creation of 890 jobs at the centre when it opens. About 500 jobs are expected to be created during the construction phase.
The Irish Times says Bovale revealed its plans for Charlestown at the British Conference of Shopping Centres in Manchester yesterday. It adds that Manchester United manager Sir Alex Ferguson attended the show to help Bovale launch the Charlestown scheme.
The second phase will see the addition of a nine-screen multiplex cinema to be operated by UCI and a Leisureplex complex. Mr Bailey told the paper that finance for phase two of Charlestown has been agreed but declined to name the bank provider.
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CHANGE 'STRINGENT' PENSION RULES CALL - The Irish Independent quotes pensions experts as warning that employers and trustees of company pensions will find it impossible to keep schemes going if new stringent rules are not radically altered.
Guidelines issued by the Pensions Board will make it more difficult to rescue struggling pension schemes, the employers' body IBEC and advisers Mercer said.
The Indo says IBEC director of industrial relations Brendan McGinty has raised the issue with Social Welfare Minister Mary Hanafin, who has responsibility for pensions policy. Mr McGinty said IBEC had also written to the Pensions Board to seek a meeting, while the issue has been raised at the talks between the social partners and the Government.
The paper says the new guidance relates to Section 50 applications, which seek permission from the Pensions Board to reduce benefits previously offered within occupational pension schemes, in order to meet the minimum funding standard required.
The Pensions Board said it would grant a Section 50 application only 'where it is satisfied that the proposed future operation of the scheme is robust enough to make any further application unlikely'.
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'CLOUD OVER FUTURE OF BMI' - The Times says British Midland (BMI) has admitted that it may not be able to continue as a going concern beyond next year in the face of an acute funding crisis at the airline.
The paper says it has seen previously unpublished financial accounts which it says show the full extent of BMI's difficulties. The document reveals that BMI, which employs 4,800 people, needs £190m of additional funding by the end of next October.
Lufthansa, the German flag carrier that took control of BMI this year, has pledged £95m to that target. The Derby-based airline hopes to make up the rest by selling its lucrative slots at Heathrow, according to The Times.
The paper says the airline's funding situation is sufficiently precarious for Deloitte, its accountant, to warn that there is uncertainty about whether the airline can carry on. The accounts were signed off on October 23 and Deloitte made it clear that there was no guarantee Lufthansa would stand behind its British subsidiary or give it further financial support.
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BANK SALARY RISES MAY AVOID BONUS CURBS - The Daily Telegraph reports that Barclays is considering raising investment bankers' base salaries to avoid the worst of the City regulator's crackdown on bonuses.
The paper says several City firms have already doubled base pay for select bankers to compensate for smaller cash bonuses.
Barclays, which employs 21,900 investment bankers who are on course for an average of £200,000, revealed yesterday it is reviewing its remuneration policy, with base pay 'under consideration'.
The paper quotes Rich Ricci, co-chief executive of Barclays Capital, the investment bank, as confirming: 'We are looking at salaries. We haven't done anything yet.'
