IL&P STRUCTURE TO PREPARE FOR CHANGES - Irish Life & Permanent has posted a document to shareholders ahead of its extraordinary general meeting on December 17. The document details the group's plan to create a new holding company called Irish Life & Permanent Group Holdings plc. The new holding company's prospectus has also been published.
The prospectus says the new structure will give the group the flexibility to restructure its life assurance, banking or investment management businesses. These are Irish Life, Permanent TSB and Irish Life Investment Managers.
It says there is no certainty as to what those changes would be, but refers to the current 'challenging environment' for Irish banks and the Government's support schemes for the sector.
The changes to be voted on at the company's EGM will let IL&P take part in the consolidation process in the building society sector - there has been talk of a link with EBS and Irish Nationwide. And yesterday both EBS and the Finance Minister said talks would begin this week, and that Irish Nationwide and EBS were likely to agree a deal before Christmas.
ILP's statement today also says the group is exposed to litigation and regulatory litigation risk to do with those transactions with Anglo Irish Bank last February. It also confirms that chief executive Kevin Murphy's salary is capped at €500,000.
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FLOODS 'CRISIS' FOR FARMERS - ECONOMIST - Economist Jim Power says modest tax increases and significant cutbacks in public spending are needed to stop the situation with the public finances getting worse and to save the country from bankruptcy.
In his quarterly economic outlook, he recommends a carbon tax and increases on motor fuel, alcohol and tobacco and a broadening of the tax base.
The economist said recent flooding had caused 'devastation' for farmers, with farmers having already had a dreadful summer. Mr Power said fodder had been destroyed and slurry facilities flooded. He said many farmers were in a crisis situation.
The economist said that many farmers would go out of business without immediate financial assistance, and he called for the single farm payments to be brought forward.
Asked about his calls for public sector pay cuts, he said the country's current borrowing levels were unsustainable. He said raising taxes to deal with this had been counter-productive, and cutting spending was the only other option. Mr Power said child benefit should be means tested.
