CONSTRUCTION INDUSTRY NOW IN RECESSION FOR THREE YEARS - The latest Ulster Bank Construction Purchasing Managers index for May is not hugely encouraging. It shows that operating conditions in the building industry here fell again last month. The index has now fallen every month since 2007.
Ulster Bank's senior economist Simon Barry says that today's index conveys two main messages. The first is that the current state of the industry remains very weak with the building sector in recession for three years in a row. However, the second message from the survey is that builders are getting more optimistic about the industry's prospects and the measure of confidence is now at its highest since 2007.
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CALL TO EASE TAX BURDEN FOR SMALL FIRMS - The Irish Taxation Institute will today publish a five point plan which is designed to ease the tax headaches for business start-ups. The institute says the proposals are intended to remove the fear of starting a business and to encourage an entrepreneurial and job creating culture in Ireland. Institute President Olivia Lynch says it is proposing the introduction of a starter tax pack for new businesses here with a turnover of less than €75,000 a year. This would replace all the existing taxes on business - income tax, corporation tax, capital gains tax, VAT and employers' PRSI - with one flat rate tax.
Ms Lynch says that Irish smal firms are faced with tax returns which run to 24 pages long. She says this compares with a 4-7 page return for small businesses in Britain.
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MORNING BRIEFS - The EU President Herman von Rompuy has attacked financial markets for over-reacting to the euro zone's economic difficulties and being too heavily influenced by rumours and prejudices. He said the euro zone had been on the edge of a breakdown last month that could have caused a world crisis
*** The new Credit Review Office has dealt with 170 calls from businesses which believe that banks have unfairly rejected their loan applications, according to a report in yesterday's Sunday Business Post. The office was set up by the Government to evaluate decisions made by the banks covered by the guarantee to say no to loans of less than €250,000. The man who heads up the office, John Trethowan, said the level of queries was 'slow but steady'.
*** On the currency markets, the euro is worth $1.2180 cents and 83.20 pence sterling.
