STRINGENT NEW PLAN TO REPLACE TROIKA PROGRAMME – The Minister for Finance is set to introduce a new plan to Cabinet that will replace the troika’s bailout programme, according to The Irish Times. The seven year plan will aim to maintain strict control on the country’s finances after the bailout exit, while also focusing on growing the economy. It will set out fiscal targets for the economy, as well as specific goals and tasks for Government departments. With a seven-year timeframe the plan will run far beyond the lifetime of the current coalition, Mary Minihan points out, as the next General Election is due in spring 2016 at the latest. The newspaper also reports that Minister Brendan Howlin has outlined proposed cuts to individual departments for 2015 and 2016, while Mr Noonan has said that self-employed people will likely have their filing deadline moved next year to match up with an earlier Budget.
***
ECB OFFERS TO HELP SHAPE ‘ROBIN HOOD’ TAX - The ECB has offered to help the EU redesign its financial transactions tax to avoid any “negative impact” on market stability, reports The Financial Times. The proposed ‘Robin Hood Tax’ has run into strong opposition, according to the newspaper, with some in the financial industry warning that it could increase costs for investors and limit markets. The tax is intended to raise €30-35bn a year and to encourage more responsible behaviour by bankers; it was intended to be introduced on 1 January 2014. However according to the newspaper that date looks unlikely to be met, and the ECB’s offer to assist suggests that it is nervous about the impact the tax will have on markets. There is particular concern about the affect it will have on the ‘repo’ – or repurchase agreement – market.
***
DALATA BOSS LINING UP ACQUISITION FUND - The former boss of the Jurys Doyle hotel group is lining up financial backing to bankroll hotel acquisitions in Ireland by the end of the year, reports The Irish Independent. Pat McCann, CEO of Dalata, confirmed his team was in London on Friday to gather details on potential funding arrangements. The Dalata group owns 30 hotels, all but one of them in Ireland. It manages 13 properties on behalf of receivers, five under contract with hotel owners and the remainder it owns and operates under the Maldron brand. The company was founded in 2007 on the cusp of the economic collapse. Mr McCann stumped up €1m of his own money for the venture, in which he has a 13% stake. About 80 private clients of Davy Stockbrokers put up another €20.5m and the Shane Reihill-headed investment group TVC invested €10m. Dalata also borrowed the guts of €15m.
***
SURVEY SHOWS FALLING NUMBER OF YOUNG PEOPLE WORKING - Only a quarter of people aged under 25 are working in Ireland, down from half before the recession, reports The Irish Examiner. The figures released by the Small Firms Association also reveal that for every 10 jobs for young people that existed in early 2008, six have now disappeared. The association is urging the Government not to impose any further tax hikes on employers or employees this year, as one of a range of active labour policies they are suggesting to tackle youth unemployment. Chairman AJ Noonan said the apprenticeship programme also needs further reform, with a more structured approach to the transition to the workplace.
