EXTRA PUBLIC SERVICE PAY DAY TO COST EXCHEQUER €300m - The inclusion of one additional pay and pensions day in public expenditure next year for "technical" reasons will cost the exchequer some €300 million, Government documents show.
Revised spending estimates from Minister for Public Expenditure Brendan Howlin also show that Government moves to suspend metered water charges in favour of lower flat fees will necessitate a €85 million increase in public expenditure next year. The 253-page document - known as "the Rev" in official circles - also sets out a further allocation of €62 million to meet additional spending pressures unrelated to the water scheme, writes the Irish Times. The revised estimates indicate that overall the exchequer pay bill will rise €754.34 million or 5.3% next year to €14.94 billion. This represents some 29%of expenditure. The annual pension bill - €2.81 billion in 2015, down 2.4% - does not include local authority pension costs, as these are not exchequer-funded. The €300 million increase for the additional pay and pension day in 2015 will not be included on the budget deficit next year as the liability is deemed to be accrued and an adjustment was made for it in the October budget.
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STOCK EXCHANGE LOOKS TO HELP SMALL COMPANIES LIST - A support programme for companies aiming to list on the Irish stock exchange in the next five years has been announced by the bourse. The programme, which is open to Irish firms with revenues of "at least" €5m, is to provide "structured support" to help firms raise capital, foster investor relations and develop business management skills, according to the Irish Stock Exchange. The programme, which is called IPO-ready, will be launched on January 15 and will commence next March, says the Irish Independent. "Listing on public markets brings enormous benefits for successful companies," said the exchange's director of strategy, Aileen O'Donoghue. "Companies that have listed on the ISE raised €23.5 billion between 2004 and 2013. Eight new companies have listed successfully in the past two years and this programme is designed to support more Irish companies to become IPO-ready. "We want to make it easier for companies with potential to scale to follow in the footsteps of Ireland's biggest corporate success stories such as Kerry Group, Ryanair and Paddy Power."
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AER LINGUS SHUNS TAKEOVER BID BY FORMER CHIEF WALSH - Aer Lingus has rejected an audacious takeover bid from its former chief executive Willie Walsh, who now runs British Airways owner IAG, thwarting his desire to expand one of Europe's biggest airline operators. In a front page story, the Financial Times says that the Irish flag carrier said that an approach on Sunday from IAG, which was formed by the 2011 merger of BA and Spain's Iberia, "fundamentally undervalued" Aer Lingus. The FT reported that IAG was eyeing a takeover bid for Aer Lingus, prompting BA's owner to confirm that it had made an offer and there was no certainty it would make another offer. The bid comes amid frantic efforts by legacy European carriers, including Germany's Lufthansa and Air France-KLM, to combat the growing threat from low-cost operators such as Ryanair and easyJet on short-haul routes and from rich Gulf airlines on long-haul flights. Acquiring Aer Lingus would give IAG valuable take-off and landing slots at the congested Heathrow airport, BA's main base, and give the airline greater scale. One person familiar with the matter said the offer valued shares in Aer Lingus at €2.20 each, giving it a valuation of €1.16 billion. Both companies declined to comment beyond their public statements. Shares in Aer Lingus rose as much as 20% before settling at about 9% higher at €1.98.
