COMREG WARNS EIRCOM OVER LINE FAULTS AND WEAK INTERNET - The communications watchdog Comreg has warned Eircom of further punitive measures after fining the telecom operator €2.5m for failing to fix customer lines in time.
Comreg also said that almost one in ten Irish phone landlines cannot sustain a basic broadband internet signal, writes the Irish Independent. The warnings came as Comreg published a revised report on Eircom's record of fault repair times. The country's biggest telecoms operator was found to have missed key targets in repairing faulty lines, while over one in four lines remained unfixed two days after they had been reported to the operator. Eircom also missed further line repair targets within five and ten working days, but these fell short by a small margin. Under telecoms law, Eircom must meet minimum service standards or face fines of up to €5m per year. While the operator confirmed that it has completed a €2.5m payment fine related to the issue, Comreg is warning that it may seek further penalties against Eircom if repair times do not improve. However, Eircom says that it will commit to more spending to improve its record.
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ACCESS TO IBRC LIQUIDATION RECORDS REFUSED - The Information Commissioner has refused a Freedom of Information appeal by The Irish Times for official records on the liquidation of Irish Bank Resolution Corporation, the former Anglo Irish Bank. The commissioner, Peter Tyndall, said in a nine-page ruling that he would expect the Department of Finance “to consider making further information available once the liquidation process is complete”. Mr Tyndall was issuing a decision on an appeal by The Irish Times on the department’s refusal to grant access to reports to the Minister for Finance from the special liquidators, and other data on the termination of IBRC’s business. This followed the refusal of an appeal to the department itself. The Freedom of Information request, issued in November 2013, centred on 1,400 pages of documents arising from the liquidation. At issue primarily were monthly reports to the Minister from the special liquidators. Among other information, this included summary data on the net financial position of IBRC month-by-month and the monthly totals of the professional fees incurred by firms or independent consultants in the liquidation process.
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STARBUCKS' IRISH ARM GAINS BUT AVOIDS CORPORATION TAX - The Irish arm of coffee giant Starbucks brewed up impressive pre-tax profits of €745,707 in 2013 - but did not pay corporation tax. Abridged accounts just filed by Ritea Ltd - formerly Starbucks Coffee Company (Ireland) Ltd - show that firm recorded a 3% increase in pre-tax profits from €721,327 to €745,707. The firm enjoyed the increase in pre-tax profits in spite of gross profit going down by 17% from €2.49m to €2.06m in the 12 months to the end of September 2013. The accounts for the Irish firm show the company’s operating profits decreased by 7% from €801,416 to €746,323 in 2013. However, the company benefited from paying out interest payments of only €616, compared to €80,089 in 2012, says the Irish Examiner. Weeks prior to the end of the 2012 financial year, Starbucks signed an agreement with Dublin-based Entertainment Enterprises Group, run by Colum and Ciaran Butler, for the group to licence Starbucks’ 17 stores in Ireland. The Butler-run group had already been operating 10 Starbucks stores under licence to give the Dubliners licensing control of Starbucks’ Irish business. The Starbucks’ operation has enjoyed major growth under the Butlers’ control with the number of Starbucks in the greater Dublin area now standing at 40 - the first Starbucks in Ireland opened at Dundrum Town centre in 2005.
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ROUGH DIAMONDS SUFFER HARD TIMES - Petra Diamonds has cut expectations for the prices it will get in 2014-15 for the diamonds from most of its mines, and warned of “indigestion” in the rough gemstones market partly because of a credit squeeze. The UK-listed diamond miner said changes to its view on prices and the grades of stones from its African mines meant results for the year to June 30 may not meet market consensus, although it raised its production forecasts and also outlined a maiden dividend. Petra and other mid-tier diamond producers were strong stock market performers last year, with investors drawn to a buoyant market for polished stones as well as imminent dividends as capital spending eased. However, after Tiffany & Co, the luxury jeweller, reported weak consumer sales this month, Petra’s warning highlighted turbulence in the market for rough diamonds, writes the Financial Times. This is due in part to liquidity issues for gemstone polishers, with concerns over the amount of loans that banks are willing to make available, and some diamantaires having to be more cautious about taking on inventory because of high levels of polished stock. The Antwerp Diamond Bank, one of the main lenders in the trade, is being run down by KBC, its owner, after a plan to sell it was abandoned last year.
