IDA TOLD NOT TO USE BREXIT TO BRING IN RISKY BUSINESS - The IDA has been warned not to chase finance services firms from Britain at any cost, if the UK votes to leave the European Union, by a key figure on the board that oversees the Central Bank.
Businesses should not be courted to come here, if they will not provide a real benefit to the economy, former ESRI chief and current member of the Central Bank governing commission, John Fitzgerald said, writes the Irish Independent. Speaking at the Federation of International Banks in Ireland (FIBI) conference, Mr Fitzgerald, who is now a Trinity professor, urged the IDA to avoid companies that want to "re-domicile" in Ireland. Mr Fitzgerald said he had no doubt that the IDA's "vultures" were circling the city of London. "Significant parts of the international financial sector are very important to the Irish economy. They create jobs, bring in taxation, but there are significant parts that do nothing for Ireland. They bring nothing in terms of employment, nothing in terms of taxation, but we have to pay an additional EU contribution on as a result of their activity," he said. "We should be selective and I'm concerned we're a little gung-ho in this area," Mr Fitzgerald said. In the wake of the banking crash the Central Bank's mandate was changed, ending a requirement on the regulator to promote the Irish financial services sector.
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CODD MUSHROOMS IN MAJOR BRITISH EXPANSION DEAL - Carlow-based Codd Mushrooms has agreed a deal to acquire a company in Britain in a move it expects will more than double its revenues within four years.
The company, led by brothers Leslie and Raymond Codd, has agreed a deal with J Rothwell & Son Ltd in Ormskirk in Lancashire. This will involve the current owner of the business remaining with the company and co-investing in a new £6 million plant that Codd plans to build to expand its capacity. Codd’s staff numbers will grow from 240 at present to about 500 staff by 2020, with its annual revenues rising from €18 million to €40 million. Codd supplies more than 50% of all mushrooms consumed in Ireland and this move will give it a presence in the British market, where Rothwell has a 5% market share. “All of the expansion over the next few years is going to be in the UK,” Mr Codd told The Irish Times on the fringe of the EY Entrepreneur of the Year chief executives retreat in Boston.
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JOE HEALY SEEKS ADVANCE FARM PAYMENT TO EASE INCOME CRISIS - The leader of the Irish Farmers Association has claimed the farm income crisis is deepening because of falling prices and poor weather.
Joe Healy, president, also warned that the outcome for 2016 will be significantly worse that it was this year. Mr Healy, who met with EU Agriculture Commissioner Phil Hogan, called on him to act without delay to ease the problems. His meeting with Mr Hogan in Brussels followed the Teagasc National Farm Survey result published last week. These revealed that strong cattle prices boosted farm income in 2015, but there was a big fall in milk price. The preliminary estimates show that family farm income increased by 6% last year, bringing the average figure to €26,526, says the Irish Examiner. However, the IFA president warned that a real income crisis on farms is being heightened by negative price pressures across all sectors. He said the IFA has identified the immediate issues as poor product prices, lack of retail regulation, input costs and European Union trade talks with the Mercosur group of South American countries. “We need real action immediately here and in Brussels to deliver positive change for farmers,” he said. Mr Healy said direct payments make up a significant element of income, particularly for drystock and tillage farmers.
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VENEZUELA FACES INCREASING ISOLATION AS LUFTHANSA CLOSES DOWN CARACAS ROUTE - Lufthansa has cancelled the only flight between Germany and Venezuela, underlining the worsening conditions and growing isolation of the South American country.
The German airline has flown from its Frankfurt hub to Venezuela’s capital Caracas three times a week. But in an email to Venezuelan customers on Saturday night European time, the company said it would cancel the route from June 17, writes the Financial Times. Several other international carriers have halted or reduced their Venezuelan operations, including Air Canada, American Airlines and Alitalia, in large part because of the socialist government’s tight currency controls, which left them with billions in unpaid bills. Near-empty tarmac at the airport serving Caracas is an increasingly common sight in a country ravaged by a social, political and economic crisis. The International Monetary Fund forecasts the economy will shrink 8% this year, and 4.5% in 2017. Inflation is galloping and is forecast to exceed 1,642% next year. Lufthansa’s decision is the latest signal of the dire state of the Venezuelan economy, which was highlighted by food shortages and looting in parts of the country alongside power and water rationing. Lufthansa confirmed the decision reflected Venezuela’s economic condition. Demand on the route has fallen over the past few years as fewer business travellers visit the country.
