DATALEX CHIEF HIGHLIGHTS ABSENCE OF EY FROM MEETING - Datalex's new chief executive told a shareholder meeting on Thursday that its former auditors, Ernst & Young (EY), were "conspicuous" by their absence as they didn't show up to explain why they declined to give an opinion on the beleaguered travel retail software company's 2018 accounts.
EY said in Datalex's annual report, published in early September after months of delays, that it had disclaimed an audit opinion, in a highly unusual move, due to a breakdown in controls last year that lead to an accounting scandal. This has caused problems for Datalex's new management team, such as making it more difficult for them to secure a resumption of trading in the company's stock. The shares have been suspended since the end of April, after Datalex missed a regulatory deadline to file accounts for last year, says the Irish Times. "EY are conspicuous, it has to be said, by their absence here this morning," said Sean Corkery, who was named as Datalex’s permanent chief executive on Thursday. "We’re disappointed with that. And we’re obviously disappointed with the audit process." A spokeswoman for EY, which resigned as Datalex’s auditors last month, declined to comment. Mr Corkery joined the board in April as deputy chairman as the company grappled with the fallout of accounting irregularities that emerged three months earlier. The new management team, including chief financial officer Niall O’Sullivan, had argued in the annual report they had "exercised strict diligence to ensure that the directors’ report was consistent with the financial statements".
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DRIVERS FACE INSTANT PETROL PRICE HIKE FROM BUDGET DAY CARBON TAX - Motorists can expect to be hit with an immediate hike to petrol and diesel prices in next week's Budget.
Finance Minister Paschal Donohoe is to order that the price of fuel at filling station pumps across the country be raised from midnight on Tuesday. The carbon tax increase will be one of the most controversial measures in Budget 2020 - but there may be some reprieve on domestic fuel such as home-heating oil, briquettes and coal. Sources have told the Irish Independent that Mr Donohoe may hold off on increases to those products until 2020 amid fears about the impact on families and pensioners as we head into the winter months. It is understood plans are being developed to have mechanisms in place "to deal with fuel poverty" before home-heating oil is targeted. This could see price hikes delayed until January 1 or possibly even until spring 2020. The carbon tax, which is currently set at €20 per tonne, has not increased since 2014. The Government now intends to raise it by between €6 and €7 in the first of what will become annual increases for the next decade. The new income will be divided into three pots for dealing with fuel poverty, a just transition and behavioural change measures.
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RATINGS AGENCY BOSS BELIEVES BREXIT DEAL WILL BE DONE 'BASED ON FACTS' - The head of credit rankings at one of the world’s largest ratings agencies has said that a Brexit deal remains the most likely outcome from the protracted negotiations between Britain and the EU.
However, Yann Le Pallec added that despite Ireland being rated as "stable" at present, the country remains exceptionally vulnerable to the fallout from whatever way Brexit unravels, says the Irish Examiner. Le Pallec, global head of credit ratings with ratings agency Standard & Poors, was in Dublin to discuss sustainable finance at the European Insurance Forum at Croke Park. He said recent developments in the UK Parliament - such as the UK Supreme Court ruling unanimously that Parliament had not been prorogued, or suspended, by Prime Minister Boris Johnson - had led S&P to reaffirm its call that a Brexit deal remains the most likely eventuality. "We have to make a call, and we still see there as being an agreement. But we are naturally monitoring the situation closely," Mr Le Pallec said. "Our calls are based on facts, and we have to make calls and assumptions. Recent developments point towards a managed exit. A hard Brexit is not in anyone’s interests. The economic relationship will have to be maintained, even from an external perspective," he added.
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UK HOUSEBUILDING FALLS TO SLOWEST QUARTERLY RATE FOR THREE YEARS - Housebuilding across England has fallen to the slowest quarterly rate for three years, according to official figures, despite a promise by the government of a homebuilding revolution.
Figures published by the housing ministry showed construction began on 37,220 homes in England in the three months to June - 8% down on the same period a year ago, and the lowest quarterly number of new home starts since 2016. Annual new housing starts fell to 160,640 in June, 1% lower than a year ago, says today's Guardian. The government has continued a pledge made under Theresa May to boost housebuilding amid a national shortage, with a target to build 300,000 homes a year. The chancellor, Sajid Javid, and Robert Jenrick, the housing secretary, unveiled plans at the Conservative party conference for a "revolution" in housing and infrastructure, announcing the relaxation of planning laws to boost the property market. "We are moving in the right direction, but there is still much more to do if we are going to deliver the numbers needed by communities up and down the country," Jenrick said. Figures show the number of houses completed rose to the highest level in 11 years, rising by 8% over the year to June to 173,660. However, analysts warned the decline in new housing starts was a leading indicator for a future downturn in completions.
