Irish Economy Thread

[Thefancydanhimself]

A Europe-wide report out today says Ireland will have the greatest recovery rate among eurozone members next year.

Ernst & Young's quarterly eurozone forecast says Ireland will jump from its current 15th to second position in terms of GDP growth in 2011 at 2.8%.


It sees the economy contracting by 1% this year.

The survey says that corrective action taken by the Government has shielded Ireland from a Greek-style financial crisis.

It also finds that Ireland's cost base has fallen further than any other country in the eurozone in both 2009 and 2010.

Inflation rates fell by 1.7% in 2009 and the full-year forecast for 2010 is for an additional fall of 1%.

But in terms of employment, the results are less optimistic with Ernst & Young forecasting an annual unemployment rate of 12.6% until at least 2014.

It warns that any medium-term economic recovery in Ireland will be largely jobless.

The report cautions that the imminent threat of default in the eurozone may have passed but the crisis is far from over.

It warns that unless the eurozone seriously tackles structural reforms, the risks of an economic 'lost decade' such as that of Japan in the 1990s are significant.

This is especially true for countries in southern Europe.

Elsewhere, the director of the Economic and Social Research Institute has admitted that the agency could have done better in forecasting the country's financial crisis.

Professor Frances Ruane said lack of expertise in macro-economics, particularly in banking, meant that the ESRI lacked the specialist knowledge to see the banking crisis coming.

Speaking on RTÉ's Morning Ireland, Professor Ruane said they over-relied on the information coming from the Central Bank and Financial Regulator.

The independent think-tank celebrates its 50th anniversary this year.

RTE

What do people make of this?

[Lockheed_F-22]

400 new jobs at Stream Global in Dublin

http://www.rte.ie/business/2010/0625/jobs.html

Friday, 25 June 2010 09:15

Stream Global Services, a US firm that operates call centres around the world, is to create up to 400 jobs in Dublin.

The firm has won a contract with Microsoft to support customers of its Xbox 360 games console to the European market.

Stream currently employs about 300 staff at its Santry offices. A statement on the company's website said that the contract with Microsoft is expected to generate more than $50m a year in revenue for Stream.

It said that the Dublin office will provide multi-lingual support, offering 16 different languages for the company's European customers. An office in Oregan will provide support to Microsoft's US customers.

It said the initial phase of the implementation will be fully operational in the third quarter of 2010.

Meanwhile, DSG International - the group which owns Curry's and PC World here - plans to create 100 new jobs by end of the year nationwide.

[odlum833]

100 new tech jobs announced for Dublin


Minister for Enterprise, Trade and Innovation Batt O’Keeffe
25/06/2010 - 12:14:29
Executive search consultancy firm Spencer Stuart is to create 100 high-tech jobs over the next five years.

The jobs will be in software development, information technology support services, and data quality, and have been announced as part of Spencer Stuart's plan for a multi-million euro global technology and knowledge centre in Dublin.

Minister for Enterprise, Trade and Innovation Batt O’Keeffe said: "Spencer Stuart’s decision to hub here shows Ireland has established itself as a top location for innovation-led knowledge-based global investments."

Read more: http://www.breakingnews.ie/ireland/1...#ixzz0rrhSRTK0

700 jobs in one day in productive sectors is not bad at all. The trickle has turned into a stream.

[Thefancydanhimself]

Lot of jobs announced recently.. I wonder what the employment figures are going to look like at the end of the month

[odlum833]

Bailed-out Anglo racks up worst losses in world


By Emmet Oliver

Thursday July 01 2010

LOSSES posted by Anglo Irish Bank are the worst by any bank in the entire world, according to new data from a prestigious financial journal.

The taxpayer-owned bank's loss in 2009 of €15bn was far bigger than those of giant US, Japanese and German banks, according to 'The Banker', an industry magazine listing the 25 biggest losses.

Anglo, which is hoping to split itself into a so-called 'good' and 'bad' bank, managed to lose almost more money than the two next biggest loss-makers put together, the magazine reveals.

Anglo, nationalised since January 2009, has already set a record with its 2009 loss -- the largest ever posted by an Irish company.

Many experts believe such losses may never be recorded again in Irish business. And to cope with future losses, the Government is committed to pumping over €22bn into the bank.

Destruction

The scale of destruction wrought by the bank is clear when compared with other banks that reported smaller losses. For example, Royal Bank of Scotland, one of the largest banks in the world, lost only a quarter of what Anglo lost last year, the survey reveals.

US lender Citigroup, once the world's largest bank, only lost half of what Anglo lost in 2009, despite taking a massive hit during the subprime crisis. Most of the 25 banks surveyed lost money because of the subprime crisis, whereas Anglo's losses came from property lending.

Anglo is not the only Irish bank on the list, however, with AIB posting the 11th highest losses in 2009 at $3.8bn (€3.1bn), although other Irish banks, like Bank of Ireland and Irish Nationwide, managed to avoid making it on to the list.

The only mitigation for Anglo is that the 2009 results, which set all the records, covered 15 months, rather than the standard 12. However, such is the scale of losses that even on a 12-month basis the bank would have finished up number one.

The survey, while bad news for Anglo, was good news for the industry, as it showed that most banks were on the road to recovery. For example, bank profits are now almost four times higher than they were in 2008. But profits are down on the boom years for most banks.

Banks have increased their capital levels, the money they use to protect them from losses, by 15pc. "This means they are stronger but less able to lend," the magazine adds.

- Emmet Oliver

Irish Independent

...

[belfastuniguy]

And to cope with future losses, the Government is committed to pumping over €22bn into the bank.

[Lockheed_F-22]

4,000 jobs could be created in agri-food sector

http://www.independent.ie/business/i...r-2264477.html

Monday July 19 2010

Up to 4,000 jobs could be created over the next decade under ambitious plans to grow farm, food and fishing businesses, the Taoiseach claimed today.

A report on the food sector said the industry can help boost economic recovery, predicting the value of food and fisheries exports to rise by more than a third to €12bn a year by 2020.

Brian Cowen pledged the Government's full support to deliver on the proposals.

"At a time perhaps in the last decade when we've seen employment reduced by 1,500 in the agri-food sector, we see the prospect of 3,500 to 4,000 jobs being created by 2020 under these plans," Mr Cowen said.

The Food Harvest 2020 report said the agri-food and fisheries sector is the country's most important indigenous industry, directly employing 150,000 people and contributing €24bn to the economy annually.

It also deals with the drinks and forestry sectors and among its 209 recommendations it calls for "smart, green growth".

Chairman of the report group Dr Sean Brady said: "Smart - that means being innovative, investing in research, focusing on what the consumer wants, applying lean manufacturing techniques and ensuring we have the scale at every level to maximise our cost competitiveness.

"Secondly, we must be green. We must build in a meaningful way on our green image to scientifically prove, and then market, the environmental sustainability of our food production systems.

"This is a key competitive advantage for us if we can prove to our international customers that we really are more sustainable than other potential suppliers."

The plan's targets include:

:: Increasing export value of the farm, food and fisheries sector from €7bn to €12bn by 2020 - up 42pc;

:: 50pc increase in milk production;

:: 20pc increase in beef production;

:: Boost the value of primary production by farmers and fishermen by €1.5bn.

The Irish Farmers' Association welcomed the report's publication and pledged its support.

President John Bryan said the €12bn export and €1.5bn primary output targets were achievable with Government help.

"The cornerstone of the 2020 Strategy is to increase production at producer level across all sectors," he said.

"Government support in assisting competitiveness and supporting vital farm schemes, is critical for this to happen."

Agriculture Minister Brendan Smith said the sector can be at the forefront of the state's economic recovery.

"It (the plan) is a comprehensive and considered roadmap for the development of Ireland's key indigenous sector," he said.

"The targets set by the Committee are challenging, but they are also achievable," he said.

The Irish Dairy Industries Association, which represents dairy producers, urged the Government to remove remaining barriers to growth.

Senior executive Michael Barry said: "The vision for growth is credible if backed by the right government policies. Increasing output requires a renewed focus on competitiveness."

Press Association

[RubaDub]

"Secondly, we must be green. We must build in a meaningful way on our green image to scientifically prove, and then market, the environmental sustainability of our food production systems.

:: 50pc increase in milk production;

:: 20pc increase in beef production;

These are conflicting targets seeing as cattle have been one of the biggest sources of greenhouse gases and reducing the number of them has been one of the ways we plan to meet Kyoto targets. Funny how that gets forgotten about when jobs are needed!

[Lockheed_F-22]

well maybe we'll see Irish government responding to that by doing something like putting up higher car taxes, or possibly (but very hardly) reduce a ticket price for public transport or something like that

[odlum833]

http://www.independent.ie/national-n...e-2264971.html

Firm pledges 5,000 jobs in 'centre of excellence'


By Anne-Marie Walsh and Anne Lucey

Tuesday July 20 2010

THE Government has sought detailed plans from an ambitious company that claims it can create almost 5,000 pharmaceutical jobs.

Pharmadel, based in Tralee, Co Kerry, is in negotiations with local authorities about finding a location for an International Centre of Excellence, with a potential €4.5bn investment.

The Department of Enterprise, Trade and Innovation said Minister Batt O'Keeffe had met the pharmaceutical manufacturer in Cork last May to discuss the plans.

"Pharmadel gave a brief outline of its proposal and we await a more detailed submission before our agencies would become involved," said a spokesperson.

It is understood the proposal is at a very early stage and it is unclear where the funding will come from.

A project team has been set up in Tralee to lobby for the location of the centre. A 26.8-acre former Amann Industries factory site in Tralee, which closed last year with the loss of more than 300 jobs, is one of the locations being considered.

Graduates

Known as the Global Pharmaceutical Centre of Excellence, it would employ graduates in science, pharmaceuticals, engineering and IT alongside nurses, doctors, secretarial and administrative staff.

Sources said 4,380 graduates, 116 academics and 321 management executives would be hired.

It is understood the centre would have 30 campuses with a target opening date set for 2012.

Sinn Fein TD for Kerry North Martin Ferris said if successful, the development would be a monumental achievement for the area, and Ireland.

"I would urge people to remain cautious because this is at a delicate stage and nothing is delivered on yet," he said.

"A lot of work has already gone into it, but a lot more will have to be done before we can be sure this will come off."

Mr Ferris and other local TDs held talks with the investors last Friday.

Kerry North Fine Gael TD Jimmy Deenihan said the project was "very much in its infancy".

"If it is to come to fruition, it will require massive government agency support," he said.

The unemployment rate in Tralee is 26pc, double the national average.

- Anne-Marie Walsh and Anne Lucey

Irish Independent

Information on this here

http://www.gpce.ie/

[niterider]

Whats your views on diversifying the economy with less almost total reliance on footloose industries...establishing home grown manufacturing etc

[nordisk celt83]

Well I guess that's what Enterprise Ireland are trying to do, but multi-nationals are still hugely important.
It does seems there continues to be an over-reliance on U.S companies though!!!

[Alkareem]

Hopefully a more balanced economy will emerge from this recession - a mix of indigenous, multinational industry, an expanding food sector and continued investment in R & D.

[Lockheed_F-22]

Job opportunities on rise, say recruitment agencies

http://www.independent.ie/business/i...s-2267923.html

By Ian Barrett

Thursday July 22 2010

Employment opportunities are increasing and should continue to do so throughout 2010, two recruitment firm surveys released yesterday indicate.

Research carried out by the Premier Group indicated that the number of employment opportunities for professionals in the Irish jobs market rose by more than a third compared with this time last year.

Its Irish Employment Monitor tracks the numbers of candidates and job vacancies registering with its network of offices on a month-by-month basis and the June 2010 data shows the group had 5,669 vacancies last month, compared with 4,117 positions in June 2009, an increase of 38pc.

However, the number of candidates in the jobs market also increased, with 12,480 registered in June 2010 compared with 8,070 in June last year, an increase of 55pc, with an additional 1,945 jobseekers registering in the period between May and June alone.

Brian Murphy, the Premier Group's Irish CEO, pointed out that the volume of professional jobs grew by 31pc in the first six months of 2010 compared with the second half of last year and he expected this trend would continue into the third quarter of this year.

"The IT sector has shown particularly strong growth for the second consecutive month," Mr Murphy said.

In its survey of the Irish retail sector, Dale Powell, of the recruitment firm Teamworx, said that two-thirds of respondents had hired new staff over the past three months and more than 70pc expected to do so over the next three months.

This positive employment outlook is based on a number of existing stores having expansion plans while a number of new outlets are planning to open during the second half of the year, the firm said.

- Ian Barrett

Irish Independent

[Lockheed_F-22]

another piece of good news:

80 energy jobs created

http://www.independent.ie/business/i...d-2268716.html

Thursday July 22 2010

Eighty jobs are to be created with the expansion of a homegrown energy technology firm, it was revealed today.

SolarPrint is to open a new headquarters in Dublin to house its first high volume manufacturing line next year.

Batt O'Keeffe, Enterprise Minister, said the company had an exciting and ambitious business plan.

"As Ireland enters economic recovery, the Government is anxious to continue supporting innovative scalable enterprises that can create high-quality jobs and drive strong export sales," he said.

SolarPrint specialises in developing dye sensitised solar cell (DSSC) technology, used to convert light into energy.

It is currently patenting a design which generates power at a lower cost than similar systems.

The company has signed an agreement with car manufacturer Fiat to develop solar panels for the roof of a car to generate alternative sources of energy for vehicles by converting light to power.

The 80 jobs will be in the fields of chemistry, electrical engineering, physics and material sciences and also commercial and financial roles.

Dr Mazhar Bari, SolarPrint chief executive, said: "This recruitment drive will be a significant shot in the arm for the post-graduate research sector in Ireland and will help to position Ireland as a viable knowledge centre in the field of photovoltaic technology.

"However, on a wider level, we would like to think that we are making an important contribution to the ongoing advancement of the clean technology agenda in Ireland and elsewhere.

Press Association

[odlum833]

AIB & BoI expected to pass stress tests



lFriday, 23 July 2010 10:38

AIB and Bank of Ireland are today expected to pass a major European test of banks' ability to cope with potential losses.

Due to their significant share of the banking market, they are the only Irish financial institutions that are being scrutinised.

Central Bank Governor Patrick Honohan last week dropped a broad hint that Irish banks are likely to pass this critical stress test.


The Committee of European Banking Supervisors is due to publish a breakdown of its results later this afternoon.

The two banks have already been forced to raise money by Financial Regulator Matthew Elderfield to boost their capital.

While Bank of Ireland has completed that process, AIB is still working to raise over €7bn.

Spanish newspaper El Pais has reported that several of the country's 18 savings banks have failed to pass the tests.

The government of Slovenia said last night that its biggest bank would fail, while Chancellor Angela Merkel has not ruled out a German bank facing difficulties.

Failure will not mean banks are bust, but they will have to raise more money.

www.rte.ie

[belfastuniguy]

The stress tests are an absolute joke. They utterly fail to even touch upon the fundamental concerns that markets and investors have.

If the EU really thinks most of its banks would survive a debt crisis then I want some of what they've been smoking.

[odlum833]

I agree the bank test was not severe enough - but it was not without major casualties - most of note to me Germany's Hypo Real Estate - which is actually a product of the aqusition of a black hole of debt in the IFSC. If ever a major bank made a bigger mistake in history I don't know of it! Thankfully the Germans have to pay for it!

[belfastuniguy]

Hypo shouldn't really have been a surprise to be honest, concerns were raised about them a while back.

Overall however the German market is very secure.

[odlum833]

I remember now. It was Defra Bank they aquired in the IFSC - that had them sunk before the global crisis even began.