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Rainy day fund options; Microsoft’s job cuts; and no to nuclear

Business Today: the best news, analysis and comment from The Irish Times business desk

The Department of Finance is looking at options to invest Ireland's corporation tax windfall gains as a rainy day fund. Photograph: iStock

Dominic Coyle's face
Dominic Coyle
Fri Feb 10 2023 - 06:27

Department of Finance officials are examining options to broaden the scope of the National Reserve Fund where the Government is holding windfall corporation taxes against the prospects of future needs. One suggestion, writes Joe Brennan, is to invest the funds to address the likely shortfall in State pension assets in future years.

Microsoft has confirmed that the fallout for its Irish workforce from its global redundancy programme will be the loss of 120 jobs, writes Ian Curran. That means the Irish business has fared better in percentage terms than the 5 per cent average cut the tech giant is implementing across the board.

One in six civil servants working at the agency managing Ireland’s road and light rail networks earned more than €100,000 in 2021, according to figures in a spending review paper published by the Department of Finance. Ciaran Hancock reports.

Two of Ireland’s leading builders are challenging Kildare County Council’s draft development plan on the basis that it relies on outdated census data. The Kildare plan provides for no more than 9,144 homes to be built over the next six and a half years compared to the 22,000-plus allowed for under the previous plan. The plan is now subject to judicial review.

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AIB’s plans for a joint venture selling life and pension products in the Irish market have received “authorisation in principle” from the Central Bank, according to its partner in the arrangement, Great-West Lifeco’s Canada Life Irish Holding Compaany

Drugmaker AstraZeneca says the UK’s business climate is deterring pharma companies from investing in the country, with chief executive Pascal Soriot noting that Ireland’s tax code and green energy plans making it a more attractive location for a €400 million manufacturing plant that is now seeking planning permission.

Consumers will pay €90 less for electricity between now and September as the public service obligation levy, designed to fund renewable power, falls to zero, writes Sean McCarthaigh. Wholesale prices inflated by war mean renewables don’t need the support and the move will provide consumers with some buffer against rising prices.

Belgian bank KBC says the sale of its Irish performing loan book to Bank of Ireland will free up €1 billion in capital that it intends to distribute to shareholders later this year by way of an extraordinary dividend for share buy-backs. Joe Brennan explains.

Bord na Móna has lost a legal action to avoid having to disclose details about where it sources biomass fuel used to generate electricity at its Edenderry power station.

RTÉ's Radio 1 is losing listeners according the latest JNLR figures, but independent radio seems to be faring better. Laura Slattery has the details.

Later today, we will be publishing our latest edition of the On The Money subscriber-only weekly newsletter. Sign up here if you are interested in personal finance.

Patrick Mooney first fell in love with Cambodia as a young backpacker. These days, the Mayo man runs an investment company specialising in Cambodian property from his Vancouver home on Canada’s west coast. He spoke to Olive Keogh for our Wild Geese column.

And in Agenda, Colm Keena writes about growing European concern that Ireland is at risk of becoming a tax haven for companies involved in the sale of spyware to countries with a history of human rights abuses.

In World of Work, as companies look to tap older workers to tackle widespread labour shortages, they will need to adjust a workplace culture that generally does little to value or encourage more mature employees.

Finally, in his weekly column, John FitzGerald explains why nuclear power is still not an option for Ireland as it battles for energy security.

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