Inside the world of business
Getting serious on green economy
IT’S NOT every day that a government faced with a gaping budget deficit decides to give away some much-needed tax revenue, so the announcement yesterday that tax relief under section 110 of the Taxes Consolidation Act is to be extended to carbon offsets indicates that the current administration is serious about the green economy.
The announcement coincided with the emergence of details of the much-vaunted “Green IFSC” project. The initiative has been brewing for almost two years, so it is welcome to see some meat on the bones at last.
The primary recommendation is to establish a State-backed voluntary carbon registry and an International Carbon Standard (ICS). There has been considerable lobbying for the introduction of such a scheme, with supporters arguing that a specific “brand” for carbon standards would set Ireland apart from global competitors.
The initiative as outlined envisages an investment by the State of €6.8 million over three years, with a €1.5 million injection of private money. The relatively low level of private investment required in what is essentially a commercial initiative may raise eyebrows.
However, the commitment of public money, even such a small amount, to a new IFSC should be welcomed, in light of the undeniable success of the IFSC as it stands.
Whether the final Green IFSC proposal is signed off in the next couple of weeks, considering the political environment, remains to be seen.
While Fine Gael is committed to pursuing the policy, the idea that more than a year of serious research on the topic, involving a range of stakeholders from the public and private realms, might go to waste is worrying.
Undoubtedly the Greens will be eager to ensure that the Green IFSC gets the go-ahead before they get their marching orders from the electorate.
It would be a positive legacy for a party that is keen to show that it can, after all, merge economic and environmental concerns.
Page thrown into the spotlight at Google
IT MAY now be part of the web establishment but Google is still able to pull the occasional surprise out of the hat.
Industry watchers had been expecting the dominant force in internet search to post a strong set of results this week.
The Silicon Valley firm didn’t disappoint, with net profit up 29 per cent year- on-year to $2.54 billion (€1.86 billion).
The real surprise came with the announcement that chief executive Eric Schmidt is to stand aside and will be replaced by co-founder Larry Page.
Schmidt is not leaving Google and will become executive chairman focusing on partnerships, government relations and acting as an adviser to Page and his co-founder Sergey Brin.
The move breaks up a troika whose management success in the last decade has only been rivalled by Steve Jobs at Apple – who announced at the beginning of the week that he was taking an extended medical leave of absence.
Silicon Valley veteran Schmidt joined Google in 2001 as chief executive, to provide in his own words some “adult supervision” for the engineering-focused co-founders. In defiance of management text books, the three-way decision- making process worked as Google rapidly worked out how to make a profit from its search technology.
With Schmidt ascending to the chairman’s office it suggests the unique management structure at Google is ending. It seems unlikely that a financially secure 55-year-old like Schmidt will spend a decade as chairman.
Page, who has the engineer’s dislike of public speaking and social engagements, will now be thrown into the spotlight at Google.
At a time when it needs to cement its position in the face of competition from Facebook, Twitter and others, he won’t have much time to learn on the job and will surely be turning to his old boss for support.
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