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New study shows huge potential for job creation from renewable energy

Solar power could create up to 7,300 jobs while meeting 7 per cent of electricity demand, according to report published by the industry on Tuesday.

The Irish Solar Energy Association is lobbying the Government for supports similar those given to wind and other renewables, which will cost consumers and businesses €181 million this year.

On Tuesday, the body said that a report it commssioned from accountants KPMG shows that solar has the potential to create 7,300 jobs in building and operating generating plants.

The association added that results from commercial rooftop solar panels installed in the south east over the first two weeks of June indicate that an established industry could meet 7 per cent of Irish electricity demand.

Chairman David Maguire said on Tuesday that solar is the only form of renewable energy that does not receive some form of subsidy to aid its development.

He explained that the group favours an auction system rather the system of guarranteed prices given to wind farms, which are funded through a levy on electricity bills known as the public service obligation.

Using the auction approach, the Single Electricity Market Operator could decide in advance that solar generators should supply a set amount of the country’s total electricity demand.

It would then invite the industry to bid for that and award contracts to the cheapest suppliers. “They would have to have land, planning permission and grid connections to qualify, and they would have to pay a deposit to take part,” Mr Magure said.

He added that any operator who fails to fulfill their contract could be sanctioned. “We believe that this would give the industry and consumers the best value ,” Mr Maguire said.

The Government is to decide on a replacement for the current round of supports, dubbed Renewable Energy Feed in Taruiff (Refit), this year. Householders and businesses pay for this through the public service charge on their bills.

Over the 12 months to next October, they will have paid €181 million to the renewable energy industry, which is largely made up wind generators.

The cash collected from consumers and businesses bridges the gap between the wholesale market price of electricity and prices guaranteed to the wind farm owners under the Refit scheme.
Despite the supports, Mr Maguire warned that the Republic is likely to fall short on renewable energy targets agreed with the EU, which require 40 per cent of all electricity to be generated from green sources by 2020.

This could result in the State paying fines of more than €300 million a-year to Brussels for failing to keep to this committment.

“It is clear the country is facing a real challenge to meet these targets and avoid significant fines,” Mr Maguire said.

“Despite the successful deployment of wind energy in Ireland, which enjoyed considerable state support, wind alone will not ensure that we reach that goal.”

He argued that solar, which contributes significantly to power generation in other European countries, but is still undeveloped here, could aid the Republic in meeting its targets with the right level of support.

He also pointed out that Germany, which is on a similar latitude to Ireland, gets 7 per cent of its power from solar.

Mr Maguire’s association has more than 100 members, including his own company, BNRG.

Article Source: http://tinyurl.com/kbwqb42

The British pound fell to an eight-week low against the dollar and a three-year low against the yen on Monday as investors grew more nervous of a referendum that could pull Britain out of the European Union.

The yen gained broadly, hitting a one-month high against the dollar and three-year high against the euro on those Brexit concerns and worries over political fallout after Sunday’s mass shooting in the United States.

The British pound GBP=D4, which lost 1.4 percent on Friday, its second biggest fall so far this year, shed another 0.3 percent in Asia to $1.4200. It fell to as low as $1.4159, its weakest since April 18.

“The referendum is getting nearer and opinion polls are showing a very tight (presidential) race,” said Shin Kadota, chief FX strategist at Barclays.

Implied volatilities on sterling soared as market players felt the need for protection against the currency’s fall. Sterling’s three-month volatility shot up to 17.6 percent GBP3MO=, its highest level since early 2009.

Opinion polls published at the weekend showed voters were still divided over whether to leave the European Union. The referendum is on June 23.

“I would expect volatilities to rise further and the markets will become even bleaker as we head towards the referendum,” said Koichi Yoshikawa, executive director of finance at Standard Chartered Bank.

The pound also hit a one-month low against the euro, which rose to as high as 79.355 pence EURGBP=D4. It last stood at 79.135.

The safe-haven yen meanwhile surged to its highest level in three years against both sterling and the euro as investors sought shelter in the Japanese currency with sentiment taking a further battering following the mass shooting in the United States.

On top of worries about Brexit, the mass killing in Orlando, Florida, has raised concerns about further social and geopolitical tensions in the United States, at a time when many countries are increasingly turning inward-looking.

Republican presidential candidate Donald Trump, who proposed a temporary ban on Muslims entering the United States earlier this year, responded aggressively saying the incident proved his warnings of “Islamic terrorism” were right.

Kadota at Barclays said: “At the root of Brexit and the Trump phenomena are the issues of immigrants and income gaps. The incident could have some repercussions on these issues.”

Sterling hit a near three-year low of 150.20 yen GBPJPY=R, while the euro also slipped to a three-year nadir of 119.03 yen EURJPY=R.

The dollar also fell more than one percent to one-month low of 105.735 yen JPY=.

While many market players think the Bank of Japan will keep its policy on hold at its meeting on June 15-16, that perception could change if the dollar falls below its 18-month low of 105.55 set on May 3.

The central banks of the United States, Britain and Switzerland all hold policy setting meetings this week, but investors expect them to stand pat given uncertainty over the looming UK referendum.

The Federal Reserve could try to keep alive expectations of a rate hike in July, however, through statements and comments from Chair Janet Yellen.

Money market futures <0#FF:> are currently pricing in less than 20 percent chance of a July a hike, near the lowest level in recent months.

The euro EUR= slipped to $1.12475, its lowest since June 3, giving up more than a half its gains made after disappointing U.S. employment data on that day.

The safe-haven Swiss franc held firm, hitting 1.0840 franc per euro EURCHF=R, its highest level against the euro in three months.

A run of economic data from China mostly came in line with market expectations and did not move markets much.

The Australian dollar traded at $0.7383 AUD=D4, up 0.2 percent from late last week.

Article Source: http://tinyurl.com/kbwqb42

THE National Treasury Management Agency has announced plans to raise a further €500m in the markets.

The T-Bills will have a six month maturity.

The NTMA is the State debt management agency.

Earlier this month, the body raised €750m in a bond auction.

In March the NTMA issued its first ever 100-year government bond at an ultra-low rate of 2.35pc. The bond was sold by private placement through Goldman Sachs International Bank and Nomura.

The sale of the 100-year bond was largely viewed as a big vote of confidence in Ireland as a sovereign issuer.

At the time the NTMA said it had received “significant positive feedback” from the sale.

Article Source: http://tinyurl.com/kbwqb42

Business leaders within the construction industry see the establishment of a new State Housing Bank as the preferred solution to the housing crisis, a new survey has shown.

According to the latest PwC Construction Industry Survey, 44pc of those quizzed see the establishment of the bank as the most popular corrective action. The proposed bank would finance housing by providing affordable mortgages.

The survey also found that almost a quarter of leaders referenced enacting emergency planning, development legislation and mandating the Central Bank to revise its mortgage lending rules as possible solutions to the crisis.

A potential British exit from the EU is also causing uncertainties in the area. Just under half of respondents said that a Brexit would hit their business while a further thrid said they didn’t know what impact it would have.

PwC Real Estate Practice senior manager Niall Cogan said ensuring adequate finance to the sector is crucial and that the results of the survey showed this remained a significant challenge.

“Available funding for the sector, whether this is for housing or infrastructure projects, is key to ensuring our economy can continue on its growth path and all options including alternative non-bank finance need to be fully investigated.,” he said.

Meanwhile fellow real estate partner Ronan MacNioclais warned the lack of suitable accommodation is starting to impact foreign direct investment and the attraction of key talent to the country.

“With an estimated 25,000 housing units required per annum, the survey finds that the creation of a new State Housing Bank is the most preferred option to provide housing finance and affordable mortgages.”

“While some challenges are showing signs of easing-up, skills shortages, funds and other external factors may hold back growth in the sector in the short-term. Nevertheless, with multiple cranes beginning to occupy the skyline again, the Irish construction sector can look forward to continued activity in the years to come as it serves the increased housing and infrastructure demand.”

Article Source: http://tinyurl.com/kbwqb42

Tax officials have written to thousands of homeowners who failed to pay their property tax this year.

The warning letters have been sent to 290,000 homeowners, with many of those who fail to respond set to have the tax forcibly taken from their salaries and pensions.
Just 90pc of homeowners paid the tax on time.

Brian Keegan, director of taxation at Chartered Accountants Ireland and author of a book on property tax, said the uncertainty over water charges may be affecting payment levels.
“The current uncertainty around water charges has implications for voluntary compliance with other forms of taxes and Government levies like local property tax (LPT), but Revenue has a lot of power to enforce LPT collection,” he said.

Tax officials insisted the level of compliance would shoot up when the letters start arriving and once the mandatory deductions start to flow.
Up to now the compliance rate was between 96pc and 97pc for paying property tax.

However, Revenue insisted that in the past compliance rates have fallen to 90pc, before warning letters prompted higher levels of payments.
The information was obtained by Fianna Fáil’s finance spokesman Michael McGrath from Finance Minister Michael Noonan in a Dáil question.

Mr Noonan said in his reply that “compliance in respect of 2016 local property tax currently stands at 90pc”.
Now this is expected to rise given 290,000 compliance letters have gone out since the middle of last month.

“I am also advised by Revenue that debt collection/enforcement action, including deductions from salaries and pensions, is under way against property owners who failed to respond to the compliance letters within the timeframe allowed,” Mr Noonan said.
Suggestions that the water charge protests have prompted a new move for people to stop paying their property tax were dismissed by Revenue.

A spokeswoman for Revenue said in May last year the compliance rate fell to 94pc, and was as low as 90pc in May 2014.
Tax officials expect the numbers paying the tax to surge when people read the warning letters.

“Revenue is satisfied that the compliance rate for LPT [local property tax] for 2016 will be in line with previous years.
“Revenue also encourages those property owners who have received a compliance letter to pay or make payment arrangements as soon as possible to avoid enforcement action.”

It was working off a register of 1.95 million properties.

If there is no property tax return from a taxpayer, Revenue can deduct the tax due from salaries, pensions or social welfare.
Revenue will not issue a tax clearance certificate for the self-employed where there is an unpaid bill.

Where property tax remains outstanding, a charge will attach to that property, and it must be paid when the property is sold.

Article Source: http://tinyurl.com/kbwqb42

Local councils will be sidelined in a new move to speed up house-building nationwide and tackle the country’s housing crisis.

Housing Minister Simon Coveney will set up a new Special Delivery Unit in the department, with project managers appointed to drive specific house building projects from start to finish. He is also considering further bypassing councils by fast-tracking big building projects to An Bórd Pleanála, to speed up decisions and minimise delays through procedures and objections.
This process is similar to the strategic infrastructure projects, like roads and bridges, which go straight to the planning board for a slimmed-down assessment process.

Mr Coveney said he would publish his housing strategy late next month – ahead of the target of 100 days in office.
The housing strategy will include a special emphasis on increasing the supply of “starter homes” for first-time buyers in Dublin.

He said current prices meant no house in the Dublin area could be bought for less than €300,000.
“It means that 40pc of people are locked out of the mortgage market. That is a big issue.”

But Mr Coveney signalled he would make no attempt to interfere in a Central Bank review of its tough rules on deposits for homebuyers, which have been controversial.
He said he had no power to tell the Central Bank what to do.

It comes after the Government conceded the housing system – across renting, buying and social accommodation – was totally broken.
The admission, during a Dáil housing debate, came as a new report showed that Dublin rents are back at boom-time rates and rents across the country continue to grow.

Education Minister Richard Bruton said housing was the biggest problem facing the Government.
“There is no system more broken than the system of housing in this country. The system is completely broken and needs to be rebuilt,” he said.

Building levels in Ireland continue to lag well behind the level needed to meet housing needs.
Figures published yesterday by the CSO show construction output in Ireland increased by 13.6pc in the first quarter of this year, compared with the same period in 2015. However, the CSO added the increases were being measured against “an unprecedented low base”.

Construction Industry Federation director general Tom Parlon said more needed to be done to ensure supply met demand. “We want to see this momentum continue throughout the year and call on the Government and the new Minister for Housing to support our industry via increased infrastructural investment and related policies.”
Last night, Mr Coveney vowed to deliver 25,000 houses per year – well ahead of the 2020 target set out in the Programme for Government agreed last month.

A mix of initiatives would be deployed to boost building of starter homes. Mr Coveney said 27,000 planning permissions are currently granted in Dublin but only 4,400 of those are being used.

The minister said a special infrastructure fund would be set up to speed up projects like roads, bridges or power supplies, which may be delaying building.
Mr Coveney said more public land must be availed of for building starter homes, as a site for a €300,000 house in Dublin costs almost €60,000 at present. He pledged to look at a reduction in levies and other tax costs for building.

“Ultimately, we will need 35,000 houses to be built every year for the next 10 years to make up for the absence of building over the last decade. I believe that target can be reached once we get over initial blockages,” he said.

Article Source: http://tinyurl.com/kbwqb42

The German economy had a decent start to the second quarter but its growth pace is likely to slow during the course of the April-June period, the economy ministry said on Friday.

Europe’s largest economy was on a solid growth path, the ministry said in its monthly report, but the external environment remained tough and was only gradually improving.
It said private consumption remained the most important driver of growth.

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“After the positive start to 2016, German economic growth is likely to slow somewhat in the second quarter, not least because the spring recovery in construction is likely to be less pronounced than usual after the mild winter,” the ministry added.

The German economy expanded by 0.7 percent on the quarter in the January-March period, with strong private consumption, higher construction investment and increased state spending on refugees more than offsetting a dip in foreign trade.
For 2016 as a whole, the government expects gross domestic product (GDP) to expand by 1.7 percent, on a par with last year, when growth was driven mainly by soaring household expenditure and higher state spending.

The purchasing power of German consumers is currently being boosted by record high employment, rising real wages, rock-bottom borrowing costs and nearly stable prices.
In May, consumer prices — harmonised to compare with other European countries (HICP) — were unchanged on the year after falling by 0.3 percent in April, the Federal Statistics Office said on Friday, confirming preliminary estimates.

The ministry said the strong influx of refugees was still only having a moderate impact on the labour market, but this would change in the future.
Analysts expect German unemployment to rise next year when a growing number of asylum seekers will enter the labour market.

The government plans to spend nearly 10 billion euros ($11.3 billion) this year on supporting and integrating a record influx of more than 1 million migrants who arrived in Germany last year alone. Berlin also aims to spend more than 6 billion euros on combating the causes of migration from the Middle East and elsewhere.
The total sum of some 16 billion euros is expected to rise in coming years, with Berlin planning to spend 93.6 billion euros overall by 2020

Article Source: http://tinyurl.com/kbwqb42

IT is getting much more difficult to sell Irish loan portfolios to international investors as interest in the country wanes, according to one of the most important figures in the property industry.

Cushman & Wakefield head of European loan sales Federico Montero, said the market was “getting tougher and tougher” to sell Nama portfolios.
“Nama was very successful because, among other reasons, it was able to start selling in 2010 when it and the UK almost had the market to itself,” he told an investor conference in London run by industry magazine ‘Private Equity Real Estate’.

When asked if there was still an opportunity in Ireland, Mr Montero said it was “getting tougher and tougher” to sell loan portfolios.
“It is a bit like Spain: if you are investing now, the perception is you are late,” he claimed.

Mr Montero is a key figure in the European loan market, and has orchestrated the sale of a number of Nama portfolios.
He is currently in charge of selling the Project Ruby and Emerald portfolios of Nama loans, which have a par or face value of €4.7bn. Given the quality of those portfolios, however, they are likely to sell for as little as €800m.

Overall, he has been involved in European loan sales with a nominal value of as much as €30bn.
His comments reflect a wider sense of little interest in the Irish market for now.

A poll carried out at the conference showed nearly 80pc of attendees – mostly senior figures in private equity – did not plan on investing in European loan books this year. That is a contrast to previous years.
They also contrast with suggestions that current Nama sales are thriving because of concerns around Brexit in the UK and investors’ ability to take control of assets in the UK and Spain, where enforcement laws are much different to Ireland’s.

It comes as Nama reported a profit for last year of €1.8bn – up from €458m the previous year.
Cash amounting to €9.1bn was generated during the year, overwhelmingly from asset disposals.

Publishing its annual report, the agency said the strong cash generation during the year allowed it to redeem €5.5bn of senior debt.
Total senior debt repaid now stands at €24.6bn.

Income for the year increased 127pc to €1.9bn, while the agency reported its first full-year impairment write-back, bolstering the books by €86m.
Chief executive Brendan McDonagh said the agency was on course to deliver a significant surplus for the taxpayer.

“This was an outstanding performance that delivered a very substantial profit,” he said.

Chairman Frank Daly said Nama could deliver a surplus to the taxpayer of around €2.3bn.
“Nama’s successful delivery of its mandate is good news for the taxpayer. We plan on being just as successful in delivering major development projects in the Docklands and thousands of homes for people who need them,” he said.

Nama said it has funded the construction of 2,800 homes since 2014 and that a further 3,000 Nama-funded homes are under construction.

Planning permission has been obtained for an additional 5,100 units, the agency said.
Regarding Dublin’s Docklands, construction has started on sites that will deliver 1.2m sq ft of commercial accommodation and 345 new homes, Nama said.

Article Source: http://tinyurl.com/kbwqb42

BANK of Ireland is to hold firm and resist attempts to cut its variable rate.

But AIB will reduce its variable rates to 3pc for all customers, while Permanent TSB will cut its rate to the same level for new customers.
There will be a reduction in the Permanent TSB manged variable rate, where existing mortgage holders get a reduction in rates based on the equity they have in their homes, by 0.25pc.

In a major new report on the banks from Davy Stockbrokers, analysts say that Bank of Ireland will resist political pressure to reduce its variable rate for existing customers.
Last month TDs passed legislation that aims to give the Central Bank new powers to tackle high interest rates, in a move that will provide hope for 300,000 variable-rate customers.

The Fianna Fáil bill was re-introduced in response to a failure by many of the main lenders to pass on lower interest rates set by the European Central Bank (ECB).
But Davy, which Davy acts as stockbroker to Bank of Ireland (BoI) and Permanent TSB, says the Richie Boucher-led bank will continue to face down the renewed pressure on it to cut rates.

The bank has one of the highest in the market at 4.5pc.
It has cut its fixed rates for new and existing customers, and will do so again, Davy said.

The broker said: “BOI has made only a marginal cut to its new variable rates and nothing for existing customers.”
However, Davy analysts Emer Lang and Stephen Lyons said in the research note that Bank of Ireland will not move on its standard variable rate (SVR).

“We assume over our forecast horizon that BOI does not decrease its SVR rate but that fixed rates reduce in order to maintain its existing share of 33pc [of the new mortgage lending market].”
AIB has made significant reductions to its variable rates for both new and existing customers. From next month the AIB variable rate is coming down to 3.4pc.

The broker reckons AIB’s variable rate will come down to 3pc for new and existing borrowers.
Permanent TSB has made more modest cuts to its variable rates.

But Davy predicts its variable rate for new borrowers will fall to 3pc, from 4.5pc at present.
The broker says its managed variable rate – which offers lower interest rates depending on how much equity is built up in the property – will come down by 0.25pc. The rates are between 3.7pc and 4.3pc at present.

The broker predicts a higher take up of the managed variable rate, which is just 25pc at present.

Article Source: http://tinyurl.com/kbwqb42

THE cost of insuring cars and commercial vehicles has gone up again.

Motor insurance premium rates were 35.2pc higher in May compared with the same month last year.
The figures, which have been just released from the Central Statistics Office, also show the cost of petrol and diesel rising in the month.

And other insurance costs have gone up, according to the consumer price index.
Home insurance was almost 10pc more expensive in May compared with a year ago.

Health insurance premiums rose by 6.5pc, as VHI, Laya, Aviva and Glo all raised the cost of premiums in the last few months.
Rents are almost 10pc higher than a year ago, even though landlords have been restricted from raising the cost of renting a home to every two years.

And drinkers and smokers have been hit.
The cost of a pack of cigarettes was 6.7pc dearer last month compared with a year ago, with spirits up 4pc.

Petrol and diesel prices are down on a year ago, but began to creep up in May.
The cost of motor insurance has become a huge political issue, with a Fianna Fáil motion seeking the setting up of a task force to look into why premiums are spiralling set to be passed in the Dáil after Fine Gael decided not to oppose it.

Despsite the rises in a range of key expenditure items for households, the overall level of inflation was flat in May compared with a year ago. For the month itself prices were up 0.5pc.

Article Source: http://tinyurl.com/kbwqb42