Michael Enright & Co April 2016

APRIL

2016 STEPS INVOLVED IN BUYING A HOUSE

Gail Enright & Ronan Enright ECONOMIC OUTLOOK: Dr. Constantin Gurdgiev

PRIVACY IN THE WORKPLACE Úna Glazier-Farmer

HOW TO PULL THE HANDBRAKE ON RISING INSURANCE COSTS 8 WAYS TO STREAMLINE YOUR RECRUITMENT PROCESS MEET THE TEAM

TABLE OF CONTENTS Opening of Our New Premises Steps Involved in Buying a House - Gail & Ronan Enright Economic Outlook - Dr Constantin Gurdgiev 8 Ways to Streamline Your Recruitment Process Privacy in the Workplace - Una Glazier Farmer How to Pull the Handbrake on Rising Insurance Costs Legal Briefs Switch and Save on Energy Costs Business Briefs 3 Important Areas to Include in Your Home Insurance Best Deals on a Brand New Car Meet the Team Range of Services

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WELCOME

Michael Enright & Co Solicitors are a well established firm of solicitors in Cork city centre. The firm was established in 1994 but Michael has been advising clients in Cork since 1973. We have a total staff of 9 and our 3 solicitors are family members and who offer clients familiarity and the assurance that your legal questions or problems will be dealt with effectively and in a timely manner. We are conscious of the need for regular, prompt communication with our clients.

We usually work at an hourly rate but can discuss a broad range of payment options. We act for a wide variety of clients including large insurance companies, local authorities, individuals and SMEs. If you know of anyone who has suffered an injury, has an employment problem, is buying or selling property, needs to make a will, is starting a new business, needs to collect money from customers, or has a commercial dispute then Michael Enright & Co would welcome your enquiry.

Michael, Gail and Ronan

Pictured at the official opening of the new offices of Michael Enright & Co. Solicitors at 28 South Mall Cork, were Minister for Agriculture, Food, the Marine and Defence, Simon Coveney TD, Michael Enright, Gail Enright and Ronan Enright Solicitors. The event marked the return of Michael Enright & Co to South Mall after 21 years at their previous location.

THIS AS AN EXCITING TIME FOR THE FIRM Michael Enright began practising on the South Mall in 1973 and practised there until 1994 when Michael Enright & Co Solicitors was formed. The firm had been located at 9 Sheare’s Street from 1994 until 2015. It started with a ground floor unit and eventually grew its staff numbers to occupy the entire building.

All of the staff are very pleased to return to South Mall which they continue to view as Cork’s premier business district. The location allows Michael Enright & Co to continue to deliver top class professional advice from the heart of Cork city.

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STEPS INVOLVED IN BUYING A HOUSE Gail Enright - Partner; Ronan Enright - Partner. Michael Enright & Co. Solicitors

Many people buy property, but most of those people don’t know what goes on in the background. That’s understandable. We hope this will be of interest to anyone that is considering purchasing property and wants to know more about what is involved.

If you have any property queries or wish to speak to a Solicitor about buying a house then contact us: Gail or Ronan Enright at 0214278200, gail@michaelenright.ie ronan@michaelenright.ie

WE’D BE HAPPY TO ANSWER YOUR QUERIES

LOOK FOR A SOLICITOR

ISSUING CONTRACTS

It is important that you contact a qualified Solicitor who will give you a quotation for the costs involved in the purchase.

The Vendor’s solicitor will prepare the contract and will send it to the Purchaser’s solicitor together with the title documentation for the property.

BID ACCEPTED? PAY A BOOKING DEPOSIT Once you have a bid accepted on the property you wish to purchase, you normally pay a booking deposit to the auctioneer. Booking deposits can vary depending on the value of the property but might be €5,000 to €10,000. Booking deposits are entirely refundable up until the point the contracts are signed by both parties and a contract deposit is paid.

SALES ADVICE NOTICE Once the booking deposit is paid, the auctioneer will ask you for your solicitor’s name and will prepare a Sales Advice Notice and will send it to the solicitors for both sides.

LETTER OF OFFER If you are getting a mortgage, it’s important you contact your mortgage broker, bank or lending institution to ensure your loan offer issues for the property. Your bank will send a Letter of Offer and loan pack to your solicitor. Your solicitor will then prepare the Mortgage documents to be signed by you and advise you on the loan offer including any special conditions which you may have to comply with, prior to the signing of any contracts. These would include things like Life Cover or Mortgage Protection.

LIFE COVER/MORTGAGE PROTECTION All banks will require that you have a policy in place to ensure that in the event of you passing away, the loan will be paid back. It is important that this be dealt with as soon as possible. Some Insurance Companies may require medical reports in regard to any medical problem you may have.

ENGINEER You often need to employ an engineer when you are purchasing a property to ensure that the property is structurally sound, to check the boundaries of the property, to check compliance with planning permission and perhaps to check who is responsible for the roads, footpaths, drainage etc around the property.

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SIGNING CONTRACTS If your solicitor is satisfied that the title to the property is in order and that you are in a position to comply with the conditions in your loan offer, you should be in a position to sign contracts and pay the balance of the deposit which is normally 10% of the purchase price, minus any booking deposit you may have already paid to the auctioneer.

STAMPING THE DEED WITH THE REVENUE COMMISSIONERS If Stamp Duty is payable on property, it must be paid no later than 28 days from the date of the completion of the purchase. Any delay in the payment of the stamp duty could give rise to stamp duty penalties which are considerable. Your solicitor will do this online for you and will have asked you for the money for the stamp duty well in advance. Your solicitor cannot do anything about the cost of the stamp duty.

LAND REGISTRY/REGISTRY OF DEEDS After the Deed is stamped, your solicitor will register the property in your name in either the Land Registry or the Registry of Deeds. There are two systems of land registration in Ireland. You will have to give your solicitor the registration fees in advance. These will vary depending on the property and which of the two systems of registration it is. Your solicitor cannot do anything about the cost of the registration.

TITLE DOCUMENTATION

RETURN OF CONTRACTS Your solicitor will then arrange for the contracts to be sent to the Vendor’s solicitor, who will arrange for the Vendor to sign the contracts and return one copy to your solicitor. Your deposit is now no longer refundable and you are tied into buying the house.

RAISING OF REQUISITIONS ON TITLE Your solicitor will raise Requisitions on Title which are a long set of queries dealing with the property. The Vendor’s solicitor will reply to these and arrangements will be then made to complete the purchase of the property.Once a closing date is agreed, your solicitor will arrange to drawdown your loan cheque from your bank.

CLOSING OF PURCHASE The closing of the purchase of the property will normally take place in the Vendor’s solicitor’s office. Your solicitor will attend. Your solicitor will check the documents to ensure they are in order and will carry out searches against both the property and the Vendor to ensure there are no judgements or burdens registered on the property, which adversely affect you. Once your solicitor confirms that the documents are in order and there are no matters appearing on the searches which are a problem, your solicitor will pay over the balance of the purchase monies and the Vendor’s solicitor will either give your solicitor the keys or contact the Auctioneer to have the keys released to you.

SIGNING OF DEED TRANSFERRING THE PROPERTY INTO YOUR NAME Before the closing, your solicitor will draft the Deed transferring the property into your name. It will be agreed by the Vendor’s solicitor and will be signed by the Vendor. After the closing, the Deed must be signed by you.

Once the property is registered, your solicitor will schedule (or list) your title documents and send them to your bank with a Certificate of Title.

Your bank will hold them on your behalf, until such time as you require them, either for the sale or the re-mortgage of the property.

If you have any property queries or wish to speak to a Solicitor about buying a house then contact us :

at 0214278200

GAIL ENRIGHT gail@michaelenright.ie

RONAN ENRIGHT

ronan@michaelenright.ie

HOUSEHUNTING GOES VIRTUAL WITH REALITY HEADSETS Sherry FitzGerald is stepping boldly where no agent has gone – in Ireland at least – and trialling virtual reality to show prospective buyers properties that are not yet built.

In a bid to keep pace with the global technology advances Sherry Fitz says it commissioned Samsung to work with them to develop a virtual reality experience where buyers can do a virtual walkthrough of an unbuilt property wearing a headset which transports them inside the house as if it were built.

The technology has already been tested on two new homes schemes, including its newly launched Rockeby Park development in Lucan village, west Dublin.

Working with a local environment artist they created an experience that would more closely reflect the development when built than small scale models or floor plans.

Wearing the Samsung Gear VR headsets, househunters can better appreciate the room proportions and the views from the windows of the properties.

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Dr. Constantin Gurdgiev Ever since the first rumors of the U.S. Fed monetary policy tapering in 2013, global financial markets have been living in the shadow of consensual fear of the rising interest rates.

The prospects of rates ‘normalisation’ both in the world’s largest economy and, with lags, in other advanced economies, have made the front pages of financial press, consumed volumes of asset managers’ research notes and drove volatility into the real markets across a range of major asset classes, starting with equities and moving into fixed income. The same prospects have also influenced the evolution of the global capex trends. The impact was felt beyond the realm of financial products, spilling over into the real economies.

The pre-conditions to the current movement toward tapering out of the quantitative easing programmes (excluding the ECB programme) around the world are striking.

Meanwhile, in the Euro area, ECB policy rate fell below its pre-crisis historical low in March 2009 and continued on a downward trend from then on. This coincided with a swing in average real growth rates from 2.02 percent per annum to 0.05 percent. Yes, the numbers speak for themselves: since the start of the Global Financial Crisis, Euro area enjoyed average rates of economic growth that are 16 times lower than the same period average growth in Japan. No need to remind you which economy suffered from a devastating earthquake and a tsunami in 2011.

In the UK, Bank of England rate hit 1.0 percent in February 2009 and has been below that level ever since. Pre-2009 growth averaged 2.44 percent per annum, and since Bank of England monetary policy jubilee set on, it has been running at 1.01 percent.

You get the picture: unprecedented by historical comparisons monetary policy deployments across advanced economies produced, at best, lukewarm and drawn-out recoveries. At worst, recent monetary policies achieved the Japanification of the Euro area (a slide of the economy into a near-deflationary growth stagnation).

Last time Bank of Japan’s policy rate was at or above 1% was in June 1995. Before the era of low rates on-set, Japanese economy managed to deliver average annual rate of real economic growth of around 3.6 percent. Since the onset of monetary easing, Japanese economic growth averaged less than 0.8 percent. Things are now so bad even introduction of the negative rates earlier this year failed to produce a desired effect of inducing a yen devaluation. Instead, Bank of Japan’s shenanigans moved markets to bid yen up.

The U.S. Fed has been keeping its own policy rate at or below 1 percent since October 2008. Before then (starting with 1980), the U.S. enjoyed average growth rates of 3.04 percent per annum, while since the start of the Fed activism, growth averaged 1.44 percent. There was not a single year between 2008 and 2015 in which growth has hit the precrisis average, despite the Fed effectively monetising a fiscal stimulus on top of a massive lending spree, as well as funding shares buy-backs, corporate debt issuance and M&As.

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The European Central Bank cut its key lending rate to zero (from 0.05 percent) in March, slashing its deposit rate further into negative territory (to -0.4 percent from -0.3 percent). Desperate for stimulating slack corporate investment, the ECB also significantly expanded the size and scope of its asset-buying program, hiking monthly purchases targets from EUR60 billion to EUR80 billion.

Worse, Mario Draghi also expanded the scope of the programme to include investment grade, euro-denominated debt issued by nonfinancial corporations. And he announced yet another TLTRO – a longer-term lending programme (4 years duration this time around, having previously failed to deliver any meaningful uplift in the corporate capex via three 3-year long programmes). The new TLTRO will be operating on the basis of the ECB deposit rate, effectively implying that Frankfurt will be giving away free money to the banks as long as they write new loans using this cash. Last, but not least, the finish line for the ECB’s flagship QE programme was pushed out into March 2017 from September 2016.

And yet, the ECB’s latest blietzkrieg into the uncharted lands of monetarist innovation ended with exactly the same outrun as was the case for the Bank of Japan few weeks before it. On the day of the announcement, Euro failed to devalue vis-à-vis its main counterparts, posting instead an upward correction amidst huge volatility. Why? Because the markets are practically obsessed with forward looking rates changes. Which means that the shorter-term measures expanding money supply and stimulating credit issuance and demand fall prey to long-term expectations concerning rates ‘normalisations’.

Before December 2015, no investment professional in their early careers had witnessed a substantive rise in interest rates in their entire tenure in the investment markets. Worse, interest rates have now been continuously below their historical averages for 88 months in the euro area and the UK, 102 months in the U.S. and 270 months in Japan. U.S. rates are currently running some 460 bps below their historical average, Japanese and Euro area rates are 200 bps lower, while UK rates are roughly 290 bps down on average.

The following chart shows the extent and the duration of the current monetarist aberration in the Euro area.

Source: Author’s own calculations based on data from the ECB In simple terms, restoring ‘normality’ in the interest rates environment will require a very painful adjustment to the cost of capital for nonfinancial companies, banks and households. Adjustments that not only going to be disruptive to the economies, but are likely to take long time.

This, along with the fear of the unknown by the younger generations of traders and investors, are the two key reasons that explain the markets’ reactions to the December 15 hike by the Fed, the Bank of Japan policy move in January and the ECB QE extension and expansion announcement in March.

In all cases, policies changes ultimately delivered by the Central Banks were well flagged and anticipated, both in magnitude and timing, and in some cases in terms of policy specifics. In all cases, the markets have been well prepared for them. Still, following the announcements, there were big spikes in volatility across the markets and asset classes, accompanied by severe swings in currencies.

The question that drives these swings in investors’ sentiment is a singular one: what really happens in the medium term to financial assets when interest rates rise?

Recent research from Credit Suisse and the London Business School used data covering 21 countries over the period of 1900-2015. The authors found that based historically, interest rates changes announcement trigger only minor reaction in the markets, with such reaction further diminished by pre-announcement of rates changes. Per Credit Suisse Research: “…real equity and bond returns tended to be higher in the year following rate falls than in the year after rate rises… The report found marked and statistically significant differences in stock and bond returns between periods following interest rate rises and periods after rate cuts. In the USA, annualized real equity returns were just 2.53 percent during tightening cycles and 109.3 percent during loosening periods. Real bond returns were 0.23 percent in hiking cycles and 3.76 percent during periods of easing“.

So from the point of view of the post-crisis period, the rallies and recoveries in bonds and equities over the last six years have been justifiable. The latter suffered massive fall-offs in the wake of the Global Financial Crisis, and the recovery in markets valuations has been in line with the Central Banks’ activist efforts to prop up liquidity within and solvency of the financial systems. The former witnessed valuations increases driven by the stagnation-like economic recoveries and the QE-driven supply-demand mismatches in the fixed income markets.

However, from the forward perspective, periods of rates normalisation that await major advanced economies are likely to see both returns to bonds and equities falling in the near future. The reasons for this assertion are multiple. Firstly, as December 15 hike by the Fed and subsequent policy changes by Bank of Japan and the ECB showed, there is a high probability of policymakers committing serious errors in structuring monetary policy forward. Secondly, despite all the Central Banks’ efforts to help Governments to implement systemic reforms, structural changes in the advanced economies are thin on the ground.

Which means there is plenty of systemic fragility around. Thirdly, cyclicality of economic growth and asset returns suggests that over the next 5-10 years, returns on bonds and equities are likely to be subdued.

Over the medium term, we are likely to see zero real (inflation adjusted) returns to bonds and low returns to equities. For a traditional 40:60 portfolio, this implies 1.5-2.5 percent real returns, hardly a reason to get excited. Which is consistent with markets behaviour in recent months.

Over 2014-2015, and into the first months of 2016, traditional screening strategies for equities selection delivered returns of 0.8-4.7 percent.

Momentum trading strategies, meanwhile, were able to capture greater upsides from volatility, yielding 12-13 percent excess returns.

The gap between passive returns and momentum trading returns in Europe has been even deeper.

As the gap between cheaper and more expensive equities gets bid down (a dynamic evident in the markets since the start of 2014), passive screening is likely to experience even greater compression of returns.

This, in turn, means more money flowing into momentum strategies, bidding down momentum returns, but also pushing equities off meanreversion paths, into a major correction. The result – gradual slowing down across all market strategies and low returns for a new medium term cycle.

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However, normalisation of the monetary policy environment does not have to pose the risk of a steep drop off in returns for investors, willing to recognise the changing nature of the markets. As the above suggests, during the period of rates normalisation, structurally lower returns on ‘buy-and-hold’ strategies will be associated with rising volatility and widening trading spreads.

In this environment, retail investors require access to more dynamic tactical asset management tools to extract greater value out of lower return markets. In addition in seeking to smooth extreme volatility, investors should also strive to strike the right balance between achieving execution costs efficiencies, while avoiding sub-optimally low frequency of trading on their portfolios. Lastly, greater tax efficiencies can help deliver a stronger portfolio beta during the more subdued markets returns.

In brief, high quality strategy advice, tax planning and markets analysis will make all the difference in investor returns in years to come.

Dr Constantin Gurdgiev is the Adjunct Assistant Professor of Finance with Trinity College, Dublin and serves as a co-founder and a Director of the Irish Mortgage Holders Organisation Ltd and the Chairman of Ireland Russia Business Association. He holds a non-executive appointment on the Investment Committee of Heniz Global Asset Management, LLC (US).

In the past, Dr Constantin Gurdgiev served as the Head of Research with St Columbanus AG (Switzerland), the Head of Macroeconomics with the Institute for Business Value, IBM, Director of Research with NCB Stockbrokers Ltd and Group Editor and Director of Business and Finance Publications. He also held a non-executive appointment on the Investment Committee of GoldCore Ltd (Ireland) and Sierra Nevada College (US).

Born in Moscow, Russian, Dr. Gurdgiev was educated in the University of California, Los Angeles, University of Chicago, John Hopkins University and Trinity College, Dublin.

GOVERNMENT TARGETS €1.25BN OF TOTAL €75BN HORIZON 2020 BUDGET Nearly 600 science projects run through colleges and companies in Ireland won have won funding worth €251 million from the Horizon 2020 programme, the Minister for Skills, Research & Innovation, Damien English, has announced.

Horizon 2020 is the European Union’s programme for Research and Innovation, and it has granted €157 million of that funding to projects in the higher education system and €72 million to companies based in Ireland, English said.

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In the Marie Skłodowska-Curie sub-programme of Horizon 2020, which promotes the training of researchers, Ireland won €18.5 million, equivalent to 35 per cent of the available Marie Skłodowska-Curie budget. That brought Ireland’s total from this sub-programme to €49 million.

According to the Department of Skills, Ireland has a target of winning €1.25 billion of the almost €75 Horizon 2020 for the period 2014 to 2020.

In a statement, English said he was “delighted with this performance to date which clearly shows that Ireland is on track to achieve its ambitious national target of €1.25bn.”

“This success bears testimony to the excellence of research in Ireland, both in our higher education system and in our innovative companies.

It shows that our researchers are among the best in the EU”.

The applications for funding for Horizon 2020 are coordinated by Enterprise Ireland, and Imelda Lambkin, National Director for Horizon 2020 at Enterprise Ireland, said “ A key role of Enterprise Ireland is to support the commercialisation of research and the development of innovative businesses. We are proud to lead Ireland’s participation in Horizon 2020 and the €250m in funding secured by Irish researchers and companies under the programme demonstrates the strength and leadership of the people involved.

8 WAYS

TO STREAMLINE YOUR RECRUITMENT PROCESS

Most small Irish businesses have mapped out their strategic plans for 2016. If you’re still at a loss with regards to your recruitment goals, follow the eight steps below.

Recruiting is a challenge for many small and medium enterprises, especially in the current economic climate. However, if you’re hoping to grow your business in the next twelve months, it would be prudent to think about hiring the necessary staff to enable you to take advantage of opportunities that may arise.

According to a Hays Ireland survey, as much as 68% of small and medium enterprises have very little confidence in their own recruitment methods, rating it as «average at best».

IF YOU HAVE THE SAME MISGIVINGS ABOUT YOUR COMPANY’S HIRING PRACTICES, CONSIDER FOLLOWING THESE EIGHT TIPS TO HELP ENSURE THAT YOU HIRE THE RIGHT PERSON FOR THE JOB, THE FIRST TIME.

1. CREATE A PROCESS Even if you don’t have a hiring strategy in place for the year, consider what you might need as the year progresses. If your financial quarter shows strong sales or good profits, that might indicate a good time to start hiring. You might be able to fill the required skill-sets with existing employees, or you may have to set aside time to hire a new employee.

The key is to help them settle in and become integrated in their role and in the company culture as quickly as possible.

4. NETWORK Deciding where you will place your ad is an important factor in finding the new recruit. Where would the ideal candidate look for the job you have to offer? Your personal network and that of your existing staff may offer access to the right contacts.

5. ACKNOWLEDGE YOUR APPLICANTS Companies and recruitment agencies often don’t acknowledge applicants after applications have been submitted. In a small industry sector or geographic area, it is even more important to acknowledge all applicants in order to provide a positive candidate experience and as a result boost your employer brand.

6. SET ASIDE INTERVIEW DAYS

2. BE SPECIFIC Hiring the right employee means that you have to be specific in your requirements. There’s more to it than writing a short list of skills. Bear in mind the subtle differences between what the new recruit will deliver on day one, but also in the months and years to follow.

3. WRITE A JOB AD When it comes to writing the job ad, be sure to understand the difference between that and a job specification. The job ad should be compelling enough to attract the right person, who will read it and apply. The job market is competitive, so you need to sell the role and the organisation in your advert.

Instead of spreading all the interviews across two weeks or a month, set aside a day or two of back-to-back interviews to make the decision process easier.

7. BE OBJECTIVE Interviewers tend to choose a person they like - it’s human nature, and not a bad thing. However, in order to ensure you’re hiring the right person, it would be wise to get a second opinion. You could either use the same questions for each candidate and work on a scoring system to be more impartial, or you could find someone to provide an independent view.

8. DECIDE QUICKLY By dragging out the hiring process, you might miss out on the ideal candidate and you will probably waste time and money too. Since no small or medium company can afford to waste money or time, it is important to make quick decisions regarding the person you wish to hire.

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WHAT DOES THIS MEAN FOR PRIVACY IN THE WORKPLACE? Úna Glazier-Farmer On the 12th January 2016, the European Court of Human Rights (“ECHR”) published its judgment in a challenge taken by an employee, Mr. Barbulescu, whose employment was terminated for his use of Yahoo Messenger during working hours on his employer’s network.

CHALLENGE FACTS Mr. Barbulescu was employed as an engineer. He was requested by his employer to set up a Yahoo Messenger account to allow for communication with clients. He duly carried out these instructions.

However, Mr. Barbulescu also used the messaging app to message his fiancé and brother during working hours, something, which was in direct violation of the Company’s Internet Usage policy.

During a period in July 2007, his employer informed him that his Internet usage had been monitored and it showed that he was using the Company’s Internet for personal purposes.

DISCIPLINARY The Company launched an internal disciplinary investigation into Mr. Barbulescu, which produced a 45 page report on his personal communications. The outcome of the investigation resulted in his employment being terminated for the breach of Company policy.

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Mr. Barbulescu argued that the Yahoo account was created at the request of his employer. However, following a review of his communications, it was discovered that Mr. Barbulescu messaged his fiancé and brother on the application during working hours.

Following an unsuccessful challenge to this decision before the Courts in Romania, Mr. Barbulescu appealed to the ECHR under Article 8 of the European Convention on Human Rights on the basis that the correspondence pertained to his private life.

Article 8 states: 1. Everyone has the right to respect for his private and family life, his home, and his correspondence.

2. There shall be no interference by a public authority with the exercise of this right except such as is in accordance with the law and is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others.

GOVERNMENT’S SUBMISSIONS

TOP TIPS FOR EMPLOYERS

The Government of Romania noted that Mr. Barbulescu set up the account for professional use and during the internal investigation claimed that he only used it for this purpose. It was argued that this prevented Mr. Barbulescu from later claiming an «exception of privacy» while at the same time denying any private use.

1. Ensure that there is an updated and unambiguous Internet Usage policy in place.

Relying on case-law from the French Court of Cassation, wherein it was held that emails sent by an employee were at the disposal of his employer and could be deemed to have professional character and thereby accessible to the employer.

3. Employers should establish clear guidelines for employees if a level of personal communication is permitted in the workplace;

An important point to note was that at all times Mr. Barbulescu was aware that his workplace communications could be monitored.

COMMENT While this is a significant decision in relation to the workplace, it does not allow for unlimited monitoring or access to employee‘s use of company computers, by employers. The key point in the judgment was that Article 8 could be relied upon in the workplace but only where there is a ‘reasonable expectation of privacy’. Therefore, where there is a clear Internet Usage policy to include all devices and applications and the employee has been adequately advised of the policy and accepted it in writing, then the Barbulescu decision may be relied upon.

In a contrasting judgment of the ECHR of Copland v UK (2000), it was held that an employer breached Article 8 in its monitoring and recording of an employee’s phone calls, emails and Internet usage. One of the significant differences between this case and Barbulescu was there was no warning that her usage would be liable to monitoring.

There is commentary to suggest that this judgment will be appealed to the Grand Chamber but this remains to be seen.

2. All employees should be adequately trained in the policy as well as accepting it by signing it;

4. A clear explanation of when, how and why workplace emails will be monitored; 5. Give clear examples of unacceptable use (such as sending emails containing obscene, racist, sexist, or defamatory content); 6. If employees use their own devices, e.g. mobile, tablet or laptop , for work related communications ensure that there is a Bring your own Device (BYOD) policy in place; 7. It is essential that there is a statement making it clear that that any breach of the policy may result in disciplinary action including dismissal; and 8. As with any breach of workplace polices ensure that employees are dealt with fairly and in accordance with the principles of natural justice, i.e. right to be heard, right to representation, right to have all the evidence presented to them in advance of the hearing, right to a fair and impartial hearing and only form a judgment after all the facts have been disclosed.

ÚNA GLAZIER-FARMER

B.A., LL.B, LL.M in Competition Law, Dip. in Finance Law

Úna is a practising barrister with extensive experience in employment law and personal injuries

SHORTAGE OF SEED FINANCE COULD HOLD BACK FIRMS, CONFERENCE TOLD A shortage of seed finance could threaten the potential of some of the most promising new and growing companies on the island, InterTradeIreland, has warned.

The cross-Border trade and business development body hosted its 15th annual venture capital conference in the Belfast, recently, bringing together hundreds of entrepreneurs, startups, venture capitalists and other potential investors.

The conference heard there is no shortage of ambition or enthusiasm when it comes to getting new business ideas off the ground - North or South.

But according to Drew O’Sullivan, InterTradeIreland’s lead equity adviser, there is a lack of seed finance available that could mean some of these start ups will not grow as fast as they possibly should.

According to the Irish Venture Capital Association, the amount raised by seed funds in Ireland last year was €43.8 million, down from €66.8 million in 2014

In 2015, seed funding accounted for 8 per cent of the overall €522 million raised through venture capital. Mr O’Sullivan said this means that growing businesses in 2016 need to look elsewhere to secure the financial support they require and that one option is crowd funding.

“Seed funds are getting replenished and we’ve had very good domestic seed funds, but the landscape at the moment when it comes to seed funding is quite dry - it’s just where the cycle is, and it’s not going to last forever, but for the time being the lack of seed funding is a big issue.

“There are other options such as crowd funding and of course angel funding from HBAN and Halo NI - angel investors and other established entrepreneurs have the confidence to invest in startups and growing businesses because they’ve seen how successful exits can deliver for them on the island - and this is helping to fill the gap,” he added.

Mr O’Sullivan said he expects more companies in the Republic to turn to crowd-funding opportunities in the UK this year. He said some businesses may have been wary about this because they were not fully up to speed with what it entailed but he said any Irish business can become eligible to apply for crowd funding in the UK if it also establishes a UK base.

“Crowd funding creates an opportunity for Irish businesses to tap UKbased investment,” Mr O’Sullivan added

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HOW TO PULL THE HANDBRAKE ON RISING INSURANCE COSTS MOTORISTS HAVE WEATHERED A 31% RISE IN CAR INSURANCE PREMIUMS IN 2015. HERE’S HOW YOU CAN CURB THE COSTS. According to statistics from the Central Statistics Office, insurance costs increased by 31% in the last year, and experts predict that it will rise further in 2016 while insurers attempt to make up for the losses they incurred in the previous two years. Meanwhile, motorists have to absorb the shock of this chunk taken out of their savings.

3. MAKE A SWITCH It makes sense to switch to a new supplier regularly if you are claims free. Sometimes, it pays to compare the rates of different insurance companies online, or by calling them. Using a broker is also a good idea, and it won’t cost you any extra, because the insurance company will pay the broker commissions. Taking out more than one type of policy with the same company will probably entitle you to a discount, and it won’t hurt to ask what discounts are available to you.

4. RESIST THE URGE TO OVER-INSURE Being conservative about your car’s value can help keep down the costs of insurance. The insurance company’s assessor will determine the value of your car at the time of a claim, and most people tend to overvalue their own cars. Car sale’s adverts provide a good indication of your car’s market value.

You could also check the Revenue Commissioner’s website, which features a car valuation tool for each model and make, based on the year of manufacture. This tool is used for vehicle registration tax purposes.

Thankfully, there are some things you can do to reduce the cost of your insurance policy:

1. USE TELEMETRICS TO BECOME A BETTER DRIVER You can secure a discount on your car insurance by obtaining telemetrics through your smartphone. Some insurance companies will use an app XLNTdriver - to monitor the behaviour, status, movements and location of your car. AIG offers a 20% discount for motorists who use the XLNTdriver app, which is the first driving app with auto start and stop functionality, to measure driving style, and further savings of up to 5% for improved driving behaviour as measured by the app after 3 months’ of consistent use and subject to achieving the required scores.

If you anticipate the flow of traffic and drive smoothly, you should achieve a good score.

2. TAKE A 2 TWO YEAR POLICY Since the costs of insurance cover are predicted to rise again in this coming year, you could lock in your current rate by opting for a two-year cover package. Some insurance companies offers this type of policy, which guarantees that you will pay the same premium that you are paying this year, again next year. Also, your premium won’t rise if you have a claim during this period.

5. BEWARE OF THE EXCESS In recent years, insurers have made a habit of increasing excesses. Before making a claim, you have to pay an amount (excess), so find out how much the excess is before making a claim. With excesses of €500 being quite common, it negates the value of insurance on small accidents.

While it reduces the risk for insurance companies, it also means that you’re less likely to make small claims.

6. DESCRIBE YOUR JOB CREATIVELY Insurers base cover prices on many factors, one of which is occupation.

There is a broad range of job categories that describe the various occupations, and choosing the wrong one can influence your premium negatively. For instance, a homemaker will pay a reduced premium compared to an unemployed individual. However, it is important not to lie about your occupation, as that is fraud. Don’t say that you’re a computer programmer if you’re an electronics technician.

7. AVOID MODIFICATIONS Safety modifications are fine, but avoid small modifications, such as alloys or a killer sound system, which will cause premiums to increase significantly. Alternatively, discuss the changes with your insurer beforehand. If you really want to add a modification, install a new costcutting safety feature at the same time to balance out the increase.

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8. BUY THE RIGHT CAR

10. FIND SAFER PARKING

When buying a car, choose wisely. Expensive muscle cars will also increase your insurance costs. Important cars will fetch higher premiums, as will cars that are popular with car thieves. It may be worth your while to speak to your insurer before you buy a car. Choose three options, get the premiums for each, and then make your decision.

Cars that are parked in locked garages will fetch lower insurance costs.

Parking in your driveway or in the street will drive up the risk of theft and damage, and therefore insurers increase premiums. Likewise, if you live in an area with higher claim rates, you will pay more than you would in a rural area.

9. PAY AN ANNUAL PREMIUM If you’re able to do so, pay annually instead of monthly. Monthly cover can work out up to 20% more expensive due to the interest rates.

BOOMING CAR SALES HELP TO LIFT THE RETAIL SECTOR

Consumer spending, a key measure of economic vitality, was up more than 10pc in January, compared to a year earlier.

Car sales were particularly robust in the opening month of the year, helped by the switch to ‘16 registration numbers.

Stripping out cars, retail sales were up 6.4pc in January from the same time last year.

«Although retail sales remain erratic on a monthly basis, the underlying trend is positive,» said Alan McQuaid of Merrion Stockbrokers.

«While most attention was on cars last year and will be again in 2016, personal spending in other areas is picking up too and is becoming more broad-based. This can only be good news for retailers and employment prospects in the sector.»

After cars, it was electronics, clothes and department stores which saw the biggest gains.

Spending may be growing strongly because low interest rates for savers, coupled with falling prices, have encouraged consumers to spend, rather than save, Mr McQuaid said.

Consumers Consumer confidence hit a 15-year high in January and this has been reflected in stronger retail spending, according to Mr McQuaid.

That points to a rise in disposable incomes, despite the widespread rubbishing of Fine Gael’s ‘Keep the recovery going’ election slogan.

However, the figures as published by the Central Statistics Office don’t provide a regional or county-by-county breakdown of where spending is happening.

There was an increase of 6pc in the value of retail sales in January 2016, compared with December 2015.

There was an annual increase of 8.9pc when compared with January 2015, according to the CSO. The figures were boosted by tourist spending due to the weakness of the euro.

DUBLIN THE SECOND BEST HOTEL MARKET IN EUROPE Dublin has been named the second best performing hotel market in Europe.

The Irish Times reports that the 2016 hotel valuation index, by global hotel consultancy HVS, shows RevPAR of Dublin hotels increased by 13.4% in 2015. Values rose by 13.2% in 2014.

Ireland’s capital came in second place behind Madrid and ahead of Manchester, Athens and Birmingham.

The European average was 3.6 per cent. Geneva was one of the “losers” with a growth in value of just 1 per cent, while Paris saw almost no change in value following November’s terrorist attacks.

Dublin is also expecting an additional 5,000 rooms to enter the market over the next five years.

IHF president Joe Dolan has also called for a fiveyear product development plan for Irish tourism; «Our industry has benefited enormously from positive economic tailwinds from North America and Britain in recent years, contributing to impressive growth in overseas visitor numbers.

It’s vital that we focus on achieving sustainable growth while safeguarding our market share against potential risks.»

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LEGAL BRIEFS

RENT ALLOWANCE CAN NO LONGER BE REFUSED BY LANDLORDS Landlords can no longer refuse to accept rent supplement.

Landlords can no longer refuse to accept rent supplement.

Under new equality laws - those receiving an allowance towards the cost of their accommodation - are protected against discrimination.

Under new equality laws - those receiving an allowance towards the cost of their accommodation - are protected against discrimination.

Anyone who advertises a property saying that rent allowance is NOT accepted or who refuses to rent to someone on rent allowance could be fined up to fifteen thousand euro.

Anyone who advertises a property saying that rent allowance is NOT accepted or who refuses to rent to someone on rent allowance could be fined up to fifteen thousand euro.

NEW GROCERY RULES WILL HURT IRISH SUPPLIERS, SAYS SUPERVALU The head of the country’s biggest food retailer has warned that new rules could disincentivise supermarkets from buying Irish products. SuperValu Managing Director Martin Kelleher said that the new rules put an unreasonable administrative burden on supermarkets when dealing with suppliers.

He was referring to the Grocery Goods Regulations, which were signed into law by Richard Bruton just before the General Election was called. They will take effect at the end of April.

A spokesperson for Musgrave clarified that the rules cover relationships with all direct suppliers, even if goods are coming from overseas - but might be avoided by multinationals who buy indirectly through offices in other countries.

«We think it’s an administrative burden that adds cost and, we believe, very little value,» said Kelleher.

The rules are particularly burdensome when dealing with very small suppliers, the spokesperson added, and can act as a disincentive to supporting food start-ups.

The rules mean contracts between big retailers and suppliers must all be closely documented and cannot be unilaterally changed. Practices such as demanding payments for shelf space are banned. Records must be kept for several years.

«We are very clear that Musgrave’s relationships with its suppliers and partners are strong, clear and fair. We don’t believe there is any benefit from this to people dealing with us,» said Kelleher.

«We are disappointed with certain aspects of it, because we feel that it penalises businesses like Musgrave that are Irish and support Irish businesses,» said Kelleher.

Their suppliers are not asked to pay to be stocked on shelves, he added.

«There is a temptation or a possibility that one of the easiest ways to get around those regulations is not to buy from Irish businesses. The rules are that you only have to record and do the administration parts of it when you are dealing with Irish suppliers.

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When you buy from abroad, which obviously multinational companies can do more easily... it incentivises that behaviour.

And we don’t think that’s good.»

Switching to foreign suppliers «would be a last-ditch resort», he said. «We are so focused on supporting Irish and supporting local suppliers. But if our competitors are getting price advantages or administrative advantages by doing so, it puts you in a difficult position, it challenges us.»

ADVERTISING CODE SEEKS TO DISCOURAGE E-CIGARETTE USE While they may be presented as an alternative to tobacco, advertisers should do nothing to undermine the message that quitting tobacco use was the best option for health.

While they may be presented as an alternative to tobacco, advertisers should do nothing to undermine the message that quitting tobacco use was the best option for health.

Advertisers should not use health professionals or celebrities to endorse e-cigarettes and advertising should state clearly that the product contains nicotine.

Advertisers should not use health professionals or celebrities to endorse e-cigarettes and advertising should state clearly that the product contains nicotine.

The new code also states that all gambling advertising should contain a message to encourage “responsible gambling” and direct the reader to more information on gambling and gambling responsibly.

The new code also states that all gambling advertising should contain a message to encourage “responsible gambling” and direct the reader to more information on gambling and gambling responsibly.

There is also a completely updated food section that brings the code into line with the EU regulation concerning nutritional and health claims.

There is also a completely updated food section that brings the code into line with the EU regulation concerning nutritional and health claims.

The EU regulation on nutrition and health claims is mandatory and seeks to protect consumers from misleading or false claims.

The EU regulation on nutrition and health claims is mandatory and seeks to protect consumers from misleading or false claims.

New code rules on children’s advertising state that, except for fresh fruit or vegetables, advertisements should not appear to encourage children to eat or drink a product only to take advantage of a promotional offer.

New code rules on children’s advertising state that, except for fresh fruit or vegetables, advertisements should not appear to encourage children to eat or drink a product only to take advantage of a promotional offer.

ASAI chief executive Orla Twomey said the code was compatible with current Irish and EU legislation and matched the very best international standards.

ASAI chief executive Orla Twomey said the code was compatible with current Irish and EU legislation and matched the very best international standards.

ONLINE IMPERSONATION AND TROLLING EXAMINED IN LAW REFORM COMMISSION REVIEW The Law Reform Commission says it is exploring gaps in the law on harrassment, so that online impersonation and trolling might be included as an offence.

It comes as the Crown Prosecution Service in England and Wales is looking at updating its guidelines on social media to deal with trolls who impersonate others online The Law Reform Commission here is currently reviewing the law on cyber crime affecting personal safety, privacy and reputation, including cyber-bullying.

It has been consulting with interested groups and individuals and says it hopes to publish a report on the matter due by the end of June. advertisement However it admits that there are gaps in the law that are being examined.

Media lawyer Andrea Martin said that the law is lacking regarding a lot of online abuse.

«At the moment in Ireland, unless there’s a specific law like harassment law, incitement to hatred law, child pornography law - unless one of those laws is being broken, there is sometimes very little that can be done unless an individual is prepared to go to the High Court,» she said.

She said however that there was a case the year before last involving a fake profile.

«The High Court ordered Twitter to take down an impersonation account that was set up in a woman’s name without her knowledge - obviously someone had all her details and put up very distressing photographs that were not of the woman in question, and they were quite sexually explicit photographs.

«But she had to go to the High Court for that to happen.

«So we don’t have specific laws that address for example, impersonation and trolling.»

The DPP there says it reflects the pace of change in online communication - where new methods are being used to abuse people.

Claire O’Dowd from Spun Out, which has been involved in the Law Reform Commission’s consultation process says a change in the law would be welcome.

«The fact that this is happening more often and people are realising that it can cause a lot of harm to be harassed online, the inclusion of that into the Non-fatal Offences Against the Person Act, we think, would really act as a deterrent to people, and make victims aware that they could go to the Guards if this ever happens to them,» she said.

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SWITCH & SAVE

ON ENERGY COSTS YOU MIGHT BE ABLE TO SAVE ON ENERGY COSTS BY SWITCHING TO A NEW ELECTRICITY AND GAS PROVIDER

?

Diesel and petrol prices are plummeting, but why are residential energy rates still so high?

Many outlets are selling diesel for 99 cents, and most forecourt signs show that petrol is going for less than €1.20 a litre. We have not paid this little since 2010, which is pleasing to motorists. With lower fuel prices being commonplace all over Ireland, one wonders whether it might be prudent to switch energy providers.

According to Simon Moynihan from Bonkers.ie, the diesel price has fallen by approximately 33 cents per litre in only six months, which saves the average motorist approximately €1.20 a litre every time he or she fills up, compared to what we paid last summer. That means that we can easily save €600 in the next year, compared to what we paid last year.

There is an obvious link between lower diesel and petrol prices, and that of falling oil prices, worldwide. Low oil prices offer a great many benefits to consumers, including reduced heating costs.

The fact that we have just experienced the warmest winter on record, added to consumers using significantly less gas and oil than would usually be the case. Electricity costs are closely linked with that of natural gas, which have been falling steadily too. As a result, we, as consumers are expecting sizable reductions in our household energy bills. However, while most suppliers have carried cost savings over to consumers, the reductions are nowhere near as dramatic as those we are seeing at the petrol stations.

ENERGY PRICE REDUCTIONS Bord Gáis Energy set the tone for other household gas and electrical companies by reducing its rates back in October. Flogas, SSE Aritricity and Electric Ireland followed suit by also lowering their prices at the start of 2016.

Consumers have appreciated the fact that most gas and electricity “standard rate” prices were reduced by 2pc-2.5pc per unit, and while the annual savings of €20-€25 have been insignificant compared to the savings motorists see at fuel stations.

Critics also cite the fact that wholesale prices of electricity have gone down by 18pc and gas by 29c in the last year, which means that providers could have easily passed on a bigger piece of the cake.

HOW THEY JUSTIFY SMALL PRICE CUTS Of course, suppliers argue that they have to buy natural gas well in advance to cater to demand at consistent prices. That is the reason why it takes a long time for reduced wholesale prices to result in savings for consumers.

However, it has been two years since the oil price started falling, and it’s only fair to be expecting bigger cuts. The price cuts have certainly been significant at the pumps, which indicate that there is scope for better savings on gas and electricity too.

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ENERGY COSTS & DISCOUNTS According to Simon Moynihan, suppliers may be passing the savings they make from wholesale prices on to consumers in the form of bigger discounts and cash incentives, which are aimed at motivating new customers to sign up.

Ireland has eight energy companies, which makes competition fierce.

Suppliers have to work to sign up new customers, to the extent that they now offer cash-back deals - something that was unheard of before the oil price started falling.

Other deals used to entice customers to switch, include free boiler services for gas customers, and free heating controllers. Suppliers are doing everything in their power to sign up new customers, and they are cutting deep discount prices to do so.

Bord Gáis Energy first launched their Big Switch campaign back in 2009, giving new customers 13pc discounts. This saw a deluge of customers (close to 450,000, or over 20% of the entire market) switching over to the supplier.

Suppliers are now offering much bigger discounts to encourage customers to switch. SSE Airtricity offers electricity discounts of up to 25%, while Energia is offering unit rate discounts of up to 26%. The result of these discounts could save consumers in excess of €200 across the span of 12 months, compared to standard rates.

Most gas companies are also offering discounts that will provide customers with significant savings. Flogas is in the lead with a 20% discount on offer, which will save the average household over €145 in savings over a 12-month period.

SWITCHING TO SAVE According to the energy regulator, about 15% of energy customers switch to different suppliers to get a better deal. Close to 80% of electricity consumers and 94% of gas consumers switch for the purpose of saving money. Since deregulation, we are seeing the highest level of discounts available to switchers, which makes it the perfect time to consider making the switch.

According to Moynihan, the savings to be made from using separate suppliers for energy and gas can result in the biggest savings, and it far outweighs the inconvenience. Bonkers.ie shows that the average consumer can easily save €360 by signing up with Flogas for gas and Energia for electricity.

If you switched to save money more than a year ago, you are probably paying close to the expensive «standard» rates again, since new customer discounts only last for 12 months before suppliers apply the standard prices. While insurance companies must notify clients of price increases, energy suppliers do not have to do that.

The good news is that you have the right to switch to another company that offers large introductory discounts, which means you do not have to continue paying those ridiculous standard prices. You could switch suppliers and save money.

SURVEY SIGNALS GOOD NEWS FOR JOBSEEKERS A new survey shows the number of available jobs in the construction sector is up 40%.

Overall, the latest employment monitor from recruitment firm, Morgan McKinley, is predicting steady job growth this year.

However, the firm has warned against a period of prolonged political uncertainty to protect the recovery in Ireland.

Tracey Keevan, the International Investment Manager with Morgan McKinley, said: «There is economic confidence coming across most of the sectors that we have seen, from a candidate perspective that is shown by the number of people that are looking for opportunities.

«Then it is shown obviously by certain sectors that are hiring, dare I say it, en masse at the moment.»

IT’S EASY TO SWITCH ENERGY PROVIDERS Switching is simple. Simply select your preferred supplier, and pick the deal you wish to enjoy. You will only need: •

Your MPRN (meter point registration number) on your electricity bill.

•

Your GPRM (gas point registration number) which is on your gas bill.

•

Billing details.

•

The reading from your last bill, or - if possible - the current meter reading. (An actual reading is usually better, because that is what your old supplier will use to close the account, and the new supplier will need it to start billing you. Accuracy can save you money!)

The supplier will take care of everything else from here on in. Your service won’t be interrupted, and there will be no need for a technician to visit your home. The process takes only about two weeks, and your new supplier will let you know as soon as you’re on supply.

You could compare services and prices on Bonkers.ie in order to find the best deal possible. They will also take care of the switch on your behalf.

Simply complete their short application form, and enjoy your savings.

‘PLAN TO HIRE 5PC MORE STAFF’ A new report from Manpower Group shows that restaurants and hotels are reporting strong growth in the opening months of 2016 with employers expecting to boost staff levels by 12pc.

Net employment across all sectors is expected to rise by 5pc in the three-month period between April and June, Manpower claims.

«The restaurant and hotels sector is expected to enjoy the highest levels of year on year growth in employment levels,» said Manpower Group Ireland sales director Cara O’Leary.

Companies in the utilities sector are thought most likely to hire staff in the second quarter. Employers are expecting to increase staffing levels by 19pc between April and June.

Manpower surveyed 620 Irish employers and found that those in Connacht reported the strongest intentions to hire.

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BUSINESS BRIEFS CONSTRUCTION ACTIVITY AT HIGHEST SINCE 2000 Irish construction activity increased at its fastest pace since June 2000 during February, according to the latest Ulster Bank Construction Purchasing Managers’ Index.

The Index rose to 68.8 in February from 63.6 the previous month.

This was the highest reading in the history of the survey, surpassing a previous peak set in November 2004.

NEW CAR REGISTRATIONS ROSE BY 37% IN FEBRUARY The Society of the Irish Motor Industry (SIMI) statistics for February show a 37pc increase (to 21,625). Registrations for the year-to-date are up 35pc (to 61,350 compared with 45,586 for the first two months of 2015).

RED TAPE A GREATER CONCERN TO SMES THAN FINANCE Government-controlled red tape is strangling businesses more so than a lack of access to credit, according to new research.

Taxation, regulatory and compliance issues are the biggest challenges small and medium sized companies face with access to credit and a lack of government support next in line, a survey carried out by software firm Big Red Cloud found.

“Far from pointing the finger at the banks for slowing their growth, 66% of SMEs point to Government-controlled issues of taxation, regulation & compliance and a general lack of Government support

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Construction activity has now increased on a monthly basis throughout the past two-and-a-half years.

However, Ulster Bank chief economist Simon Barry expressed caution. «Record rates of growth need to be seen in the context of what are still extremely low levels of construction activity.

This point was borne out by [recent] national accounts figures which showed that even after three years of recovery at very solid growth rates, construction output is still about 50pc lower than pre-crisis peak levels,» he said.

SIMI Deputy Director General Brian Cooke says the figures “clearly indicate” consumer and business confidence remain strong.

The five top-selling brands this year are: Hyundai, Toyota, Ford, Volkswagen and Nissan.The top-five selling models are: The Hyundai Tucson, Ford Focus, Volkswagen Golf, Skoda Octavia and Toyota Corolla.

Light Commercial Vehicles (LCVs) are up 39pc so far this year.

as the key impediments to job-delivering growth.

“We’ve been through a dark few years and those business that have managed to survive are still reeling from the effects of the downturn but there is also a feeling on the ground that if they have survived the last few years then there is hope. They are ready to grow; they want to push ahead but there are so many obstacles in their way,” said Big Red Cloud chief executive Marc O’Dwyer.

The survey also points to concerns around the high rate of capital gains tax and strict rules governing Employment and Investment Incentive Scheme.

“There is real sense of disillusionment amongst smaller businesses,” Mr O’Dwyer said.

NEW €100M LOAN FUND FOR DAIRY FARMERS TO COMBAT PRICE VOLATILITY A new €100 million loan fund offering dairy farmers more flexible repayment structures to help them cope with price volatility has been established.

Glanbia has teamed up with the Ireland Strategic Investment Fund, Rabobank and Finance Ireland to offer suppliers finance with inbuilt “flex triggers”.

The Glanbia MilkFlex Fund adjusts the repayment terms on loans in line with movements in prices so as to provide farmers with cash flow relief when they need it.

Global milk prices have fallen by nearly 40 per cent since 2014 on the back of a glut in production, a fall-off in Chinese demand and the Russian trade ban.

Rabobank, the Ireland Strategic Investment Fund, Finance Ireland and Glanbia Co-Operative Society plan to invest in the fund while Finance Ireland will originate and manage the loans, which will range from €25,000 to €300,000.

When milk prices fall below 28 cent a litre for three consecutive months, repayments will be temporarily reduced. A milk price below 26 cent a litre will trigger an automatic moratorium on repayment while milk prices above 34 cent will prompt an increase in loan repayments.

EU Commissioner for Agriculture and Rural Development, Phil Hogan said: “This new model of funding for milk suppliers is an international first and will mitigate the investment risks for milk suppliers.”

Minister for Agriculture Simon Coveney said: “While any decision to invest must be based on sound financial planning, it is important for farmers to be able to access affordable financing in a timely manner.

The slump has wiped more than €800 million off the value of Ireland’s dairy sector seen average incomes drop by up to €35,000.

Glanbia managing director Siobhan Talbot said: “This product is designed to match the cash flow generated by a dairy farm enterprise, with no repayments during certain times of low prices and increased repayments at times of high prices.”

ORNUA OPENS €20M CHEESE PLANT IN SAUDI ARABIA

«We now have a manufacturing and trading hub in place to service the high growth dairy market of Saudi Arabia and our growing MENA customer base,» Mr Lane said.

Ireland’s largest exporter of dairy products Ornua has opened a new €20m cheese plant in Riyadh, Saudi Arabia.

New technology developed by Ornua and Teagasc, will be installed at the facility in order to create the range of white cheeses. The Ornua boss said the ability to innovate and respond to market needs is «key to developing opportunities for Irish dairy».

The facility will make white cheeses for the Saudi Arabian market, which is the world’s fifth-largest dairy importer. The Riyadh plant will also act as a central hub for the firm to access dairy markets in the Middle East North Africa (MENA) region.

Chief executive of the Kerrygold-maker Kevin Lane said the facility will provide Ornua with a new route to market for Irish dairy.

APPLEGREEN AIMING TO EXPAND US PRESENCE Irish forecourt retailer Applegreen is in talks to expand its footprint in the United States after delivering strong results for 2015.

The company, which floated on the stockmarket last year, is in negotiations with a potential franchise partner in the US, and also in discussions to extend its trial presence there to Massachusetts.

Applegreen currently has five outlets in Long Island, having acquired three sites there last year. But chief executive Bob Etchingham stressed that the US remains a small part of the group’s business and that it’s focused on a long-term play there.

He added that the US operation managed to break even last year.

The Riyadh plant will also have an innovation hub that will be used to develop cheese solutions with customers. The move follows on from Ornua’s acquisition of Shanghai-based dairy manufacturer, Ambrosia. The Ambrosia takeover was the firm’s first Chinese deal.

But it’s in Ireland and the UK where Applegreen continues to see its biggest opportunity. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA), rose 26pc to €28.9m last year, while revenue was 15pc higher at €1.08bn.

The company operates from 200 sites, including forecourts and motorway service areas. It has just opened its second service area in Northern Ireland.

Applegreen spent €58.8m on capital expenditure last year, and chief financial officer Paul Lynch said that the company currently has sufficient funds for its planned estate development into next year.

Last year, Applegreen expanded its portfolio by 48 sites, 37 of them in the Republic of Ireland. It’s likely to increase it by a similar rate this year.

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THREE AREAS

TO INCLUDE IN YOUR HOME INSURANCE While most of us will be fortunate enough to not have to experience theft, water or fire damage that lead to home insurance claims in our lifetime, it is a mandatory clause on our mortgage. Also, it’s not a bad idea to have home insurance cover in the(hopefully, unlikely) event of it happening to you.

Did you know that most people overpay on their home insurance policies? The reason for this is that most of us don’t know how much we should insure our buildings or household content for. When it comes to buying insurance, we tend to opt for the insurer’s assumptions, or with averages, and end up paying a higher premium.

SAVING MONEY ON YOUR HOME COVER INSURANCE

Instead, calculate the worth of your household contents by going from room to room and estimating what it would cost to replace all your clothing, furniture, electrical appliances, and so forth. That is the appropriate level of cover you need.

A policy consists of three basic elements, which you should consider when you renew your policy:

Find out what the built in «per item» limit is on your policy, and if you buy an item that is worth more than that limit, include it separately under your all risks cover.

1. BUILDING COVER One element on which people overspend, is by insuring the value of the property, instead of what it would cost to rebuild the home. It often costs much less to rebuild a home in the event of a complete fire than the value of the home based on property tax purposes.

Insuring a home for more than what it is worth would be a waste of money, as you will not receive the full amount if you put in a claim. You will only receive the restoration costs. Visit www.scsi.ie for an accurate rebuild cost by the Society of Chartered Surveyors.

3. ALL RISKS The specialist all risks section of your house insurance policy covers high-value items, such as art, laptops, cameras, bicycles, jewellery and golf clubs, as well as anything with a value that exceeds your ‘per item’ limit of your contents cover. You will have to include photographs and certificates in the event of the item being damaged or stolen. Your premium will include an itemised billing for these items

2. CONTENTS COVER Contents insurance is usually calculated based on a percentage of the building cover, which is not logical. It also often results in inflated premiums. While it is good to be generously covered, you don’t need that much to cover any damages.

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HOUSE INSURANCE CLAIMS Insurance companies usually have emergency numbers for claims resulting from fires or water damage. It is crucial that you call them before you engage someone to do the repairs, as some companies only approve their own preferred contractors.

A loss adjuster will be sent out by the insurer to value and validate your claim. The adjuster may be independent, or may be employed by the insurer, however, you may also engage your own adjuster and let them negotiate with the insurance company.

IRELAND NEARS 20PC OF ALL NEW US INVESTMENT INTO THE EU

According to a recent report, commissioned by the American Chamber of Commerce Ireland, FDI into Ireland from the US amounted to $310bn (€283bn) by the end of 2014.

The new report was written and researched by US academic and Wall Street economist, Joseph Quinlan.

In his report Mr Quinlan highlighted a surge of investment flows of $58.1bn in 2014 from the US into Ireland.

Mr Quinlan said that despite increasing worldwide economic disorder, Ireland remained one of the «prime destinations» for US FDI. «Yes, there has been a great deal of churn and change in the global economy since our last report. But what has not changed is international investors’ overriding preference for doing business in Ireland.

«Various metrics point towards Ireland and the United States deepening their well-established trade and investment linkages,» Mr Quinlan said.

Ireland’s portion of FDI from the US can be compared favourably to that of Germany and France.

With Ireland’s amounting for just under 20pc of all US investment flows into the EU, France takes just 3pc while Germany accounts for just 2pc.

The Irish share of US investment stock has risen substantially over the last ten years, up to 11pc in 2014 from 6pc in 2004.

American Chamber of Commerce Ireland president, Bob Savage, said he was delighted at the positive story that arose from the report.

Mr Savage was speaking at the launch in the Intercontinental Hotel in Dublin, where he eluded to the importance of US FDI to Irish job creation.

According to Mr Savage 75pc of the 19,000 jobs announced by IDA Ireland last year were created by US companies.

«To maintain and strengthen our success in the global battle for FDI, our nation must continually reassess the needs of business, both domestic and multinational. We believe Ireland can continue to compete strongly on the international stage continuing to attract strong US FDI over the coming decade,» Mr Savage said.

The chamber also outlined the challenges facing Ireland in order to keep foreign direct investment coming from the US. Education, accommodation, and nationwide jobs growth were amongst the challenges listed by the chamber.

Ireland must ensure its education system is challenged to produce graduates with business-relevant skills sets, the chamber said.

Mr Savage addressed the current housing crisis as an issue that may impinge on FDI if it isn’t addressed appropriately.

The chamber president highlighted the importance of «ensuring Ireland has a sufficient supply of quality, affordable and well serviced accommodation for all those who want to build a great career in Ireland».

Since 2008, Ireland has been second only to the Netherlands in attracting more US investment flows to Europe on a cumulative basis.

In the research Mr Quinlan says that Ireland’s resilience has made it amongst the most attractive destinations in the world for US FDI. The Wall Street economist says the US looks to invest in expanding economies and with Ireland’s rate of expansion it is «no surprise» that US FDI has spiked here.

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BEST DEALS

A BRAND NEW CAR

on

LOOKING TO BUY A NEW CAR? PAYMENT OPTIONS ABOUND, BUT BE WARY OF THE TYPE OF VEHICLE FINANCE YOU CHOOSE. Few people can afford to pay hard cash for a brand new car, which leaves those of us who have not inherited a fortune, or won the lottery with no choice but to get finance. Technically, there are two choices: obtaining a finance package from the dealers, or getting a car loan from the bank.

Car loans from credit unions or banks are invariably more costly than the finance options offered by dealers. Dealers commonly offer personal contract plans or hire purchase agreements, although banks have reduced interest rates on some of their car loans in recent months.

HIRE PURCHASE OPTIONS Opel Ireland offers 4.5% interest packages for people looking to borrow €20,000. The Opel Adam goes for close to €19,750, which, paid back over 5 years, will be €1,750 a month, along with a deposit of 30% (€5,925).

The one thing to bear in mind, is that dealer loans (HP agreements) are structured in a different way to standard bank loans. The finance company or bank continues to own the car, and merely «rents» it out to you. It only belongs to you once you have paid the final repayment. The interest rate also remains fixed for the term.

While some banks do offer hire purchase loans, they are generally not as competitive as the dealers in terms of rates. AIB’s charges 8.45% and Bank of Ireland’s rate is 7.3%. The benefit is that you can get a 100% loan, which means that you do not have to fork out a deposit.

More recently, dealers have been offering personal contract purchase (PCP). This type of finance has become increasingly popular, with up to 75% of clients opting for this kind of finance last year.

BANK VS. DEALERSHIP There are of course great benefits to obtaining finance from the bank instead of from a dealer; the main advantage being the fact that with a bank loan, you own the car right away. If you buy from a dealer, you only own the car when you have paid it off. That means that if you get a loan from the bank and happen to run into repayment issues, you can sell the car to pay off the loan. Additionally, you can buy a used car rather than a new car, which gives you more bargaining power.

Of course, the interest rate has to be considered. Permanent TSB has the fourth most expensive bank rates (APR) at 10.5%, but they do offer a special loan rate for people wishing to buy a car newer than 6 years.

If the car is new or less than two years old, you will pay as little as 8.8%; if the car is between 2-4 years old, you will pay 9.3%, and for a car of between 4-6 years, you will pay 9.3%. Ultimately, the bank rates (APR) on car loans of €20,000, paid back over 5 years, start from as little as 7.5% with Bank of Ireland to just under 12% with KBC. Bank loans are also cash-secured, which means that if you have 25% of the loan amount to deposit as security, you can reduce your rate to 6.4% - 8%. An example would be if you put down a cash security of €5,000, you will unlock an 8% rate.

Another way to unlock cheaper bank rates, would be to open a current account with the bank in question, if you don’t already have one. KBC customers pay 2% less on the bank’s standard rate, and Ulster Bank’s customers pay 6.9% instead of 7.9%.

Dealers generally offer lower interest rates, since some manufacturers offer their own financing plans for the purpose of lending buyers money; others have pre-arranged packages with major banks. By shopping around, you may find dealers that charge 0% interest finance.

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PCP is effectively a lease, which means that you’ll never really own the car, but it requires a deposit and monthly payments for 36 months, after which you pay a bubble payment. A minimum value car at the end of the lease is guaranteed, and this covers the bubble payment. You then have 3 options: 1. Pay the bubble payment and own the car.

2. Return the car and walk away debt free.

3. Trade the car in as a deposit on a new car with a new PCP deal.

Terms and conditions will apply, and will usually involve a limit on annual mileage, and restrictions on where the car may be serviced.

Deposits are lower than that of HP deals. However, you don’t build up as much equity on the car as would be the case with an HP deal.

Some experts agree that with PCP agreements, you pay for the depreciation on the car, however, it suits people who want to purchase a new car after every three to four years.

MEET THE TEAM MICHAEL ENRIGHT

GAIL ENRIGHT

Michael Enright is the Senior Partner of the firm. Having attended Christian Brothers College, and University College Cork, he qualified as a solicitor in 1973 and practiced for much of his career as a partner and head of litigation in a large firm.

Gail Enright is a Partner in the firm. She was educated in Midleton and later in University College Cork where she studied a BSc and, later a BCL. Gail qualified as a Solicitor in 1996 and joined her father in Michael Enright & Co.

Michael has extensive experience in litigation. Much of his work is on behalf of insurance companies and local authorities. He has dealt with public liability claims and employers’ liability for many years. He also practices in the areas of plaintiff litigation and commercial litigation and has extensive experience dealing with claims of professional negligence and medical negligence. Michael is an experienced Mediator and Arbitrator and has helped many clients resolve matters outside of the court system.

Gail has a detailed knowledge of all areas of general practice and has extensive experience in property law. She has a Diploma in Property Tax from the Law Society of Ireland. She has acted for many clients in the areas of Residential and Commercial Conveyancing, Landlord and Tenant law, Probate, Family Law, and Licensing. She is a key member of the litigation team in the firm focusing on plaintiff litigation.

Michael is a former Council Member of the Law Society of Ireland and has served on many committees, including the Litigation Committee. He is a former President of the Southern Law Association, and was Chairman of the Litigation Committee of the Southern Law Association for over 20 years.

Gail is a former Council member of the Law Society of Ireland, and former Vice-President and Council member of the Southern Law Association.

Contact Gail Email: gail@michaelenright.ie

Contact Michael Email: michael@michaelenright.ie

RONAN ENRIGHT Ronan Enright is a solicitor in the firm. Ronan received a Bachelor of Commerce degree from University College Cork before qualifying as a solicitor in 2007. Ronan received a Diploma in Commercial Litigation and a Diploma in Employment Law from the Law Society of Ireland.

Ronan practices extensively in both plaintiff and defence litigation.

He advises clients in relation to personal injury, general litigation and commercial litigation. He acts on behalf of private clients, SMEs, sporting clubs, insurance companies and self insured bodies. He also advises clients in relation to debt collection, employment law issues, social welfare investigations and disputes, tax investigations and disputes, road traffic matters, residential conveyancing, commercial property, wills, probate, and estate planning.

He has volunteered as a Legal Mentor to start up companies on the Bank of Ireland Accelerator programme.

Contact Ronan Email: ronan@michaelenright.ie

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RANGE OF SERVICES LITIGATION AND DISPUTE RESOLUTION

EMPLOYMENT LAW

COMMERCIAL LAW

•• Medical Negligence •• Road Traffic Accidents •• Occupiers’ Liability •• Public Liability •• Product Liability •• Employers’ Liability •• Company Law & Shareholder Disputes •• Contract Disputes •• Defamation •• Environmental Law •• Nuisance •• Health & Safety Legislation •• Professional Negligence •• Conciliation •• Insurance law •• Arbitration •• Insurance defence litigation •• Mediation •• Injuries Board Applications

•• Unfair Dismissal •• Workplace Discrimination •• Drafting of Employee Handbooks •• Drafting of Employee Contracts •• Bullying and Harassment Issues •• Equality Issues •• Redundancy •• Representation at the Workplace Relations Commission

•• Buying and Selling a Business •• Taxation Issues •• Debt Collection •• Enforcement of Judgements •• Shareholders agreements

WILLS AND ESTATE PLANNING •• Will Drafting •• Periodic Will Review •• Estate Planning •• Tax implications •• Advise beneficiaries and family members

Visit us at: www.michaelenright.ie 28 South Mall, Cork City 00 (353) 21 4278200 enquiries@michaelenright.ie

FAMILY LAW •• Separation and Divorce •• Custody, Access and Guardianship Issues •• Advise relating to barring orders and safety issues •• Maintenance Payments

PROPERTY •• Buying •• Selling •• Commercial •• Residential •• Planning •• Environmental •• Landlord & tenant

LICENSING LAW •• Ad Interim Transfers •• Confirmation of Transfers •• Renewal of Licences •• Dance licences •• Occassional Licences •• Restaurant Licences •• Music and Singing Licences •• Special and General Exemption Orders •• Applications for New/ replacement Licenses •• Declaratory Orders