AUGUST
2017 SUCCESSION PLANNING/ PURCHASING YOUR FIRST HOME TIPS TO PREVENT MOBILE CHARGES ROAMING OUT OF CONTROL LEGAL BRIEFS HANDHELD BANKING: WHAT DOES THE FUTURE HOLD? 10 WAYS TO ‘‘TECH UP’’ YOUR BUSINESS MEET THE TEAM
TABLE OF CONTENTS Succession Planning/Purchasing Your First Home
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Tips To Prevent Mobile Charges Roaming Out Of Control
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Legal Briefs
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10 Ways To ÂŤTech UpÂť Your Business
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Business Briefs
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Handheld Banking: What Does The Future Hold?
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Meet The Team
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Range of Services
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Welcome to the August edition of our bi-monthly newsletter. We hope you find the articles in this newsletter of interest to you and your business. We welcome feedback, suggestions and input from our clients and if there are any particular legal matters which interest you, please let us know and we will try to provide information on any such areas of law. We have a highly experienced team here at H.D. Keane who are happy to assist you with any queries you may have, so please do not hesitate to contact us.
All the team at HD Keane Solicitors.
Succession Planning
In many cases, the most successful business, is the family business. The family business can fall into the “fail to plan, plan to fail� trap, and statistics show that many businesses and farms in Ireland are owned by people between the age of 60 and 75. In many cases business owners are reluctant to engage in succession planning. Succession planning is proven to enhance the longevity of a family business, to motivate the next generation and most importantly protect the people who ran the business for so many years. The key ingredients in succession planning are as follows: Identify the successor and communicate a future plan with professional advice; Complete a profile of the business, establish its profitability and efficiency, engage with the successor to ensure that there is profitability for the successor and sufficient income for the transferor. Engage with the appropriate financial and legal advice to ensure that a complete profile is completed for the family as a whole; Ensure both parties obtain independent legal advice to ensure that there is professional open communication which sustains family harmony, prevents any disputes among siblings and most importantly protects the long established family business. Professional communication in a transaction of this kind is paramount. We at H.D. Keane, Solicitors have been providing legal advice on succession planning for generations. If you have any enquiries in this regard please feel free to contact us below on 051 874856
Time to Buy
enquiries@hdkeane.com
The residential conveyancing market in the South East Region is now very stable, consistent and greatly enhanced by the main Banks willingness to lend to First Time Buyers. New developments are taking place, which is a most encouraging sign and a great opportunity for people to purchase their first home. The key ingredients when purchasing your first home are as follows: 1. Seek independent financial advice. Interest rates on a mortgage vary greatly and it is most important that you get the best interest rate and mortgage plan that suits you and your families needs; 2. Obtain legal advice at an early stage in the transaction so you can engage with your solicitor to ensure that you are satisfied with the service and professional advice you will receive. If you proceed to purchase the following issues need careful consideration: a. Structural survey of the property. The purchase of your first home is one of the most important transactions you will complete in your lifetime, it is most important the property being purchased is structurally sound. No corners should be cut in respect of completing a comprehensive structural survey; b. Engage with your solicitor regarding the purchasing process and your solicitor will be able to advise on all the remaining issues which should be given careful consideration prior to signing contracts. The purchase of your home should be an enjoyable experience with the benefit of professional legal advice. If you have any enquiries regarding the purchase of residential property, the issues involved and the cost of same please contact us below on 051 874856
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enquiries@hdkeane.com
TIPS TO PREVENT MOBILE CHARGES FROM ROAMING OUT OF CONTROL
What’s Changed?
The rules may have changed, but we all dread that ‘welcome’ message with warnings about maximum data limits from our mobile providers when travelling out of the country.
Over the last five years, the EU has actively worked at reducing roaming charges. However, Simon Moynihan of Bonkers.ie warns that while customers will benefit from better rates and terms, you should not get too comfortable. Instead, speak to your mobile provider first and find out exactly how much data you have available before travelling abroad. While you can roam at the same price you pay at home, there are limits to the extent. Many plans only offer 1GB for roaming, and 1GB doesn’t go far.
15th June 2017 was ‘Roam Like Home’ day, the day on which the EU enacted new legislation that scraps roaming charges. Sadly, not much has really changed. In this article we’ll tell you what you need to know about Roam Like Home, and how you can save on roaming costs.
Will It Be Unlimited? No. Even normal data packages already have built-in fair use limits. They are typically generous and most people don’t use them up. According to Virgin, the average customer uses approximately 2.6GB per month. Most unlimited packages have a 5-30GB fair use limit, and if you exceed it, you will be charged for the additional data.
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Fair Use
How Much Is a GigaByte, Exactly?
The EU fair use limits are not always the same. Meteor’s €10 pre-pay plan has a 7.5GB fair use limit and 2.1GB for roaming. Their bigger bill pay SIM-only package offers 10GB locally and 7.4GB abroad.
You would be shocked to find that 1GB does not go very far well, depending on your preferred usage. For 1GB, you can:
In most cases, bill-pay plans have more restrictions than prepay plans.
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listen to about 160 songs on Spotify
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travel via Google Maps for 17 hours
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watch Youtube videos for 300 minutes
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or watch an hour of Netflix.
Many plans still allow only 2GB of roaming, so when you travel a lot, you could easily hit your limit.
What Is Free?
How to Save Data While Roaming?
Depending on your phone usage, you may be able to find a plan that offers services such as data, texts or calls free of charge. In most cases, a bill-pay plan that charges more than €30 a month will provide the most freedom. You will still receive the welcome message when you roam and you will get warning texts at certain intervals.
What Will They Charge? Although penalties are capped under new EU laws, you will be subject to penalty fees if you exceed your pre-determined data roaming limits while travelling abroad. Roaming charges for exceeding the limit, starts at €7.70/GB of data. These charges are set to decrease to €2.50/GB by 2022.
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Ask your provider for the exact data allowance on your specific plan.
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Switch off roaming and use Wifi whenever you can.
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WhatsApp is the cheapest option for messaging, as it uses much less data compared to Facebook and texting.
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Turn off auto-updates on apps, and disable Facebook’s auto-playing of videos. You can leave notifications on.
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Download shows from Netflix before you travel if you want to use that to keep small kids entertained and turn off data before giving them your phone.
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If you have not reached your data limit at home, you’re unlikely to exceed it while travelling. Relax, but be sensible and enjoy!
LEGAL BRIEFS
employers conducted by CareerBuilder, an online recruitment company. The regulators, who together form a group on data protection known as the Article 29 working party, do not themselves make EU law. But since they police the law’s implementation in the 28 member states - and seek a common interpretation with which to do so - their role is highly influential. Prospective employees must be told before they submit their job application if the company intends to conduct an audit of their social media profiles, and employers cannot force employees to accept their friend requests. The working party’s opinion is also likely to govern the interpretation of a new and stricter EU law, known as the General Data Protection Regulation, which is due to come into force in May 2018.
EU REGULATORS CLAMP DOWN ON EMPLOYER SOCIAL MEDIA SEARCHES Employers who check a job candidate’s Facebook or Twitter profile before deciding whether to hire them may be in breach of European law, top regulators have said, as the EU tightens its data protection policies. According to guidelines published by EU data protection agencies, employers will from now on require a “legal ground” before checking the social media profiles of potential employees. The regulators add that data collected from a search must be necessary and “relevant to the performance of the job”. An estimated 60% of employers use social networking sites to screen potential candidates before making decisions, according to a survey of more than 2,000
bail to serious offenders including the extent to which the nature and frequency of previous offending indicate persistent offending and the danger to individuals or the community, which may be presented by release on bail. Courts will also have more options in imposing conditions on those who are granted bail, including prohibiting an accused from contacting victims, prohibiting him or her from driving when charged with a serious road traffic offence, and the imposition of a night-time curfew. Other features of the bill include electronically monitoring compliance with bail conditions when requested by the prosecutor, hearing victim evidence at bail proceedings and a requirement that the court give reasons for bail decisions.
NEW BAIL LAW APPROVED BY OIREACHTAS Legislation providing increased guidance for the courts and greater transparency in the bail process has been approved by the Oireachtas. The Criminal Justice Bill 2016 completed its final legislative stages in June. Justice Minister Charlie Flanagan said it would “strengthen the powers of the Courts, and of the Gardaí, in dealing with persistent serious offenders and persons on bail who pose an ongoing threat to the public”. Under the Bill, courts will be required to take additional factors into account when considering whether to refuse
BILL AIMS TO ENCOURAGE MORE TO SETTLE THROUGH PERSONAL INJURIES ASSESSMENT BOARD
would strengthen the operational powers of the Board and ensure greater compliance with the Board process. It will also provide for the Book of Quantum, an important benchmark for damages claims for practitioners, to be reviewed every three years. The Minister further commented that it is another step in the Government’s efforts to address the increasing cost of insurance, as the cost of settling personal injury claims is recognised as a major contributory factor to these costs.
The general scheme of a Bill to encourage more claims to be settled through the Personal Injuries Assessment Board has been published. Former Justice Minister, Frances Fitzgerald said that the Personal Injuries Assessment Board (Amendment) Bill
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The campaign is being coordinated through the International Network of Civil Liberties Organizations (INCLO), of which ICCL is a member. The group says international information-sharing agreements between intelligence agencies potentially allow those agencies to sidestep domestic legal constraints by funnelling surveillance data into a transnational intelligence network. In his correspondence, ICCL executive director Liam Herrick is seeking all details of the circumstances in which Ireland may share foreign intelligence surveillance data with another country. He is also seeking details of the circumstances in which Ireland may request or acquire electronic surveillance data from another jurisdiction. The action builds on a report by the INCLO last year entitled Surveillance and Democracy: Chilling Tales from Around the World. The organisation said it would publish all documents released on foot of the requests submitted in June.
HUMAN RIGHTS WATCHDOG SEEKS DETAILS ON FOREIGN SURVEILLANCE A leading human rights watchdog has asked the Government and the State’s policing and defence agencies to release details of how they share intelligence surveillance with other governments. The Irish Council for Civil Liberties (ICCL) submitted requests under the Freedom of Information Act to the Department of Justice, An Garda Síochána and the Defence Forces seeking information on the State’s information sharing agreements with other countries. It informed the agencies that the arrangements “dramatically implicate the privacy of every person, both nationals and nonnationals”. However, to date those arrangements are largely shrouded in secrecy, it said in correspondence to all three bodies. The requests were submitted as part of a global public information campaign aimed at uncovering international information-sharing agreements between intelligence agencies.
LAW MUST ‘REGARD’ POLYGAMY REALITY
‘‘potentially’’ polygamous is capable of being recognised under Irish law. This would occur in the case where a man has one wife and could take a second wife under the legal system of his native country, but has not yet done so. There was no bar in public policy to recognising this first marriage as legal in Ireland, even if the man subsequently takes a second wife, the court said. Recognition of an ‘‘actually’’ polygamous marriage would be contrary to a fundamental constitutional principle, equality, and therefore contrary to public policy, the court said. In finding the second marriage not valid under Irish law, it said the institution of polygamy is not contemplated by the Constitution and is contrary to principles of various international instruments. Giving legal recognition to such a structure would ‘‘give legal effect to discrimination and subordination in a relationship where the principle of equality should hold sway’’.
Polygamous marriages may have ‘‘legal consequences’’ in Ireland - without actually being recognised under Irish law. A seven-judge Supreme Court sitting, in June, unanimously ruled that the first marriage of a man living here with two wives, both of whom he married in his native Lebanon, is valid under Irish law. While his second marriage was not valid here, it may have legal consequences, the court said. The case was rooted in immigration and it ‘‘may be desirable’’ to have some regard to the reality of family bonds, the court said. The now 64-year-old man, while living in Lebanon, married his first wife in 1975 and his second in 1988 and has children with both. Under Lebanese law, a man can have up to four wives. He first came here in 1998. A marriage that is
HATE CRIME LEGISLATION ‘NOT FIT FOR PURPOSE’ AS FOI REVEALS JUST THREE CONVICTIONS IN THREE DECADES
has introduced a Private Members’ Bill, currently before the Oireachtas. The legislation is not fit for purpose according to antidiscrimination campaigners who said a broader regime is needed as racist incidents increase. A survey by the Immigrant Council of Ireland said there were 240 reports of racist incidents in 2015, a jump of 11 per cent on the previous year. Of these, about 40 per cent were against Muslims. Of the two people jailed under the 1989 Act, one served a month in 2012 and another served four months in 2014. Of the 44 cases, 22 were struck out or dismissed while seven were withdrawn by the Director of Public Prosecutions. Shane Curry of the European Network against Racism, said the law was “not fit for purpose” and this is a view shared by several international monitoring bodies. He added that actual hate-crime legislation is needed not incitement to hatred legislation.
There have been only three convictions for hate crimes in the past three decades, according to new figures. Ireland’s hate crime legislation, the Prohibition of Incitement to Hatred Act 1989, makes it an offence to make or distribute discriminatory material. Offenders can be jailed for up to two years or fined. The Courts Service has now revealed, under a freedom of information request, that there have been 44 prosecutions under the Act since 2000, five of which have resulted in convictions. It said there are no figures from before the year 2000, though the Department of Justice said that no convictions had been recorded by 2000. The Department said it is considering reform of the law while Fianna Fáil
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YOUR BUSINESS Let’s face it, the world revolves around technology and if you want to make it in this world, it’s time to ensure your company’s technology is up-to-speed. Here are the ten aspects to consider first, when you decide to update your company’s technology.
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UPGRADE
UPDATE IT SECURITY & BACKUP
Most of us fear the idea of moving files and documents from old desktops to powerful, sleek and secure laptops, mainly due to the perceived risk of losing data. However, if your PC is older than 5 years, you risk losing it all in a breakdown.
Europe has been under attack by Ransomware such as Wannacry, that has pillaged schools, hospitals and other vulnerable institutions. The minimum requirements for dealing with threats, include:
If you’re worried about moving your files, you can now rest assured that they will be safe and sound, thanks to a number of easy-to-use downloadable services that take care of the heavy lifting to ensure your files, as well as some of your applications and programmes, are safely copied to the same locations on your new laptop. All you need is a decent broadband connection, as the services use web links. Here are some of the services you could try:
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newest operating system
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up-to-date security software
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two-factor authentication for sensitive or passwordprotected information
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Laplink’s PCMover (laplink.com/pcmover)
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Dropbox
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Onedrive
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Flickr
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Google Photos
Any information that you cannot afford to lose should be backed up on a daily basis. Use an online backup and recovery service, such as Keep It Safe or Iron Mountain to take care of the heavy lifting for your small business. Crashplan.com is another user-friendly, affordable and effective solution for sole traders.
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Laplink PCMover (from €23.95) can be used for all your files, while Dropbox and Onedrive are free online storage services. Use them on an ongoing basis to never lose anything again. Flickr and Google Photos provide almost unlimited storage for image files and videos.
UPDATE AND CLEAN OUT ACCOUNTS
According to Comreg, Ireland still has more than 3,000 active dialup Internet services and more than 100,000 active ISDN lines, most being legacy connections. While some of these connect devices to payment terminals, a great many are simply overlooked. Don’t pay for services you don’t use. Scrutinise your bills and close down any accounts or services you pay for but no longer use. By the same token, clear up unused email accounts and update online directories and social media accounts with current and correct information.
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UPDATE YOUR OPERATING SYSTEMS
Ireland’s latest online access figures show that close to 5% of all PCs still use older operating systems, such as Windows 8, Vista or XP. Many of these machines are used for specific utilities, such as hospital scanners and ATMs, but many are still used to run offices and shops. Using old operating systems is negligent, as it opens you up to cyber attacks and malware. Microsoft no longer provides security support for older operating systems.
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Many small business assume that the General Data Protection Regulation (GDPR) is only for large corporations, and that’s not accurate. The GDPR law tightens up data protection and privacy rules while imposing penalties and fines for infringements. Small firms also face administrative fines, rather than just a slap on the wrist. There will be no more court dates, just massive administrative fines.
GO PAPERLESS
Paperless systems save time. When you use paperless methods, you don’t have to waste any more time on filing and shuffling. An increasing number of small businesses are adopting paperless transactions using digital signature software such as Docusign.
If you don’t know the laws, now is the time to brush up on your knowledge, and allocate GDPR duties to a member of staff.
Digital signatures carry full legal effect, and even law firms are using it. Instead of sending out physical letters, law firms send PDF documents by email. Any physical correspondence they receive is date-stamped, scanned and assigned to clients’ digital files.
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FIND FUNDING FAST
If your company has an innovative and actionable idea and solid business plan, you should be able to fund it easily with the help of competing state grants and funds. State bodies such as Enterprise Ireland and private venture capital firms place more than €1bn into both Irish start-ups and established companies every year. Frontline Ventures invests between €200,000 to €3m into startup software companies, while Enterprise Ireland invested in 229 companies (average €140,000) in 2016.
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PROTECT YOUR PHONE CONTACTS
Tired of losing your phone contacts in the event of a lost or stolen phone? You can now save them to Google Contacts and never lose anyone again. Simply go to ‘settings’ on iPhone or Android and copy your SIM contacts onto the phone, and then into your Google account from where you can always access your contacts.
One in eight applications for Enterprise Ireland’s €50,000 equity investment scheme were granted, which left many business owners disappointed. However, Local Enterprise Boards are on hand with more local aids and grants. Enterprise Ireland also provides hundreds of €5,000 innovation vouchers which can be used to improve your small business’ online capability and modernise your technology. Be sure to apply before September.
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ADHERE TO GDPR
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STRATEGISE ONLINE SALES
The most dangerous thought that crosses Irish business owners’ minds, is thinking that online marketing does not apply to their businesses. According to Amarach Research, Irish online sales have doubled in the last two years. A third of all sales occur online, compared to only 17% the year before. By the end of 2017, it is expected that 40% of all sales will occur online.
STREAMLINE PAYMENT SYSTEMS
Paying a small fortune for a merchant account with the bank in order to accept credit cards online? Well, you can now save on costs while still having access to merchant services. Companies such as Stripe allow you to accept credit card transactions without the complications imposed by the big banks. If you’ve always wanted to trade online, you can now do so using your website and an online merchant service. Your website administrator will be able to easily incorporate the payment system into your website.
Like it or not, but your competitors are online. Ireland ranks first place out of 28 EU countries in terms of small businesses incorporating technology. Last year, we were in 3rd place. According to a report by the European Commission, we scored especially well in online sales and e-commerce, compared to other EU rivals. Almost one third of Irish SMEs sell products and services online, which is twice the European small business average. Don’t you think it’s time to pay more attention to your online channels?
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AVERAGE ANNUAL EARNINGS ROSE BY €400 IN 2016
The accommodation and food services sector had average annual total earnings of €17,214, the lowest of the sectors. Total employee earnings rose by 4% to €61.2 billion across the year, driven mainly by an increase in the number of people at work, as well as a slight rise in the number of weekly hours worked and the small increase in average earnings. Meanwhile, the CSO figures also show the total cost of employing labour increased by 4.1% in 2016 to €70.8 billion. Full-time employee regular earnings comprised €48.4 billion (68.3%) of the €70.8 billion total labour costs, while part-time employee regular earnings were €7.5 billion (10.6%). The other main components were €9.7 billion (13.7%) other labour costs, €3.2 billion (4.6%) irregular earnings, €1.6 billion (2.3%) overtime earnings, and €0.4 billion (0.6%) apprentice/trainee earnings. Total annual labour costs increased each year between 2011 and 2016.
Average annual earnings in Ireland increased by €400 (1.1%) to €36,919 last year, according to new figures from the Central Statistics Office. This compares with an increase of 1.2% between 2014 and 2015. Mean annual earnings have risen by more than €1,000 since the height of the economic downturn in 2011. Average earnings for full-time employees in 2016 stood at €45,611 (+1.2% on 2015), with the average for part-time workers coming in at €16,597 (+1.6%). The average hourly rate of pay last year was €22.04. The professional, scientific and technical sector saw the largest increase, at 6.4%, with average annual earnings rising from €41,973 to €44,667 between 2015 and 2016. However, the information and communication sector had the highest average regular earnings of €49,319 and highest average irregular earnings of €6,216, making it the highest paid sector in 2016.
IRISH ‘BLUE ECONOMY’ OUTPERFORMING GENERAL ECONOMY
“Emerging” marine industries had a turnover of €383 million and provided employment to close to 2,000 people, the study said. Overall, the sector represents some 1.7% of gross domestic product. Co-author Dr Stephen Hynes said that the figures showed steady movement towards Government targets for 2030 on “ocean wealth”, but noted that the influence of the ocean on Irish society was even more pervasive than indicated by the analysis. Current projections, according to Miguel Marques of Price Waterhouse Cooper, show that the global ocean gross value added can be doubled by 2030 and Ireland has the ability to substantially outperform this. He further identified ‘blue technology’, including aquaculture as key opportunities for Ireland with Brexit representing a potential opportunity for Ireland to reduce some of its dependences economically and diversify more.
Ireland’s small but significant “blue economy” is outperforming the general economy, an NUI Galway (NUIG) study says. The ocean economy had a turnover of €5.7 billion in 2016 and indirect economic value amounted to €1.57 billion, the study by NUIG’s Socio-Economic Marine Research Unit found. The study, which was published at the annual Seafest in Galway, said the ocean economy provided employment for more than 30,000 people last year, and found established marine industries had a turnover of €5.3 billion. Oil and gas exploration and production, marine aquaculture and tourism, and leisure in marine and coastal areas all experienced a significant increase in activity between 2014 and 2016.
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IRISH ECONOMY EXPERIENCES STRONG START TO 2017
It is expected that the good momentum in the exports sector will continue. Domestically, despite unemployment now at a nine year low and personal finances strengthening, headline retail sales growth has moderated. The slowing of retail sales growth is largely due to a 10% year-on-year decline in new car sales, however core sales, excluding motor, continue to show good momentum. The Government coffers meanwhile experienced a mixed start to 2017, however a strong performance in May has brought tax receipts back to within 1.4% of the government’s target.
The Irish economy experienced a strong start to 2017, driven largely by a robust export performance. Exports have to-date risen 10% year-on-year, with the country’s trade surplus expanding by 18% to €17.1bn, according to the latest Investec Irish Economy Monitor. This is particularly impressive given the currently sterling violation.
DUNGARVAN GETS €8M INVESTMENT
Around 6.5bn Panadol tablets are produced in Dungarvan each year — 150 tablets per second — exporting to over 70 countries worldwide. The company has been in Dungarvan for 37 years, and employs 700 people across two sites. The new facility uses locally sourced woodchips to create a carbon-neutral fuel source for the site and is part of GSK’s global sustainability strategy which supports the company’s carbon neutral policy. GSK Dungarvan site manager Brian Fox said the investment from GSK showed a significant vote of confidence in the Dungarvan facilities as well as in the capabilities of the town and the people of Dungarvan.
Global healthcare giant GSK has opened an €8m biomass energy facility in Dungarvan, Co Waterford, that will reduce its carbon emissions by a third. The facility is only the second of its kind in Ireland, bringing investment in the facility over the past two years to more than €23 million. GSK in Dungarvan produces a variety of over-the-counter pharmacy and oral care products and is the global home of Panadol.
more concentrated than they were throughout the 2000s. Commenting on the report, Goodbody Stockbrokers said that the abolition of water charges and the modest property tax presented an opportunity to address this issue but that the opportunity now appears to have been lost. They further commented that, analysing the implications of hard-Brexit on public finances the ERSI state fiscal space will be reduced by a further €600m in the first 3 years following a hard-Brexit situation. Goodbody’s concluded that while the economy continues to do well the ability for manoeuvre in public finances in the coming years was very limited.
ESRI WARNS ON PUBLIC FINANCES The ESRI has published its latest Economic Commentary which predicts that GDP will grow by 3.8% and 3.6% in 2017 and 2018. This is exactly in line with its Spring estimates. The most notable changes in the ESRI’s views relate to the public finances. It now expects the budget deficit to come in at 0.5% of GDP this year, higher than its previous forecast of just 0.1% of GDP. Following on from this, it warns of the concentrated nature of the tax revenues in Ireland. Using a measure of concentration (the Herfindahl-Hirchman Index), it shows that tax revenues are now significantly
Private renters in other major cities, including parts of Cork and Galway, are also paying up to 8% above the average national rent which now stands at €987 a month — up €1 on the previous quarter. However, while rents nationally continue to trend upwards, the data shows that quarterly growth was relatively flat, increasing by just 0.1%, down from 2.8% the previous quarter. RTB director, Rosalind Carroll, said the findings for the first quarter of 2017 suggest the rate of increase in private rents is moderating. The new figures show no additional parts of the country meet the criteria to be designated RPZs. A public consultation was launched on the review of the rent predictability measure and the RPZs system Meanwhile, a report by the Central Bank says house prices — which are expected to rise by a further 10% this year — are “not currently overvalued”.
FIGURES SHOW RISE IN RENTS EXCEPT IN DUBLIN The average rent across the country now stands at €987 per month. New figures by the Residential Tenancies Board show they have risen by just over 7% in the first quarter of this year, meaning the rate of increase has slowed. However, the cost of renting apartments in Dublin has dropped by 1.5% this quarter. The Residential Tenancy Board (RTB) said it’s still too early to say if the slowdown is linked to the introduction by the Government last year of Rent Pressure Zones (RPZs) — a move which capped hikes in high-rent areas. The first figures since the introduction of RPZs, show while rent rates in Dublin dropped slightly in the first quarter of the year compared to the same period last year, the capital’s rental rates are still running at 8% above their late 2007 peak.
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THE CHANGING WORLD OF BANKING:
What does the future hold? A Permanent TSB spokesperson also said that the bank noticed that mobile usage has outgrown desktop electronic banking. The number of customers using the bank’s mobile app for day-to-day transactions continues to grow.
As we make the switch from online banking to mobile apps, how will the banking landscape respond?
This trend places considerable pressure on banks to remain competitive and current in the field of digital banking in order to appeal to the modern consumer as other digital financial services continue to shake up the market.
Few people can remember the last time they went to a physical branch of their bank. However, most of us handle our day-today banking on the go, using a mobile phone app.
N26 is one such ‘digital-only’ challenge. The company was awarded a European banking licence in 2016 and has already secured 10, 000 current account holders in Ireland alone. Head of International markets at the Berlin-based fintech company, Alex Weber, says that Ireland is one of their fastest growing international markets. He believes that the success of N26 in Ireland is driven by the fact that the Irish people are receptive to new, innovative technology. Also, since Ireland’s traditional banking landscape was - until recently - dominated by a few companies, clients are ready to welcome new players such as N26 with open arms.
In recent years, the banking landscape has evolved significantly. From physical banking, we have celebrated Internet banking, and these days, our bulky desktops have to make space for a more mobile solution - mobile phone apps. Both Bank of Ireland and AIB have seen mobile apps overtake their online banking option on the desktop as the main channel through which clients prefer to handle their finances. According to an AIB spokesperson, this migration is common across all banks. Permanent TSB, Ulster Bank and KBC agree with the sentiments of AIB and Bank of Ireland. According to KBC, the first quarter of 2017 saw 60% of current accounts opened using digital channels. There’s no question that customers are increasingly opting for mobile technology.
Competition from new players is changing the banking landscape and driving innovation to continue delivering new tools and services to the modern consumer.
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Apple Pay was recently launched in Ireland, led by Ulster Bank and KBC. However, not all changes are quite as big. Most banks tend to focus on incremental changes and on making improvements to the user experience.
New Banking Innovations
Improvements to AIB’s app including Touch ID, a new fingerprint identification tool for iOS users. They also added the option for customers to open a savings account via the AIB app. Touch ID was also included in Ulster Bank’s app, along with a feature that helps app users to find their nearest ATM. The Get Cash facility allows users to withdraw money even without a debit card. By using a text or email directly from the app, users can share their IBAN and other account details. KBC’s customers have been quick to adopt the app feature that allows them to open a current account using their phones. All documentation can be photographed and uploaded using a tablet or phone, which speeds up the application process, but most importantly, it digitises the entire process. Bank of Ireland made upgrades to their app last year, and it is still ongoing. Much thought and effort is going into securing the app and delivering a smooth process for financial transactions and financial well being. Security is also a huge priority for Permanent TSB. A spokesperson said that customer feedback indicates that security is very important to their customers. As such, security is always an integral part of everything the bank develops. Clients want to know that their mobile transactions are secure. As such, the bank has assessed a variety of options, including biometric authentication, such as facial and voice recognition and fingerprint authentication to help improve the security of their apps.
The Banking and Payments Federation of Ireland (BPFI) foresees many more significant changes in the banking landscape. A digital transformation is evident as more consumer facing technologies appear across the banking sector, and we’ve only seen the start of it.
Keeping Up With a Changing Market
Regulators, on the other hand, are facing a number of challenges as a result of the changing face of digital banking. The Central Bank, in its Consumer Protection Outlook for 2017, indicated that they would focus on the impact of technology on its consumers. Due to the impact that technology driven innovation has on the way in which services and products are delivered, the Central Bank must consider emerging risks and the way in which their current consumer protection framework can eliminate those issues. The Central Bank is expected to publish a discussion paper and accompanying consultation paper on the matter in the coming months.
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Keeping up with technological innovation and a shifting market is costly for banks. Bank of Ireland recently commenced a multi-year investment programme which would see the replacement of its core banking platforms, as well as upgrades to its payment applications. Permanent TSB appointed a chief technology officer for the first time, ahead of its major digital transformation project. KBC established an innovation hub, to drive it’s digital strategy.
Will We See Collaboration?
The need for innovation is driven by customer expectations, whereby modern consumers expect to receive the same level of innovation from their banks that they have become accustomed to from other service providers. Customer expectations for end-to-end user experiences are shaped by companies such as Amazon, Uber and Airbnb. Customers expect the same level of digital experience from their banks. Banks are left with the pressing decision about whether they should go it alone, or collaborate with fintech companies when it comes to the development of their technology. According to BPFI, this is a question of collaboration versus competition. Banks and fintechs pointed to collaboration as a means to harness new technology at a BPFI conference earlier this year. Contributors felt that collaboration would benefit both customers and banks, as it would build trust amongst consumers. AIB has a dedicated fintec department which works with identified fintech companies on the bank’s digital products function to enhance their value proposition to consumers. Their flagship projects include user experience enhancements, improvements to mobile security and providing online messaging. Permanent TSB also values the role of partnerships with fintech companies, and will be expanding their own engagements. Ulster Bank’s innovation solutions team is based in Dogpatch Labs in Dublin. Dogpatch Labs is a co-working space frequented by tech start-ups. Here, the bank works closely with the fintech community, focusing on ways in which the innovation can be harnessed for their customers.
AIB has over 1.2 million active digital customers, of which 650,000 use mobile banking. The number increased by 23% on last year, making mobile AIB’s most active channel.
Mobile Banking By Numbers
Three in every four Bank of Ireland customers are digitally active. Eight million of these customers interact on the mobile app every month. The bank’s mobile app has seen a yearon-year increase of 35% from last year to this year of active customers using the mobile app. At KBC, digital banking has increased by 83% among consumers, in the period January to March 2017, compared to the same period in 2016. The number of clients opening an account online has also increased by 37% in the same time frame. About two-thirds of Permanent TSB customers actively use their mobile banking app, and the number continues to grow. After the release of their new app at the end of last year, mobile usage has outgrown desktop. Mobile is clearly their clients’ first choice. Ulster Bank has seen a 22% increase in active mobile app users. In 2016, 62% of the bank’s customer interactions were digital, and 10% in branches.
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John Breen BCL PARTNER John Breen was awarded an Honours Degree at University College Cork in 1994. John resides locally with his wife and two children. He trained with H.D. Keane Solicitors and joined the firm as qualified solicitor in 1998. He became a Partner in 2003 and Managing Partner for the firm in 2012. He practices in most areas of law with particular emphasises on Personal Injury Claims, Commercial Conveyancing and Employment Law. Contact John
john.breen@hdkeane.com
051 874856
PARTNER
Nicholas Walsh qualified as a solicitor in 2005 having completed his studies at the College of Law, Chester and trained in the UK. He joined the practice in 2005 and became a partner in 2012. He deals mainly in the area of commercial/banking/agricultural conveyancing, and family law. He completed a post graduate Diploma in Family Law in 2008. He is a former president of Waterford Law Society and resides locally with his wife and four children. Contact Nicholas
051 874856
Nicola Walsh BA SOLICITOR Nicola Walsh qualified as a Solicitor in 2011 having completed a Bachelor of Arts Honours Degree in Legal and Business Studies. Nicola specialises in general conveyancing, wills, probate and the administration of estates, estate planning and litigation. Contact Nicola
nicola.walsh@hdkeane.com
051 874856
Frank W. Hutchinson SOLICITOR CONSULTANT Contact Frank
051 874856
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HD Keane & Co is the old name of the firm change to HD Keane Solicitors.
We believe in streamlined and easy to understand communication with you, the client, from start to finish in the legal process.
SINGLE POINT OF CONTACT Regardless of the profile of your case, HD Keane Solicitors will appoint a single point of contact to guide you through the whole process.
SPECIALISTS Our highly qualified team of solicitors provide specialist services in all areas of legal compensation claims, from personal injury to employment compensation claims.
TRADITION
Frank Hutchinson was a Partner for the firm for 25 years. Frank qualified as a solicitor in 1985. He is a Consultant with the Practice and specialises in Wills, Probate and Administration of Estates and Conveyancing. He is the State Solicitor of Waterford. Frank.hutchinson@hdkeane.com
REPUTATION
COMMUNICATION
Nicholas Walsh LLB
nicholas.walsh@hdkeane.com
What makes us different to other solicitors?
HD Keane Solicitors has for 117 years been providing legal representation to a high standard for the people of Waterford city and county, surrounding counties and nationally.
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