Kevin O Donovan Spring 2016 Newsletter by publications

SPRING

2016

Rental Property and Leases Paul O'Sullivan

ECONOMIC OUTLOOK: Is The USA About To Slip Into A Recession? Dr Constantin Gurdgiev

HOW TO QUALIFY FOR A MORTGAGE IN 2016 HOW CRASHING OIL PRICES AFFECT YOUR POCKET

IN THE SPOTLIGHT Mikey Sheehy

Meet The Team

Table of Contents Rental Property and Leases - Paul O'Sullivan ................................... P3 Economic Outlook: Is The USA About To Slip Into A Recession? Dr Constantin Gurdgiev ............................................................................ P6 Legal Briefs ..................................................................................................... P9 How To Qualify for a Mortgage in 2016 .............................................. P12 How Crashing Oil Prices Affect Your Pocket ...................................... P14 Reasons to Hire A Recruitment Consultant ....................................... P16 5 Ways to Stretch Your Paycheck in 2016 ........................................... P18 7 Things You Need To Know About Employment in 2016 .............. P20 In the Spotlight - Mikey Sheehy ............................................................ P22 Meet The Team ............................................................................................ P23 Range of Services ....................................................................................... P24

WELCOME Welcome to our Spring Newsletter. Things are beginning to look a lot brighter on the business and economic front and we hope that 2016 will be filled with success and prosperity for you. We hope you enjoy the articles in this newsletter, which will be relevant to you and your business. Feedback is important to us, so please let us know your thoughts on the newsletter and we welcome your suggestions. Paul Oâ&#x20AC;&#x2122;Sullivan has written about the legal issues surrounding rental property and leasing which we hope you find helpful. Should you have any queries on this, or any other legal matters, please do not hesitate to call us and we will be more than happy to arrange a meeting with you.

Kevin O'Donovan and Paul O'Sullivan

RENTAL PROPERTY & LEASES Paul O’Sullivan, BCL, LLB, Partner Kevin O’ Donovan & Partners, Solicitors

There has been much comment in the media and elsewhere about renting and rental properties in the past twelve to eighteen months and the shortage of same in the residential market. This has occurred primarily in the east coast and most particularly in the Dublin area which has seen the fastest return to economic growth and job creation. The situation is different in other parts of the country and in rural towns and villages which have only seen modest increases, if any, in the rent paid by tenants to their landlords. Irrespective of the length of a lease or letting agreement, there are essentially two types of leases, a lease for residential property and a commercial lease which deal with the letting of commercial or business premises and non residential property such as lands. The rules and regulations differ substantially between residential letting or lease agreements and commercial leases. As regards residential property, the letting of same is primarily based on the Residential Tenancies Act of 2004. This Act applies to mainstream private rented property and so does not apply to social housing and short term holiday lettings. Further, the security of tenure provisions in the Act would not apply to employment related accommodation or student accommodation. Under the Act, both the tenant and the landlord of a rented property have certain obligations and conditions which they must fulfil and these will be set out later.

One of the most important provisions in the 2004 Residential Tenancies Act related to security of tenure i.e. the rights of a tenant to stay and reside in a particular rental property for a specified period of time. Arising from the 2004 Act, a landlord is entitled to terminate a lease without specifying the grounds for doing so during the first six months of any residential tenancy but once the six month period has elapsed, the tenant is entitled to remain on in

that particular property for a further three and half year period. This obviously gives the tenant an element of stability and prevents a landlord from terminating a tenancy for no reason where the tenant has remained on in the property for in excess of the six month period. In such event, after the six month period has elapsed, a landlord is only allowed to terminate the letting or rental agreement during this further three and a half year period if the landlord can prove that a tenant has not complied with the obligations of the tenancy or where the landlord requires the dwelling for his or her own use or for that of a family member or where the landlord intends to refurbish the dwelling. The other main exception or exemption from the general rule is where the landlord wants to sell the dwelling the subject of the letting or rental agreement but this is subject to the proviso that the property must be put for sale in the immediate aftermath of the tenancy being terminated. In the case where a tenant has been in the property for the said four year period but wants to remain on after the end of this four year period, a new tenancy will be deemed to commence and the cycle begins again on the same basis as the initial four year period. In the event where the existing tenancy is assigned to a new tenant (i.e. where the tenancy transferred with the landlord’s consent), a new four year tenancy cycle will commence on this happening. However, where a tenancy is sublet (i.e. the tenant moves out and a new sub-tenant moves into the property with the landlord’s consent), the sub-tenancy will be deemed to have commenced on the same date as the tenancy commenced for the head tenant. In the event of a landlord deciding to terminate a tenancy, the period of notice for the termination of same depends upon the period of time that the tenant has been in the residential property. If the tenant is only in the property for a period less than six months,

the notice that a landlord is obliged to give a tenant terminating that tenancy is twenty eight days. Where there is a lease in excess of a two year period, the period of notice required from a landlord is fifty six days and where a tenant has been renting a property for four years and upwards, the notice period required from a landlord is one hundred and twelve days or sixteen weeks in total. There are however shorter periods where the termination is for serious anti social behaviour or for non compliance with tenancy obligations and in the case of anti social behaviour, the period of notice which a landlord has to give is reduced to seven days while the period is twenty eight days for other breaches of the tenants obligations under the residential letting or lease agreement. On the other hand, the tenant does not have to give any reason for seeking a termination of the rental or letting agreement and their period of notice is less also being twenty eight days for a lease less than six months and increasing to fifty six days or eight weeks in the case where a tenant has been renting the property for over a four year period.

As regards a landlordâ&#x20AC;&#x2122;s and tenantâ&#x20AC;&#x2122;s obligations under a residential letting agreement, the parties can obviously agree to particular provisions in the lease such as who is to be responsible for paying the Local Property Tax, water charges and so on and whether there is to be a rent review at a specified period during the lease. There are however certain obligations which both a tenant and a landlord must adhere to and which form the basis of any rental arrangement. In respect of a tenant, the tenant must pay the rent in a timely fashion, must avoid causing damage to the property, must inform the landlord of any repair requirements and allow access for same to be carried out, must not engage in anti social behaviour and must not sublet or change the use of the dwelling without the written consent of the landlord. From a landlordâ&#x20AC;&#x2122;s point of view, the landlord on being paid the rent by the tenant and the tenant complying with their other obligations, must allow the tenant exclusive occupation of the property, must carry out repairs, must insure the dwelling and must refund deposits at the end of a tenancy unless there is rent owing or the property has been damaged beyond what would be termed as normal wear and tear. These obligations must be adhered to irrespective of whether there is a lease or written agreement i.e. a landlord and a tenant cannot contract out of them. There is no restriction however on additional obligations being placed on either the landlord or the tenant and this is where same can be specified in the particular lease or letting agreement. Even with the best of intentions between landlords and tenants, disputes arise and there was set up under the 2004 Act, a specific mechanism for dealing with disputes outside of the court system. This body is called the Private Residential Tenancies Board or PRTB and disputes arising between landlords and tenants are generally

to be referred to the PRTB rather than the courts. Such disputes dealt with by the PRTB would include issues relating to deposit refunds, breaches of tenancy obligations, termination of tenancies and complaints by neighbours regarding tenant behaviour. The process can be initiated by either a landlord or tenant and the person who initiates the process is responsible for paying a fee to the PRTB. The dispute resolution process consists namely of Stage 1 which involves mediation or adjudication as chosen by the parties and Stage 2 which is a public hearing by a three person Tenancy Tribunal. Mediated agreement or a decision of an adjudicator or of the three person Tenancy Tribunal will result in an order being made by the PRTB. The enforcement of these orders if not complied with is done through the Circuit Court but a tribunal decision itself may be appealed to the High Court but on a point of law only. Unfortunately, the practical experience of dealing with the PRTB is unsatisfactory most particularly due to the huge delay in getting a hearing before the PRTB in respect of a particular dispute between a landlord and a tenant. While periods may vary, it is not unusual that a landlord seeking to bring a tenant before the PRTB for rent arrears, breach of tenancy obligations and so on may have to wait for a period in excess of twelve months for a hearing. This is far too long a period and means that there is no resolution of the dispute during this period and a landlord could be substantially out of pocket in the event that their property could not be used or no rent has been paid for such a period while the hearing of the matter comes before the PRTB. It is clear that the backlog in cases being heard before the PRTB needs to be sorted for this body to operate properly in the hearing and resolution of disputes between landlords and tenants. A landlord is obliged on the commencement of any tenancy to register the details of the tenancy with the PRTB and there is a fee for same. A new tenancy is to be registered within a month of its commencement and in the case where a tenancy lasts for a four year period, a new registration application and fee will apply where a further tenancy commences thereafter. There is a penalty for failure to register with the PRTB and this can result in a fine or court imprisonment or both. If a landlord wishes to available of the PRTB dispute resolution machinery, the tenancy must have been registered in order to do so. However, the tenant does not have this obligation and can access the PRTB service irrespective of whether the tenancy has been registered with the PRTB or not.

In respect of recent provisions, the establishment of Irish Water and the legislation under same has significant relevance for both landlords and tenants. Under the Act, a landlord who wishes to have their tenant liable for paying any water charges is obliged to give the names of the tenants in the respective residential property to Irish Water so that Irish Water can bill the correct user. Otherwise, Irish Water is entitled to bill the landlord or owner of the

property for water services even though it will be the tenant that will have the benefit of the water usage in that property. The significance of this becomes especially clear when the vendor or owner is in the process of selling the rented property. Under the Irish Water legislation, the vendor or owner of a property for sale is obliged before the completion of the sale to obtain a statement from Irish Water either setting out the amount of the charge due in respect of the property or alternatively a Certificate of Discharge or statement from Irish Water confirming that any such water charges have been paid or that the water charges for the particular property are not the liability of the vendor or owner. In the event that there is an outstanding water charge due to Irish Water, the vendor becomes responsible for discharging same and this will either have to be paid by the vendor before the sale completes or the vendor’s solicitor will have to retain this amount from the net sale proceeds and discharge the amount owing to Irish Water out of the sale proceeds and to thereafter furnish a Certificate from Irish Water confirming the full payment of the water charges due. As regards commercial property or the lease of lands, a commercial lease is advisable to be entered into between the landlord and the tenant so as to regulate the use and enjoyment of the property for the period of the lease. Most importantly in respect of short term leases a landlord must protect his position by ensuring that the lease does not extend beyond a five year period as this will otherwise allow a tenant to demand a further long term lease in respect of the property for say fifteen or twenty years and upwards thereby tying up the owner/landlord’s property for this further period of time which may be very unsuitable from a landlord or owner’s point of view. The way to avoid this occurring is normally by having a shorter term of say three years or four years and nine months which will result in a tenant not obtaining the right to a further long term tenancy under the landlord and tenant legislation and/or the completion by the tenant of a Renunciation renouncing the tenant’s right to such a long term tenancy even where the tenant extends beyond the five year period. For larger commercial properties, a landlord and tenant will generally enter into a longer term lease of say twenty to twenty five years or upwards. These are sometimes referred to Full Repair and Insure

(FRI) leases and these impose full repair and insuring obligations on the part of the tenant for the duration of the lease thereby relieving the landlord of the obligations to repair and insure the commercial property. Most longer-term leases will be done on this basis so as to protect the landlord and ensure that they get a good return on their investment by passing on the cost of repair and insurance to the tenant. From a tenant’s point of view, they will be entering into a lease whereby they are accepting that the property is in good repair and condition at the commencement of the lease period and are agreeing to keep the property in good repair and condition throughout the lease period. Therefore, it is important for a tenant prior to entering into such a long term lease to ensure that the property actually is in good repair and condition at the commencement of the lease period. There are also other important concerns that both a landlord and a tenant need to look into prior to signing and entering into such a longer term lease given that their respective obligations shall remain and continue throughout the lease term. It is clear from the above that any party entering into a letting or rental agreement needs to carefully check the conditions of same before entering into such an agreement. This is especially the case in terms of longer term leases. Accordingly, it is always advisable to seek legal advice before entering into a lease or rental agreement.

New grocery laws finally set for introduction The Government is set to expedite the introduction of new regulations governing relationships between supermarkets and suppliers before the election. The Department of Enterprise, Jobs and Innovation has confirmed the grocery regulations, drafted over concerns big grocery chains were being heavy-handed with suppliers, are about to be signed by Richard Bruton. “The regulations are currently being finalised and it is hoped to sign them into law in the coming weeks,” the department said. Major players in the grocery sector have been tipped off the new laws are on the verge of being introduced, so Ministers will be able to point to the fulfilment of another commitment from the programme for government. Mr Bruton launched a consultation on the proposed new rules more than 12 months ago. Senior members of the industry have been told the new laws will not differ greatly from the draft regulations published over a year ago. New laws to combat allegations of supposed bullying and manipulation of suppliers by big grocery chains have been on the agenda for more than seven years. The big supermarket chains lobbied hard against a statutory code to ban sharp practices such as the demanding of contributions towards advertising costs or other fees related to their listing. Farmers and other supplier groups complained they felt pressured to pay fees or they would be delisted.

Economic Outlook:

Is the US About to Slip into a Recession? Dr Constantin Gurdgiev In almost every sharp downshift in economic activity, and more frequently than that, in almost every economic recession, there are several regular predictors or leading indicators of tougher times ahead. These include sharp drops in corporate profits, and acceleration in yields on lower rated corporate bonds, usually followed by significant declines in industrial production indices and subsequent downward corrections in stock markets and services activities indices.

CHART 1: Non-Financial Corporate Profits and Nominal GDP Growth Rates, Percent per annum

While these sequences of events repeat with regularity, in many cases, forward signals of recessions can involve a slight variation in timing and permutations of these shocks. Another regularity that happens when it comes to business cycles is that, traditionally, the US leads Europe into the downturn. Trouble is, judging by all factors mentioned above, the US is currently heading into a recession. Fast. And with some vengeance. Source: Author's own calculations based on data from the Federal Reserve Bank

Chart above shows clear pattern of correlation between corporate profits growth rates and subsequent growth rate in nominal GDP. It also shows that US corporate profits growth rates have been on a declining trend since 3Q 2010.

The Bad News Letâ&#x20AC;&#x2122;s start with corporate profits. The latest data from the US Federal Reserve shows that year-on-year 3Q 2015 growth in corporate profits for non-financial corporations was sharply negative - at -4.26 percent. Furthermore, corporate profits growth slowed down from 7.72 percent in 1Q 2015 to 1.83 percent in 2Q 2015. The rate of decline in corporate profits growth in the US is now sharper than during the last GDP wobble in 1Q 2014 and sharper than in 3Q 2008. The latest growth figure also marks the fastest rate of decline in profits since 3Q 2009.

Meanwhile, corporate debt yields are shooting straight up. Added to this dynamic is another troublesome sign: yields volatility is also on the rise. In other words, the markets are not only nervous about individual issuers, but are appearing to be scared of the entire asset class. I wrote about this phenomena in previous newsletter, here. Behaviourally, international and US investors have been running for the hills for some time now, despite the extremely risk-supportive monetary policies not just by the Fed, but also by major carry trade-sustaining central banks (Bank of Japan and ECB). In normal conditions, carry trade drivers should moderate risk aversion effects. Except they are not doing so today. As noted in a recent research note by J.P. Morgan Cazenove in general, credit spreads lead equities and the former â&#x20AC;&#x153;are not giving a positive signalâ&#x20AC;? to the latter (see: http://trueeconomics.blogspot.com/2016/01/24116-high-yield-bonds-flash-red-for.html). So that puts two recession-beaconing stars into a perfect alignment. What about the US Industrial Production? From over 2015, US industrial output posted declines, based on monthly growth rates,

in ten months out of twelve, with December 2015 production levels down almost 2 percent on December 2014 peak. In annual growth terms, output growth rate started at a brisk 4.48 percent pace in January 2015 and ended the year with a contraction of 1.75 percent - the sharpest rate of decline since December 2009. That’s a swing of some 6.23 percentage points in 12 months. CHART 2: US Industrial Production Index Monthly growth rates, percent

2016-2017 for 6.3 percent and 6.0 percent, respectively. Even if trust Chinese official statistics, this represents a big drop. For example, 2015 has been the slowest year in terms of GDP growth in 25 years, and the fourth slowest in 36 years.

Source: Author's own calculations based on data from the Federal Reserve Bank

Like with corporate bonds and profits, some of this is down to a combination of commodities recession and Emerging Markets woes. The former is pretty apparent to all concerned. Between the start of 2014 and the end of 2015, the weighted average price of oil across three key grades (Brent, WTI and Fateh) fell 51.1 percent. Non-fuel commodities went down 21 percent.

But beyond these two factors, US output growth is also being pushed down by stronger Dollar and collapsing global trade. Global trade has been tracking the declining fortunes of global demand since 2012. Over the last four years, global trade volumes growth underperformed post-crisis average and historical average, pushing growth rates to their lowest readings for any decade on record. In line with this, Baltic Dry Index – the cost indicator for hiring cargo vessels to ship goods around the world – has been hitting historical lows almost on a daily basis since the second part of December 2015. All of the above factors, from falling profits, to falling production growth rates, to underlying commodities recession, global demand weaknesses and international currencies re-valuations, have undoubtedly contributed to falling equity prices. Since the start of 2016, some forty major equity markets around the world have entered bear territory. While on the corporate side of the US economy, oil and commodities prices recession has been a dominant driver for aggregate equities indices movements, underlying equity price swings are much broader currents. For example, equities sell-offs around the world did not concentrate on commodities producing sectors and companies, or on highly leveraged corporates alone. Instead, the bear markets have been broad.

The Good News Which brings us to last piece of a puzzle, yet to fall into its place: consumer demand. Or put into the above context – the good news bit.

The latter also was subject to my earlier contributions to this newsletter. To update you with the latest news, while Emerging Markets continued to contribute some 70 percent of overall global growth in 2015, the rate of growth in key BRICS economies (including Brazil, Russia, India, China and South Africa) has been tanking. Per latest IMF forecasts, released earlier this month, Emerging Markets are still expected to grow by 4.3 and 4.7 percent in 2016 and 2017. However, this puts their growth rates below the 2011-2014 average of 5.3 percent and the 2000-2007 average of 6.5 percent. Amongst the BRICS, all but China and India are either already in a recession or one quarter away from a recession. China is expected to post official growth of 6.9 percent in 2015, with forecast for

Falling equity and bond prices, as well as rising retail interest rates are capable of triggering - if sustained over time - drops in consumer confidence, followed by households’ pulling back from consumption and investment. So far, stronger dollar (improving US consumers’ purchasing power), lower energy prices (improving their disposable incomes) and falling unemployment (improving household pre-tax incomes) have sustained consumer confidence at healthy levels. CHART 3: Index of the US Consumer Sentiment

The Latest Official Forecasts This is precisely why despite the leading indicators flashing bright warning signs of the potential incoming recession, the IMF continues to forecast rather robust – by comparatives to the Euro area, UK and Japan – for the US in 2016 and 2017. Per January update to its forecasts, the IMF now expects US economy to grow at 2.6 percent in both 2016 and 2017. This comes against the Fund forecast for 2.2 percent growth in 2016 and 2017 in the UK, 1.7 percent real growth in the Euro area over the same period, and 1 percent and 0.3 percent growth in Japan in 2016 and 2017, respectively. However, IMF’s latest forecast represents a sizable downgrade for the US compared to previous forecasts. Thus, compared to October 2015 outlook, IMF expectations for US economic expansion are now 0.2 percentages lower for both 2016 and 2017. Still, IMF references the US as one of the four core risks to its global outlook for 2016. Specifically, the IMF cites the risk arising from “tighter global financing conditions as the United States exits from extraordinarily accommodative monetary policy”.

However, current levels of consumer confidence are barely touching pre-crisis averages and have declined since local peak in January 2015 through 3Q 2015. There is no crisis at the moment, but given the strength of household finances, 2015 index performance was hardly spectacular.

This risk, along side growing uncertainty about overall health of the US economy, are material factors for Irish and European markets and investors. Ireland benefited significantly from the US recovery and subsequent devaluation of the Euro vis-à-vis the US dollar. These factors underpinned our exports of goods to the US and Canada rising by EUR6.85 billion for the first eleven months of 2015 compared to the same period in 2012. This growth is more than double the rate of expansion in our trade in goods with the EU (including the UK). From Irish investors’ perspective, our domestic assets performance – across both equities and bonds – owes a lot to the resilience of the US economy. Likewise, our investors’ access to diversified portfolios of internationally-listed and traded assets cannot be imagined absent the US equity and debt markets.

Whatever resilience we do see in consumer surveys, it is most likely underpinned by the positive jobs prints. Based on historical figures, over each recessionary episode in the US history since the end of the World War II, employment was one of the key casualties, declining with every recession by at least 1 percentage point. US added 2.597 million new private sector jobs over the course of 2015 and average weekly earnings are rising in both goods-producing and services-providing sectors.

All of this is currently at risk when it comes to the US economic and markets performance forward. And more ominously, our own European economic and investment fortunes are tied closely to the North American economies. Whenever you hear any political leader – be it Enda Kenny or Jean-Claude Juncker – extoling the virtues of Ireland’s or Europe’s firewalls against international shocks, remember the old adage: when America sneezes, Europe catches the cold.

Source: University of Michigan

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 Organization, Ltd and the Chairman of Ireland Russia Business Association. He holds non-executive appointment on the Investment Committee of Heinz Global Asset Management, LLC (US). In the past, Dr. 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 & 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, Russia, Dr. Gurdgiev was educated in the University of California, Los Angeles, University of Chicago, Johns Hopkins University and Trinity College, Dublin.

LEGAL BRIEFS

1kg drones must now be registered All drones weighing more than 1kg must now be registered with the Irish Aviation Authority (IAA) as Ireland becomes one of the first countries to regulate the hobby. It has been estimated that there are currently up to 5,000 drones in Ireland. The use of drones is rapidly expanding around the world with an estimated 4,000 to 5,000 in Ireland. To register a drone, the registrant must be 16 years of age or older. Drones operated by those under 16 years of age must be registered by a parent or a legal guardian. A nominal fee of €5 will apply from February onwards. The new legislation prohibits users from operating their drones in an unsafe manner. IAA Director of Safety Regulation, Ralph James, said the legislation would further enhance safety within Ireland and he specifically addressed the safety challenges posed by drones. He further stated that whilst Ireland is recognised as a centre of excellence for civil aviation and the drone industry provides many opportunities, safety is a main priority and the new legislation will ensure that drones are used in a safe manner and do not interfere with any other forms of aviation.

New burglary law to target repeat offenders A new burglary law has come into operation which will target repeat offenders with consecutive sentences and the option for bail to be denied. The Criminal Justice (Burglary of Dwellings) Act 2015 provides that, for the purposes of bail applications, a previous conviction for domestic burglary, coupled with two or more pending charges, shall be evidence of likelihood to commit further domestic burglaries. This provision allows a court, in the absence of evidence to the contrary, to conclude that the accused person is likely to commit a serious offence and could, therefore, refuse bail on that ground. Ms Fitzgerald added: "I am prioritising efforts to tackle Ireland's hardened cohort of repeat offenders. Tackling repeat offending will reduce crime levels and this new act is an important step forward." The act also places a requirement on a court, which decides to impose prison sentences for multiple burglary offences, to impose those sentences consecutively. The Executive Director of the Irish Penal Reform Trust, Deirdre Malone has, however, raised concerns about compulsory consecutive sentencing, noting that whenever mandatory sentences are impost, it almost always results in ‘some injustice’.

New court fine payment system launched The introduction of a new system for payment of court fines will ‘dramatically reduce’ the number of people being sent to jail, the director of the Irish Prison Service, Michael Donnellan, has said. An instalment system for paying fines is now the preferred course of action and prison should ‘only be used as a last resort’. Justice Minister Frances Fitzgerald said that it was an appropriate response to problems caused by a “refusal or failure” to pay fines. Under the act: Fines will be set at a level that takes into account the person’s finances; All fines over €100 can be paid by instalments; If the person fails, the judge can consider a wage attachment order, a recovery order or a community service order.

Single fathers get easier route to guardianship with law change Landmark family law changes are to allow unmarried fathers to automatically become guardians of a child as well as grant relatives and step-parents an easier route to guardianship. Justice Minister Frances Fitzgerald announced she has passed the new changes into law, which will allow a grandparent to become a guardian. Children’s rights advocates welcomed the order for the family law reform changes, saying they would help thousands of children whose interest would be paramount in any future court proceedings. Ms Fitzgerald said the enacted reforms under the Children and Family Relationship Act recognised the increasing diversity of family life. Her department said proposed reforms for adoption in the new legislation, to allow civil partners or gay couples to adopt, were not part of the order, noting this was a matter for James Reilly, Minister for Children. Treoir, a service for unmarried fathers welcomed the reforms, but said it was disappointing the measures were not retrospective and that fathers would have to wait a year under changes. Under the measures, unmarried fathers will, for the first time, automatically become guardians of their children if they meet a cohabitation requirement. An unmarried father who lives for 12 months with the child’s mother, including three months following a child’s birth, will automatically become a guardian. However, guardianship will only be acquired automatically where the parents have lived together for at least 12 months and the change is not retrospective. Children’s Rights Alliance CEO Tanya Ward also welcomed the new changes, saying: “The legislation will impact positively on the lives of thousands of children and their families. It plugs a gap in our law that had left children stranded if their family broke down.” “For the first time in Irish law, the act provides comprehensive guidance to the courts on what considerations to take into account when making a determination on the child’s best interests. This will provide much-needed guidance for the judiciary and will promote consistent application across the country.” Ms Ward noted the reforms were also in line with the United Nations Convention on the rights of the child. Other changes will mean that a maintenance responsibility may be imposed on a cohabiting partner for a partner’s child where the partner is a guardian of the child. Relatives of a child, such as grandparents or an aunt or uncle or those acting as parents, will also be able to apply to have access to a child more easily if there is a breakdown in a family relationship.

Govt appoints experts to review legal protection for workers The Government has assigned two experts - Kevin Duffy, Chair of the Labour Court and company law specialist Nessa Cahill - to look at legal protection for workers, in a bid to stop what happened to the Clery's workers from happening again. Seperately the Company Law Review Group will look at legislation to safeguard employees and creditors. The two experts are to look at cases where companies move their assets to separate legal entities during restructuring. They can move valuable assets away from the operating part of the company which may run the main business. This is what happened in the case of Clery's, leading to the closure of the iconic department store. Minister for Business and Employment Ged Nash said they are looking to make sure that if a company restructures, workers are protected. The Company Law Review Group will also look at legislation to guard employees and creditors. The group is due to report back to government on March 11.

Legislation to tackle cyber attacks on IT systems published On foot of an EU Directive on the issue, The Criminal Justice (Offences relating to Information Systems) Bill 2016 will create new offences relating to the unauthorised accessing of information systems, including the planting of malicious software and the use of “botnets” and illegally obtained passwords. Botnets are networks of computers infected with malicious software and controlled without the owner’s knowledge to perform functions such as sending spam emails. The legislation aims, in particular, to address access to information systems, such as that held in government databases, as part of organised crime and terrorist activities. It also stipulates that gardaí investigating such offences can obtain a warrant from a District Court judge to search and seize computers and other equipment. Offences will carry sentences of up to 10 years’ imprisonment on conviction before a jury. The EU directive, 2013/40/EU, stipulated sentences of between two years and five years at least should be imposed by member states.

Minister for Health calls for law on medical negligence Rogue doctors who repeatedly cause harm to patients could be prosecuted for criminal negligence under new laws mooted by Minister for Health Leo Varadkar. Mr Varadkar believes there is scope for toughening up existing legislation, so doctors could be held criminally liable for their actions. Family representatives along with advocacy group Patient Focus, pressed the Minister to reform the law so criminal sanctions would be available in cases of gross medical negligence. Mr Varadkar promised he would raise the issue with Minister for Justice Frances Fitzgerald. In the last decade, regulation of the medical and other professions has been reformed. Fitness to practise hearings into poor professional performance or misconduct are held in public at the Medical Council. However, doctors who have left the State or retired cannot be compelled to appear. Mr Varadkar said his focus was on improving maternity services across the country and assuring patient safety. He said the reporting of serious events such as patient deaths will be a legal requirement under forthcoming legislation. Under the Health Information and Patient Safety Bill it will be an offence not to record and report such events. Open disclosure, which has been introduced in the health service, will not be made mandatory, as it could dissuade people from reporting incidents.

No change in ‘Good Friday’ alcohol sale legislation Pubs will remain closed on Good Friday 2016 despite a campaign from vintners for the alcohol ban to be lifted. Minister for Justice Frances Fitzgerald ruled out lifting the ban this year, but added that would be considered under new alcohol legislation. The Licenced Vintners Association (LVA) has said it is extremely disappointed with the decision. The association’s chief executive Donall O’Keeffe said his members and the public at large will struggle to understand the rationale behind the Minister’s decision. Furthermore, he believed the current law was an imposition on small family businesses around the country during one of the busiest tourist weekends of the year. He estimated that the industry suffers a loss in turnover of between €40-€50 million through closing on Good Friday , with €6 million in lost taxes to the exchequer. The Intoxicating Liquor Act, when introduced in 1927, said alcoholic drinks could not be sold on Christmas Day, Good Friday and St Patrick’s Day. The St Patrick’s Day clause was repealed in 1960 to accommodate visitors coming from overseas to celebrate the national holiday.

Process speeds up faulty hip implant claims People seeking compensation for being fitted with faulty DePuy hip implants will no longer have to pursue the matter through the courts after agreement was reached on a dispute resolution process. The new scheme, open only to claimants who underwent revision surgery, will largely be a paper exercise and could see settlements reached in a matter of months. Under the process, a panel of 10 evaluators, comprising retired High Court or Supreme Court Judges, or senior counsel with experience in personal injuries, will evaluate claims and issue written, non-binding evaluations which may or may not be accepted by DePuy and the claimant. If a settlement is not reached, the claimant can still go to court. Claimants can avail of the process by instructing their solicitors to complete a standard short form with essential details of the claim and submitting it to solicitors for DePuy. Once DePuy is of the opinion that the claim meets eligibility criteria, it will be sent to the evaluator. The hope is that in most cases evaluation should be completed within six weeks. Claimants must have undergone revision surgery in Ireland within 10 years of, but not earlier than 180 days after, the index operation. Parties to the DePuy dispute were asked before Christmas by High Court Judge Kevin Cross to come up with a new resolution process because of the large volume of cases. DePuy will not agree to a claimant entering the new process if, in its opinion, the claim is statute barred, or if the claimant supplies insufficient medical records and other essential details for the solicitors acting on behalf of DePuy.

Two weeks of paid paternity leave to be made law The Government has agreed to legislate to allow for fathers to take two weeks’ paid paternal leave. Minister for Justice Frances Fitzgerald will bring a memo to Cabinet confirming commitments made in Budget 2016. The new statutory paternity leave will be paid at a rate of €230 a week, the same as maternity benefit and based on the same PRSI contribution requirements. The legislation, which will be introduced by way of the Family Leave Bill, will also allow fathers to take the leave at any stage within 26 weeks of the birth. From September fathers will have the option to apply for two weeks’ paid paternity leave following the birth of their child.

HOW TO QUALIFY FOR A MORTGAGE IN 2016 Credit regulators are making it difficult to qualify for mortgages these days. In February 2015, The Central Bank introduced new lending regulations that are strict, to say the least, and are capped by a number of factors, namely: 1. 3.5 times your gross salary. 2. 90% loan to value (LTV) maximum when lending up to a €220,000 purchase price, and 80% of the difference above this value. The maximum borrowing on a €300,000 home is €262,000, which is 87% of the LTV. An 80% loan to value percentage applies for non-first time buyers. 3. The following exemptions may apply: The bank may exceed the 3.5 times salary in up to 20% of their total mortgages in one year. Banks can exceed the LTV criteria in up to 15% of their total mortgages per year. Exemption applications are assessed on a case-by-case basis, and one client may only qualify for one exemption. As a result of these changes, mortgage lending was reduced to €4 billion last year, when it should have been double that amount, based on the recovery of the Irish economy over the past two years and the next three years' forecasts. New home sales are down, and builders are not confident in building new homes, as they fear that buyers' mortgages won't be approved. Due to the changes, property prices have stabilised. Roy Keane has a wise philosophy, which could be applied to preparing for mortgage applications. If you fail to plan, you plan to fail. Prospective home buyers should consider this sage advice when applying for a mortgage. Banks consider the following core factors when reviewing mortgage applications:

1. Employment Records

3. Evidence of Savings

Banks will want to know who your employer is and how long you have worked at the company. You must have completed any probation periods and be permanently employed. Self-employed individuals must provide a minimum of two years' accounts. Contractors in the education, health and IT sectors must provide an employment record of the last 2-3 years that proves that there has been no significant break in employment. A letter of comfort from employers that confirms future employment is a must. A case-by-case assessment applies to people working outside of these industries.

2. Evidence of Ability to Repay Mortgage applicants must be able to prove that they are either saving or paying rent that equals the mortgage repayments. This capacity is stress tested at interest rates ranging from 5-6.5%, although borrowers' repayments will actually carry a 3.6-4.5% interest rate. Basically, home buyers wishing to qualify for a 30-year mortgage of €250,000, must be able to demonstrate that they can repay €1,580 per month, although actual repayments will be an average of € 1,194 per month.

Monthly savings in a separate bank account must be clearly evident, totalling 5% of the purchase price. You should save the same amount monthly, and never withdraw money from the savings account. It doesn't matter which bank you choose to save with, and it needn't be the bank where you apply for your mortgage.

4. Net Disposable Income (NDI) Once you have passed the above test, you must still maintain a minimum net income after the deduction of the stressed repayments. The following net disposable incomes are required:

Single person: €1,100 to €1,300 per month Couple: €2,000 Couple with children: €2,000 plus €250 per child.

5. Credit Cards If you have a credit card, do not spend more than you earn, and be sure to clear the entire balance every month, rather than just paying the minimum payment. Do not overspend, but stay within your means.

8. Life Cover You must have mortgage protection cover that is approved by the major insurance companies before signing a mortgage contract to buy a home. The bank may refuse to approve your mortgage if you are unable to obtain life cover.

6. Current Account Profile The bank will scrutinise your current account carefully, analysing each of your transactions for the last six months. You may pass all the criteria laid out, but if your current account is unhealthy, you are bound to be declined. If you are not declined outright, they may recommend that you wait six months, in which you should make every effort to rehabilitate your account. Avoid the following by all means: Unpaid debts. Regular referral fees, Being in overdraft before your salary is paid, Paying your rent in cash, Living above your means, Debts to online gambling companies.

7. Loans If you have any other loans, such as car loans or personal loans, be sure to pay it monthly on time.

9. Additional Costs Budget for the following costs before applying for your mortgage: Stamp Duty - 1% of the purchase price Solicitors' Fees - 0.5% + VAT Structural Survey - approximately €400 Valuation Fee - €150 Mortgage brokers have become very focused on preparing mortgage applicants upfront before submitting their mortgage applications. Instead of rushing ahead and applying, ensure that your business is in order for at least 6 months.

Ireland remains fastest-growing economy in Europe Ireland has retained its status as the European Union’s fastest-growing economy, according to European Commission forecasts published this recently. The Commission’s triannual analysis of the EU’s 28 economies predicts that Irish Gross Domestic Product (GDP) will grow by 4.5 per cent this year, before slowing to 3.5 per cent in 2017. Following growth of 6.9 per cent in 2015, Ireland continues to be the fastest-growing economy in Europe. The projected growth rate of 4.5 per cent in 2016 leaves Ireland just ahead of Malta and Luxembourg in terms of GDP growth, with 1.8 per cent growth forecast in the Euro zone’s largest economy, Germany, 1.3 per cent for France, and 2.1 per cent in Britain. Ireland was one of the few EU economies to see its forecasts unchanged since November. Germany, France and Italy are all predicted to fare worse than forecast three months ago, due to a slowdown in China and volatility in world markets, despite the boost from low oil prices. The European Commission expects Irish unemployment levels, which came in at 9.4 per cent in 2015 to continue to fall to 8.5 per cent this year and 7.8 per cent in 2017. The analysis notes that domestic demand is now driving GDP growth, adding that domestic demand could surprise on the upside if government policies to boost construction are successful.

How Crashing Oil Prices Affect Your Pocket Oil prices are expected to plummet as low as $10 in 2016. How does it affect you? Until recently, economists spoke about Peak Oil and the risks we would face as fossil fuels dried up. However, thanks to technological advancements, production methods improved and we gained access to oil that was previously inaccessible. A glut in supply resulted in a temporary mute on discussions of Peak Oil. A glut in supply is a controversial topic, with economic and environmental repercussions that are valiantly defended from both sides, based on their level of innovation and forward-thinking.

fuel prices in recent months, many of us would like to see it come down a lot more. The average petrol price is €1.25 and Pumps.ie shows that some garages sell it for under €1.20. According to the AA, we paid €1.70 in late 2012. With the average car doing approximately 19,000km per year. If it consumes fuel at 9.5 litres per 100km, the car will consume 1,800 litres per year. Based on these figures, the average Irish driver will save €810 more on petrol in 2016 than would have been the case in 2012.

When crude oil reached $147 (€136) a barrel in 2008, speculation was rife as to what would happen if it hit $200 a barrel. However, Lehman Brothers crashed, along with the global economy, as oil prices continued to plummet to all-time lows.

2. More Spending Money

The plummet is ascribed to a global oversupply, as well as to a drastic economic plateau in China. The slow performance of countries that usually consume high volumes of oil is another contributing factor to the oil price that has achieved its lowest level since 2003.

With €810 in petrol savings, we will have much more spending power that will boost the wider economy. This should make up for the increased spending leading up to Christmas. With approximately 2 million private cars on our roads, each saving €800, there should result in a €1.5 billion net transfer of wealth by this time next year.

3. Improved Economy All of the above might have been more exciting, if it weren't for taxes and the exchange rates. We buy oil in US dollars, which means that Irish prices depend on how well the euro performs against the dollar and that has not been great in recent times. Investors put their money into safe havens, such as the dollar, when the oil price falls. This has helped the US currency to become stronger. In the past 18 months, the euro lost approximately 20% of its value against the US dollar, which has prevented petrol prices from dropping as low as they could have.

By mid-January, crude oil prices continued on a downward spiral, dropping by nearly 20% since the beginning of 2016 as economists scramble to try explain it all and adjust their forecasts accordingly. Case in point, Barclays had to drastically adjust their 2016 forecasts to $37, which is significantly lower than their initial predictions of $56 to $60 a barrel, while Standard Chartered's experts predicted that oil prices could go to a low of $10 a barrel.

What does the price of oil hold in store for Irish consumers?

Since October 2008, when an emergency budget was instituted, we have seen five fuel tax increases, which have not helped matters, as fuel has increased by around 20 cents a litre. Fuel excise duties are levied on a per-litre basis, rather than as a percentage of the total price, so even when the petrol price goes down, we pay the same amount of tax. We pay 23% VAT on non-tax fuel prices, and this falls along with other price drops. At the end of the day, approximately 91 cents out of every litre of petrol goes towards tax, while the remaining balance of around 30 cents, pays for everything else.

4. Lower Inflation

1. Diesel and Petrol Prices

Most people talk about the benefits of lower petrol prices being a major benefit of plummeting oil prices, but it really benefits the entire economy. Paying lower oil prices has contributed to Ireland's economic recovery and 7% growth in a time marked by historically low inflation. As an oil importer, lower prices help reduce costs for businesses and consumers alike.

The most obvious way in which we will be affected, will be when we fill up our cars. While we have seen some significantly falling

The only downside is that plummeting oil prices could result in deflation across Europe, and that will impact future growth.

Exactly how will we be affected if the oil price continues to fall? Let's take a look at what to expect.

5. Falling Gas & Electricity Prices

8. Cheaper Travel

In recent months, we have paid less for energy, although prices have not dropped at the same speed as fuel prices. Energy companies have been quick to let consumers know about their recent price cuts. However, the average household has only seen a reduction of about €50 a year, which amounts to an approximate decline of only about 5%. Of course, every cent helps, but when you consider the reductions in raw material costs, you would be justified in expecting more savings.

Ultimately, air fare should becoming cheaper. This has not yet been evident, as airlines claim that they buy their fuel far in advance, resulting in a time lapse in passing on the savings to their passengers. Fact remains that the oil price has been sustained at a lower rate for over a year now, which suggests that airlines have failed to drop the prices, and with a strong demands for seats, it is unlikely that they would drop the fares, even though they are more than able to do so. Alex White, Minister for Energy, discussed the speed of wholesale energy price reductions reflecting in savings on household bills, but there was no significant change. This, too, is expected, as prices are not being regulated, so there is not much more that can be done about it.

6. The Flipside of Falling Oil Prices

9. Cheaper Food The agricultural industry relies on energy for everything from managing poultry production to managing the dairy and ploughing the fields. When oil prices are low, farmers are able to pass the saving on to consumers by providing cheaper food, once the supermarkets have claimed their share.

There's a downside to falling oil prices that bring us more money; cheaper oil offers little incentive for people to find more natural alternatives to fossil fuels. When oil prices spiked in the 1970s, developed countries faced massive economic disruptions, particularly in the US. Research on energy savings was all the rage, and ten years later, clean energy alternatives started paying off. Energy efficient solutions for electricity and cars were introduced and everyone enjoyed the benefits. Unfortunately, low oil prices removes the incentive to developer cheaper alternatives, and research stops. The next generation will feel the ripple-effects.

7. Reduced Incentive to Develop Oil and Gas Fields The upsurge in oil supply in global markets could partly be attributed to a dramatic increase in the production of shale oil in America, and this is a costly exercise. Producers require oil prices to be higher than $60 a barrel. However, when the oil price is much lower than that, shale oil production becomes less attractive. If there is no longer an incentive to develop oil and gas fields, R&D will inevitably reduce, leading to costs when the oil price rebounds.

10. Carbon Emissions Increase Cheap oil encourages car buyers to opt for gas-guzzling SUVs, rather than smaller, fuel-efficient cars. This causes an increase in carbon emissions.

Irish Stock Exchange hails ‘exceptional’ 2015 The Irish Stock Exchange (ISE) enjoyed a successful 2015 which saw four major flotations and a 30% rise in the ISEQ. More than 5.5m equity trades were carried out on the ISE’s main securities and enterprise securities market during a record year. Life sciences company, Malin Corporation’s €330m IPO was the biggest of the year and one of the largest in its sector ever to take place in Europe. Other companies included petrol and forecourt retailer, Applegreen, which raised €70m and Hostelworld’s €180m IPO. ISE chief executive, Deirdre Somers said: “2015 was an exceptional year for the ISE. The number of securities listed on our markets rose by 6% and we consolidated our position as the number one provider of listing services to debt and investment fund issuers around the globe. Trading levels were up across equity and Irish Government bond markets and the ISE continues to be the dominant pool of trading in Irish shares.”

6 Reasons to Partner With a Recruitment Agency Consulting costs are one of the major push factors when small and medium enterprises consider hiring recruitment consultants to fulfill their staffing needs. Considering the benefits of making use of professional staffing solutions, the investment of a recruitment fee makes good sense, compared to the drain on resources, and the reputational and financial impact of a bad hire when the process is handled in-house. With this in mind, let's take a look at the 6 main benefits of hiring a recruitment consultant to fill your vacancies:

1. Saving time and money Let's face it, the recruitment process can be cumbersome and costly - both in time and money when you consider the tedium ranging from headcount requirement assessment, job specifications to advertising the position, and filtering CVs. That is followed by screening potential candidates, scheduling and holding interviews and the enviable task of notifying the unsuccessful applicants. Following this procedure to the letter is no guarantee that you will find the right candidate. Hand the task over to someone who knows what they are doing and who has industry experience to match. relevant experience and skills. However, recruitment agencies have sizable databases of suitable candidates at their disposal, and they are generally all ready to make a quick career transition. Recruitment agencies do stringent assessments as part of the recruitment process, including assessing behavioral, technical and educational assessments. At the same time, they will have a clear understanding of the role the company seeks, and how that matches the candidate's career ambitions in order to save time that might otherwise be wasted on the wrong candidates.

4. They know how to hire candidates with the best fit 2. Consultants have in-depth industry knowledge Many industries have access to specialist recruitment agents who have worked in the industry and understand it completely. Partnering with a specialist recruitment consultant means that you benefit from someone with industry-specific knowledge and a good grip on the latest required skillsets, salary levels and market trends.

3. Consultants have access to a network of strong candidates When you're looking to recruit a new employee, it is likely that you don't have an extensive network of qualified candidates with

When you find a good recruitment consultancy firm, you will benefit from professionals who will make an effort to gain in-depth knowledge about your company, its history, the company culture and previous good hires. They will visit your company to meet your team, and they will build a strong company profile that appeals to prospective employees. In doing so, they help narrow down the search by establishing whether a candidate is the best fit for your company.

5. A recruitment professional is the perfect business partner Recruitment agencies may excel at finding the most suitable talent for your business, but that's not their sole function. Many agencies use their vast industry knowledge and experience to

advise clients on issues ranging from appraisal writing, to employee engagement practices and human resources. Some recruitment agencies also offer recruitment coaching for managers who are not in HR.

6. Personnel agencies create a streamlined recruitment process As specialists in their field, recruitment agencies are employed for the purpose of removing the hassle out of employing new talent. They handle each step of the recruitment process, creating a smooth and efficient system for scheduling interviews, exchanging contracts, handling unsuccessful applicants and helping your new employees to adapt well to the new working environment.

One of the main advantages of dealing with a recruitment agency, is that there is a single point of contact throughout the entire process, making it easier than ever to hire new employees.

Irish M&A activity jumps to seven-year high in 2015 Irish mergers and acquisitions (M&A) reached a seven-year high in 2015, according to new figures published by Experian. It says the overall number of M&A deals carried out here rose by 10 per cent last year, from 416 to 458, the strongest performance seen since 2008. The total value of transactions more than doubled from €154 billion to €312 billion in 2015 making it the most valuable year for corporate deal making in Ireland. Not surprisingly, pharmaceutical and biotech-led deals accounted for the lion’s share of transactions recorded in 2015. Overall, the number of deals in the sector worth over €1 billion, jumped from nine in 2014 to 19 last year with the value of such transactions rising from €132 billion to €283 billion. The biggest deal last year in Ireland was Pfizer’s €143.5 billion takeover of Allergan. The deal, which was widely criticised in the US, sees Pfizer moving it corporate headquarters to Dublin in a move that will cut its tax bill in the United States. Irish M&A deals accounted for just 3.6 per cent of all European transactions but for 20.5 per cent of their total value in 2015. This compares to just 12.7 per cent of value for a similar percentage of deals a year earlier.

Irish business confidence at 9-year high Confidence amongst Irish businesses is at a nine-year high, according to a new survey by KBC Bank Ireland and Chartered Accountants Ireland. Respondents to its latest Business Sentiment Survey reported stronger activity levels as well as increased optimism about the strength of the country's economy. Domestic demand is seen to have risen significantly, while manufacturing activity is also up - but at a slower pace of growth than before. The majority of firms surveyed did not appear to be too worried about a potential British exit from the European Union, with 54% saying they did not see such an outcome having a direct impact on their business. However, many did fear the uncertainty it could create. Also worrying businesses were rising costs during last year, while 80% of respondents expect wages to rise in the months ahead.

5 Ways The new year holds a few bonuses for people who: • • • •

pay income taxes, have children, receive state pensions, or earn minimum wages.

to Stretch Your Pay Cheque in 2016 While it seems minimal to some, many pensioners have welcomed the proposed weekly increase of €3 on their state pensions. After all, it will give them an additional €156 per week. Couples with two pension earners will see double the benefits, as each pensioner will now be receiving €233.30 per month in state pensions.

If the above applies to you, here are some of the changes that were announced with the October 2015 Budget.

Qualified pensioners under the age of 66 will receive an additional €2 per week, while those over the age of 66 will receive an extra €2.70.

Income Tax Payers

Parents Parents will receive several benefits this year:

The one major change to the Budget was the universal social charge (USC) rate cut, which saw those earning over €13,000 benefitting from the cut, while those with incomes over and above €70,044 are still liable for the higher USC rate. This higher rate of 8% is payable for the income exceeding the €70,044 level.

1. The child benefit will be increasing by €5 per child, taking the income up to a monthly €140 per child. 2. Parents with toddlers under the age of four, will receive free pre-schooling from September. In order to qualify for this additional year, children must be at least 3 years and 2 months by September 1. 3. Couples planning to become a family in 2016 will welcome the introduction of paternity leave, which will see fathers receiving €230 for two weeks. This new measure will come into effect on September 1, and applies to births thereafter. 4. Free GP care, which has been hugely beneficial for children under the age of 6, has been extended to all children up to the age of 12. This is a pending change which is currently being negotiated with the Irish Medical Organisation.

Single individuals earning €30,000 per year, will save €302 over the year, while married couples with one spouse earning in excess of €100,00 per annum, will save €902. Married couples with both spouses working, and a combined income of €150,000 will save €1,804 in 2016.

Seniors Over 66 Years of Age People Earning Minimum Wages As of the first of January, minimum hourly wage earners now recieve an extra 50c, which increases the minimum wage from €8.65 to €9.15. Approximately 124, 000 workers will benefit from this increase. If you're currently working 39 hours a week, your wages will increase from €337.35 to €357 a week. This will give you an additional €75 a month. It is expected that employers will be pressurised to offer employees

more than the minimum wage. This positive trend was set in motion by Lidl and Aldi; these two supermarkets started offering their Irish staff a living wage rather than the minimum wage. Aldi staff will start earning €11.50 from February, while Lidl already increased their rate in November 2015.

Although a large percentage of revenues from petrol at the pumps go to Exchequer, softening oil prices could still benefit Irish drivers.

Motorists While this is not a direct income source, it will save you money in 2016, bringing welcome relief for most Irish citizens. According to economists, there is no significant expected recovery on the cards for oil prices. Falling oil prices are keeping a lid on inflation in 2016. Goldman Sachs recently forecasted that oil could well plummet to $20 a barrel due to oversupply.

Jobs action plan aims Nine out of 10 Hotels to create 50,000 jobs Increased Business this year in 2015 The plan aims to create 200,000 jobs by 2020, bringing employment to 2.18 million The government has launched its Action Plan for Jobs 2016, its fifth annual jobs plan, aimed at creating 50,000 jobs this year and 200,000 extra jobs by 2020. This would bring the total number of people at work to 2.18 million. The plan outlines 304 actions to be implemented this year by 16 government departments and more than 60 agencies. “Since the first action plan was launched more than 135,000 extra people are at work, hitting our target 21 months ahead of schedule,” Jobs Minister Richard Bruton said at the launch. “Now it is time to move on to the next phase, to lift our ambitions and to use this structure to deliver on higher targets.” Among the targets set by the plan are a doubling of the intellectual property outputs from business while all government transactions with business should be available online by 2017, a move which will affect 185,000 businesses across the country. Funding of €530 million will be used to support regional jobs growth, a single government web portal will be launched to highlight job opportunities to returning emigrants while there will be a new national skills strategy. The plan also sets a target of 13,000 new jobs in Enterprise Ireland-backed companies this year and 16,000 new jobs in IDA Ireland firms. Mentoring and management development programmes will be offered to 1,300 Irish firms this year while a national clustering initiative will be launched. “While clustering is an important strength of the Irish economy, particularly at regional level, research suggests that this can be significantly strengthened with specific initiatives,” the Department of Jobs said.

A recent survey by the Irish Hotels Federation (IHF) revealed that approximately 90 per cent of hotels saw a boost to their business over the last 12 months, while most plan on upgrading during 2016. The Hotel Barometer survey showed that 92 per cent of hoteliers are planning to invest in refurbishment and product development over the next year. Over 60 per cent of respondents said they have hired new staff during 2015 while 57 per cent said they will hire more staff in 2016. Stephen McNally, President of the IHF, commented on how Ireland's record-breaking year in tourism has contributed to the increased business seen across the country. "2016 looks set to deliver further growth across our key markets such as Britain, North America and Europe - providing a further boost to hotels and guesthouses," he said. The IHF has said that the increase in tourism will create 40,000 new jobs in the industry by 2020.

7 Things You Need to Know About Employment in 2016 If employment rights and employment law left you in a daze over the last year and a half, know that you are not alone. It's true that there has been an unprecedented influx of employment rights and legislation since the initial introduction of employment legislation over a decade ago. Here's what you as an employer need to know about employment in 2016:

1. Workplace Relations Reform Employers who have been involved in employment tribunal hearings, know just how complex the process can be. One reason why it is so difficult, is because there are four different labour tribunal bodies, including Labour Court, Equality Tribunal, EAT and LRC. It is possible for one employee dispute to result in four tribunals. As of October 1, 2015, a new, streamlined system was introduced that saw all claims going through an initial hearing at the Workplace Relations Commissions. Appeals are moved to the Labour Court.

accrue annual leave. With this development, in addition to the increase in the national minimum wage, employers must be prepared for these additional costs.

4. Workplace Inspections The Workplace Relations Commission (WRC) will be taking over workplace inspections from the National Employment Rights Authority (NERA). In the event that an employer fails to comply with the collective redundancy consultation rules, or in issuing payslips or statements of their average hourly pay according to minimum wage rules, the WRC inspector may issue a fixed payment notice of up to â&#x201A;Ź2,000.

5. Collective Bargaining 2. The National Minimum Wage According to the October Budget, January saw the proposed increase of the current national minimum wage. Likewise, January 1 saw the formal introduction of the Low Pay Commission. Employers were advised to revise their budgets for 2016 and to make the required provisions for this and for the PRSI changes that are due to be introduced this year.

3. Accrual of Annual Leave August 1 saw the introduction of new rules regarding annual leave accrual. When an employee is on certified sick leave, they will still

Employees received additional bargaining rights with the introduction of collective bargaining legislature in August last year. Some of the bargaining rights pertain to the lodging and enforcement of trade dispute claims.

6. Employment Regulation Orders (EROs), Registered Employment Agreements (REAs) & Joint Labour Committees (JLCs) It is recommended that industries that were previously governed by REAs or EROs keep their finger on the pulse of the latest developments. Recent legislation has allowed for new REAs and EROs to be drafted. Contract Cleaning and Security industries have been using the new EROs since October last year, and the Agricultural industry has reached advanced stages of negotiations to also use ERO.

7. Travelling for Work Remote employees and representatives are rejoicing at the

decision of the Court of Justice of the European Union to include travel time to their first meeting and back home at the end of their last appointment, be deemed as billable time, a principle that automatically applies to the public sector. How this will be applied to private sector employees by the Irish tribunals remains unclear.

Irish Food And Drink Exports Exceed €10.8 Billion For The First Time The value of Irish food and drink exports grew by approximately 3% in 2015, exceeding €10.8 billion for the first time, according to Bord Bia’s Export Performance and Prospects Report 2015/2016. 2015 was the Irish food and drink sector’s sixth consecutive year of export growth, with increased output in key sectors, favourable exchange rates and better returns for beef, seafood and beverages all helping to offset weakening global dairy prices. Beverages saw the most significant growth of 10%, with the category seeing particular gains from Irish whiskey, which grew by 18%. Irish beef exports grew by 6%, while seafood grew by 4%. Dairy exports also grew by 4% despite a difficult international market, buoyed by the strong performance of specialist nutrition powders, which grew by 25% overall and 40% in China alone. Bord Bia Chief Executive Aidan Cotter observed, "Irish food exporters registered record growth, increasing exports by some €355 million in a period when global food commodity prices declined by approximately 19%." He added that, "This year will present further opportunities for growth in most sectors notwithstanding challenges from continued global dairy price pressures through the early months of 2016." Minister for Agriculture, Food and the Marine Simon Coveney commented, "Irish producers and companies have yet again demonstrated in 2015 their ambition, innovativeness and ability to meet buyer and consumer needs in highly competitive and complex trading environments." Bord Bia has also published its new Statement of Strategy for 2016 to 2018, titled, Making a World of Difference. It sets out the key factors that will guide the agency’s activities in the period ahead, and features a renewed focus on routes to market and the importance of building its international presence.

In The Spotlight Mikey Sheehy is a former Irish athlete. He played Gaelic football with his local club, Austin Stacks, and was a member of the Kerry senior inter-county team from 1974 until 1987. Sheehy is regarded as one of the greatest players of all-time. In 1984, the Gaelic Athletic Association centenary year, he was honoured by being named on their Football Team of the Century. In 1999, he was again honoured by the GAA by being named on their Gaelic Football Team of the Millennium. He is currently a selector for the Kerry team.

Q. HOW DO YOU MOTIVATE PLAYERS AND GET THEM TO BUY INTO THEIR ROLE ON THE TEAM EACH YEAR?

A. Motivation should really come from the individual players themselves and from within the squad. I think competition within a group, squad or organisation is a key motivator. Building that competition within the squad is what I would say. Q. HOW WOULD YOU DESCRIBE YOUR COACHING/MANAGEMENT STYLE?

A. I try to keep it as simple as possible. If the fundamentals are done correctly then the more focused training flows better. Q. DO YOU CONSIDER YOURSELF A MACRO/MICRO MANAGER?

A. Micro as my role is focused with the Kerry forwards. Q. WHAT COACHES, TEACHERS OR OTHER PEOPLE HAVE BEEN THE GREATEST INFLUENCE ON YOUR LIFE? AND WHY? OR HOW?

A. Mick O Dwyer - he believed in me, motivated me and instilled a work ethic in me that I possible lacked when I entered the Kerry panel. And of course my mother and father, they never pushed me but always guided me. Q. WHO IS YOUR GREATEST ROLE MODEL, EITHER PROFESSIONALLY OR PERSONALLY?

A. Alex Ferguson. Q. HAVE YOU READ ANY GOOD MANAGEMENT BOOKS OR AUTOBIOGRAPHIES FROM WHICH YOU HAVE GAINED INSIGHT?

A. Again, Alex Ferguson. A great insight into how he was on the verge of being cast aside by Man United right up to making them the most successful club in English football. Q. WHAT IS YOUR PHILOSOPHY ON DISCIPLINE?

A. The current crop of GAA players are professional in every way outside of being paid! That means discipline on and off the field is essential. Diet, training, work/life balance and personal sacrifice are part of the off the field discipline. On the field it must always be about playing on the edge and knowing the correct decisions to make. Q. WHAT IS THE MOST VALUABLE LESSON AS A COACH/MANAGER YOU HAVE LEARNED SO FAR?

A. Players must buy into the overall goals and aims of the squad. It's not an individual game. Q. BASED ON YOUR EXPERIENCE SO FAR, WHAT IS THE MOST VALUABLE PIECE OF MANAGERIAL/COACHING ADVICE YOU CAN GIVE?

A. It's very easy to be critical but not very productive. Q. HOW DO YOU KNOW WHEN YOU HAVE DELIVERED A GOOD QUALITY COACHING SESSION?

A. It's very rare that you would see a player down after a good, hard and productive training session. Players know when they are progressing and doing well, their reaction and feedback is key.

Meet the Team KEVIN O' DONOVAN

PAUL O' SULLIVAN

Partner

Kevin qualified as a solicitor in 1986 and formed his own practice in 1989. He has vast experience of all forms of residential and commercial property transactions. Kevin also has wide expertise in Wills and probate as well as litigation with a particular focus on personal injuries and equity matters. Kevin is a member of the West Cork Bar Association and Southern Law Association. Kevin is a keen golfer which is his main hobby and is a past Captain of Bantry Bay Golf Club. Practice Areas: Property/Conveyancing, Tax Advice, Probate, Licensing, Employment Law.

Paul qualified as a solicitor in 2000 and became a partner in the practice in 2003. He advises in all areas of conveyancing representing both private and commercial clients, including new and second hand sales/purchases, mortgages, farm transfers and tax issues relating to same. He also works extensively in probate matters including estate administration and estate tax planning. He also has particular expertise in licensing law and is a member of the West Cork Bar Association where he acts as Continuing Professional Development Officer and is also a member of the Southern Law Association. Paul is also a Director in Muintir Skibbereen Credit Union. He is a GAA fan and in particular hurling which he played for many years and is now a coach for Fastnet Gaels. Practice Areas: Property/Conveyancing, Tax Advice, Probate, Licensing, Employment Law.

SANDRA O' SHEA

ANN O'GRADY

LEGAL SECRETARY

RECEPTIONIST/LEGAL SECRETARY

SUSAN O'DONOVAN

MARY O SHEA

ACCOUNTS MANAGER

LEGAL SECRETARY

New rules for farm vehicles on roads Revised standards for the use of agricultural vehicles on public roads came into effect in January. It follows a review by the Road Safety Authority and the introduction of legislation by Transport Minister Paschal Donohue. The current regulations are over 50 years in place and deemed to be out of date due to bigger, faster, and more powerful agricultural vehicles being used. These are generally constructed to highest standards and are capable of carrying out tasks outside the scope of the present regulations. The RSA says it is important the regulatory regime reflects the developments in technology and requires the vehicles to comply with recognised standards. These relate to key safety areas, like braking, suspension systems, tyres and lighting, as well as the weights for which they are designed. The RSA says vehicles which do not comply with the new regulations are likely to need only minor remedial works. Examples are fitment of a flashing amber beacon and/or replacement of the manufacturer’s plate indicating the design axle weights and maximum permitted towable masses. “Trailers already in service will also be able to continue in use, but, due to varying construction standards, some will need remedial work. Tractors and trailers operating at higher speeds and weights must also be appropriately plated and speed rated,” it said. A regulation’s breach may result in a court summons, and a fine of up to €2,500, a prison sentence or both on the person who commits the offence and on the vehicle’s owner. It is expected most agricultural tractors will comply with the requirements with minimal spend.

Range of Services Property & Conveyancing

Personal Injury Litigation

General Litigation

• Residential Property Sales & Purchases • Commercial Property Sales & Purchases • Mortgages & Re-Mortgages • Farm Transfers • Voluntary Transfers • Please visit our website for a full list of services

• Personal Injuries Board Applications • Road Traffic Accidents • Accidents at Work • Public Liability Claims • Fatal Injury Claims • Garda Compensation Claims

• • • • • •

Residential and Commercial Leases

Tax Advice

Wills & Probate • • • • •

Draft Wills Administering Estates Estate Planning Enduring Powers of Attorney Wards of Court Applications

Visit us at

• Residential Letting Agreements • Commercial Leases • Landlord & Tenant Advice

Equity Claims Landlord & Tenant Disputes Probate Litigation Insurance Claims Injunctions Professional Negligence Claims

• Stamp Duty • Capital Gains Tax • Capital Acquisitions Tax (Inheritance Tax/Gift Tax) • Residential Property Taxes (NPPR, Household Charge, Local Property Tax)

www.kevinodonovanandpartnerssolicitors.com

The Old Market House Upper Main Street, Bantry, Co. Cork

Tel: 00 353 (0)27 51440

odonk@securemail.ie