AUGUST
2017 PROPOSED CHANGES TO THE LAW IN RELATION TO CHILDREN’S INHERITANCE Steven Jacob
ECONOMIC OUTLOOK Dr. Constantin Gurdgiev
THE PROHIBITION ON LITIGATION FUNDING IN IRELAND Thomas Carroll
THE EFFECTS OF INFLATION ON HOLY COMMUNION GIFTS GOOD REASONS TO ENCOURAGE SELF-CONTROL AMONG EMPLOYEES USEFUL APPS FOR WORK MEET THE TEAM
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TABLE OF CONTENTS Proposed Changes To The Law In Relation To Children’s Inheritance Steven Jacob Economic Outlook - Dr.Constantin Gurdgiev The Prohibition On Litigation Funding In Ireland - Thomas Carroll Legal Briefs Good Reasons To Encourage Self-Control Among Employees The Effects of Inflation on Holy Communion Gifts Business Briefs 5 apps to make your work life easer! Meet the Team Range of Services
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Welcome to the August 2017 edition of our newsletter. We hope you find the information contained in this issue of practical use. If you know someone for whom this publication could be of some use, just let us know and we all add them to the mailing list. Our firm was established in 1941 and is a firm that is both deep rooted in tradition and eagerly looking forward to the future. Our fundamental purpose to provide a competitive, efficient and personal service to each and every client. We are confident we have the necessary resources to provide you with astute legal advice and support no matter what your legal requirements are. We take the confusion out of your legal requirements with reliable and straightforward advice for every occasion. Please feel free to contact any of our team to discuss any issues that matter to you.
PROPOSED CHANGES TO THE LAW IN RELATION TO CHILDREN’S INHERITANCE Steven Jacob – MW Keller & Son, Solicitors
UNDER NEW LAW REFORM COMMISSION PROPOSED CHANGES TO THE LAW- PARENTS WILL NO LONGER HAVE A ‘‘MORAL DUTY’’ TO LEAVE THEIR CHILDREN AN INHERITANCE. Under new Law Reform Commission proposed changes to the law- parents will no longer have a ‘‘moral duty’’ to leave their children an inheritance. Under the proposed changes the law will mean that a parent only has to make ‘‘proper provision’’ for a child. This effectively signals an end to the notion that children are automatically entitled to an inheritance Even if the changes are implemented, children who are unhappy with an inheritance can still bring a challenge in the courts. The proposed changes will simply make it more difficult for them to argue that they have not been adequately provided for by their parents. The recommendations arise from a review of Section 117 of the 1965 Succession Act. This allows children who believe a parent failed in their ‘‘moral duty’’ to provide for them can make a “Section 117” application to the courts for an increased portion of the estate. Despite being rare, these types of cases can be quite long winded and contentious. It is also recommended that children be allowed to make a Section 117 application where their parent dies without leaving a will. This is not possible under current law Under the proposals children aged over 18, or over 23 if in full-time education, would be considered to have already been properly provided for in the eyes of the law. Under the new proposals, there will be three exceptions to the rules, these are: 1. The child has a particular financial need arising from their health 2. The deceased’s estate contains an item of particular sentimental value to the child 3. Where the child has provided care and support for the deceased. The changes, if implemented, are unlikely to have a major impact on families of modest means. However, the law will have clear implications for parents who hold substantial assets as this may create a greater hurdle for children to overcome.
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Dr. Constantin Gurdgiev Recently, the World Economic Forum (WEF) published some snapshots of global surveys indicating that the Millennials are the first generation over the last century that are turning increasingly negative in its attitudes and perception of democracy. According to the WEF, “Not long ago, liberal democracy was regarded by many as not just the best form of government, but the inevitable form of government...In 2017, that view looks naive. New research warns that democracy’s fan base is shrinking, especially among younger people.” And the problem is not limited to the countries with traditionally troubled attitudes to democracy, but holds for the likes of the UK, New Zealand, the U.S., the Netherlands, Australia and Sweden. To the majority of the political scientists, the decline in democracy’s fortunes is down to a vaguely defined rise in volatility of electoral and geopolitical outcomes. The second prevailing theory of de-democratisation is the alleged decline of societal consolidation. According to this theory, democratic values and institutions require concentration of voters into a small number of dominant ideological systems. Such centralisation secures continuity of strong trust in democratic institutions, social cohesion around the prevalent norms and direct consent by the voters.
Across the globe, the young are less invested in democracy. Source: Foa and Mounk, The Journal of Democracy, January 2017. www.journalofdemocracy.org
The problem with both of these world views is that they confuse the effects for the causes and ignore, or fail to explain, the elephant in the room: rapidly growing uncertainty (as opposed to volatility) of the socio-economic environments in the Western democracies since the end of the first decade of the 21st century. This latter hypothesis offers a stronger connection between economics and the investment markets, and the evolution of political risks.
‘‘Essential’’ to Live in a Democracy
80%
60%
40%
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Decade of Birth
While this phenomenon is a matter of fact, the potential causes for it are a subject of conjectures and debates.
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The Generation X, or X-ers, traces back to mid-1960s and runs through the late 1970s. X-ers enjoy lesser gains in political and socio-economic well-being than the ‘Boomers’, and, post-crises, the X-ers are feeling the economic and social pains. But, they are yet to surrender their belief in social mobility and the pain they feel is cushioned by past gains.
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The Millennials generation, born after 1980, are witnessing a massive collapse of jobs security, poor career prospects, and decline in real risk-adjusted lifecycle incomes. By comparing their own fortunes to those of their predecessors, and by reflecting on the policies responses to the crises, they are increasingly convinced that democracy is the rule by the majority (the ‘Boomers’ and the X-ers) over the minority (their own cohorts).
UNCERTAINTY, NOT VOLATILITY
The idea of volatility in the political environment as a driver for declining fortunes of democratic institutions misdiagnoses the problem for two primary reasons.
The deep uncertainty about their possible futures defines the anxieties of the Millennials about the capacity of the democratic system to deliver economic and social progression, while the deficit of political representation of their generation defines their frustration with democracy.
The political landscape we are facing today is consistent with a Knightian (or deep) uncertainty, rather than with statisticallydefinable and simple volatility. The former is much worse for both analysis and public decision-making/opinion formation than the latter because deep uncertainty does not yield to traditional statistical or actuarial modelling. The extreme tail-events nature of Knightian uncertainty means that past outcomes of electoral choices and legislative decisions are a poor guide to the future preferences and incentives faced by the voters. Hence, the recent experiences of abject failures of the normally accurate probabilistic models to predict outcomes of elections in the U.S., the UK, Austria and the Netherlands, as well as referenda outruns in Switzerland, the Netherlands and the UK.
THE GRAND CANYON OF SOCIO-ECONOMIC DIVISIONS
From investors perspective, this means that normal risk adjustments to financial returns (e.g. value-at-risk framework and traditional factor-based models) no longer hold. Sharpe ratios, leverage ratios, all other mainstream financial risk metrics, as well as risk instruments, like VIX, carry little information about the deep uncertainty underlying the dynamics of financial markets. Investment is increasingly shifting to being a form of art, involving sensing of risks and threats, and carefully-structured thematic advice, than a mechanical factor-based pricing exercise. The added irony here, of course, is the spectacular rise in popularity of roboadvice and passive management vehicles in recent months, both of which are completely unsuitable for risk management in the face of systemic uncertainty.
Three factors combine to shape the Knighting uncertainty felt by the Millennials: demographics, growth dynamics and technological change. Demographic changes afoot today imply that a gradual reshaping of political leadership, ideologies and institutions that secured democracies in the past is restricted by the extreme polarisation of political participation. During the 1990s and 2000s, the West did not foster political elites’ transition from the Boomers to the X-ers, preferring to stress continuity and preservation of the past over deeper reforms. This made it impossible for the Western institutions to transition from the politics of the Boomers to the politics of the Millennials. In the U.S., the price of continuing with the Bush-Clinton status quo of the 1990s into the 2010s is the electorate that embraces the polar opposites, the TrumpSanders juxtaposition. In Europe, the fallout from decades of political surrender to technocracy created a twin peaks of extreme left and extreme right populism that are now firmly in control of the opposition.
Secondly, the evidence on de-democratisation suggests existence of different inter-generational perspectives on the ability of democratic institutions to represent diverse and increasingly divergent objectives of various demographic groups. In simplified terms, we are witnessing the polarisation of the electorate on the basis of demographic distribution of power across three broadly-defined generations: •
The ‘baby boomers’ generation are empowered by the status quo political and government institutions and parties (social, ideological and research organisations, lobbyists and social partnerships). This generation enjoys economic returns consistent with their access to power, as reflected in higher wages, the history of past career progression, better jobs security, greater wealth, and so on. The Boomers are political and socio-economic winners.
The end game here is that with less and less room for evolutionary change to catch up with run-away demographic divergence across the electorate, the likelihood of a political system implosion is rising. Geopolitical uncertainty is already a key factor in pricing a range of assets, from cryptocurrencies to commodities, to gold and all the way to benchmark government bonds.
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Although official unemployment is low, for every officially unemployed person in the U.S., there are three more ablebodied adults who neither seek work, nor work. Over the 1985-1999 period, total paid hours of work rose, cumulatively, by 35 percent. Accounting for the changes in population size, the 2000-2015 period saw a decline of paid hours of work per adult civilian of some 12 percent. In their December 2016 report, the “Equal Opportunity Project” team led by the Stanford University economist, Raj Chetty, estimated that the odds of a today’s 30-year-old’s earning more than her/his parents at the same age was 51 percent, down from 86 percent in the 1970s.
A significant spike in such uncertainty can trigger a severe correction in the investment markets. Hedging such losses is virtually impossible without a long-term preparation, yet investors and investment managers are largely unprepared to face this predicament. In addition to demographic divergence, economic transformation in the post-crisis era is exerting unbearable pressures on the Western value systems. The job-for-life concept and the decadesold education-to-social-mobility-ladder paradigm are gone. The Middle class-defining notion of expecting improvements in the quality of life and real incomes in every successive generation holds no more. Transmission of wealth across generations through inheritance is severely constrained by the fact that pensions gaps for the X-ers are likely to consume all the wealth inheritable from the Boomers. The twin secular stagnation thesis - covered previously in this article - completes the landscape of the Knightian uncertainty.
PIVOTING TO SAFETY
For many decades, since the end of World War 2, Western societies relied on one sole engine for economic growth: debt-financed investment, primarily in physical, human and technological capital. This model no longer works. Currently, long term, real returns on public and private investment linger at around 2-3 percent per annum, well below double digits returns enjoyed in the 1950s and 1960s, 6-7 percent returns over the 1980s and the 1990s. Risk-adjusted human capital investments (education and training, entrepreneurship etc) are yielding returns that are barely above the cost of funding.
As I noted above, hedging this uncertainty is much harder than hedging technical risks. And devoting significant resources to structure a portfolio geared to meet the shocks from this deep uncertainty runs counter to the traditional investors’ pursuit of nominal returns. Traditional simple long-only portfolios diversification combining fixed proportions of mainstream asset classes, such as property, equities and bonds, are not tilted to protect against extreme tail risks that materialise and evolve rapidly in the aftermath of the blowouts in political and systemic uncertainty.
There is no credible alternative to the borrow-to-invest economic growth model. The tech revolution, while a powerful driver for value creation, is so far failing to trigger productivity growth, comparable to that of the 1990s. Meanwhile, robotisation and automation are directly and tangibly threaten the future prosperity of the middle class. Since 2000, household and non-profit financial institutions wealth in the U.S. rose from $44 trillion to $96 trillion and is now more than $20 trillion higher than at the pre-2008 peak. But the actual economy did nothing of the sort. Over 19482000, average rate of per capita GDP growth in the U.S. was close to 2.3 percent per annum. From 2000 through 2016, per capital growth was averaging below 1 percent per annum.
On the equities and bonds side, some protection against systemic tail risks and deep uncertainty can be found in ESG (Environmental, Social and Governance) risk-rated funds and by tilting the portfolio of individual instruments toward ESGrated corporates. However, in the end, even these strategies deliver just a partial cover for Knightian uncertainty. Only cash and directly-held precious metals can offer a sufficient buffer against systemic markets corrections, at a price of foregoing significant returns on these assets in the periods outside uncertainty materialisation.
As a young generation, the Millennials are poor in the capital domain and rely more heavily on labour income. This is problematic. Over the 2000-2016 period, the work rate for Americans age 20 and older fell from 64.6 percent in the 1990s to 59.7 percent.
Dr Constantin Gurdgiev is the Adjunct Assistant Professor of Finance with Trinity College, Dublin and serves as a co-founder and a Director of the Irish Mortgage Holders Organisation Ltd and the Chairman of Ireland Russia Business Association. He holds a non-executive appointment on the Investment Committee of Heniz Global Asset Management, LLC (US). In the past, Dr Constantin Gurdgiev served as the Head of Research with St Columbanus AG (Switzerland), the Head of Macroeconomics with the Institute for Business Value, IBM, Director of Research with NCB Stockbrokers Ltd and Group Editor and Director of Business and Finance Publications. He also held a non-executive appointment on the Investment Committee of GoldCore Ltd (Ireland) and Sierra Nevada College (US). Born in Moscow, Russian, Dr. Gurdgiev was educated in the University of California, Los Angeles, University of Chicago, John Hopkins University and Trinity College, Dublin.
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The Prohibition
ON LITIGATION FUNDING Thomas Carroll – MW Keller & Son, Solicitors
THE PROHIBITION ON CERTAIN PARTIES FUNDING LITIGATION IN IRELAND IS PROVIDED FOR THROUGH THE DOCTRINES OF MAINTENANCE AND CHAMPERTY. Maintenance is the provision of financial support by a party who has no interest in a case, but who assists another party who has an interest in bringing the case. Champerty is the provision of financial support by a party who has no interest in a case to a party engaged in the proceedings on the basis that they get a portion in return from any damages awarded to the assisted party. In many jurisdictions both Maintenance and Champerty are allowed in some shape or form and this is generally the case in most Common Law Jurisdictions. In Ireland, however, such doctrines are prohibited by virtue of the Maintenance and Embracery Act 1634. This Act adopted the law in England at the time but even though English Law has since reversed this decision Ireland has maintained this original position on the two doctrines. In the case of Persona Digital Telephony Ltd v Minister for Public Enterprise (No.2) [2016] IEHC, the prohibition on Maintenance and Champerty was challenged. The plaintiff here would only be able to bring an action if they received funds from a third party with no interest in the case. The third party would then receive a share of the damages awarded to the plaintiff. This of course is Champerty and the provision of funds for the legal costs to bring and see the case through is Maintenance because the third party had no interest in this case. The High Court held that such assisted funding is prohibited. The decision was appealed to the Supreme Court and it has upheld the decision of the High Court prohibiting the use of Maintenance and Champerty. The Supreme Court stated that any change to this area needed to be done by the introduction of legislation or potentially through a constitutional challenge. The prohibition on these doctrines stems from the fear that the courts may be overrun with cases and there is a very serious risk that cases may be run as investment opportunities. The argument for the prohibition on Maintenance and Champerty to be quashed presumably rests on the premise that all persons should be allowed access to justice.
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LEGAL BRIEFS
AIRBNB CALLS FOR CLEAR REGULATION OF HOME-SHARING IN IRELAND
typical Irish Airbnb host earns €5,000 per year and hosts guests for 51 nights. Housing committee member and Fine Gael TD Fergus O’Dowd said there needs to be control on Airbnb in areas where housing needs are not being met, commenting that people are getting much higher rents and are displacing people who need them as homes. However, the Airbnb director said the point at which short-term rentals become potentially more lucrative for a landlord than long-term rentals is ‘‘higher than often assumed’’. He commented that, only 550 entire home properties were booked via Airbnb for more than 160 nights, and these account for just one in every thousand housing units in Dublin. Sinn Féin TD Eoin Ó Broin said the real issue is not the person who shares their home, rather if people are abusing the platform to make more money or to avoid regulations such as building standards.
Airbnb has called for clear regulation of the home-sharing sector in Ireland. The company’s Public Policy Director for the EMEA region, Patrick Robinson, told the Oireachtas Housing committee that ‘‘clear regulation is good for our host community and our business”. He said unlike many other cities and countries in Europe, Ireland lacks an upto-date regulatory framework that clearly recognises home sharing as a distinct kind of short term rental activity. However, he said there was a question about where the burden of regulation should lie, and that this was a question for the Government. The Airbnb representative said there needs to be a definition of what a professional letter is in Ireland. Mr Robinson told the committee that a
Inheritance tax has also been a glaring example of an anomaly within the law in recent years, with children inheriting family homes from parents only to be landed with a capital acquisition (inheritance) tax bill that they cannot pay without selling the property. The situation is exacerbated when a strict October deadline is imposed by Revenue for the inheritance tax bill to be paid, leaving grieving families exposed if probate was only concluded in the weeks preceding. There are exemptions from inheritance tax to which some families or children may be entitled, but lawyers and tax consultants say they can be difficult to establish or interpret. Chairman of the Tax Committee of the Law Society, Gavin Maguire commented in the absence of clarity it can be difficult for taxpayers and more clarity and transparency is needed. Furthermore he commented that the lead had to come from the Oireachtas as Revenue had to follow the law as it stood. He commented that tax is something that people should be able to understand and we would like to see the Oireachtas reflect that.
LAW SOCIETY CALLS FOR EASIER PROBATE FOR GRIEVING FAMILIES The probate and inheritance tax process should be made easier for grieving families, according to the Law Society. The Society has submitted 22 detailed recommendations for changes to the taxation and probate systems, saying it would alleviate social inequities and ensure clarity and certainty for citizens relating to family tax matters. The organisation has also called for changes to the system to “ensure Ireland remains an attractive option for international investment post-Brexit”. It said “a range of taxation and probate issues” have resulted since the passing of the Marriage Act 2015. Director General of the Law Society Ken Murphy said that these reflect a tax code not keeping pace with legislation or the practical experience of citizens with the submission outlining a range of simple, yet technical recommendations which will ensure fairness and quality in line with the Act.
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NEW ANTI-TERROR LAWS TO BE INTRODUCED
adopt and implement the directive by passing relevant legislation. Part of this legislation will include making it an offence to travel to another country to join a terrorist group or to commit a terrorist attack. The organisation of such travel will also become an offence. It is unclear how many Irish citizens have travelled to fight in conflict zones. In 2015, Former Minister for Justice Frances Fitzgerald said about 30 people had travelled to conflict zones in Syria and Iraq from Ireland. The new laws mean Irish citizens who fight with terror groups can be prosecuted and jailed on their return to Ireland.
The State intends to introduce laws to make it a crime to travel to another country to engage in terrorism or join a terror group. The law will form part of the State’s implementation of an EU directive which requires member states to enact tougher anti-terror laws. Ireland has yet to officially implement the directive of the European Parliament on combating terrorism but fully intends to do so, a Department of Justice spokesman said. Under EU rules, countries have 18 months to
LAW WOULD ALLOW EMPLOYERS ACCESS TO CRIMINAL RECORDS
for example emigration purposes. The briefing stated that “proposals are being developed for a criminal records certificate to address this need – they will require legislation to be put in place.” While certain professions require Garda vetting before people take up positions, in particular involving children or vulnerable adults, there is currently no specific mechanism for carrying out a criminal check on an employee in the State. The legislative change would allow employers to seek a certificate in specific circumstances. However, the briefing paper does not define what these might be.
Legislation that would allow employers to access the criminal history of prospective employees is being sought by officials in the Department of Justice. In a briefing note prepared for Minister for Justice Charlie Flanagan, the officials advise of the “genuine requirement” to allow employers have such information available to them. The Department also advises of the need for individuals to be able to produce their own criminal history information. It says such measures are necessary in limited circumstances,
MINISTER ‘REFLECTING’ ON FISHING LEGISLATION IN LIGHT OF BRITISH MOVE
airtight” and there was a “fear that people can come from anywhere” to fish within zero to six miles if it was implemented. Sinn Féin Senator Pádraig Mac Lochlainn believes the Government should take a “more forthright position” and seek to renegotiate the EU Common Fisheries Policy (CFP) within Brexit. Mr Creed was unable to provide figures for the percentage of catch taken by other EU vessels out of Irish waters, compared to that of Irish vessels, but said Ireland had 10 per cent of EU waters overall – while Britain had 17 per cent. Mr Creed acknowledged that Britain’s stated withdrawal from the London Fisheries Convention, covering reciprocal access by six coastal EU member states to six- to 12-mile limits, had “raised the temperature” on Brexit. British environment secretary Michael Gove said last week his government was “committed to protecting our strong, historic ties with Ireland” , in spite of its Brexit strategy to pull out of key coastal and offshore fishery management agreements. Mr Gove also said his government was keen to “work collaboratively” with Ireland to “help resolve any legal issues around the voisinage agreement”.
Minister for the Marine Michael Creed has said he was “reflecting” on legislation allowing reciprocal coastal fishing rights on both sides of the Border, following Britain’s decision to withdraw from the London Fisheries Convention. Mr Creed told the Joint Oireachtas Committee on Agriculture, Food and the Marine that the “voisinage” legislation still had “merit”. The North-South voisinage agreement on reciprocal fishing rights within the zero to six-mile limits dates back to the 1960s, and was the subject of a recent challenge by a group of mussel fishermen, who said it was being abused by vessels using the Northern Ireland register. The Government has introduced amending legislation to underpin the agreement, and this is now before the Seanad at committee stage. Labour TD Willie Penrose said it would be “foolhardy” to proceed with the legislation now, and called for a crossparty forum and greater consultation on the subject. He said the registration element “did not appear to be
DÁIL PASSES FIANNA FÁIL BILL ON MENTAL HEALTH
It also gives patients more rights in relation to the services they avail of. Fianna Fáil health spokesman James Browne welcomed the passage of the Bill, saying the contributions during the debate had been passionate. The Bill will now be sent to the Seanad. Mr Browne said he hoped than any amendments made in the Seanad would not prevent the Bill from being enacted.
A Fianna Fáil Bill to strengthen the rights of mental health patients has been passed by the Dáil. The Bill provides for greater consultation with patients being treated in the mental health services.
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GOOD REASONS TO ENCOURAGE SELF-CONTROL AMONG EMPLOYEES Self-control has been a focus of many studies for centuries. It has been debated by the early psychologists and philosophers alike. Freud believed that self-control is the essence of civilised life, a sentiment reflected in modern days by Tim Ferris, author of the 4-Hour Work Week. Plato’s perception was that the human experience was a constant struggle between rationality and desire. In order to achieve our ideal form, we have to exercise self-control.
MAINTAINING SELF-CONTROL IN THE WORKPLACE
In his work, Aleph, Paulo Coelho wrote, ‘‘If you conquer yourself, then you conquer the world.’’ Stephen R. Covey reflected the same sentiments in The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change, where he wrote ‘‘The ability to subordinate an impulse to a value is the essence of the proactive person.’’
Self-control is an important key to cultivating an ethical and effective workplace. Research has shown three powerful factors that may help effective leaders to increase the self-control of their employees.
Recent studies revealed that people with high levels of selfcontrol tend to: • • • •
make healthier food choices; perform better at school; build higher-quality friendships; be better leaders at work.
However, lack of self-control in the workplace has dire consequences, according to a recent study. Let’s look at what the study revealed about people with low levels of self-control.
1. Encourage good sleeping habits Sleep restores self-control. Employees who experienced fewer sleep interruptions were found to be able to exercise self-control better than those who are sleep deprived. Long work hours can have a negative impact on the behaviour of their employees.
ANTI-SOCIAL BEHAVIOUR Poor self-control causes employees to sweep work problems under the rug and to resist helping other employees. Employees who lack self-control tend to avoid engaging in corporate volunteerism.
2. Tap into displayed emotions
DEVIANT / UNETHICAL BEHAVIOUR
Instead of focusing only on service with a smile, which only pleases customers for a short while, companies should instead teach employees to tap into the emotions of their customers. A study examined the effects of physicians who took on the perspective of their patients, and experienced genuine empathy. As a result, the physicians experienced higher levels of self-control and lower levels of burnout.
Nurses with low self-control resources tend to be rude to patients, while tax accountants are less resistant to engage in fraudulent activities.
POOR PERFORMANCE Employees who have below-average levels of self-control tend to exert less effort and are more distracted at work. They choose to spend less time conquering more complicated tasks, and generally perform more poorly than peers with high levels of self-control.
3. Create the right environment From the office decor to displaying the company’s code of conduct in clear view, there is much you can do to help prevent negative behaviours associated with employees’ lack of selfcontrol. The right environment will help avoid the temptation to behave unethically.
NEGATIVE LEADERSHIP STYLES A leader with low self-control will often exhibit counterproductive leadership actions, such as verbal abuse.
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THE EFFECTS OF INFLATION ON HOLY COMMUNION GIFTS A recent survey by Ulster Bank found that in 2017, there has been a 4% increase in the gifts Irish children received for their First Holy Communion compared to the same period last year. While the amount parents spent on the event - €845 - was roughly the same in both 2016 and 2017, the amount of monetary gifts received by children increased. In 2016 the average amount was €546, however this year 23% received €800 and 13% received in excess of €1,000. Figures show boys received more than girls with an average of €591 and €550 respectively. Overall spending in preparation for the First Holy Communion day rose by just 1%, following on from a 12% increase between 2015 and 2016. There was a 48% decrease on children’s entertainment spending, with people spending on average €78 and €41 on hair and makeup. The food, beverages and celebrations at a First Holy communion event cost an average of €388, increasing by 5% from last year. Approximately €185 was spent on the child’s clothing for the day, and €153 on that of the other family members. 92% of parents used their savings to pay for the day, which accounts for a 5% increase on the 2016 figures. The report concluded that a First Holy Communion is the perfect opportunity to teach a child about savings and finance. On that note, 85% of parents said they would put some portion of the monetary gifts in a savings account for their children. 18% of parents allowed their children to spend the money they received. The amount of money spent on toys increased by 2% to 42%, and 31% of children bought clothes. Others bought sports equipment (16%), computer games (15% - down from 19%), and books (14% - down 2%).
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BUSINESS BRIEFS 6% INCREASE IN NUMBER OF START-UP Almost 1,900 start-up companies were established on average each month in the first six months of 2017, an increase of 6% compared to the same period in 2016. The most popular sector for company start-ups was professional services, with almost 20% of new companies operating in this area, according to research from business and credit risk analyst Vision-net.ie.
This was followed by finance which saw an 18% rise in start-ups in the six months to June 2017. Other sectors that performed well include social and personal services, construction, real estate, and agriculture. In terms of the geographic location of the start-ups, Dublin proved to be the dominant area with almost one in two start-ups established in the capital region.
IRISH EMPLOYMENT GROWTH SET TO CONTINUE ACCORDING TO REPORT
corridor centred on Dublin and Belfast – raising new questions around capacity constraints. According to the report, improving domestic conditions are supporting many of the sectors hardest hit during the recession towards recovery, with wholesale and retail to grow by 19,400 jobs and construction to be boosted by 18,500 jobs according to the forecast. Continued strength in the professional, scientific and technical sector is set to be supported by an upturn in public sector employment as government spending levels improve, with public administration and defence; and health and social work; each projected to grow by more than 10,000 jobs. Meanwhile agriculture, which has been well documented as the most exposed sector to Brexit, is forecast to lose 12,800 jobs by 2020. With agriculture and industrial employment making up approximately 20% of employment in 19 of Ireland’s 26 counties and four of Northern Ireland’s 11 councils, both jurisdictions are likely to be significantly impacted if a free trade agreement cannot be reached, or some form of unique status designation for the sector is not achieved.
The latest Economic Eye Summer Forecast released by EY predicts economic growth across the island of Ireland to remain steady at 2.4% until the end of decade. However, the country’s resilience and competitiveness will continue to be tested in the face of global and economic political developments, according to the report. GDP growth in the Republic of Ireland is expected to reach 2.6% in 2017, with an average growth rate of 2.6% per annum until 2020, bolstered by continued consumer spending. EY Economic Eye finds that the all island economy is expected to grow, with total employment across the island of Ireland set to increase by 29,000 jobs in 2017. The Republic of Ireland will, however, fare better than Northern Ireland, with almost 91,000 jobs forecast to be created by 2020. Furthermore, EY Economic Eye finds that within certain sectors such as agriculture, agri food and professional services, jobs growth is clustered around an east coast
swoop by 3% as it believes incremental reductions would be a piecemeal response given that previous experience has shown small reductions do not tend to have a positive impact on consumer spend. The group is also calling for a general cut in consumption taxes, the reduction in the cost of doing business, increased funding to get retailers online, increased infrastructural investment, more Garda resources and increased town renewal funding in its Budget submission. Irish retailers operate 45,000 businesses with 282,000 employees directly employed in the industry, while the associated employment multiplier effect increases that figure exponentially. Retail activity contributes €5.7 billion to the Exchequer on an annual basis - €4 billion in VAT and €1.7 billion in PAYE.
RETAILERS CALL FOR A 3% CUT IN VAT TO COMBAT BREXIT Retail Excellence has called on the Government to reduce VAT by 3% in Budget 2018 in an effort to protect retailers from the effects of Brexit. VAT currently stands at 23% and Retail Excellence said that high VAT rates affect consumer confidence and sentiment and this is further exacerbated by the negative VAT differential between Ireland and the UK. This has contributed to the further development of online shopping trends which has led to €600,000 of spend every hour being fulfilled by businesses operating outside of the country. The group said said the VAT rate needs to be cut in one fell
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it to grow online, versus 49% using mobile broadband. However, mobile phones or smartphones were used to access the Internet away from home or work by 87% of individuals in 2017. The most common activity carried out by Internet users at home was finding information on goods and services. This was followed by email, social networking and Internet banking. Clothes and/or sports goods were the most popular items sought online by Internet users with the next most common types of Internet purchases being holiday accommodation and event tickets. Seven out of ten Internet users said they went online every day. Daily usage of the Internet has increased nine percentage points since 2013.
ALMOST ALL IRISH HOUSEHOLDS ONLINE WITH SHOPPING THE MOST POPULAR ACTIVITY The number of Irish households with Internet access at home continues to grow. Data from the Central Statistics Office (CSO) indicates 89% of households are now online, up two percentage points on 2016. In addition, 81% of Internet users went online in the three months prior to the survey being undertaken. Not surprisingly, Internet usage was most popular with younger adults. Fixed broadband remains the most common type of Internet access at home with 84% of households using
The Property Price Register reveals that approximately 10,800 transactions were recorded during the first quarter of 2017 with a total value of €2.8 billion. Due to the time lag in logging data to the Property Price Register, quarter one data is the most accurate data available. If one excludes multi-family/portfolio sales, the figure declines to approximately 10,200, of which 3,300 were in Dublin. On an annual basis, the volume of sales grew by 9% nationally and 10% in Dublin. In comparison to the increasingly limited 2nd hand stock, the volume of new dwelling sales recorded on the Property Price Register rose by 23% nationally during the opening quarter of 2017, with a 33% increase in Dublin. It is worth noting that the average value of new dwellings sold increased by 8% on a national basis, while the average value in Dublin remained constant. In contrast, average values of new dwellings increased by 38% on a national level in the year to quarter one 2016 and by 9% in Dublin in the same period. The greater stability in the price inflation of new dwellings this year does point to an increase in the volume of starter homes being sold on the market, an early indicator of the positive impact of the ‘help to buy’ scheme.
RISE IN IRISH HOUSE PRICES IN LINE New figures, recently released by Sherry Fitzgerald, show that the average value of Irish houses and apartments rose by 2.5% in the second quarter of 2017, bringing growth in the year to date to 4.4%. This represents an increase on the 2.7% recorded in the opening six months of 2016. House prices in Dublin were somewhat ahead of the curve with average values increasing by 2.8% during the second quarter of 2017. Prices in Dublin have grown by 4.7% in the year to date, compared with 1.8% in the same period in 2016. When Dublin is excluded from the national figure, the quarterly increase is 2.1%. In the year to date, house prices for the rest of Ireland increased by 4.1%, a moderate uplift on the 4.0% recorded in the same period in 2016. In the regional centres outside of Dublin, Galway recorded the highest increase of 4.9% during the opening half of 2017, while prices in Limerick and Cork increased by 3.4% and 3.1%, respectively.
AREA OF IRELAND TO BE DESIGNATED EU EUROPEAN ENTREPRENEURIAL REGION 2018
developing policies to transform the area from adversity into “one of the most resilient and ambitious places in Europe”. David Minton, director of the Northern and Western Regional Assembly (NWRA), the regional body which administers EU development funds, said the award was an opportunity for this part of Ireland to become a more attractive place to live and work for young people. Minster for Community and Rural Affairs Michael Ring said that the Northern and Western region has not finally received recognition as one of the most vibrant, responsive and entrepreneurial region in Europe. The European Entrepreneurial Region will see a series of events throughout next year aimed at capitalising on gains and further improving employment and innovation.
Ireland’s northern and western areas are to be designated the EU’s European Entrepreneurial Region 2018 for achievements in reversing a bleak economic outlook. The EU has said the award comes at a crucial time for Ireland as it stands on the verge of an unknown economic impact from Brexit negotiations. The award identifies and rewards EU regions and cities with outstanding, futureoriented entrepreneurial strategies. This year’s winner includes eight counties – Donegal, Mayo, Galway, Sligo, Roscommon, Leitrim, Monaghan and Cavan – which together have been credited with
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APPS 5
Scanner Pro This is the best app to use for quickly scanning and saving digitally paper documents.
to Make Your Work Life Easier
The documents can range from a small one page receipt to bigger multi-page documents. The app also detects borders as well as adjusting the geometry or any distortions in text. Essentially your phone or device is a portable scanner and documents can be emailed, exported or uploaded to document storage websites (such as Dropbox or Google Drive).
Expensify Do you dread having to file expense? Then Expensify may be the app for you. It has over 4 million users around the world and is the top rated tool for expense report management, receipt tracking and business travel. Just take a photo using Smartscan of your receipt when you make a purchase and upload to the app - then let the app do the rest! It will organise receipts and produce your expenses records for you without you having to go through the cumbersome task of organising and logging receipts yourself on a spreadsheet. The app was designed with accountants and small business owners in mind.
Hotel Tonight Ideal for business and non-business travel. This app makes it extremely easy to find a great hotel deal. With over 15,000 hotels signed up in over 35 countries worldwide, it only takes 3 taps and 1 swipe to get the best deals at the last minute.
Docu Sign This app is the industry leader in electronic signatures. It allows you to add your signature to PDF email attachments and also makes it easier for you to send your documents to be signed. It also provides real time updates, telling you when your signed document is ready or reminding you that you need to sign documents.
Liquid Text This app enables you to import a document or a web page and then click text pieces or paragraphs to a clipboard by highlighting and dragging the relevant text to a screen to the side of the original screen. You can add snippets and merge them as you go along. You can then share or export the snippets to email or online storage accounts.
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Thomas Norris
Michael O’Grady
managing Partner
Partner
Mr. Thomas M. Norris BCL qualified in 2002, and lives in County Waterford with his wife and two children. Thomas specialises in commercial property transactions and has extensive knowledge and experience in employment law matters, probate and administration of estates, landlord and tenant issues, banking matters and all aspects of commercial law including insolvency.
Mr. Michael O’Grady BCL qualified in 1993. Michael lives in Waterford with his wife and four children. He specialises in residential and commercial property matters, landlord and tenant issues, building law, banking, insolvency and commercial law.
Contact Thomas
Contact Michael
Direct Line: 051-840003 Email: tom@mwkeller.ie
Direct Line: 051-840002 Email: michael@mwkeller.ie
Margaret Fortune
Mark Keller
Partner
Consultant
Ms. Margaret Fortune BCL qualified in 1998, and lives in County Waterford with her husband and two children. Margaret specialises in family law, personal injury (to include dealing with all aspects of the PIAB), medical negligence, debt collection and all court matters and has built up a considerable reputation in Waterford in her areas of expertise.
Mr. Mark Keller is a Consultant in the firm and has now taken on a new role as Consultant Solicitor. Mark qualified as a Solicitor in 1978 and lives in Waterford with his wife and three children. He specialises in Licensing Applications, Landlord and Tenant, Insolvency and Commercial Law and Residential and Commercial Property Transactions. Mark is an Accredited Mediator.
Contact Margaret
Contact Mark
Direct Line: 051-840001 Email: margaret@mwkeller.ie
Direct Line: 051-840004 Email: mark@mwkeller.ie
Ian Cunningham
Julie Bermingham
Solicitor
Solicitor
Mr. Ian Cunningham BCL qualified as a solicitor in 2003. Ian recently joined the Firm having previously been with a large commercial law firm in Dublin and with one of Ireland’s largest Banks. Ian specialises in banking, insolvency, commercial law, commercial and residential property matters.
Ms. Julie Bermingham BCL, LL.M qualified as a solicitor in 2006. Julie has a first class Masters degree in European and Comparative law and a post graduate diploma in Technology Commercialisation. Julie specialises in family law, conveyancing, civil and commercial litigation, IP and all court matters. She also has extensive experience in the area of Probate.
Contact Ian
Contact Julie
Direct Line: 051 840006 Email: ian@mwkeller.ie
Direct Line: 051 840005 Email: julie@mwkeller.ie
Thomas Carroll
Steven Jacob
Trainee Solicitor
Trainee Solicitor
Thomas Carroll is a Trainee Solicitor with the firm. He is from Paulstown Co. Kilkenny and completed his LL.B. in Waterford Institute of Technology and then an LL.M. in University College Cork.
Steven Jacob began working with the Firm in February 2016 and is a Trainee Solicitor. He is from Tramore, Co. Waterford and completed his degree in Waterford Institute of Technology.
Thomas will be training with Michael O’Grady and will specialise in the areas of commercial conveyancing, residential conveyancing and commercial law.
Steven will be training with Thomas Norris and will specialise in the areas of conveyancing, employment law and all aspects of commercial law.
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RANGE OF SERVICES • ACCIDENTS AND PERSONAL INJURY
• EMPLOYMENT LAW
• MEDICAL NEGLIGENCE
• FAMILY LAW
• MEDIATION AND ALTERNATIVE DISPUTE RESOLUTION
• PROPERTY TRANSACTIONS/ CONVEYANCING/ LANDLORD AND TENANT
• AGRICULTURE AND FARMING • COMMERCIAL AND CORPORATE
75 CELEBRATING OVER
8 Gladstone Street, Waterford, Co Waterford
www.mwkeller.ie
051 877029
info@mwkeller.ie
YEARS
IN BUSINESS
• WILLS, PROBATE AND TRUSTS