The Business Post reports that a number of tech sector figures have warned that the Republic will miss out on major foreign direct investment (FDI) opportunities in the coming years as a result of the ongoing de facto moratorium on new connections in the greater Dublin area.
It noted that outgoing Minister for the Environment Eamon Ryan had said in recent days that the State will not be able to connect new data centres in Dublin until 2030.
The newspaper cites Mike Beary, the former head of Amazon Web Services in Ireland, who said the effective ban on connections will see investments go elsewhere – hitting exchequer receipts that will be needed to fund a more rapid move to a fully sustainable digital economy. He said the State needs to fast track planned electricity upgrades.
Ireland’s tax system still a major attraction for multinationals
Also reporting on the FDI theme, the Sunday Independent reported that an IDA client survey found the State’s generous corporate tax regime remains the single biggest factor attracting multinationals to our shores.
The survey highlighted that the three next biggest advantages for companies were: the third-level education system, water supply, and the flexibility of the workforce.
Still, the survey found the accommodation crisis is proving a challenge, with availability and price of housing both fielding negative views. Ireland’s high energy prices were also highlighted as a drawback.
Eurostat, the EU statistical agency, reported in October that electricity prices in Ireland were the second highest in the EU and almost 30 per cent above average, behind only Germany. However, when looking at the price of electricity before taxes have been included, Ireland has the most expensive electricity in the EU.
Lir fears rising production prices amid soaring cocoa costs
Irish luxury chocolate brand Lir warned in its most recent annual financial statement of the potential for soaring cocoa prices to lead to material production cost increases across the group, the Sunday Independent also reports.
It came as the Navan-based company reported that its sales rose in 2023 by about €1 million to €34.94 million, and that its operating profit jumped by about €300,000 to €1.8 million.
In early December, the cost of cocoa reached a new high of $12,605 (€12,109) per metric tonne. It surpassed previous peaks reached in the build-up to Easter and was nearly double the price from about two months ago.
Prices have been driven by adverse weather, poor harvests and lower inventories, the report noted.
While the report said Lir did not specifically reference the cost of cocoa in its latest annual financial statements, the directors for the Irish chocolate manufacturer and brand said “further increases” in material and production costs “may be expected”.
Ceres to lead merger of four Irish bread brands
The Sunday Times reports that Ceres Group, the private equity-backed company behind Promise gluten-free bread, is set to take the lead in the merger of four bread brands.
Ceres, in which Mayfair Equity Partners holds a major stake, is on track to buy Azeda, owner of Pat the Baker and Irish Pride, from the Higgins family, with the two lines becoming part of an international consortium that includes Gallaghers Bakehouse, Promise Gluten Free and the US brands Rudi’s Bakery and Three Bakers, the report said.
Mayfair acquired Co Donegal-based Gallaghers Bakery in 2017. The firm developed Promise, the biggest-selling gluten-free bread in Ireland and Canada, and more recently launched the Bakehouse range of artisanal breads.
Under the merger, which was last week notified to the Competition and Consumer Protection Commission (CPCC), it is understood that each company will retain existing management teams, operational independence and distinct brands.
Neurent secures fresh funding
The Business Post also reports that Neurent Medical, the Galway-based medtech firm, has secured funding from London private equity firm Claret Capital Partners. The investment is from Claret European Growth Capital Fund III (CEGCF III), which is backed by AIB and the Ireland Strategic Investment Fund (ISIF). Neurent, whose US operation is based in Boston, develops innovative non-surgical treatments for chronic inflammatory sino-nasal diseases. The funding will be used to invest in sales and marketing, product development and to support further expansion in the US, the company said. According to Neurent, around one in four Americans suffer from chronic rhinitis, a sino-nasal condition that can have an adverse impact on sleep quality, mood, and daily activity.
ECB may wait before next reduction of interest rates
The European Central Bank could consider waiting longer before its next rate cut if inflation risks from energy prices or a stronger depreciation of the euro materialize, according to Governing Council member Robert Holzmann. “It could be the case that we take more time before lowering rates again,” the Bloomberg News reported the Austrian National Bank’s governor as saying, citing an interview with the Kurier newspaper published. “It’s true, some energy prices are trending upwards again. But there are also other scenarios for how inflation could return, such as a stronger depreciation of the euro.” Asked about the prospect of rate hikes returning, Holzmann, who’s considered among the most hawkish members of the ECB’s policy-setting panel, said: “I don’t see rate increases at the moment.”
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
