Many commentators have likened Brexit to the Eagles’ song Hotel California in which a weary traveller who has wandered into a strange tavern is told: “You can check out any time you like, but you can never leave.”
So it proved once again this week as UK prime minister Boris Johnson was forced to eat his "do or die" words and accept the EU's offer of a three-month extension to article 50 as he attempts to win parliamentary support for the withdrawal deal.
Johnson had been forced by the House of Commons to seek the extension in the event a deal had not been agreed by October 19th, and EU ambassadors agreed to put the matter back until January 31st.
The “flextension” contains a clause which stipulates that the UK may leave the EU on the 1st of any month until that date once the withdrawal agreement is ratified by the Commons.
Once the delay to Brexit had been accepted and the withdrawal agreement Bill taken off the table, MPs finally agreed to the general election Johnson has been seeking since it became clear to him he could not govern with the current parliamentary arithmetic.
The vote, on the Early Parliamentary General Election Bill was carried by 438 to 20, paving the way for a plebiscite on December 12th. The truth is, after months of inaction, nobody will be sorry to see the back of this zombie parliament.
Despite the risk of a no-deal Brexit having now significantly receded, the Central Bank of Ireland warned that it could still happen, and noted that such an eventuality would cause significant disruption to trade.
Meanwhile, businesses in Northern Ireland were said to be “relieved and frustrated in equal measures” about the extension. The alternative, leaving without a deal would be a “disaster for business”, said Ann McGregor, chief executive of Northern Ireland Chamber of Commerce and Industry. “As frustrating as it will be for many, avoiding a messy departure is critical,” she added.
Property market driving buyers away
The dysfunction in the property market was this week blamed for a change in buyer behaviour, which was in turn blamed for the slowdown in property sales.
KBC Bank chief economist Austin Hughes said buyers increasingly want to “future-proof” their home purchases because of difficulties with the market.
“In the past, people were just willing to get anywhere on the property ladder regardless of circumstance, with a view to moving in two or three years,” he said.
“Partly because the property market has been so completely dysfunctional, people are now saying this isn’t a market I want to enter on a regular basis”, and this is leading to a delay in purchasing.
The Central Bank of Ireland, meanwhile, has written to all the main Irish lenders, reminding them of their obligation not to impose charges – such as legal costs – on borrowers ahead of decisions by courts on whether to repossess a property, or of a settlement between the two parties.
It also said costs cannot be added to a mortgage account until a borrower is in a position to redeem the debt and has requested to do so. The decision was welcomed by advocates for people in mortgage arrears.
Staying with housebuying, estate agent Sherry FitzGerald is planning to launch a beefed-up mortgage broker platform in 2020 with a view to trebling its revenues within three years by providing this service to home buyers.
“We’re working with a third party at the moment, which will give us access to the entire mortgage market,” said Steven McKenna, Sherry FitzGerald’s chief executive. “At the moment, we’re very reliant on referrals.”
Elsewhere, An Bord Pleanála cleared the way for Cairn Homes to lodge plans to build 611 apartments in Donnybrook. It purchased the site from RTÉ for €107.5 million over two years ago.
Cairn’s plan also includes three townhouses, two cafes and a childcare facility. The builder can now make its formal planning application to the appeals board under the Government’s fast-track planning regime and a decision will be made within 16 weeks.
On the commercial property front, the amount of vacant office space available in Dublin has fallen to its lowest since mid-2002, according to new figures. Data from Cushman & Wakefield shows the level of space fell 31 per cent annually in the third quarter.
More safety concerns at Boeing
The Boeing 737 Max has been the subject of a worldwide grounding since two crashes killed 346 people five months apart earlier this year, and the beleaguered company was the subject of yet more safety concerns this week.
The new issue relates to the discovery of cracks on what is known as the “pickle fork” – a part that attaches the plane’s fuselage, or body, to the wing structure – of the Boeing 737 NG – the 737 generation before the MAX.
Ryanair has more than 400 Boeing 737 NGs in service but in a statement it said that, while it continues to review its aircraft, it was unlikely there would be any impact upon operations or fleet availability.
For their part, Qantas Airways and Southwest Airlines are stepping up checks on their planes, which have been in service for longer. There are currently thousands of these planes in use by airlines around the world.
In corporate news, investor advisory group Glass Lewis called on shareholders of the Swiss-Irish food company Aryzta to reject its compensation report at its annual meeting later this month over a lack of "transparency".
Glass Lewis raised concerns that a bonus scheme for regional executives rewards them for simply doing their job. It also complains about a short-term bonus of 941,000 Swiss francs (€855,000) paid last year to chief executive Kevin Toland.
Finally, the capital is to get two new retail offerings. German discount chain Aldi is building a new 888 sq m store close to Lansdowne Road and internet giant Google's European HQ despite local opposition.
Elsewhere, famous US toy retailer FAO Schwarz opened a 557sq m (6,000 sq ft) store in Arnotts on Wednesday. Dublin becomes Schwarz's fourth location globally after New York, Beijing and Selfridges in London, a sister department store of Arnotts.
