News from Ireland

NEWS SNAPS FROM IRELAND

BERTIE AHERN FORMS A NEW GOVERNMENT Taoiseach Bertie Ahern has formed a third successive Government with his ruling Fianna Fail party entering into a coalition with the Green Party and the PDs. His Government will also be supported by 4 independent T.D.s which means that the new coalition has a very comfortable working majority. The formation of the new Government was a historic moment for the Green Party. After protracted negotiations they finally reached a deal with Fianna Fail which sees them at the helm of power for the first time in Ireland. Their inclusion in the coalition was not strictly necessary with Fianna Fail having sufficient numbers to return to power with the help of the PDs and the independents. Clearly Bertie Ahern wanted the guarantee of the extra stability that the 6 Green Party T.D.s provide so the deal was done. Despite holding out hopes of patching together a broad alliance to form a new Government both Fine Gael and Labour seem destined to another 5 years on the opposition benches.

HOUSE PRICES BEGIN TO DECLINE The recent series of interest rate hikes by the European Central Bank seem to be having a cooling effect on the Irish property market. Prices have declined by as much as 1.8% in the month of May alone in certain sectors of the market but Dublin prices seem to be holding up. Some regions have dropped as much as 3.6% from January to April which would give an annual decrease of nearly 11% should the trend continue. Uncertainty about the intentions of the new Government towards property stamp duty has also certainly contributed to the slowdown. That uncertainty has now been removed, with the new Government abolishing stamp duty for first-time buyers. It remains to be seen if there will be a property crash in Ireland or if the much more likely scenario of a 'soft landing' pans out.

SLOWDOWN IN THE ECONOMY IS EXPECTED The marked slowdown in activity in the construction sector is likely to impact on the number of new jobs created in the Irish economy in 2007. The labour force grew by 4.5% in 2006, boosted to a large part by migrant workers from Poland, Latvia and the other new EU members. This figure is expected to drop significantly as migration slows and the economy cools down.

EU BLOCKS RYANAIR TAKEOVER OF AER LINGUS The European Commission of the EU has blocked the planned takeover of Aer Lingus by rival airline Ryanair. The proposed 1.4 B-illion euro deal has been scuppered on 'anti-competition' grounds. Ryanair have previously stated that they will take legal action the EU should the merger be blocked.

FURTHER DISCOVERIES MADE AT TARA MOTORWAY SITE The new motorway under construction in the valley that houses the ancient Hill of Tara has been dogged by fresh controversy when it emerged that further archaeological remains have been found, including an underground chamber and a series of ancient tunnels. The newly appointed Minister for the Environment is a Green Party T.D., John Gormley, and it is he who has been given the job of facing down the protestors while also protecting the historical artifacts in the valley. Opponents of the motorway claim that the development is destroying the ancient heritage of the site. Those in favour of the new much needed motorway point out that the new road is further away from the actual Hill of Tara than the existing road is today. Further legal challenges are expected.

GUINNESS MAY MOVE OUT OF DUBLIN It has been reported that Diageo, the company that manufactures Guinness at the famous St. James Gate site in Dublin, is likely to move the facility to the outskirts of the city. It is easy to see the motivation for such a move as property prices in Ireland have risen dramatically in recent years. Any sale of the Dublin city centre property could earn the company as much as 3 b-illion Euro. The production plant that is just a couple of miles from O'Connell Street has been in operation since 1759.

WHITE-TAILED SEA EAGLES RE-INTRODUCED TO IRELAND The re-introduction of 15 white-tailed eagles into Ireland has prompted protests from a Kerry farming group who are concerned the eagles will prey on their lambs. The eagles were bred in Norway and can grow up to a metre in length. They were hunted to extinction in Ireland a century ago but have been re-introduced in the hope that they will become established once more. Voice your opinion on these news issues here: http://www.ireland-information.com/cgi-bin/newsletterboardindex.cgi A-O-L USERS GO HERE