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Roundup-2,000 new startups per month

Monday, September 24 08:29:58

A Government-backed survey shows that more than 2,000 people started their own business every month during 2011. The Global Entrepreneurship Monitor (Gem) report for the Republic, estimates that every month in 2011, 2,200 individuals started their own businesses. The report, which is released today, shows that about one-third of those who did so were motivated by necessity.

It also shows that 11 per cent were involved in high- to medium-technology businesses, compared with averages of 7.3 per cent in other Organisation for Economic Co-operation and Development countries, or 7.9 per cent in other EU countries. The Irish Times

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Nama has been paid E3.5 million by the receiver of part of builder and developer John Fleming's property empire following a land sale earlier this year. Mr Fleming's businesses were placed in receivership and liquidation in early 2010 owing more than E1 billion to the banks after the Supreme Court refused to approve a rescue plan for his Tivway group proposed by George Maloney of Baker Tilly Ryan. Documents recently filed with the Companies Registration Office show Nama recovered E3.5 million earlier this year from the sale of some property owned by John J Fleming Construction to University College Cork.

The papers, filed by receiver Bill O'Riordan of PricewaterhouseCoopers, show that the property, at Curraheen on the western edge of Cork city, was sold to the university for E3.55 million. Of this, Nama received E3.51 million. A second document, filed by Eoin Ryan of BDO, who was appointed by EBS, shows the company has 38 residential properties, which are valued at E6.6 million. Anglo Irish Bank, now known as Irish Bank Resolution Corporation, appointed Mr O'Riordan. Tivway owed the bank E260 million. Kenneth Fennell of Kavanagh Fennell was appointed liquidator to the company. The Irish Times

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Hopes for a further rate cut for tens of thousands of Irish homeowners on tracker mortgages have been dashed as a European Central Bank member downplayed the possibility. ECB executive board member Benoit Coeure said yesterday that policymakers may not cut interest rates further as confidence in the euro area's economic outlook is improving and inflation remains high. Each 0.25pc cut in the ECB rate almost immediately reduces monthly payments for about 200,000 tracker mortgage holders in Ireland. There had been hopes for a further cut in the ECB base rate to just 0.5pc.

"At the current juncture, the jury is open as to whether there should be another rate cut," Mr Coeure said. "It's not absolutely obvious that another rate cut would be necessary in light of recent economic indicators and in light of inflation developments. As you know, inflation developments at the end are what matters most for us."

The ECB this month raised its inflation forecasts for this year and next, even as the sovereign debt crisis is threatening to push the 17-nation euro region into recession. Yet, details of a new bond-purchase plan unveiled by ECB President Mario Draghi earlier this month boosted financial markets and helped ease concerns about the severity of the economic slowdown. The Irish Independent

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TK Maxx, one of the world's biggest discount fashion retailers, tabled a bid to take over the floor space of Clerys department store in the year before the iconic Dublin store was sold. The international clothes chain, which is a subsidiary of Fortune 500 group the TJX Companies, is understood to remain interested in taking retail space in the store which was acquired by Gordon Brothers Group, one of America's oldest restructuring specialists, last week.

Clerys, which was owned by the Guiney family for the past 70 years, turned down TK Maxx's offer because it was unable to agree terms. The global retail giant was prepared to pay a competitive low multimillion annual rent to take over most of the store. However, like any other major retailer it wanted significant investment in revamping the store as well as a rent-free initial period of trading. Clerys, which had debts of E26m to Bank of Ireland, did not have sufficient cash to agree to these terms. Boston-based Gordon Brothers would not face this obstacle if it chose to re-engage with TK Maxx in the future. The Irish Independent