Archive for the ‘Irish Economy’ Category

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Is that your best shot?

December 8, 2012
Ghost Estate

Creative Solutions?

Is that your best shot?

I’m not sure about you but I felt a huge sense of the inevitable about this years budget – it was a huge nothing, not in terms of what will be taken from the “easy suspects” , which is wrecking our domestic economy but it was a nothing in terms of the “solutions” , initiatives, incentives to try to revitalise and generate growth in areas that badly need it.

I was deliberately ignoring all the “headlines” on budget day but I did manage to accidentally tune into Michael Noonan being interviewed on the radio – he was declaring it a budget “for” SME’s and designed to help jobs and growth..

That was interesting – I eagerly started looking for some of the budget detail. I am a little confused as to what is in place to make it a budget for SME’s and for generating jobs and growth. Nothing!

Our government who admittedly have  a really tough job in a tough economic climate had a lot of time to work and prepare for this budget – considering the job creation issues and the huge challenge with sectors of our economy it was a huge nothing.

This budget was lazy and unimaginative, it did nothing to stimulate our economy and most significantly it did nothing to restore confidence or any spark that would encourage you to drive on and start “making things happen”.

What is sure is that the budget won’t beat us and we will drive on and create our own future … As I have said to our own team “F**k the budget“.

Is that your best shot?  Unfortunately, it probably was …..

Greg Canty is a partner of Fuzion

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Posted in Ireland, Irish Economy, Irish Politics, Taxation, Uncategorized | 10 Comments »

The Widow, her two coins and the 2012 Budget

November 24, 2012

The Widow's two coinsI found myself in church recently (it happens very rarely!) as part of the Hugh O’Flaherty Memorial weekend and the very contemporary Papal Nuncio to Ireland, Archbishop Charles John Brown from the US presided over a special mass in honour of Hugh O’Flaherty, Ireland’s World War 2 Hero.

I thought the gospel (bear with me guys, this is going somewhere…) was very relevant with our Budget coming up soon –

Mark 12 – The Widow’s Offering

Jesus sat down near the collection box in the Temple and watched as the crowds dropped in their money. Many rich people put in large amounts. Then a poor widow came and dropped in two small coins.

Jesus called his disciples to him and said, “I tell you the truth, this poor widow has given more than all the others who are making contributions. For they gave a tiny part of their surplus, but she, poor as she is, has given everything she had to live on.”

In the budget our bunch need to make sure they grab the nettle and take what is required from those who can afford it and where there is genuine excess they need to cut it out and please, don’t expect to take the two coins from the widow and all of those like her.

Greg Canty is a partner of Fuzion

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Posted in Irish Economy, Irish Politics | 9 Comments »

The Sacred Cow – Raise Corporation Tax?

September 9, 2012
Sacred Cow - Irish Corporation Tax

Dare we ask the question?

I know this is a really unpopular thing to say – is it time to challenge the Sacred Cow and talk about raising the Corporation Tax rate in Ireland?

I think it is possible to do this and structure it in such a way that will still encourage companies to drive on in Ireland.

Before you think poor old Greg has totally lost his marbles hear me out ..

Why we need to look at this?

Let’s face it, people are bleeding and except for this government being prepared to grasp the nettle and take on some of those areas of excess (“real” sacred cows) that they have still left alone, they just can’t hit the regular Irish taxpayer any more – there is nothing left, nothing.

We need people to have some money in their pockets to keep the indigenous Irish economy going – inflicting more pain and extracting more cash from consumers will just do more damage than good. Aren’t we seeing this already?

Increasing the tax rate on companies who are making profits (let’s face it if you are losing money higher taxes won’t effect you) isn’t the worst thing in the world to do. At least they will be able to cope with it.

The Numbers

3.5 billion was collected last year from Corporation Tax at a rate of 12.5%. This was 10.2% of the overall tax take of 34.2 billion.

This 3.5 billion was the lowest collection of Corporation Tax since 1999 when about the same was collected when the CT rate was 28%.

The Challenge

This government must balance the books, they must collect more taxes, reduce expenditure, start generating jobs and begin to spark economic revival.

How can we do this if we scare the pants off prospective foreign investors by increasing the corporation tax rate?

We are led to believe with absolute certainty by those in “the know” that raising the CT rate is a no go area because it will start a mass exodus of these foreign investors.

Are we sure of that? Is this the main reason that is keeping them in Ireland? I’m not sure, but what do I know.

Taxes in Ireland

Big huh?

My Proposal

1. Raise Corporation Tax by 2.5% (hopefully for just a few years)

2. Introduce 100% immediate allowances for capital spend (this was done successfully in Australia)

3. Introduce tax incentives for companies who increase employee numbers.

4. Use 50% of the increase in CT tax as an investment fund for IT education (we are too far behind international standards and will have a serious problem in attracting these companies if we don’t sort out this supply pool of educated staff ) and an investment fund for indigenous Irish companies who need support at this stage to stay alive (only the ones that have a future)

While the CT tax rate would increase, for those companies that invest in capital and increase job numbers they could actually pay even less tax than now.

In a sweep we would collect more tax from those that can afford it, incentivise jobs and investment, invest in IT education and support indigenous Irish businesses. We might also have a bargaining chip in EU negotiations.

And..we would also be able to lay off the general public who are already bleeding way too much.

What do you think?

Ok, what the hell do I know? Maybe my assumptions are wrong, maybe they are too simplistic and maybe my figures are all wrong – maybe all of this is happening already and these incentives are in place?

At least lets have a discussion and flesh out this Sacred Cow before we cripple Joe Public even more without looking at the alternatives.

Is it time?

Greg Canty is a partner of Fuzion (he was an accountant at one point in time!)

Fuzion are a Marketing and PR firm with offices in Dublin and Cork

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Posted in Accounting, Ireland, Irish Economy, Irish Politics, Positivity, Uncategorized | 11 Comments »

Revenue Commissioners on Target?

August 28, 2012
Target Express

Parked up for good ?

It is absolutely terrible to hear that Target Express in operation since 1988 who employ 390 people between Ireland and Northern Ireland have ceased trading due to an attachment order by the Revenue on it’s bank accounts. Target Express are clearly a big operation operating 12 depots and distributing for companies such as L’Oreal, Smyths Toys and AWear.

In 2011 they won the Haulier of the Year Award and they opened a new depot in Monaghan – well done guys, we loved that positive, drive forward mentality (have a peep at their Facebook page entry).

On Target for better days!

For those who are not sure what this means, basically the Revenue have taken over the bank accounts of the company. According to reports there were delays with payments to the Revenue (as is the case with so many businesses) and clearly they got fed up of waiting, used their ultimate power and crashed in.

390 people did not get paid last Friday as a result according to reports. I’m just picturing drivers going home to their families petrified about the future and trying to solve the dilemma of shopping for groceries at the weekend.

The pieces I have read on the papers suggest that negotiations were ongoing with the Revenue but ultimately someone there made a call to say “enough is enough” and they have effectively shut the business and helped to put nearly 400 people on the dole queues.

Maybe the company gave the Revenue the two fingers for two long and were not playing ball, maybe the revenue were unreasonable and abused their power, ignoring the tough and very real circumstances this company (fuel prices have gone through the roof as well) found themselves in – this recession ain’t pretty!

Without knowing any of the detail there is a good chance that Target Express (who are definitely finding cash flow really tight) could not look to the bank for extra funding and the only real wiggle room was to delay payments to suppliers and yes, squeeze some extra credit from the Revenue. Would you do this instead of paying your people on a Friday?

The Revenue will argue that they are not a bank and should not be funding a business with their Vat and PAYE/PRSI. Viewed in one light they are right – however in the grand scheme of things they are possibly very wrong. I would prefer to see those arrears being paid over a reasonable time and 390 people still working.

The Revenue must not have the power to take such action without recourse to some “Job Protection” authority (run by business people please) who can access the situation and put something reasonable in place that will protect valid jobs where possible and feasible.

Surely if we believe our Government’s stated objective, creation and protection of jobs is the biggest objective that there is right now in Ireland – everyone’s objective must be aligned to this, including the Revenue Commissioners.

When it comes to “Power” the Revenue just have too much and I don’t trust that it is being used properly – the “Target” must be jobs and Power needs to be with those who can generate and protect jobs, not take them away.

Greg Canty is a partner of Fuzion

 

Fuzion are a Marketing and PR Firm with offices in Cork and Dublin

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Posted in Irish Economy, Irish Politics, Positivity, Recession | 35 Comments »

Katie Frenzy

August 10, 2012
Katie Taylor - Frenzy !

You just “have” to win Katie

Like the rest of you the Fuzion crew ended up ducking out of work early and headed to Sober Lane (great name for a bar!) to watch Katie Taylor’s Gold Medal Winning Olympic Fight.

I must admit that I had never seen her box before these Olympics but my heart was in my mouth for that really close, nerve racking match as we all watched on the edge of our seats.

Of course it was fabulous for Ireland to win a Gold medal and it was extra special that such a special young girl did it for us, but I did feel there was an extra dimensiongoing on.

To me it felt as if the whole country had funnelled all of our hope, our depression about the recession, our frustration about the lousy weather and even our disappointment about the Euro Championships onto the shoulders of this girl and really “needed” her to do something great – we really, really needed her to do this, maybe in a disproportionate way? After the fight was over I saw a tweet by someone who declared the “recession to be officially over” – I knew what she meant!

The match was really strange with both boxers being very cagey and slow to engage – it had all of us quietly biting our nails but then I listened to the Irish crowd in the stadium and they were literally in a “frenzy” lifting the roof off with their sheer noise. I wondered were they even watching the match? – if they were as nervous as we were, they would have been in near silence. I worried at one point that they might pressurise Katie into launching right in there too quickly, but she kept her focus and did her job.

Were we watching more than a contest for an Irish gold medal – I wonder?

Well done Katie & thank you! 

Greg Canty is a partner of Fuzion

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Posted in Ireland, Irish Economy, Motivation, Olympics, Teamwork | Leave a Comment »

Big Dreams and Bad Sums

August 5, 2012
Kingsley Hotel

Kingsley Hotel – Under Water?

Driving past the Kingsley Hotel in Cork on the “Straight Road” as the locals call it, it’s really sad to see the place still shut and sadder again to know that it is now in the hands of the Receiver along with it’s sister hotel the Midleton Park.

The Kingsley Hotel was originally opened in 1998 on the site of the old public baths (I used hate going there as a kid!) by Thomas McCarthy and Thomas Kelly, two experienced hoteliers.

Dreaming big and with the help of willing lenders, this business duo transformed the then successful hotel in 2003 into a large five star hotel with over 130 bedrooms, suites and a separate luxury apartment development called The Residence.

We passed the hotel on a regular basis as the major renovation transformed the existing premises, including the building of an underground car park, which caused some costly delays to the project.

The work seemed to take forever and was eventually completed leaving Cork with a superb large capacity five star hotel. We regularly met clients there for meetings and we also had a few Fuzion brainstorming sessions, which invariably ended up being helped along with a few glasses of vino!

My last memory of the hotel was attending a book launch for Brian O’Connell’s fine publication “Wasted” in one of the superb reception rooms.

The freak Cork floods in November 2009 managed to shut the hotel and unlike all the other business properties affected it has remained unopened, apparently due in part to drawn out and complicated disputes over insurance.

Kingsley Hotel bedroom

Big Dreams?

As already mentioned the hotel and it’s sister hotel, which is reported to be trading well have been put into receivership by the bank continuing a trend, which we have witnessed across the length and breadth of the country.

This particular “episode” has been complicated by a freak flood but similar to every other scenario the banks/NAMA have decided that the high level of debt will not be recovered so they move and take over the operation.

Does this course of action and the relavant sums make sense?

– Lend too much to a business on the back of silly (hindsight is a great thing!) property values
– The business can’t sustain the high level of debt during the recession
– A depressed property market puts the whole scenario in the red
– Turf out the existing (experienced?) operators and replace them with high fee receivers and management companies
– Negotiate a sale at a stupid price (watch this space) to an opportunistic investor (the bargain hunters are queuing up to get the best of the rich pickings)
– Chase the individuals unrealistically for the balance of the debt
– Eventually write off the unnecessarily huge level of unpaid debt (taxpayer mops up the difference)

This is the worst, laziest and most costly solution to a very tricky problem and unfortunately it seems to be the most popular course of action being taken.

With the Kingsley example and so many others that we are witnessing on a regular basis, surely it would be better to let proven operators manage the business through this difficult period in a “realistic” manner and let the economy and the property assets recover over time.

Businessmen with Big Dreams are the lifeblood of our economic recovery and the institutions that let these dreams go too far need to stop doing such Bad Sums..

Let’s dream again by having the courage to do Big Sums.

Greg Canty is a partner of Fuzion

Fuzion are a Marketing and PR firm with offices in Cork and Dublin

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Posted in Accounting, Hospitality, Irish Economy, Recession | 8 Comments »

Dove è il bar? (Where’s the bar!)

June 28, 2012
Greg Canty blog - Where's the bar?

Are you tempted ?

8 am, driving to work in Cork and it is grey and miserable. The city has taken a right battering as we witnessed the thunder and lightning during the night as well as the torrential rain pounding against the windows of the house.

I turn on the news to hear that Blackpool, Douglas and Clonakilty have been badly flooded with the rivers unable to cope after a month of record rainfall and excess rain during the night. Newstalk radio have residents from Blackpool and my old buddy Peter Collins from Barry’s pub in Douglas on telling their flood stories.

Next up there is some depressing “crap” about EU bailouts .. too much!

I drop Deirdre off at the office and head to the Airport Hotel to give a social media business session to a new client.

Time to switch over to the iPod and lets see what Mr Shuffle brings ..

First it brings me the gorgeous “Skinny Love” by Bon Iver – I pass a couple kissing goodbye as he drops her off to work. That’s nice.

Next it brings me the incredible voice of Tina Dico singing “Warm Sand“, what a great song …we couldn’t be further away from warm sand I’m thinking!

Just as I pull into the hotel an Italian lesson I had uploaded on the iPod before a holiday many moons ago comes on, repeat after me the voice says “Dove  è il bar?” … where is the bar?

Not a bad idea !!

Greg Canty is a partner of Fuzion

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Posted in Holidays, Ireland, Irish Economy, Uncategorized | Leave a Comment »

A Silicon Valley “State of Mind”

June 20, 2012
John Hartnett - ITLG

A Silicon Valley “State of Mind”

I am just back from a really uplifting Cork Chamber breakfast where the attendees had the pleasure of listening to John Hartnett, a Limerick man who is now working and living in Silicon Valley.

He was speaking about an initiative he is involved in called ITLG (Irish Technology Leadership Group), which is all about facilitating the Irish to succeed in Silicon Valley.

While the topic was absolutely fascinating what was even more interesting was his observations about Ireland and the Irish, which he can now do quite well “as an outsider, looking in” as he put it and the differences with Silicon Valley.

He spoke about Silicon Valley not being a place but being a “State of  Mind” and after listening to him speak for half an hour you get to understand exactly what he meant even by the language he chose in his presentation and in the Q&A afterwards.

The people in Silicon Valley work with a focused intensity, everything is possible, failure is often considered as a natural step on the ladder to success, mega opportunity is better than “niche”, we need to change the game and it’s all about “out of the park” ideas ….I was enthralled!

OK, we can see the big American influence but the language, both tone and content was totally infectious.

John spoke of the Irish having natural advantages such as being smart and sociable with great story telling ability but not being so great when it came to pitching and selling – “our kids should be presenting regularly at school so standing up in front of an audience and pitching your idea should be the most natural thing in the world when it matters”  he commented.

Silicon ValleyHe spoke about the very tangible “Negativity Bubble” in Ireland that we need to lose as quick as possible .. we need to get aggressive and go after it, we need to shake things up and make positive things happen. He spoke about getting more of the successful ex-pat Irish community in the US involved in the right organisations in Ireland such as the IDA, Enterprise Ireland and the Science Council.

Not only did John make perfect sense but he gave everyone in the room a huge injection of positivity – Thank you John.

Cancel all flights …don’t let him leave the country!

What’s your State of Mind?

Greg Canty is a partner of Fuzion

Note:

Colm Healy from Skelligs Chocolate gave me a great link to a “Ted” talk by Cameron Herold about “raising kids to be entrepreneurs“.

 

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Posted in Business Start Ups, Ireland, Irish Economy, Marketing, Personal development, Positivity, Recession | 11 Comments »

Celebrate those individuals making it happen for themselves

May 14, 2012
Beata

Making it Happen

On our usual Sunday walk with the four legged one (Bing for those who haven’t seen previous posts!) a little poster caught my eye on the pole of a housing estate we walk through on the way to the park.

It was placed on a pole where you might expect a picture of a missing dog but when I peeped a little closer it was an advert for someone advertising their house cleaning services.

The poster was typed up with a simple cartoon graphic of a cleaning lady and housed inside a sheet of plastic to protect it from the elements and it had the contact phone number repeated on little vertical strips for those who wanted to tear them off to make an enquiry later.

I’m sure this simple poster with a clear message “A completely clean home – my cleaning services are thorough, consistent and customised. If you want to change your cleaning routine, Call me” will bring Beata the customers she is looking for.

I started thinking about Beata on the rest of my walk whoever she is.. I pictured her deciding to start her cleaning business to earn money, drafting up her posters, printing them, cutting the phone number strips, housing them in plastic covers and then walking around finding poles in the housing estates she was targeting. She had her mini campaign for her house cleaning service well thought out and there was a real honesty to how it was delivered.

Often we celebrate the big companies with the big job numbers and the vital role they are playing in our economy but we should also celebrate those out there who are digging deep, making things happen for themselves instead of sitting back and waiting on someone else or the state to look after them.

Beata and all the other startups , I Salute you!

Greg Canty is a partner of Fuzion

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Posted in Business Start Ups, Direct Marketing, Graphic Design, Irish Economy, Marketing, Positivity, Recession, Uncategorized | 6 Comments »

What are we teaching our young workers?

February 28, 2012
Young workers

Happy Workers?

My young friend of mine rang me last week all excited – she had been offered a full time job in a sports store in the city.

While she was thrilled she was a little bit upset because she would have to leave her current job, which was also in a sports store. She is a loyal creature, she liked working there, she had made good friends and it had been a real confidence booster for her.

Each week she was one of the best performers in the store, beating her weekly targets consistently and selling well above the other staff members.

So, why was she leaving ?

The store have one of these short sighted recession led policies of restricting  all staff members to just over 20 hours a week so that it would save money – I’m not sure if this was down to saving on breaks or savings due to PRSI class. Either way someone in the organisation set a policy of maximum hours per person to save money.

This money saving was deemed as being better for business than allowing your best people have the most hours – the difference in performance between the different sales staff was thousands of euros consistently each week. Who’s saving money?

Eventually my young friend was left quite demotivated, the penny dropped that no matter how well she performed it would make no difference to her hours or career prospects so she decided to shop for a better position.

Her very last experience with her existing employer was when she handed in her required two weeks notice. True to form she was punished and her hours were slashed in her last two weeks.

I have encouraged her to hold her head up high and to finish off her last days there professionally. Unfortunately she has been left a little disillusioned by one of her earliest work experiences in one of Ireland’s biggest retail chains. I know myself that all of these early experiences play a huge part in forming your attitude towards work and your employers.

What are we teaching our young workers?

Greg Canty is a partner of Fuzion PR

(p.s. I have written to them out of curiosity to see what they have to say)

Update 

This post was actually about my daughter. She started her new job in another sports store and can’t believe the difference it is. They look after their staff really well and from the very first minute she was made feel really welcome and appreciated.  She is lucky to find such an employer and thankfully she is now learning more positive “work lessons”.

I was really annoyed about how she was treated by Lifestyle Sports so I wrote to them hoping for a response but also hoping that they might take the lesson on board. I never received a response to the email that I sent. Maybe this is a reflection of the culture that exists there or maybe it is just a coincidence?

Email to Lifestyle Sports: (career@lifestylesports.com) – see copy below:

Hi ,

I am writing to you to both thank you and express my disappointment with you as an employer.

My daughter has worked with you for nearly two years in a Cork store and despite being one of the top performers in her store with her targets etc she has been held back to the minimum amount of hours each week.

I understand this is a policy to minimise costs – this is a foolish policy when the net result is employees that perform well getting disenchanted as they lose out on hours to other staff. These are foolish savings that are costing your business money and are also demotivating to staff. Too many accountants (I started off life as one) getting their way!

Eventually she managed to secure a full time job with a competitor where she is starting off soon. I was thrilled for her when she was offered the post but she was upset as she had built up a loyalty to Lifestyle Sports.

The last bitter pill was when she handed in her required two weeks’ notice and her store manager “punished” her by slashing her hours..

What kind of spirit are you nurturing? Not only have you really upset her in her last two weeks but you have also upset her colleagues that she works with.

She will freak out when she knows I wrote this as she is frightened she won’t get a good reference.

I trust you will not let this email affect her reference.

As I said at the outset ….. thank you for employing her for the last two years but please, please review your internal policies. You are getting rid of and demotivating performers and undermining the excellent training you give them.

I would like a response to my email.

Regards,

Greg Canty

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Posted in Customer Care, Irish Economy, Personal development, Retailing, Staff training, Teamwork | 23 Comments »

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