Ireland Digs Deep For Economic Recovery

By David Blevins, Ireland Correspondent, in County Mayo

Seismic surveys are to be carried out to ascertain if Ireland has enough oil and gas reserves to export fuel.

Shell is already building the longest gas tunnel in Europe (4.9km) to transport fuel from one field, 85km off the west coast.

If Russia ever turns off the supply, Ireland may soon be able to offer an alternative.

Michael Crothers, managing director of Shell Ireland, explained: "Because Ireland is beside a major market, and the UK is looking at decommissioning nuclear facilities, having to shut down coal-fired power plants because of greenhouse gas emissions, there's an enormous opportunity for Ireland, if gas can be found, to export into that ready market."

At the peak of its 20-year life, gas from the Corrib field will meet two thirds of Ireland's need. 

The ambitious project has created 1,400 construction jobs in County Mayo, a remote region previously blighted by unemployment and emigration.

Bernadette McManamon, a civil engineer, said: "Sixty percent of my class, if not more, have emigrated and most of them are in Malaysia or Australia and some in America so I definitely wouldn't be working in Ireland … if it wasn't for the Corrib gas project."

The exploration has not been without its opponents. In 2005, five local protesters - the so-called 'Rossport Five' - went to prison.

Civil engineers will carry out the seismic surveys

Lessons have been learned about the need for greater engagement with communities along the coastline before any prospecting takes place.

Gerry Coyle, a Fine Gael councillor, said: "You cannot come in and go telling them what to do. You have to explain in great detail.

"Sometimes, it's very difficult on communities. This community were cast into the middle of this. They didn't go looking for gas. Gas came to them."

Mr Crothers agreed: "I really think it depends upon how they are approached. Any project is a balance between the social, the environmental and the economic and getting that balance right is key."

The gas has brought an estimated 6bn euros (£5bn) for Ireland's GDP.

Tommy Talbot, who opened a local hotel during the recession, said: "You drive from here to Dublin and there's a lot of towns on the way out - Roscommon, Leitrim, there's nothing in them. They really are struggling.

"Down here, we really have been cushioned by the development."

To date, they have found one trillion cubic feet of gas in the Corrib field, boosting the country's energy security.

If the seismic surveys turn up enough fuel for export, Ireland could have found the solution to its economic problems.

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Swansea Bay Tidal Lagoon May Open In 2017

By Rhiannon Mills, West of England Correspondent

Exploratory work is underway off the coast of south Wales where scientists hope to build the world's first tidal lagoon power station.

As Britain continues to search for more sustainable forms of energy, plans are in place for a 9.5km-long, U-shaped sea wall in Swansea Bay that would harness the strength of the tides.

The £650m project's 26 hydro turbines would be permanently under water, generating energy on both the incoming and outgoing tides.

It is hoped the power station could produce enough electricity to power every home in Swansea, saving over 200,000 tonnes of CO2 and offering predictable zero-carbon electricity for 120 years.

The project is yet to receive planning permission but teams are already drilling to assess the make-up of the seabed.

Alex Herbert, head of planning for Tidal Lagoon Swansea Bay, told Sky News: "We hope this will be the first in a network of lagoons around the British coast which could produce up to 10% of our energy requirements.

The power station's 26 turbines would be permanently underwater

"With the first one happening in Wales, we're on the map and we're producing jobs locally, as well as expertise we can take elsewhere."

Promotional videos describe the power station's potential to help regenerate the area and attract tourists.

The sea wall would be used for walking, running and cycling, while the lagoon itself would be used for watersports.

However some groups have concerns about the environmental and visual impact of the project.

"It's concerning a number of people," Swansea councillor Tony Colburn said. "It's basically going to cut the bay in half and we'll be looking at a very large wall as opposed to the magnificent view we've got."

Sarah Kessell, of the Wildlife Trust, added: "There could be a loss of breeding ground or of spawning areas for fish that birds feed on.

The 9.5km-long sea wall would be used by walkers and cyclists

"We don't know what the long-term impact will be ... but there are certainly opportunities for mitigation along the way."

A planning application will be submitted later this year with a decision expected in early 2015.

If the development is approved it could be open by 2017, with similar schemes possible in Colwyn Bay, north Wales, and in locations near Liverpool.

Canada, France and South Korea already have tidal power plants but the one planned for Swansea would be the first to utilise both the incoming and outgoing tides.

The bay is considered an ideal location for the project because of its shallow water and 10-metre tidal range - the second highest in the world.

"It's a fantastic proposal because it diversifies how we produce energy," Barry Stewart, a local wildlife enthusiast, said.

"Obviously a project of this scale is always going to have an adverse effect on some ecological features. The wildlife can be accommodated but time will tell."

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Lads Mags: Tesco To Restrict Sales To Over 18s

Supermarket giant Tesco says it will sell lads mags only to those aged 18 or over.

The chain also said it had struck a "modesty deal" regarding the front covers of magazines such as Zoo, Nuts and Front and that Bizarre will be supplied in a bag.

The supermarket is bringing in a raft of measures across its 3,000 stores in the UK in response to customer concerns about the racy images.

A Tesco spokesman said: "We have had in depth conversations with our customers about this issue and we're putting new measures in place based on what they have told us they want.

"We've listened carefully to the concerns raised by the campaign groups but our priority is to make sure we meet our customers' needs and expectations.

"To do that we have secured agreement from the publishers of Zoo, Nuts and Front that their magazine covers will be more modest from now on and the publishers of Bizarre will now supply the magazine in a bag.

"We are restricting the sale of these magazines to people over the age of 18 to reassure parents who do not want their children to be able to purchase these titles.

"And we will ensure these titles are always placed on the back tier of the magazine shelves so that the cover is obscured with only the title visible."

Feminist campaign group Lose The Lads' Mags has been part of a driving force in a campaign maintaining it is unacceptable to treat women like sex objects.

It has been targeting high street supermarkets and newsagents which stock the magazines, declaring that it is "a national scandal" they are putting them up for sale.

The group states: "Lads mags aren't just a bit of harmless fun. By portraying women as dehumanised sex objects they fuel attitudes that underpin discrimination and violence against women.

"Displaying lads' mags in everyday spaces like supermarkets sends the deeply harmful message that treating women like sex objects is normal and acceptable."

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Money Troubles: Half Of UK 'Living On Edge'

Around nine million more adults are struggling with money compared to seven years ago, a report into the health of the nation's finances has found.

More than half (52%) of those surveyed are living on the edge, equating to 26 million people across the UK, Government-backed body the Money Advice Service (MAS) said.

This is a sharp increase from 35% of people who were having difficulty keeping up with bills the last time similar research was carried out in 2006.

The service found that many people are suffering from poor financial skills and the squeeze on families following the economic downturn has encouraged a "live for now" culture which is dragging down people's ability to save enough for their future.

Income per hour has dropped by 6% in real terms since the previous research was carried out, making it harder for people to make ends meet.

More than 5,000 people took part in the latest financial capability survey and more than 70 families were followed over the course of a year for the Financial Capability Of The UK report, which found "a general feeling that people worry about their ability to make it to the next pay day".

It continued: "And because of this, people are focusing more on the here and now than on planning for the future, including for unforeseen emergencies."

One in five people surveyed said they would rather have £200 now than £400 in four months' time. Two-fifths also said they would have to think about how they could cover an unexpected £300 bill and one quarter said they prefer to live for today rather than plan for tomorrow.

Caroline Rookes, chief executive of the service, said: "In theory, money management is easy - spend less than you earn and consider your future - but the difficulty comes when applying this to the real world."

A Treasury spokesman said: "We recognise that times are still tough for families, but Britain is holding its nerve, we are sticking to our plan, and the British economy is on the mend.

"The Government has taken continued action to help households with the cost of living, including cutting tax for 25 million people by raising the personal allowance and freezing fuel duty."

MAS, an independent body set up by Government, has a statutory objective to raise public understanding and awareness about financial matters. It is due to publish a strategy on how people can be helped to improve their finances next year.

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RBS Sees Profit Of £1.37bn In First Half

RBS' McEwan: Man Behind The Name

Updated: 8:01am UK, Friday 02 August 2013

Ross McEwan was the nearly man of Australian banking before his ascent to one of the most sensitive jobs in the UK financial world.

His appointment as chief executive of Royal Bank of Scotland (RBS) comes two years after a surprise decision saw him passed over in the race to become head of Commonwealth Bank of Australia (CBA).

Mr McEwan, who was head of CBA's retail business, was widely seen as having been groomed for the role.

The New Zealander, a married father-of-two, then accepted an offer to become head of RBS's retail arm, joining the state-backed lender just 12 months ago.

The resignation in June of his boss Stephen Hester, amid claims of political interference, paved the way for Mr McEwan to take charge - especially after a leading external candidate, BlackRock's Mark McCombe, withdrew from the field.

His appointment is being seen as a politically-acceptable move to indicate a shift in emphasis towards the bank's more traditional high street branches as opposed to its investment side - associated by many with high-rolling City risk-takers.

Mr McEwan is also reportedly seen as a "carbon-copy of Antony Jenkins", the Barclays boss hired last year to clean up the group's image.

He has already launched a £700m plan to improve RBS's branches and services, and has been scathing about the state of UK high street banking.

Mr McEwan reportedly told analysts earlier this year: "Having come into this market six months ago I've been quite surprised at how bad this industry is from a retail banking perspective. I'd even go as far as to say that there's not a good retail bank, and our job is to create that."

His spell at RBS so far has not been without its challenges - notably a series of IT glitches that hit customers trying to log in to their accounts, as well as the announcement of 1,400 job cuts earlier this year as Mr McEwan said resources were being re-focused on "things that matter most" to customers.

However the turbulent period will have been eased by the £3.2m share award he was reportedly given as a "golden hello" when he joined last August.

Eyebrows may be raised in the City about the background of a chief executive who reportedly spent his early career working in human resources, and once told an interviewer that he was "more comfortable with people than with figures".

In the article for an alumni magazine at New Zealand's Massey University, where he gained a business degree in the 1970s, Mr McEwan also admitted that he had twice failed accounting exams.

His background is likely to come under further scrutiny after being named as head of a bank that is 80% owned by the taxpayer.

Mr McEwan has worked in the insurance and investment industries for more than 25 years, including as managing director of stockbroking business First NZ Capital Securities and chief executive of AXA New Zealand.

In Australia, he was executive general manager in charge of CBA's branch network before becoming head of retail banking services in 2007, and is said to be a keen water skier and cyclist.

On the announcement that he was joining RBS last year, he told an Australian newspaper: "It's certainly going to be a challenge to turn the retail business around. It's a tough economic environment and there are political aspects too."

Mr McEwan now faces an even greater challenge as he seeks to take RBS on to a successful future just a few years after it so nearly collapsed - and having to do so under the watchful eye of the ministers who can ultimately pull the plug.

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BA Owner IAG In £300m Half-Year Loss

Losses have deepened for IAG, the owner of airlines BA and Iberia, as it reports a half-year operating loss of 345m euros (£300m).

The six-month figure to June 30 compares to a loss of 253m euros (£220m) in the same period last year.

However the airline group saw passenger revenue rise by 4% to 7.498bn euros, with total revenue up 2.1% to 8.707bn euros compared to last year.

IAG said the operating loss for the half-year was 33m euros before exceptional items were added.

Chief executive Willie Walsh told Sky News: "All the exceptional items were in the first quarter and they related to restructuring at Iberia.

"The second quarter results were actually very impressive, where we reported an operating profit of 245m euro, up from the 4m euro loss last year."

The company has been implementing a significant restructuring on Iberia, which has resulted in industrial action and major job cuts.

Mr Walsh said: "The restructuring plan is proving to be effective, but there's still a long way to go.

"To date, about 1,700 people have left Iberia, by the end of the year that will have increased to about 2,400 and there will be more next year."

He added: "I'm pleased with the way the restructuring programme is progressing."

BA's performance in the group further strengthened, with operating profit at 247m euros in the period, compared to 94m euros in 2012.

The airline boss explained: "The London market and transatlantic traffic remains strong, legacy costs from the BMI integration have ended and the airline remains focused on cost control."

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Nazi Gold Moved And Sold By Bank Of England

The role the Bank of England (BoE) played in moving and selling gold looted by the Nazis has been revealed in a previously unpublished file.

A record from the bank's archive shows it transferred £5.6m of gold from Czechoslovakia on behalf of Germany's Reichsbank, following the Nazi invasion in 1939.

The gold was moved from the National Bank of Czechoslovakia's account at the central Bank for International Settlements (BIS) to an account managed on behalf of the Reichsbank.

Some of the gold was later sold in London.

The 10-page document, published on the BoE's website, was produced following the Second World War amid fears the bank's position had "never been thoroughly appreciated" and that "their action at the time was widely misunderstood".

It states: "On March 21, 1939, the Chief Cashier received the request to transfer about £5.6m gold from the BIS No.2 Account to their No.17 Account.

"The bank, although it was no business of theirs, was fairly sure that the No.2 Account was a Czech National Bank Account and they believed, although they were not sure at the time, that No.17 was a Reichsbank.

"The amount was transferred on the same day and a small further amount on March 22.

"Between March 21 and 31, the gold received on the No.17 Account was disposed of, (with) about £4m going to the National Bank of Belgium and the Nederlandsche Bank and the remainder being sold in London."

The BoE document said its actions were "widely misunderstood"

The report also reveals the Governor of the Bank of England rejected a call from his French counterpart to prevent the transfer of Czech assets, believing such a move would be "wrong and dangerous for the future of the BIS".

Patrick Jenkins, banking editor of the Financial Times, told Sky's Jeff Randall: "There is some sense that this was being done without full disclosure to the UK Government.

"Clearly the UK Government was at the time on the brink of war and not keen to help the Nazis in any way politically or financially.

"It seems the Bank of England was undermining that position."

The report shows the Government was powerless to prevent the BoE obeying any instructions received from the BIS without violating its obligations under international law.

It also states how, in May 1939, the governor of the BoE declined to tell the Chancellor whether it still held any of the Czech gold.

"The Governor ... did not answer the question but pointed out that the bank held gold from time to time for the BIS and had no knowledge whether it was their own property or that of their customers," the report says.

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British Gas Defends Cold Winter Profits Boost

British Gas has said higher costs largely wiped out profit growth from the unusually cold winter in the first half of its financial year.

Profits for the residential energy business in the six months to June 30 grew by 3.2% to £356m.

While the company admitted a benefit from the bitter conditions between January and June - with gas consumption rising by 13% - it insisted that profits were curtailed by "significantly higher environmental and commodity costs".

It said a new duty to deliver energy efficiency measures in customers' homes drove its environmental costs up 37% in the period.

The supplier raised its domestic tariffs by 6% last December, saying it would put additional revenues over the period to limit further bill increases in future but campaigners have pushed for price cuts to help consumers.

Most energy suppliers raised their prices ahead of winter

It said it could not rule out further increases to tariffs ahead of the coming winter because an "upward pressure on costs" remained.

Nick Luff, finance director of parent firm Centrica, sought to shift part of the blame for any future rises to the Government-backed ECO (Energy Companies Obligation) scheme.

He said: "We will keep prices as low as we can for as long as we can for as long as we can. If prices do have to go up, we will delay it for as long as possible."

He defended the £11m rise in profits, saying it represented just 70p per customer.

Chief executive of Centrica, Sam Laidlaw, added: "With our customers using more gas to stay warm during the unusually cold winter, we're doing everything we can to help them keep their energy costs under control and make bills simpler and clearer."

Centrica posted a 2% rise in adjusted profits over the first half, spurred by higher output from North Sea gas fields.

The company made £767m as overall revenue rose 14% to £13.7bn though the focus remained on earnings at British Gas amid the continuing row over energy supplier profits.

On Tuesday, French-owned energy firm EDF said its profits had risen to a record £903m in the wake of the cold spell though its residential business, the company said, continued to operate at a loss.

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Car Insurers Rapped On Whiplash Fraud

Insurance companies have been told to "get their house in order" and end the additional cost to drivers from fraud and exaggeration in whiplash injury claims.

A report by the House of Commons Transport Committee said industry practices encouraged bogus cases and ministers should consider imposing several measures if insurers fail to act.

While companies insist progress has been made in bringing down premiums as a result of identifying fraud, they admit whiplash still costs UK motorists over £2bn a year, adding £90 to the average premium.

Among the committee's recommendations were reducing the limitation period for road accident insurance claims and requiring whiplash claimants to produce more supporting evidence of injury.

In their report the MPs concluded: "We were surprised to hear that insurers will sometimes make an offer to personal injury claimants even before a medical report has been received.

"We also note that our previous recommendation on making the links between insurers and other parties involved with claims more transparent has been ignored.

"Insurers must immediately get their house in order and end practices which encourage fraud and exaggeration. If not, the Government should take steps to protect motorists."

The committee's chairman Louise Ellman added: "The Government should consider requiring claimants to provide proof that they have either been seen by a doctor or attended A&E shortly after the accident.

"There should be a presumption against accepting claims where adequate proof of injury is not provided."

Justice Minister Helen Grant said: "Honest drivers should not have to bear the price of a whiplash claims system which has been abused and has contributed to increased insurance costs.

"We have already made major law changes to turn the tide on compensation culture to help ordinary people with the cost of living."

The Association of British Insurers said the committee was right to identify the need to tighten the rules.

Its motor insurance head, James Dalton, said: "There has been a growth in recent years in claimant lawyers and claims management companies encouraging people to submit an increasing number of frivolous or exaggerated claims.

"Following recent reforms to the civil litigation system, insurers committed to pass on cost savings to motorists. We have delivered on that commitment and average premiums have reduced by 10% in the last year."

But he added: "The committee's report has kicked into the long grass making the tough calls for reform that are needed to help insurers combat the whiplash epidemic and deliver further premium reductions for hard-pressed motorists."

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Coalition's £5bn Export Scheme Yet To Launch

A £5bn scheme designed to boost exports which was due to be launched last year has yet to help a single British firm.

Ministers said details of the export refinancing scheme, which was due to be up and running by the end of 2012, were still being worked on.

Shadow business secretary Chuka Umunna said it was a "huge disappointment" and claimed the Government was "letting down businesses across Britain".

The refinancing facility was announced 12 months ago and should have been available later in 2012.

Michael Fallon: Scheme still being developed

The scheme aimed to provide long-term loans for overseas buyers of UK exports at competitive rates by guaranteeing a series of short-term bank loans.

But in a written parliamentary answer Business Minister Michael Fallon has admitted the policy is still being finalised.

"The parameters of the Export Refinancing Facility are still being developed and therefore no businesses have yet received support through the facility," he said.

Mr Umunna said: "The Tory-led Government promised to increase exports to £1 trillion by 2020, but our trade deficit is now at its highest level in six months and the UK has the largest goods trade deficit of any EU member state.

"To build a balanced and sustained recovery we need to help more businesses to export.

"Ensuring that firms have access to the finance they need to export is a crucial element of this.

"Ministers like to talk about the global race, but their failure is letting down businesses across Britain which are being held back from competing".

A UK Export Finance spokesman said the scheme had to comply with European Union state aid rules and provide value for money for the taxpayer.

She said: "The scheme is being designed to ensure that it helps businesses to export whilst providing good value for the taxpayer and complying with state aid rules.

"We want to make sure we get it right and are making progress.

"In the meantime, UK Export Finance is providing considerable assistance to UK exporters through its existing facilities.

"In 2012/13 UKEF provided £4.3bn of support to British firms."

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