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Blogs - Table of Contents
  1. Galway Races Brexit Factor
  2. Planning for Brexit
  3. The 3 Biggest Challenges to Public Sector Projects in  2016
  4. 3 Contributors to Ireland's Disappearing Fiscal Space in 2016
  5. The 2 main reasons for failure within Start-ups and In-Company Improvement Projects 
  6. Change of Company Name under new Companies Act 2014



Galway Races Brexit Factor


This year is the 148th Galway Racing Festival and will get underway on Monday 31st July to Sunday 6th August.  The Galway Races Summer Festival along with other festivals in the City contributes to Ireland’s Tourism industry providing 230,000 jobs nationwide.
Galway Races

 

The short term impact to Irish tourism of Brexit has been the sharp weakening of sterling against the euro. There has been a substantial drop in the number of UK visitors to Ireland this year as the post-Brexit fall in sterling has made it more expensive to travel.  Outbound travel from Great Britain could see a decline of over 1 million trips because of Brexit and as a result the sport of kings at the Galway Festival will suffer. The number of visitors from the UK has decreased by over 10 per cent this year so far. Last year the Summer Festival attracted 150,000 people and contributed over €50 million to the local economy. The Galway Festivals rely on British visitors to the City and is likely to be impacted more this year as competitiveness weakens. The value of sterling has weakened by more than 15% since the Brexit vote meaning that the British visitor now finds Irish holidays more expensive.

Britain is Ireland’s largest overseas market, and brought in excess of €1.2 billion last year 2016. Two out of every five visitors to Ireland in 2016 were from Britain. British consumers are more concerned with good value for money and competitively priced air and sea fares than visitors from other countries.  In 2015 when the pound was relatively strong against the euro, British visitors were the most critical of the expensiveness of holidaying in Ireland. Galway businesses must realize that overseas visitors to Galway festivals will dry up quickly if holiday costs are not competitive.  Businesses in the Hospitality sector nationally could face revenue losses in excess of €80 million this year as the impact of Brexit hits the spending power of British tourists.

The Irish racing industry, will suffer further in the medium to long term as the effect of a hard Brexit kick in. For example border controls and checkpoints would end the free movement of racehorses between Ireland and Britain. Racehorses will be impacted with border hold-ups, when travelling from Ireland to the UK. The increased costs associated with transport, tariffs, border delays and weaker sterling will all contribute to a drop in UK entries to Irish races. Sellers or selling races would be impacted with the application of WTO tariffs which would apply to buying and selling geldings back and forth to the UK after a hard Brexit. There are 16 English-trained horses entered in the Guinness Galway Handicap Hurdle in 2017.  Time will tell the real impact of Brexit on the Galway racing festival.





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Planning for Brexit

In a referendum on the 23rd of June 2016 the UK electorate voted to leave the EU. As a result the changing relationship between the UK and Ireland will  be determined between EU and UK parliamentarians. The impacts on individuals and businesses in Ireland and the UK will range between minor where the agreement reached is similar to that between Norway and the EU, to major where the trade between the EU and the UK comes under the World Trade Organisation (WTO) tariff regime and labourr movement between the EU and the UK is curtailed.




Brexit




The Exchange Rate


In September 1992 Britain  adopted a floating exchange rate system after withdrawing the pound sterling from the European Exchange Rate Mechanism (ERM). The Brexit factor has already kicked in with a weakening of the pound against the euro and the dollar in this floating exchange rate system.
The effects will be:
 1. The Higher prices of imported goods should spell a drop in demand.
 2. Exports should see a rise in demand because of the falling value of Sterling.

The impacts may vary dependant on the types of goods and services.



Exchange Rate Graph Euro to GBP Sterling 2015-2017
Source: Graph compiled from Central Bank of Ireland Data

Exchange Rate Graph US Dollar to GBP Sterling 2015-2017
Source: Graph compiled from Central Bank of Ireland Data



Business Sector Analysis

The methodology BPPM shall be using to measure potential impacts on sectoral businesses is an econometric model. This model focuses on the behavior of the Irish and UK economies in terms of gross domestic product, product consumption,  employment, product imports and product exports using variables such as tarriffs, exchange rates, and interest rates.

The price elasticity of demand for products is the degree to which demand for a good or service varies with its price. Price elasticity of demand varies both within and between sectors dependent on  factors such as:   

1. - Availability of Substitutes  

2. - Definition of Product 

3. - Number of Product Uses


D-Day for the British Prime Minister Theresa May to trigger Article 50 and initiate the UK’s exit from the European Union is 29th March 2017. The exit process negotiations may take around two years to complete. However the decision to leave has already had an impact on Irish exports. The USA and the UK are by far, Ireland’s largest trading partners. The impact of currency changes is reflected by the fact that exports to the UK decreased from 12.29% (€13.8.4bn) 2015 to 11.39% (€13.31bn) in 2016.

Exports to the UK

The impacts of price changes brought about because of exchange rates and tariffs are examined for good and services within the following sectors.


Food and Live Animals Beverages and Tobacco
Crude Materials, Inedible, Except Fuels Mineral Fuels, Lubricants and Related Materials
Animal and Vegetable Oils, Fats and WaxesChemicals and Related Products, n.e.s.
Manufactured Goods Classified Chiefly by Material Machinery and Transport Equipment
Miscellaneous Manufactured Articles Commodities and Transactions n.e.s.
n.e.s.: Not elsewhere specified


Irish Exports Classified by Commodity 2014-2016

Irish Exports per Commodity 2014-2016


Changes in Irish Exports to Great Britain and Globally 

Change in Irish Exports Globally 2015-2016 Source: Chart compiled from Central Statistics Office Data



Change in Irish Exports to Great Britain 2015-2016
Source: Chart compiled from Central Statistics Office Data

A username and password is required to gain access to the detailed sectoral analyses. Everyone who follows BPPM on any of the social network links below returns the contact form confirming which platform they are following on, and becomes  a member. will be given the access code and informed of updates. Please include any particular areas you would like to see examined, on the comments form.


Effects of Brexit on the UK and Ireland Economies

The formula for an economy’s annual gross domestic product GDP is the sum total of C + G + (X – M), where C, and G represent consumer spending and government spending. (X – M) which represents exports minus imports, or net exports. If exports exceed imports, the net exports figure would be positive, indicating that the nation has a trade surplus. If exports are less than imports, the net exports figure would be negative, and the nation has a trade deficit.

 Imports and Exports Ireland 1992 to 2016       Personal consumption of goods and services (€m) 

 Source: Figures from Central Statistics Office (CSO) 
Expenditure by central and local government on current goods and services (€m)     Gross domestic product at constant market prices (€m)
Source: Figures from Central Statistics Office (CSO) 


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The 3 Biggest Challenges to Public Sector Projects in  2016

Public Sector Projects - The 5 Biggest Challenges


   

The Challenges for Managing Public Sector Projects valued at €2.84 Billion

  1. Identification of outcomes.  The public sector project environment involves stakeholders with conflicting agendas. 
  2. Determination of the criteria for measuring success. The needs of the users of the final product can be difficult to assess amid varying political influences. 
  3. Competition for resources. The public sector project environment is subject to changing management priorities, particularly in times of political instability.
To help with these challenges Boyle Practical Project Management (BPPM) has started monitoring public projects to enable the transparent tracking of progress in a practical fashion in the public interest.  

BPPM shall be providing updates on these projects on an individual basis in line with BPPM’s Templates.  


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3 Contributors to Ireland's Disappearing Fiscal Space in 2016

                                                   
Fiscal Space

        1.        ‘Inversions’– Long Term

Corporate inversion is a term for the relocation of a corporation's legal domicile to a country with a lower rate of corporation tax. Continued measures by the US treasury to stem the flow of inversions will adversely affect the Irish Economy’s Fiscal Space. The impact will be felt as a gradual process over the next decade.

 

        2.        ‘Immigration’– Short Term

Immigration will impact on the Irish economy both directly and indirectly.

     Directly as immigrants are integrated into our economy - initial welfare payments and social housing provided will far outweigh tax contributions from migrants.

     Indirectly as the fiscal space of other EU countries contracts due to initial costs of immigrant integration.  The initial slowdown will have a short term effect on Irish exports.

 

        3.       ‘China’s economic Slowdown– Short Term.

The recession in China will also have an indirect effect on our exports as it will impact all countries who supply them with goods and services.

Disappearing Fiscal Space will lead to Disappearing Public Sector Projects. To help prevent Public Sector Projects with these challenges Boyle Practical Project Management (BPPM) has started monitoring public projects  to enable the transparent tracking of progress in a practical fashion in the public interest.

BPPM shall be providing updates on these projects on an individual basis in line withBPPM’s Templates. 


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The 2 main reasons for failure within Start-ups and In-Company Improvement Projects

The Road To Success

1. Quite often, people who become expert in their technical and operational roles are given project management responsibility. In many cases major issues arise on projects managed by competent technical individuals who do not possess the complimentary project management skills.

2. Almost nine out of ten start-ups fail. The major reason for these failures is that the original idea was not thought through properly.

To deal with these issues Boyle Practical Project Management have designed an on-line project management course covering every area of effective project management planning. This project management course is for anyone who is currently working on or about to commence work on a project or engaged with a Start-up. The course is an assignment based production of your project plan. Each section of project plan shall be explained within the course material, starting with project definition and ending with project closeout. 

For entry to this course it is desirable that applicants be:

             Planning to lead a project or be part of a project team and have a project plan to complete.

             Proficient in English which is the language of the course and have access to the internet.

             Knowledgeable of the basics in word and spread-sheet applications.

             Open to learning about project information processing packages.               

             Prepared to allocate between 6 – 10 hours per week to the course content and assignments.

 

What you get:

 

Eight lessons covering end-to-end Project Management Planning and Control.

 
Assignments aligned to your chosen project.

 
Access to course content on-line anywhere anytime.



Change of Company Name under new Companies Act 2014

The Dangers of Changing Company Name

The Companies Act 2014 requires that each company type be included as part of the company name. For some types of company this will require an alteration to be made to its name. The companies most affected are companies converting to or re-registering as Designated Activity Companies or Private Guarantee Companies.Boyle Practical Project Management is currently assisting Limited companies to come to grips with the Companies Act following the transition deadline of 30th November. BPPM give the steps for companies to make the transition themselves in the form of a detailed implementation plan.

Boyle Practical Project Management is now also assisting Designated Activity Companies (DAC) and Companies Limited by Guarantee (CLG) to come to grips with the Companies Act. The Implementation of the Act for DAC.’s and CLG.’s is somewhat more precarious than for Ltd.’s because of the name change requirement. 

The Companies Act 2014 provides that company names must include the company type suffix at the end of its name, unless exempted. The Companies Registration Office (CRO) has issued a number of Information Leaflets relating to the Act.

The Legislation

See Information Leaflets No 35 for information on re-registrations. A company can change their name by filing a Change of Company Name Special Resolution G1Q, amended the Constitution and submit fee of €50 if filed on line/€100 on paper.

The types of companies directly affected are Private Guarantee Companies and Companies Limited by Guarantee (CLG). Private guarantee companies are deemed to be Designated Activity Companies (DAC). These companies do not need to convert to DAC status but must make an adjustment to their company names. All Designated Activity Companies, which are limited by guarantee, must have the words “Designated Activity Company” or “Cuideachta Ghníomhaíochta Ainmnithe” at the end of their name unless exempted.

The words “designated activity company” may be abbreviated to “d.a.c.” or “dac” (including either such abbreviation in capitalised form) in any usage after the company’s registration by any person including the DAC. The words “cuideachta ghníomhaíochta ainmnithe” may be abbreviated to “c.g.a.” or “cga” (including either such abbreviation in capitalised form) in any usage after the company’s registration by any person including the DAC.

Companies which are limited by guarantee and do not have a share capital are deemed to be Companies Limited by Guarantee (CLG) under section 1189. There is a requirement for Companies Limited by Guarantee to have the company type added to the end of the company name.  All newly incorporated Companies Limited by Guarantee will have the company type at the end of their name from 1st June 2015, unless exemption is granted under section 1180.  “Company Limited by Guarantee” or “Cuideachta faoi theorainn Ráthaíochta” must form the end of the company name. Companies limited by guarantee are governed by Part 18 of the new Companies Act.

Nobody Likes To See This

If a company does not change the name of the company and submit an amended constitution using Form N3 during the transition period, the will change the name of the company and issue a new certificate of incorporation (unless the company already has an exemption).  In certain circumstance companies may be left with unnecessarily complex name, where they have been changed by Registrar of Companies. These are some samples:

THE SAMPLE INSURANCE COMPANY DESIGNATED ACTIVITY COMPANY

SAMPLE NAME FINANCIAL SERVICES HOLDING COMPANY DESIGNATED ACTIVITY COMPANY

THE SAMPLE LIFE ASSURANCE COMPANY DESIGNATED ACTIVITY COMPANY

Other Implications

Changes to the company name will affect company letterheads, stationery and signage. Any documentation submitted to the CRO after the end of the transition period (30th November 2016) which bears the incorrect name will be refused.

The Act provides that the correct company name must be displayed on all websites. Directors must ensure that they are prepared for a change in company name. Your business name has changed and you may want your domain to reflect this to maintain consistent branding.  Every company that has a website is also required to display either on its homepage or to be identified on its homepage, a readily accessible webpage on which the following appear:

(a) the name and legal form of the company

(b) place of registration of the company and the number with which it is registered

(c) address of the registered office of the company

(d) in the case of a company exempt from the obligation to use the company type as part of its name, the fact that it is such a company type (applies to Designated Activity Companies and Companies Limited by Guarantee only)

(e) in the case of a company which is being wound up, the fact that it is being wound up

(f) if the share capital of a company is mentioned on the website, the reference must be to the issued share capital

There are a number of issues which Directors must consider in circumstances where the company name is about to change.  It is advisable to try and identify the relevant issues and to put plans in place to avoid any difficulties before the company name changes (whether voluntarily by converting or by the name change being applied by the CRO).  Implementation of a company name change is normally phased in to ensure cost-effectiveness, beginning with regulatory compliance, continuing with updating on-line materials stationary and signage with the subsequent amendments to 3rd party databases.

What Needs To Be Done

The work schedule for Boyle Practical Project Management Project Implementation Plans for the Companies Act 2014 looks like this:

The actions needed to be tyaken when changing Company Name

 The Sting In The Tail 

The hidden danger for companies active on social media platforms is with changing their company page names, business page names, verified business accounts, handles etc., on the various social media platforms.  It may not be straightforward to change company names on these sites without losing followers, likes etc.

Project Delivery

What the Project Implementation Plans for the Companies Act 2014 contain:

1.       These are practical workable plans to enable Companies to make the transition to the

           new company type in a structured way.

2.       Plans are streamlined to deal with specific company types, either Designated Activity

          Company, Limited Company or Company Limited by Guarantee.

3.       Gives the objectives for converting and provides windows of opportunity to expand

          the scope to take advantage of the changes.

4.       Examines some general risks associated with the conversion.

5.      The plans outline the criteria for choosing the appropriate structure to be adopted.

6.       Provides the process for gaining members agreement or otherwise.

7.       Provides a fully resourced, costed (in hours) and time-lined activity schedule.

9.       Indicates the resource inputs to enable delegation of activities to named individuals.

10.    Highlights the section numbers of the Act under which the actions are required.

The Way Forward

Boyle Practical Project Management will be running a course over the next couple of months specifically for assisting companies to customise the project implementation plan to suit their individual needs. Please spread the news among your fellow company directors who may need assistance with the implementation of this Act.