Madeira News Blog

I just liked this picture of Uncle Bertie, delivering a speech about how his "dreams for autonomy" have not yet been realised, and the "the story will build itself stone by stone, until the objectives have been met". It looks more like he is telling a fishing story after a few jugs of vinho seco if you ask me.

(20th July). ‘Jardim Discredits Poll – The president of the government says that it is a strategy to distract the voters’. Referring to the election poll about people’s intentions to vote ‘if the national elections were held today’, carried out by the Diário (see yesterday’s blog), Jardim says it is a tactic to disinterest voters. He claims that the Diário always carries out surveys that show the PSD in a strong position, because then people will decide that there is no need for them to vote. Why not get your pet newspaper to do one Uncle Bertie, that way you can waste a bit more taxpayers money, and at the same time use the information to discredit the Diário … I don’t think you would take up that challenge somehow.

‘Parties Prepare Cheap Campaign – Some political parties say they have less than a thousand Euros to spend per district’. The main party leaders are busy doing their accounts, with two election campaigns to fund, and these have to be submitted to an auditing function within the next few weeks. The task is not yet completed, but it is becoming clear that there is less money for propaganda and festivities, and budgets are expected to be between 30 and 60% lower than 4 years ago. The CDS / PP says it will spend a third of what it had in 2005, and the spend will be restricted to just what the state gives the party for this purpose. The socialists will have cuts of at least 20 – 30%. The Left Block of Madeira (BE) says it will have little over €1,000 to spend across each the 11 districts of the two islands, and their campaign will be very modest. The BE coordinator also says it would be disrespectful to spend too much in a time when people are suffering financial hardship and unemployment is so high. The social democrat coordinator says it is too early to tell, but he expects the largest party of PSD ‘to follow the general trend’. As an example he said that the forthcoming festival (rally) in Chão da Lagoa will cut back to having a ‘B list’ artist (group/musician?). Ok times are tough in politics, great for the population at large me thinks with less hype and eyesores. However, the council here in Ribeira Brava arranged a almost surprise concert night here for last night, presumably funded by taxpayers money, but with no political presence. Was this an attempt to gain ‘brownie points’ with the electorate using public money, or an act of pure benevolence with the PSD gaining no advantage whatsoever? 

Just 6 articles in the main political section of the Diário today, but 5 were election / candidate related.

In the economy :

(20th July). ‘Zona Franca On A New Black List – The Italian government places Madeira amongst the financial paradises’. Italian ‘anti-crisis’ legislation has named the tax advantageous facility at Caniçal as an undesired offshore tax haven because of new tighter criteria, according to an Italian newspaper. The new law which pinpoint locations where businesses would pay less than half the tax (13.75%) they would pay in Italy, means the government would take action against them. "The surprise is that with these new parameters there are some important European partners such as Great Britain, the Netherlands, Ireland and some fiscal zones in Portugal (such as Madeira) and Spain (like the Canary Islands) that are likely to fall inflexibly under the Italian law, in the same way that as the Cayman Islands or the Cook Islands do", said La Repubblica newspaper. That’s typical of Italian politicians to be a step behind the rest of Europe, that already accept Madeira’s tax zone as open and transparent in it’s operations … somebody needs to buy them all a cornetto to cool off those overactive political brains.

’100 Biggest : Sá Employs More Than One Thousand – The Madeiran group counts on 1,178 employees in the units spread around 5 regions of Madeira and also in Lisbon’. It looks that this is the Diário featured company this week, and as it’s a household name I will cover it today. Fifty-three years after opening a small shop (Pérola dos Cafés), Jorge Sá now heads a group that is one of the largest employers on Madeira. It has 20 ‘points of sale’, of which 4 are traditional Hiper Sá stores, and several others with different brand names, as well as a hotel in the Azores. 633 of the employees are employed in Funchal. 76% of the employees are women, and overall there is a "curious" average age of around 36. The company takes its training seriously, ensuring that employees have 35 hours a year. Staff costs amount to €12.8 million per annum, and turnover for the group was €140.4 million in 2008. So is the Diário suggesting that Jorge Sá prefers to employ ‘young chicks’, I for one wouldn’t believe that!

‘Farmers Earn 60% More In Eight Years’. President Jardim said yesterday that the average income of the Madeiran farmer increased from €2115 to €3379 between 2000 and 2008, citing official data from Portugal. Banana producers, on average, increased their income by €317 between 2007 and 2008, he said at the Banana Show in Madalena do Mar, as production rose by 11%. Banana exports also increased by 10.7%. It is hard to believe that so much manual effort brings so little reward to farmers. In some countries in the world farmers wouldn’t get out of bed for less than 10 times that.

‘Expomadeira Exceeds Expectations – The Economic Activities Fair of Madeira closed yesterday in Funchal’. The results were very good, with the attendance of public and businesses / exhibitors, and even sales, that covered the 9 days of the event. 73,000 people came, 2,000 more than last year, and that was with a full day still to go. The event does provide entertainment and facilities for families, so it is not just a dull day of business. This year was the 26th year for the event.

(19th July). ‘Ricardo Salgado, President OF BES, Says That The Worst For The Banks Has Now Passed’. In an interview with the Diário, he states that in world banking the worst has passed, because there is now money available, but we are still in a negative economic cycle that no one knows exactly when it will end. As for his own bank Espirito Santo, he says it was one of the few in Europe that managed to raise it’s own capital without state intervention or help, and is now looking at developing new business in Africa.

This photo was taken at the Banana Exhibition / Festival in Madalena do Mar, which runs through until the end of today, with much gastronomy and musical entertainment for those attending. The prize giving for the best banana clusters is today … and I can hardly wait for the result.

(19th July). The main photo in today’s photo shows a car a distance away on a road : ‘Businessman Was Murdered – The case of the kidnapping of the Porto Santo businessman ended in the worst way. Guilherme Bernardino was found dead in a well in Camacha. The PJ Police detained a Brazilian citizen yesterday afternoon and are now searching for a Madeiran who is still at large. The detainee was heard in the court in São Vicente and taken to the prison in the car in the photo’. The 78 year old man was murdered on the day of his abduction, and dumped in a well used to provide agricultural water. His body was retrieved by firemen last night. The story lacks detail because it was breaking as the Diário print deadline was passing, but one other detail is that the kidnapped man rang his family himself after being kidnapped during a phoney meeting, and had said that he needed a large amount of money. The 3 calls thereafter came from the Brazilian kidnapper.

‘Pigeons Appear Dead – Funchal Council says that it will not investigate because of a lack of resources’. Yesterday afternoon around 20 dead pigeons were found dead in various parts of the city. Some were found still alive and suffering, much to the disgust of locals and tourists. The finger has been pointed at restaurants, who are thought to be responsible for previous occurrences, in an effort to stop the birds annoying customers.

‘To Try And Understand The AEDES – Specialists are on Madeira until 31st July to study the mosquito’. Starting tomorrow a team of experts will take a new approach on the problem with the Aedes Aegypti mosquito, that will look at how the insect has managed to adapt itself to the conditions here, and also study the effectiveness of the insecticides being used in an attempt to control the pest. A further study will be conducted in October, involving entomologists and specialists, to look at new ways to tackle the problem, and consider using a method that genetically modifies the male mosquito to halt effective reproduction.

‘Agreement Between Doctors And HCF’. Doctors and administrators at Funchal Central Hospital have  eventually reached an agreement over the maximum number of working hours in the accident and emergency department. The administration has now accepted a limit of 12 hours per day, split into two blocks of six hours, but the doctors have accepted some flexibility as to when to work these blocks, depending on the workload and level of emergencies. Any hours needed over and above this limit will be at the discretion of the doctor, and will be paid as overtime. The doctors say the fight was not over money, but giving a better service to the population.

‘More Drugs Than Work In Curral Das Freiras’. Its the biggest parish of Câmara de Lobos, but the only means of access is from Funchal, and as such is isolated, despite the new tunnel. It lacks police, has no secondary school, and there is little work. A second headline calls it ‘a lawless territory’, and the population has to live with growing crime problems, and complains that it needs a police station based there. As well as the problems with petty crime and drugs, one resident says that the bars stay open all night without licenses to do so, and they have to put up with night time car racing. Even when police do go to the area, some sort of early warning system by mobile phone, alerts the law-breakers before the squad car even enters the access tunnel. Another resident says "We need another (access) road, but not from Câmara de Lobos, that would only bring thieves". It seems that a new road connection to Boaventura is the preferred option. The area, better known to many as ‘Valley of the Nuns’, covers 25 square kilometres, and has an ageing population estimated at over 1,600. It has a chemist, a social security office, a health centre, and a small crew of equipped firefighters.

Today’s main sports news ‘Nacional Win Trophy In Croatia – "Alvinegros" enjoy a party after beating Hadjuk Split and drawing with Blackburn’. Our lads won the triangular trophy, presented in front of around 6 thousand fans in the stadium of Hadjuk Split yesterday. Nacional beat the home side 1 – 0, and drew 0 – 0 with Blackburn Rovers from England, to finish top with 4 points.

Today’s main news headline : ‘Orange Strengthened – A survey by the Diário / TSF reveals the voting intentions for the national elections that increases the dominance of PSD-Madeira’. The headline also includes, like a football score ‘PSD 5 – 1 PS’, being the predicted allocation of the six deputies that Madeira has (3 – 3 in the last elections in 2005). The survey of 712 participants gives the PSD a 40% lead over the PS, and was carried out last week. It asked quite simply, if the elections were today, who would you vote for? : PSD 45.1%, PS 12.9%, BE 6%, CDU 5.6%, CDS/PP 5.5%, PND 1.1%, MPT 1%. I am not sure where the 40% comes in, but lets get into the detailed analysis … just kidding!

(27th June). ‘Payments By Multibanco (ATM) Card Fall By 100 Thousand Transactions Per Day – The plastic money becomes scarce: the Madeira economy lost 14.8 million electronic payments in 5 months’.  The Diário believes that much of this is due to the scarcity of tourists, as Madeirans continue to use the cash points much as in the previous year. The value of each use of the cash point (ATM) card has decreased by an average of 8.7%, with the average transaction now being €42. I think that value may seem high as of course here many use their cards to pay utility bills, council tax etc.

Petrol prices go up again on Monday, one cêntimo per litre to €1.23. Diesel rises 2c to €0.96.

‘Tourism Resists Crisis On Madeira – At this point more tourists are travelling to the region, compared with same period of 2008′. It’s another one of those stories that changes with the wind, but it seem that thanks to Portuguese travellers, the hotel occupancy rate currently stands at around 70%. The numbers are provided by the regional director of tourism, who believes that the extra promotion of tourism, to the tune of €4 million is a contributory factor. There are also more visitors coming from the ‘east’, and the Atlantic Festival has brought positive results.

(26th June). ‘Cane Saccharin Exported To The Continent – The objective is to make natural juice to be sold on the beach’. A former restaurant owner from Calheta, now a farmer, is a pioneer in the export of sugar cane to Portugal. He has already sent a container load of 10 tons, and is preparing to send another. "I never earned as much money as now" he said.

‘A Major Franchising Group In Europe Invests In Madeira Forum – The European giant chooses Madeira as one of the 13 stores to be opened in Portugal’. The international clothes selling chain C & A aims to open a store on Madeira next year. The contract for the premises has already been signed. The group already has shops in 18 countries, and all together there are 35,500 employees. The letters C & A are the initials of the brothers Clemens and August Brenninkmeijer, who founded the company in Holland in 1841. 

‘The End Of Coopobama’. The Cooperative of banana producers of Madeira held their penultimate general meeting, with the last one planned to dissolve the organisation officially, 16 years after it’s creation. The reason given is that a new management company, GESBA, has been set up in the sector, which has taken on the assets and liabilities of Coopobama. After years of paying €1.39 / kilo on the odd occasion I buy bananas, I smell a price increase in the air.

‘Taxes Should Not Have To Increase’. The Secretary of State for Fiscal Affairs (Portugal) said yesterday, that neither now, nor in future will there be a need to increase taxes, arguing that the loss of incoming tax revenue is cyclical and the financial system is adapted to the financing needs of the state. "Neither now nor in future will we need to raise taxes to stabilize the budget. Our tax system is very efficient in recovery of revenue that is currently falling short in the state", said Carlos Lobo at the end of the Council of Ministers. That was in the same article that says "Portugal does not need to further reduce civil servants", so I think I will take that tax statement with a large pinch of salt.

(25th June). ‘Five Companies In The Process Of Opening In The Free Zone’. The director of the tax advantaged facility in Zone Franca in Caniçal announced this on Wednesday, adding that dozens of new jobs would be created. The good news comes after a promotional initiative, that was presented both nationally and internationally. In the industrial zone there are currently 52 companies employing 820 workers, which in investment terms amount to €182 million. RTP News had a different take on the story, saying that now offshore structures elsewhere are being black listed internationally, companies are looking to move to tax advantageous areas such as the Free Zone of Madeira, to legitimise their operations.