Madeira News Blog

(31st July). ‘Millions Given To The Jornal da Madeira Could Be Returned – The competition authority yesterday alerted about the illegal support of the Madeira government to the JM. And it says that Europe could demand the return of €23.4 million. Meanwhile the Diário sacked 13 professionals’. You saw this on yesterdays blog before the Diário published it in printed form, so it’s old news now, although I didn’t realise that the Diário had to sack 13 staff … no wonder it seems to be getting thinner.

The regional secretary of Human Resources, Brazão de Castro, said yesterday that the Government here has "serious doubts" and "disagreements" on some of the points raised by the recommendation of the Competition Authority (AdC) on the financial aid provided by the regional government to the newspaper ‘Jornal da Madeira’, and the consequent distortions in competition in the media of Madeira.  "As a partner of the Madeira Autonomous Region there have been made financial transfers to the Journal of Madeira, with the objective of promoting press freedom, pluralism and diversity of the media" he said, adding that if the government strives to meet the recommendation of the AdC "it would need a reasonable time so as to ensure that the company and the jobs it provides are not put at risk". The Executive Director of EDN, the owners of the Diário, stressed that the current situation could have been avoided, and was not a matter of satisfaction for the company. It’s a no win situation in my opinion, with the only possible solution being to take the Journal into private ownership to ensure Madeira keeps two newspapers and healthy balanced reporting. But what sane investor would take on the Journal now, with such a bad and biased reputation, technically bankrupt, and with a cover price (which in reality is zero) that could probably never be reversed?

A Vice President of the Legislative Assembly of Madeira and a leading candidate to succeed Alberto João Jardim, Miguel de Sousa, yesterday made an appeal to the President of Portugal, taking advantage of his visit to Madeira. The appeal is for the state to pay for the extension works at Madeira Airport, which cost €200 million several years ago. The operating company ANAM has to repay the loan and the interest, and it is that overhead that is keeping Madeira’s airport charges very high and very uncompetitive, and without doubt deterring other airlines and travel companies. De Sousa argues that the state pays for motorways in Portugal, and in Madeira "the airport is our motorway". I don’t often agree with PSD politicians, but I think that is a very fair point.

‘Banks Increase Profits by 17% – The four largest private banks in Portugal profited by €760.7 million in the first 6 months’. BES, BCP, BPI, and Santander Totta together managed to make a profit 17.4% up on the same period last year. Santander did the best with €278 million, followed by BES with net profits of €246 million. BPI made the smallest profit of €89 million, but even that was ten times as much as the same period in 2008. Cost containing measures were the main contributor to the improved results.

A bonus today … Tobi’s video taken yesterday at the Madeira Wine Rally in Funchal

(22nd May). A rather odd looking front page news headline in the Diário today, with an image of a hand scribbled notepad : ‘September 2008 … 8,184 + 3,660 (last 8 months) = 11,844 unemployed – The growth of unemployment slowed, but the concern continues to be galloping : in the last 8 months the increase has been 45%. In April, 388 new cases signed-on at the employment office, lifting the total to 12 thousand’.

(21st May). The BES Bank in São Jorge has closed. The decision to close was kept internally, much to the disgust of the local population in this region of Santana. Attempts to contact the bank to find out the reasons have been unsuccessful. That’s a rarity, as the banks usually seem to breed branches like rabbits, and maybe a concern, because that may signal the start of withdrawal of banks from the smaller non-profitable communities.

(21st May). The Association of Young Entrepreneurs (AJEM) held a workshop in Ribeira Brava, attended by about 30 young people. The event included exhibitions and presentations, and attendees showed particular interest in the opportunities that AJEM is creating. There are a number of incentive schemes operating on Madeira which can be used to develop ideas into businesses. AJEM guarantees to give support to it’s members, all over Madeira, and give greater impact to their business operations.

(21st May). The fast road (via-expresso) and the completion of the golf course, are both essential to the future development of the parish of Ponta do Pargo, say the parish president and other local dignitaries. The completion of the two projects will attract more investment to the area, especially in tourism, allowing the creation of new jobs to offset the growing unemployment trend. Both projects have hit delays to the original plans, in the case of the golf course because of problems in acquiring the land, but there is no great concern.

(15^th May) The ALM, Legislative Assembly of Madeira, is to consider a proposal to pass a law that will stop large companies making mass redundancies, if in profit. If passed, the proposal of the PSD-M will protect workers until 31^st December 2010, as long as the company they work for has a million euros in liquidity (profits?) over the previous accounting period. Life and business doesn’t work like that unfortunately, but no doubt it will be a vote-winning idea amongst many employees in large companies.

(17th May). ‘Quinta de Gaula in difficulties – Transport costs hinder export of proteas flowers’. Between January and April, ‘Quinta Protea’ had a production output estimated at 60 thousand flowers, corresponding to 10% of the Madeira market. Despite the high demand for the eight species of proteas grown in Gaula, the seven year old business is currently facing serious financial difficulties. The main problem of the management is the transport costs. The increases in the price of fuel have pushed prices up in the last four years, and with the rates of export, have combined to lower the price of the flower resulting in a sharp drop in revenue for Proteus. Although the quality of the plants, grown in the soil of Madeira, ensures strong demand from the Netherlands, levels of production do not allow the region to compete with the Canaries and the Azores, and make it impossible to penetrate markets such as France or even the mainland.

(18^th May). ‘IHM Has Tenants Who Don’t Pay – Debts of unpaid rents rise above the €12 million mark’. Investment Housing of Madeira finished 2008 with a negative result of €1.1 million. In a year marked by a 3.7% fall in income, worth €20 million, the government linked organization was guaranteed a specified and limited income through the regional budget. This is the near equivalent of a government backed housing association, if I understand correctly.

BPI Bank now have their internet banking website available in English for those who need it. Just select the option at the top of the log-in page, and then log-in. It doesn’t have all the options that the Portuguese version shows, but it’s a start for those who would find English easier to work with.