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.

(30th June). ‘Chaos Around The Bazar do Povo – The first day of the bridge closure was chaotic for the traffic in the vicinity’. The project to demolish and rebuild the bridge, which was given plenty of publicity, caused immense problems and tailbacks for drivers yesterday, and caught the council by surprise. Funchal council tried various initiatives throughout the day to try and resolve the problems, including switching off traffic lights, which seemed to make matters even worse. The work is scheduled to continue through until 12th September.

The council of Santa Cruz used it’s ‘right of reply’ to clarify matters, after it was reported yesterday in the Diário about the plans to build a new building of shared service, ‘Loja do Cidadão’, in the process making an investor very rich (see yesterday’s blog). The response says that the Diário’s facts were wrong, and the lease will not be for 30 years, just 16, after which time the building will be fully paid and will start generating revenue for the council through subletting income. It also says that the monthly rent payable by the council will be offset by savings in the release of premises elsewhere. In addition "The solution proposed will allow the creation of many jobs in the area of construction and related services, bringing more dynamism to the local economy". In fact the statement from the president of the câmara totally reverses the negative report given by the Diário, and makes the project sound like a dream for everyone. One of the hazards of my work I suppose, but I reserve judgement until I see the ‘right to reply’ to the ‘right to reply’.

‘Colombo’s Resort’ with a solution in sight. Continuing with the earlier story, more details have now been released on completion the tourist resort on Porto Santo, where work was stopped because of a lack of funding. The Secretary of State for Tourism has put together a memorandum of understanding, with the support of venture capital companies, which should take a very important role in moving the work forward. The Portugal government is to take a small share (€10 million), compared with the other partners, and Porto Santo council itself is to stump up €5 million (and I think the Madeira government €1m). Another €10 million will come from the banks BCP Millenium and Banif, and €15 million from the construction company. Estimates are that the construction will need €40 million to complete, so that just about does it. The protocol is to be signed by all parties on Thursday in Lisbon. If all goes to plan, the complex will be complete next Summer, creating over 300 jobs, some way short of the 400 originally planned, but governed by seasonality and the standards of service planned for the new resort.

‘PSD-M Say That Autonomy Brings Savings To Portugal – The parliamentary group accuses the government of the republic of transferring just 20% of what Madeira spends on health and education’. The group say that through the regional finance law the government is providing less money, and based on a calculation using the year 2007, it transferred just €139 million, when on a per-capita basis it would have been €495 million. The social democrats say that for 2009 Madeira has a budget of €718 million for health and education, but that the state only transfers €147 million, "which represents only about 20%, therefore not fulfilling their responsibilities", accused Jaime Filipe Ramos. That’s a pretty hefty shortfall! So how is it being paid for ?

‘Regedor Of Tabua Leaves The Council – The senior of the parish claims that 88 years don’t permit more’. The 88 year old leader of the parish council is not going to stand again for election, after six decades of service to the community of Tabua, finally leaving his active political life due to his age. It was in 1947 that António Ramos took over as president, the position he still holds now, passing through the periods of dictatorship in Portugal, and the revolution of 1974. He has won nine elections since democracy, a feat unrivalled in local government. His successor, a candidate  from the social democrats, has not yet been determined.

‘PS Admits To Want Victory In Ribeira Brava’. But the socialist candidate at the top of the candidate list, Alano Gonçalves, admits it could be difficult "but not impossible". It got on the front page, I don’t know why, but he was hardly going to say he wanted to lose was he. Anyway, he is very likely to lose, and the PS in Ribeira Brava will be lucky to keep the one council seat they currently have (the PSD social democrats have 6), if the European election results are of any guidance.