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

(24th May). ‘British Operators Reward Quality’. Two of the five star hotels owned by the Pestana Group of Madeira have been recognised by the companies TUI UK and Thomas Cook, in an award ceremony that took place at the new Pestana Promenade Hotel on Saturday night. TUI gave four awards to the Casino Park Hotel, and one to the Pestana Grand. Thomas Cook also made one award for excellence to the latter. All the awards were made for ‘first place’ in the various categories judged.  

(25th May). The main headline in today’s news : ‘The One Million (€) Hole – The revenue for Porto Santo Line fell 19% in the first 4 months of this year, compared to the same period in 2008. That caused a loss of €1 million. Passengers, freight and everything is decreasing drastically’. This is updated recycled news, so I am not going into the same detail again, but the chart with the article shows that 2008 (January – April) was a particularly strong period, and in fact the latest ‘gloomy’ figures are roughly in line with the movements of 2006 to 2007. You can see that here : PORTO SANTO LINE  Yet the Diário calls them "disastrous" results, and with just this year and last year compared, a 14% drop in passengers and 24% drop in freight doesn’t look good, especially when it amounts to €8,000 per day in lost revenue. Also I didn’t see anything taken into account for the period the ‘Lobo Marinho’ was out of service at the beginning of this year while it went to the continent for an overhaul.

(24th May). The company TRIAM, that was recently suspended from its passenger and baggage handling contract at Madeira Airport, has now been declared insolvent. The matter was made official in Santa Cruz Court on the 15th May. It has debts thought to exceed half a million Euros, and creditors have been given 30 days to enter a claim. 26 members of staff will be joining the unemployed as a result.

In a rather rare event, a public company on Madeira has actually made a profit. IGA, Investment and Management of Water, closed 2008 with a profit of €2.1 million, a result which reflects a growth of 42.1% over the figure recorded at the end of 2007. Several factors contributing to the profitable year were income from electricity generation, and less water used by councils (-0.5%), the public (-11%), and Madeira Airport (-13.8%). During the year IGA provided 46.4 million cubic metres of water, overall 0.7% down on the previous year. I still pay my water bill to my local council, but I guess they are just still collecting the money. I reckon I use less water now than ever, but my water bills have pretty much doubled over two years, so could that be a factor as well do you think? Still I normally only pay €4 or €5 a month, so I can’t complain too much.

‘Reciprocal Guarantee Helps 56 Companies To Go To The Bank’.  According to the Portuguese Mutual Guarantee Society, 56 Madeiran companies have been able to ask the banks for money amounting to €10.2 million, because the guarantee covers the bank for potential losses (at least I think that’s how it works). The scheme has been operating for 15 years, but the level of business is growing rapidly, with an increase of 119% on the guarantees given at a national level.

The BCP Bank (Banco Comercial Português) made profits of €66.4 million in the first 3 months of this year, 352% higher than the analysts predicted. How does that make you feel first thing on a Monday morning?