Madeira News Blog

(27th June). Today’s main news headline : ‘Gouveia Pays Subscriptions Of Members In Order To Be Leader – João Carlos Gouveia (leader of PS-M) took on the party subscriptions for socialists that gave him their leadership vote. He did it through a cheque, that was never taken to the bank because there were no funds. The question returned to the agenda in January. Now, Gouveia doesn’t pay alleging that it is wrong to cover the subscriptions of others’. He says that he is now going to make a donation to the Socialist Party. This was back in July 2007 when he was elected party leader, when at the party congress the president demanded subscription payments from delegates, many of whom were supporters of Gouveia. The party rules say that one cannot vote if subscriptions are unpaid. He allegedly wrote out a cheque there and then for at least €6,000. Already hung and drawn, but probably not quite yet quartered.

President Jardim confirmed yesterday what was already widely known. The social democrat candidates for the 11 presidents of the câmaras (council) will remain as currently in post, apart from in Porto Moniz, São Vicente, and Santana.

There is an article on the reaction of President Jardim to the proposed purchase of a large stake in the holding group of TVI one of the top Portuguese television companies. The purchase, estimated to be around €100 million, is being considered by PT, Portugal Telecom. Jardim calls it scandalous. I don’t know what the big deal is as mergers in these sectors are common place, and anyway, Portugal’s government has a golden share in PT and can block or approve major decisions by the company.

The President of the Republic of Portugal has today confirmed that the national elections will be held on Sunday 27th September. Cavaco Silva called for calm in the election campaigns. The President expects to see the “real” problems and concerns discussed.

‘João Mota Repeats In The Classics – João repeats his ritual of kissing the champagne. It didn’t produce the brilliance of previous years, but nether-the-less it was a pleasing event’. João Mota and Miguel Correia won this years XXII classic car rally in a 1971 MG B. I can’t believe he is really called Mota (look in your dictionary).

‘Festival Of São Pedro Later Tonight In Ribeira Brava – The popular saints complete the triangle. The tradition takes thousands today to the mythical Ribeira-braven festival’. (Not my words, nor my plug this time). More than 15 bands and 850 participants will take part in the parades at 9pm, for the first time on the night before the night before the day of Saint Peter. the parades are followed by a concert by José Malhoa. Lots more, but a bit late in the day to publish it now.

(1st June). ‘Porto Moniz And Ponta do Sol Among The Beaches Of ‘Gold Quality’. Quercus, the environmental watchdog, has made the distinction for 227 beaches in Portugal, it is announced on the first day of the beach season. The approval is given based on water quality data from the ‘Office of Water’. Good for Ponta do Sol, who didn’t get the Blue Flag award again this year. The strange thing is the Diário only mentions these two Madeira beaches, no mention of any others here. Someone said to me last week that they wouldn’t swim at Ponta do Sol or Calheta because of the poor water quality, but it isn’t true. They didn’t get ‘Blue Flags’ because they weren’t up to the very high standards, which go beyond just water quality.

On Saturday around 80 representatives of specialist tour operators arrived on Madeira, representing around 30 countries. They are all members of an organisation representing golf holiday companies, and for 90% of those attending the conference, it was a first visit to Madeira. The regional secretary for tourism welcomed the group at dinner, and used the occasion to promote Madeira, its tourism and hotel quality. The delegates spent Sunday afternoon playing golf at Santo da Serra and Palheiro Golf.

Portugal Telecom (PT) has formed a partnership with the American company Cisco for the development of its next-generation network project. As a result, PT becomes a major client of Cisco, allowing the Portuguese telephone and internet provider privileged access to products developed by Cisco, even before they released on the main market. Cisco will also develop products in line with the requirements of companies that are PTs clients. In order to strengthen the partnership, Portugal Telecom has launched its own Cisco Telepresence network that permits video conferencing for calls in Lisbon, Porto, Madeira and the Azores. PT and Cisco will jointly market the products.

‘EU Approves A Reduction In IVA (VAT) In Restaurant Catering – The reduction will not be applicable on Madeira or in Portugal’. All European Union member states approved the new measure in principle, but with Portugal already having a low rate of 12% (8% on Madeira), the treasury here have said that no further reductions will be possible, despite the new rate being permitted as being as low as 5%. In France for example, the IVA / VAT will be reduced from 19.6% to 5.5% from July 1, which is considered by the French authorities to be a necessary stimulus to consumption and the competitiveness of the sector.

(30th May). Banana production on Madeira has fallen by 10% in the last 6 months. The fall was the direct consequence of cold wet weather.

(29th May) ‘A Fifth Of Companies With Negative Equity’. 20% of Portuguese firms have a total negative equity of €9.6 billion, it is revealed in a study called "The Dynamic Profile of Portuguese Companies", prepared by the National Association of Young Entrepreneurs (ANJE), in partnership with the Ministry of Justice. "The study’s findings are very serious, showing that our companies are in a situation of great vulnerability, and rely heavily on capital from others, especially from the financial system" said the president of ANJE, Armindo Monteiro. Of the 831 large companies, 11 percent have a capital of less than 100 thousand Euros. "This is very low to achieve significant volumes of business" he added. He called for tax incentives to encourage more private investment in Portuguese companies. "Right now, whether investing €50,000 in a business or buying a new car, the tax situation is the same, but if there was a distinction, there would be a greater investment in business" he said. 2 years ago maybe you were right Sr, but I don’t think private investors now would be jumping up to invest in this financial climate, especially after reading the full report and your interview in the Diário.