Spending cuts to reduce government deficit ; Pingo Doce owner pessimistic on future
Today’s photo – Many thanks to Becky … ‘Cruise ship silhouettes’
From vines to wines … Pete
I think you requested ‘meat on the bone’ more detail of the austerity budget for citizens / residents. Well, this is a good starting point. I am sure more detail, guidance will be on its way from the Government. Paul.
PORTUGAL – STABILITY AND GROWTH PROGRAMME 2010-2013
Memo from the Ministry of Finance and Public Administration – 08 March 2010.
The memo includes:
-Reduction of the General Government deficit and correction of the public debt growth by 2013
-The compensation of employees expenditure will be reduced to 10% of GDP in 2013, through a decrease of at least 100 million Euros per year of the overall amount of this expenditure. This goal will be achieved through:
• the reinforced implementation of the “at least two out for one in” rule;
• a policy of strong wage constraints
Social benefits will be reduced from 21.9% of GDP in 2009 to 21.4% of GDP in 2013.
Intermediate consumption expenditure
• Definition of outsourcing expenditure ceilings;
• Definition of a ceiling for expenditure on military equipment, through
40% reduction in the amount defined in the LPM (Military Funding Programme); not establishing any new commitments for military equipment purchasing.
• Reduction and rationalisation of current operating expenditure based, in particular, on the streamlining of public procurement and shared services processes. Link to full memo
Two from Elaine (East) : Interesting Festa da Flor poster. HERE
Helicopter flight anyone? HERE
From Tom : Expresso newspaper 6 of March Economy section – interview with one of the richest men of Portugal.
Alexandre Soares Dos Santos – owner of Pingo Doce stores all around Globe including Poland which he said is the Motor and tiger of arising Markets in Europe. He is there with 600 stores named Biedronka and he is going to open next 800. 60% of net profit of Grupo Jeronimo Martins, comes from Poland’s business. He said Russia and Ukraine are too corrupted to even think for him to invest.
On the home political front he said : The Prime-minister does not have psychological conditions to govern Portugal. Alexandre Soares fears an aggravation of the crisis with the increase of the unemployment and laments the situation. In a few months here (in Portugal) there will be no government." Very strong statement of the Man who knows.
Thanks a lot Paul, Elaine, Tom and Pete for the above links and articles.
Many thanks to Elaine once again for yesterday’s top news stories :
DIÁRIO 18/03/2010
FRONT PAGE NEWS
CDS want an investigation into the tragedy. Despite challenges by the opposition parties, the PSD has refused to establish a committee of inquiry into the tragedy of February 20th. The CDS-PP have formalized the request which requires 10 signatures from the opposition. The committee would assess responsibilities in the tragedy, especially licensing and building in areas of risk. The CDS think it is now time to take stock of the causes and consequences of the tragedy, especially to prevent the repetition of various situations. The main causes were: lack of planning and land management, improper occupation of land, construction on the banks and over the beds of streams and uncleared streams. The effects of the storms were exacerbated by insufficient afforestation of slopes and the dumping of earth and debris into waterways. The CDS propose immediate support to small businesses and families affected by the storms, cleaning streams and a review of the Municipal Master Plans and the preparation of plans for the coastline.
Taiwan wants to give money to Madeira but does not know whom to send it to. The solidarity has caused a diplomatic embarrassment as there is no representation of Taiwan in Portugal. The Portuguese Government does not want to anger China and does not want to offend Taiwan and refuse aid. If Taiwan gave money directly to Madeira, it would assume that these two regions are of similar status. (China considers Taiwan part of Chinese territory and not an independent state). The solution appears to be for the cheque to be given directly to Madeiran deputies in the Assembly of the Republic and then the funds distributed to the regional institutions.
MADEIRA
Crack could mean collapse. A fissure opened in a wall that supports land near the Business Park in Garachico in the parish of Estreito de Câmara de Lobos. The February rains have deepened the fissure and there could be subsidence of earth, trees and rocks if there are more episodes of intense rain. A landslide caused some damage a few days ago. The situation is being monitored by the council, Madeira Business Park and the Regional Secretariat for Social Infrastructure.
ECONOMY
Port news. The container ship BBC Scotland starts today replacing the Apollo on the Lisbon-Madeira route. The ship was built in China in 2002 and belongs to the shipowner Briese Schiffahrt. The ship is 100.58 metres long, 16.6 metres wide and has a draft of 6.4 metres. It has a gross tonnage of 4,090 tonnes and can carry 390 20-foot containers. Top speed is 15 knots, it requires a 15-strong crew and navigates under the British flag. The Lobo Marinho will sail two extra trips between Funchal and Porto Santo this weekend to increase availability for the ‘XIV Rally Porto Santo Line’. The extra trips are on Friday and Sunday as the rally takes place on the 19 – 20 March. — Is gross tonnage high for a ship with a volume of 10,685 cubic metres? (Diario original – arqueação bruta de 4.090 toneladas).
Madeira is selling well for Easter. Cape Verde and Disney in Paris are popular Easter holiday packages sold to the Portuguese public. There has a been slightly higher demand for Easter holiday tourism than in 2009. Both the Azores and Madeira are selling well. For long-haul, the Caribbean and Brazil remain the most sought after destinations. Tunisia and Egypt are also popular.
Choupana Hills Resort leads the nominations for the World Travel Awards. The WTA are the ‘oscars’ of tourism according to The Wall Street Journal. The Choupana Hills Resort leads the Portuguese nominations as it is a candidate in five categories and The Vine and Tivoli Madeira have three nominations. There are in total about 5,000 entries (airlines, tour operators, car rental firms, destinations and new hotels) from 162 countries. There are several Portuguese nominations. TAP is one of 10 airline candidates. Lisbon is nominated in four categories – Best Destination, Best Destination for City Breaks, Best Cruise Destination and Best Cruise Port. Several luxury hotels in the Algarve and some hotels in Madeira are also candidates.
UPDATE
Martins arrested in Brazil. Líbano Martins is detained in Brazil for the suspected abduction and homicide of the Porto Santo businessman Guilherme Alves. Martins was detained on January 22nd and is in custody awaiting an extradition process. The alleged three co-perpetrators of the crime carried out in July 2009 were arrested a few days after it was committed.
JORNAL DA MADEIRA
ECONOMY
Daily flight to Ponta Delgada. The first SATA flight between Funchal and Ponta Delgada using the new Bombardier Q400 aircraft will be on Saturday. There will be initially two flights per week increasing to a daily flight in July and August. These aircraft have half the capacity of the current Airbus A320 but have lower costs, especially in fuel consumption. SATA hope to increase passenger numbers travelling between Madeira and the Canary Islands to the Azores and on the profitable North America routes. They also hope to transport more tourists on the Ponta Delgada / Funchal / Faro / Ponta Delgada link.
Today’s news headlines from the front page of the Diário de Notícias :
Father’s day – Facing the new challenges. The family of today, has a mother and father of equal competencies. Both need to be alert to modern dangers.
Today’s main news headline : Imprisonment of Martins in doubt – The Justice Police, quoting a note from the Minister for External Relations for Brazil, revealed the capture and detention of the alleged leader of the gang that kidnapped and killed Guilherme Alves. But the Federal Police of Baía denied to the Diário the imprisonment of Martins, saying that on the 22nd January he was just allowed extradition request [?]. The judiciary says that it is going to clarify the situation. There are now uncertainties about the arrest of José Martins, alleged gang leader in the kidnap and murder of the elderly Porto Santo businessman last year. The Brazilian Court has postponed the extradition order, and has not even confirmed the arrest. The Portuguese police, via Interpol, had applied for Martins to be extradited, and it seemed that had been accepted. What a mess … makings of an international incident here methinks if Martins end up not being extradited, or was not arrested in the first place!
Unemployment bordering on fifteen thousand – Official data says that 14,984 are looking for work, and that constitutes an increase of 38.9% in a year. Only the Algarve is worse. In the Azores there is a clear downward trend. That’s the official version of events, so now as usual we just await the statement of Uncle Bertie, president of Madeira and the Social Democrat party, with their versions of the numbers of unemployed, predicted by Der this time to be between just 17 and 22 people.
Houses on ‘a knifes edge’ – In the high zone of Fundoa, there are houses in danger of imminent collapse. Residents, who have arranged safer lodgings, only go there during the day. Until now nobody [authority] has appeared to say what will happen in the future. I think this photo is up around Monte, and I saw a similar situation a couple of weeks ago around Boa Morte, many kilometres from Funchal, and it was even a bit scary driving past it. Still many places unvisited by the authorities it seems. This small island, at times, seems a lot bigger than many judge it to be.
The main sports headline today : Regional [Rally] starts today on Porto Santo – There are several candidates for the title. The Diário heard the plans of the 27 contestants. Special rally edition of the Diário.
If anyone else can oblige with the translation of any of the ‘blank’ or sparsely filled headlines, or other news stories, here is the link. All contributions much appreciated.
Just announced, after the draw for the next round of the Europe League, that Benfica have drawn Liverpool, the first leg being in Lisbon. Liverpool won’t relish that after the last time they played Benfica in the Champions League. I think it was the year after Liverpool won it, that Benfica played pretty badly, but still managed to beat Liverpool home and away. I wait to be corrected …
"I nearly got caught out by a bogus email from Facebook the other day so beware. It is entitled something along the lines of "Facebook password reset confirmation customer support" and can do a lot of damage to your PC and steal your passwords". Jane. Thanks Jane, I got one too today, but luckily I saw your email first. Here the article about it on YAHOO
Thanks to Paul : Madeira and parts of the Continent on YELLOW alert today Friday: strong winds
Institute of Meteorology site: HERE Expresso: HERE
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they work to overcome this disaster and rebuild their island paradise."
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AJAMPS gave a homeless baby a surprise. The Young Entrepreneurs of Madeira and Porto Santo (AJAMPS) surprised Letícia Oriana on her first birthday with birthday cakes and a performance by clowns. The family were made homeless after the storm of February 20th and are staying at a Youth Hostel. They lived with their grandmother near Trapice in Santo António, Funchal. The house accommodated six people and sustained considerable damage and the ceilings are at risk of falling down. The 57 displaced people staying in the hostel were invited to lunch and dinner paid for by AJAMPS. Contributions were from members, friends and businesses and the vice president said it was rewarding to see these people smile. 
Solidarity in London unites mayor and Albuquerque. Boris Johnson, the Mayor of London and Miguel Albuquerque, the Mayor of Funchal are the leading players in a day of solidarity for Madeira, which takes place on Saturday March 27th in London. A fundraising dinner for 800 diners in Earls Court is the primary activity of a day that will also have other events with a single objective; raising money for authorities and institutions that are spearheading the reconstruction of affected areas and supporting people affected by the floods. The dinner is in the Ibis Hotel in Earls Court, one of the most prestigious in London. The Madeiran businessman José Silva has organized the events after being contacted by a group of friends in London. All the local Portuguese community organizations and the Ambassador and Consulate of Portugal in London have been directly involved. Other fundraising events are: raffles, auctions and other similar activities; contributions from individuals and large companies; contact with the media and exclusive interviews with Sky News and Sky Sports are being negotiated to highlight the cause. The President of CS Marítimo will be present, along with other sporting personalities who will be announced soon. Entertainment at the dinner event is provided by Maria Aurora from the program ‘Atlântida’ presented by RTP-Internacional, and possibly Madeira’s celebrity singer Vânia Fernandes will attend.
Users want Lido ready for Summer – Even without the swimming pool, the bathing complex is in the Summer projects. But Funchal Council does not guarantee reopening, even partial. Come rain or shine, Summer or Winter, the weekends are not the same without a trip to the Lido bathing complex. The destruction caused by the storm does not deter the regulars at the Lido complex, remaining faithful to the location, at least whilst the beach remains open. The restoration works needed will mean the closure of the complex, which is not going down well with some regulars, who want the sea access to remain open, and other spaces left open, with just the pool closed. I have to say that this ‘statement’ from the Diário took opinions from just a handful of people who frequent the facility at Lido, and is hardly representative of many thousands of people who at the moment have far more important and complex priorities.
The BBC wants comments and information from people who live in these countries: Portugal, Ireland, Greece or Spain? “PIGS is a horrible acronym. But this is how the financial markets refer to the troubled and heavily-indebted countries of Europe – Portugal, Ireland, Greece and Spain.(Some analysts use PIIGS to include Italy – Europe’s longstanding biggest debtor.)” The BBC is after answers to these questions:
Financial crisis: IMF boss says there’s no reason why the spillover to Portugal or to Spain will take place. "No one knows what’s going to happen tomorrow morning but there’s no reason why the spillover to Portugal or to Spain will take place" 
Available for all. "I am available at any hour and any moment, as I always have been and I always am wherever I go." That is the message of the rally driver Bernardo Sousa. Diário asked him if he would be associated with any tourism promotion campaign carried out by the Regional Government. He said that no one has contacted him but he would be willing, not only abroad but also in Portugal. Three days ago, he won the Rally Torrié and soon will be competing in countries where the residents choose to spend their vacations in Madeira. Bernardo is taking part in the World Rally and says Madeira could draw dividends form the media attention. He will be in France, Germany and England and the events will be covered by television, newspapers and the radio. Bernardo will be going next to Jordan in early April. The events are usually covered by 200 journalists and the organization has its own TV channel and radio and their website is visited by many millions of enthusiasts. The photo shows the Flag of Madeira raised on the podium when he was in first position in the Campeonato de Portugal de Ralis de 2010. It was placed on the roof of his Ford S2000, in solidarity with the victims of the storm.
Weather forecasting model not implemented for 7 years. The Centre for Geophysical Sciences in Lisbon University proposed to the Institute of Meteorology in 2003, a project for high resolution, more detailed forecasting of weather conditions in the Azores and Madeira, 48 hours in advance. The Institute of Meteorology agreed to participate but only the Azores progressed with the project; Madeira lacking partners. For the weather forecast for Madeira, the Institute uses a European model, which is the best global model but it does not have enough spatial resolution to represent the topography of Madeira sufficiently. To compensate for the island’s physical characteristics, additional regional data is collected from remote radars and satellites. The installation of the high resolution model would cost no more than 100,000 Euros. The diagram shows the model used by the Centre for Geophysics in Lisbon to allow more detailed forecasts, thanks to high resolution orographics (how hills and mountains affect the weather – BBC website).
Flower Festival "is already sold out". The Regional Secretary for Tourism said that hotels are largely full, a "good omen" for the tourism industry after the storm of February 20th. Three and four star hotels are almost all fully booked and five star hotels are going that way. But the President of Porto Bay Group, António Trindade, cautions this optimism, saying that high occupation rates are not a reality. If there is too much optimism it could generate a disincentive for agencies to sell Madeira. He said the market is reacting positively to the events of February 20th but there are still many beds to fill. 
Museum of Sugar will only reopen within a year. The Museu do Açúcar or "Cidade do Açúcar" in Praça Colombo, one of the most emblematic and important museums in Funchal, requires 300,000 – 400,000 Euros of repair work after the flood of February 20th. DRAC is still at the stage of assessing and costing the damage. The building was damaged and 30% of the exhibits are missing, mainly small items. The only other museum to be affected is the privately owned religious museum, Mary Jane Wilson in Rua do Carmo. Water entered through the front door of the Museu do Açúcar and the collection in the basement was completely flooded. Members of the public and the Instituto dos Museus e da Conservação have volunteered to restore damaged items. It could have been worse because many of the most valuable items are in the Palácio da Ajuda in Lisbon for the exhibition, ‘Obras de Referência dos Museus da Madeira – 500 Anos de História de um Arquipélago’. This exhibition of 300 museum pieces from Madeira, representing 500 years of an archipelago, should have ended on 28th February but is extended to April 6th and the extra ticket returns will go to Madeira. 
