Madeira News Blog

(11th September). The last of today’s headlines : ‘Fisco Recovers €12.2 Million In 7 Months – The Madeirans flee less from their financial obligations but the coerced revenue increases’. The treasury is benefiting from citizens feeling more inclined to pay their taxes, despite financial difficulties in families and businesses. More effective collection and checking from the Regional Directorate of Fiscal Affairs means that taxpayers are becoming more compliant. Some fines for late or non-payment have also decreased, and the number of court actions are lower comparatively than in mainland Portugal.

(10th September). ‘Finanças To Replace Letters With Emails – Electronic communications with the taxpayer starting in earnest this month’. The Directorate General for Taxation (DGCI) wants to finish with the paperwork and reduce costs. The action will need a progressive implementation, starting next Tuesday, because "we need to change the attitudes and habits", says a spokesman.

In the same article, the DGCI says it has 75,000 cars it needs to sell, that were seized for non payment of taxes. It aims to sell all of these by the end of this year. A spokesman says that cars are the most ‘seized’ item, followed by household goods and ‘bank accounts’, for non payment of taxes.

(11th September). ‘Ports Promote Terminal – Partnership with the Canaries is better value for the Port of Funchal’. The port of Funchal will be present in the trade fair ‘Seatrade Europe’, which this year will take place in the city of Hamburg from the 15th to 17th of this month. This year the representation is in partnership with the Canary islands, through (the theme) ‘Cruises in the Atlantic Islands’, which has a 48 square metre stand. Asked about the importance of this event for the region, particularly with regard to the port area, Bruno Freitas of the port authority APRAM acknowledged that "the representation of APRAM at this show serves as an effective promotion of Madeira Islands, and the Port of Funchal as one of the more competitive cruise ports in this area of the Atlantic, but also in the continuity of work on publicity and projection that have been held regarding the new Maritime Passenger Terminal". He reminded that work has already been done in this respect in Lisbon in January, as well as in Miami, the largest fair in the market, that took place in March this year.  "APRAM is promoting, along with national ports, the creation of new partnerships to explore new routes with the aim of attracting more cruise ships to the Port of Funchal, highlighting in this way its seasonality", he said. November this year will be the busiest and important month with 54 cruise ships visiting, some on repositioning journeys for a new cruise season, and able to see the construction of this new facility.

In a related article . ‘Project Alterations Could Delay Completion Of The Terminal’. The port authority APRAM guarantees that alterations being made to the new terminal, so that it can accommodate it’s own services, will not delay the inauguration. But the truth is that that opinion is certainly not shared by those who are on the site, having been obliged to take down structures (walls) to ensure the right configuration. The president of APRAM said "the changes in the project are designed to ensure the maximum functionality and comfort of passengers boarding and disembarking, as well as improved conditions for passengers in transit". "These changes at no time have caused any inconvenience or delay in carrying out the work, which, incidentally, continues on schedule", he added. The Diário believes that completion by the deadline of December 2010 is in jeopardy. APRAM has until December 2010 to complete the work without penalty to the €7 million granted by the Cohesion Fund.

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.

(11th June). ‘The New Junction In Pilar Continues To send People To Hospital’. The new road junction at Pilar that joins the via rápida continues to cause problems, with residents nearby saying that there accidents happening every day. One accident between two cars on Wednesday morning injured two people, who had to be taken to hospital by ambulance. One had a fracture, the other a spinal injury, but both were discharged after treatment. Other accidents are cited, and the main problem seems to be with confusion over right of way.

‘Madeira Going To Do Tests To Detect Virus H1N1 – It is not yet confirmed the first suspected case of Gripe A on Madeira. The tests had a negative result’. As mentioned yesterday, a 52 year old man was in hospital with suspected swine flu, but has now been discharged. It turns out that he is actually an American. The samples were taken to Lisbon for analysis, but from the middle of next month any such analysis will be undertaken on Madeira, with the equipment necessary expected to be delivered in the next 3 weeks.

The Regional Secretary for Social Affairs warns that in 2050 there will be an increase in the over 65′s of 112% (gradually I presume?). That follows a European trend, that the regional secretary says presents a challenge to find solutions to deal with the problem. He adds that presently there are around 800 elderly people who need to be interned, but that there are only 250 beds available through the state homes.

’2008 : The Worst In 30 Years – The weather helped production in Jardim da Serra that has it’s festival this weekend’. The cherry harvesting in the area has begun, and if the rain doesn’t come and spoil things, then it should be a much better year than last year. It’s an interesting article about the life of a cherry farmer, who not only has to worry about the crop and the weather, but also about the dangers of the job, and cherry thieves. If you know where to look, you can buy cherries at the moment at €1.80 a kilo, whereas last year, maybe because of the poor crop, the cheapest ones you would have found would have been €2.50 a kilo.

The International Business Centre of Madeira (CINM) could be a major beneficiary of an exodus of investors, that many analysts predict will hit the United Kingdom, as a result of the announcement of tax changes announced by the government of Gordon Brown. For the first time since 1997 the tax burden on high levels of income and profits will increase to 50%, a measure that will come into force in April 2010. The decision sparked a chorus of criticism from various sectors of private finance, with a threat that seems increasingly popular : Leave the country. That takes advance planning says an executive from HSBC Bank, and that companies should start taking the steps now. In an interview given, he said his company "has received an increasing number of enquiries about the possibility of relocating parts of businesses to Madeira".

‘Porto Santo Begins To Recover’. After a tough Winter, the hotels are starting to recover some of the losses from the first 4 months of this year, which in some cases were 20% worse than in 2008. A spokesman for one hotel group says that the signs are better with hotels full over this short holiday spell and with more promising indicators for the Summer season. The Porto Santo Line ferry has transported over 5,000 people over the last few days, as a result of the two public holidays coming together and close to a weekend.

Any guesses what will dominate the front page of our newspapers tomorrow?