IN THE PAPERS
In the papers 15 October
15-10-2007
by Ciara O'Brien
Civil servant leak casts doubt on security of personal data | Irish software firms urged to join space race
The Irish Times reports that the Irish Taxation Institute has called on Minister for Finance Brian Cowen to introduce tax relief on all corporate research and development expenditure. ITI president Joan O'Connor said Ireland would continue to lose out to other EU states on R&D investment unless there was a move away from the traditional understanding of R&D. "The current incremental-based system, where companies get tax credits on some but not all R&D spend, is forcing investors to look elsewhere," she said in a pre-budget submission to the minister.
The Irish Independent reports that hundreds of websites selling airline tickets could be breaking the law by adding extra charges to advertised prices, an investigation by EU countries has found. In a "consumer sweep", a new type of enforcement action, 17 EU countries investigated in late September whether airline ticket-selling websites complied with EU consumer laws on pricing, said European Commission spokeswoman Helen Kearns. "The number of websites found [under suspicion] at the moment -- and we haven't got the final results -- is in the hundreds," she said.
The paper also says that the security of personal and financial details in Ireland is in serious doubt after a civil servant leaked highly sensitive information to his criminal brother. The "mole" worked in the Data Protection Section of the Department of Family and Social Affairs and broke the Official Secrets Act by passing on the details to his brother, who used the information to burgle one man and attempt to extort money from three businessmen. The civil servant later admitted to officials that it is common practice among civil servants to check up on the financial status of friends, family and acquaintances.
According to the Wall Street Journal, Philips Electronics has posted a sharp drop in third-quarter net profit, as expected, and said it is making progress toward its sales and earnings targets. Net profit fell to EUR331 million from EUR4.2 billion a year earlier, exactly in line with analysts' expectations. The Amsterdam company reported sales of EUR6.52 billion, up 3 percent from EUR6.31 billion a year earlier, and surpassing the EUR6.35 billion analysts had expected. Earnings before interest, taxes and amortisation came to EUR438 million, compared with last year's EUR71 million.
The paper also says that chipmaker Broadcom has developed an unusual multifunction product that could sharply reduce the price of high-end handsets. The firm said the chip can communicate using four different mobile networks, including a technology dubbed HSUPA that offers a big jump in data transmission speeds over most current technologies. It also can send and receive using FM radio and use Bluetooth technology, while offering circuitry for handling images and video. Broadcom is shipping samples of the chip now but does not expect mobile phone makers to offer products with the technology until 2009.
The Financial Times says that social networking site MySpace is planning to expand its international footprint by launching locally targeted sites in Brazil, India, Poland and Russia over the next four months. MySpace began rolling out local language sites about a year and a half ago and now has 24 in 20 countries, in 12 languages. MySpace said the number of visitors to its European sites had risen more than 68 percent in the past year, to about 25 million per month.
The Sunday Tribune reports that Ireland's Data Protection Commissioner is set to play a major role in how the EU directives on data retention for search engines will be implemented. The starring role for the commissioner is due to Google locating its European headquarters in Dublin, and as a result will oversee the EU directives on how long the tech firm will retain information on the searches carried out by its users. Google said the firm would continue to co-operate with the Article 29 Working Group, which includes privacy authorities in Europe, and the Data Protection Commissioner.
The same paper reports that Adobe's Irish subsidiaries paid only EUR3.5 million in tax to the exchequer, despite recording turnover of EUR1.83 billion. The corporation tax bill for Adobe Software Trading Company amounted to EUR1.47 million on pre-tax profit of EUR285 million, which works out as a tax rate of 0.5 percent. Adobe Systems Software Ireland paid EUR2 million in corporation tax on pre-tax profits of EUR25.4 million, a 7.9 percent tax rate. The paper goes on to say that both companies are listed as working in the licensing, distribution and production of Adobe's software, with Adobe Software Trading Company having registered offices in Barbados. Adobe Systems Software Ireland has 68 employees according to the most recent figures.
The Sunday Tribune also reports that DCC is in line to benefit from the success of video game Halo 3, as its IT subsidiary SerCom has the exclusive rights to distribute the Xbox 360 in Ireland and the UK. The third episode in the Halo series is breaking records in the US, where the game racked up USD300 million in sales within its first week and has helped drive sales of the console. SerCom is responsible for almost a quarter of DCC's operating profit and is the second largest of the firm's divisions.
The Sunday Times reports that a man who suffered from an ear tumour that could possibly have been caused by mobile phone use is now chairman of the Open Learning Partnership and is helping to introduce wireless networks into colleges and hospitals in the UK. The OLP is a charity that provides internet access, and Peter Lyons has taken n the role of network development manager. There have been some concerns over the safety of Wi-Fi networks recently, but Lyons pointed out that Wi-Fi networks are not used close to the body -- unlike mobile phones. Lyons lost the use of half his face when surgeons severed a nerve while removing the tumour from his ear.
The same paper writes that the interactive pub quiz is on the way, with a new TV quiz channel Cash Inn. The British station will run on Sunday evenings, fronted by one of its backers, Jasper Carrott, and offering cash prizes of up to EUR36,000. Players will be supplied with wireless keyboards to send their answers to Cash Inn's studios, which will be located at London's ITN. A leaderboard will be displayed on the channel.
The Sunday Business Post reports that Dublin-based Nostra Systems is teaming up with IBM. The technology services firm has been named as the first IBM Built on Express Partner in the country, and as a result will be able to provide the full range of IBM products, including the new Express range. The programme was launched in April last year.
The same newspaper reports that Belfast-based software firm Lagan Technologies reported sales of STG14.3 million in its latest yearly results, growing by 44 percent on the year earlier. However, the company still recorded pre-tax losses of STG2.3 million -- what it termed a "planned loss". The company has recently embarked on an expansion plan, with the US market firmly on the agenda. Some STG270,071 of Lagan's sales was attributed to acquisitions, but these purchases brought STG545,284 in losses too. Lagan has also bought a 20 percent share in British firm Rivereo Technologies.
The firm is not the only one satisfied with a loss. The same newspaper reports that Irish software firm Accuris Networks incurred a loss of EUR1.4 million on the back of its expansion. However, the directors note in the report that the firm is still in a growth phase. The company has invested EUR2 million in research and development, and sales and marketing since 2004, and expects a return on its investment next year.
According to the Sunday Business Post, the Pakistani Software Export Board is planning to target Irish companies, with representatives from a dozen IT firms planning a visit to Dublin. The Pakistani companies are hoping to explore the possibility of further collaboration with Irish companies. Those taking part include 360 Technologies, Msoft and Softech.
The paper also criticises the Department of Communications for having a website that is two years out of date. The department, which gives out advice on the internet and broadband, has failed to keep its site current, and sections on computer security and broadband for schools are carrying information from 2005. The site even manages to confuse its ministers in places, referring to the former minister Noel Dempsey as the serving minister, instead of new recruit Eamonn Ryan. Broadband figures and e-zines are also out of date.
Irish software firms could join in the European space race, with the news that the Government wants firms to help it increase its contribution to the European Space Agency. The article quotes Danny Gleeson of G&L technologies, who explains that the Government invests in excess of EUR10 million a year in the ESA, and that Irish firms can get contracts back to that value. To justify further investment, the Government needs to have the potential for further contracts for Irish firms -- but at present, Irish companies are not recouping the full value of these contracts.
The Sunday Business Post also notes the nomination of online florist Flowers Made Easy for four IIA Net Visionary Awards.
Finally, the newspaper reports on the launch of O2's Fitfone trial, as reported by ENN on Wednesday. It also reports on 3V's new deal with 7Digital to provide a music download service, also reported by ENN last week.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 