In Short

A round-up of today's business news in brief

Approval likely for retraining of former Dell staff

THE EUROPEAN Parliament is likely to endorse a €21 million fund to help retrain up to 1,900 Dell workers made redundant by the decision of the computer company to move production from Limerick to a new operation in Poland, writes Arthur Beesley.

MEPs will not vote on the package until around noon today, but Independent MEP Marian Harkin said a positive outcome was a foregone conclusion following an overwhelming vote in favour of the package at the employment committee of the parliament.

“It’s automatic because it’s already been agreed,” Ms Harkin said in advance of a debate on the measure last night. She added that the money should be allocated in addition to the current budgets of training and educational agencies.

The EU is providing €14.3 million of the €21 million fund, with the balance being borne by the Government.

Sweden rules out Saab bailout

Sweden has effectively ruled out a state bailout of GM’s loss- making Saab unit after tiny luxury car firm Koenigsegg pulled out of a bid for one of the Nordic country’s best-known automobile brands.

Joran Hagglund, state secretary at the industry ministry, said: “That can only be assured by a private owner who really is familiar with the market conditions.” Earlier yesterday, Koenigsegg pulled out of its planned purchase of Saab, which has estimated it would lose about 6 billion Swedish crowns (€58 million) in the 2008-2009 period.

Mr Hagglund did not rule out all support for Saab, if it can find another private buyer. He said the Swedish government would not own automotive industry assets, “but we can facilitate with loan guarantees and we also have this tool of a rescue loan with very hard conditions”.

The centre-right government said last year it would provide up to 20 billion crowns in credit guarantees and a further 5 billion crowns in emergency loans to the industry. – (Reuters)

25% say recession still has two years to run

One in four Irish businesses fears that the recession still has two years to run, according to a recent survey.

A study of 3,500 businesses in 20 countries by credit insurer, Atradius, shows that Irish business people are more pessimistic than their peers in other countries about the prospects of a recovery.

Of the 154 businesses surveyed, 28 per cent do not expect the economy to improve until after 2011, 33 per cent say it will improve in 2011 and 39 per cent believe that it will improve in 2010. Close to half expect business to rebound by the end of next year, 28 per cent say this will happen in 2011, but 23 per cent do not foresee a rebound until after 2011.

Irish businesses had the lowest expectations of those in the 20 countries surveyed, which included Britain, the Czech Republic and Spain.