No matter what tax giveaways Brian Cowen has in store for Budget day, thousands of higher-paid employees will be 88 worse off in 2007.

Buried in the spending estimates unveiled by the finance minister on Thursday was the news that 6% PRSI would be payable on incomes up to 48,800 next year. That is a 4.7% increase on the PRSI ceiling of 46,600 that applies in the current year.

In addition to PRSI, employees will also pay a 2% health levy on any income that exceeds 48,800 in 2007.

NEW OUTLETS FOR AIB'S AMERICAN ASSOCIATE

AIB's American associate, M&T Bank, is on the march with plans to add to its network of 676 branches by opening five to six new outlets a year beginning in 2007. The move would be the first big expansion drive by M&T since the $3bn deal that saw it take over AIB's troubled Allfirst subsidiary.

Market watchers believe it is only a matter of time before M&T does another big deal. This would be crunch time for AIB especially if M&T was to tap shareholders to pay for another acquisition.

FUND MANAGER WARNS OF IRISH EQUITY EXODUS

A slowdown in the property market could see Irish equities being dumped by local investors, a top fund manager has warned.

According to Paul McCarville, a director of Setanta Asset Management, a herd mentality has resulted in Irish fund managers holding big positions in local equities. But this sentiment could change quickly if the economy hit the buffers.

"When the property boom currently fuelling the economy slows down, ceases or even goes into reverse, it will be interesting to see how quickly allocations to Irish equities are reversed, and whether Irish or overseas investors are quickest on the trigger, " McCarville said.

BROKERS WARN BYPASSING MIDDLEMAN HAS RISKS

Insurance brokers have hit out at the growing trend by consumers to bypass the middleman and buy cover directly from the insurance companies.

Instead of lower premiums, the drift towards direct insurance could actually squeeze out competition within the industry according to Liam Carberry, chairman of the Professional Insurance Brokers' Association.

"There is a discernible trend towards selling directly to consumers. This means that each insurance company sells its own products, giving limited choice to consumers, " he said. "If the Regulator allows this trend to continue, it will have the effect of reducing competition between insurers to the overall detriment of the consumer."

BANK EMPLOYEES CALL FOR MORE SECURITY

Banks will have to dig deep and invest in extra security to halt so-called tiger kidnappings of employees' families according to trade unions. They also want more action by justice minister Michael McDowell.

"It is our members and their families' lives that are at risk, not over-paid senior executives, and we can't help but wonder if it will take a serious injury or worse before the minister is stirred into actions?" said Larry Broderick, general secretary of the Irish Bank Officials' Association.