Dáil Éireann debate -
Wednesday, 19 Nov 1997

Vol. 483 No. 1

Written Answers. - Economic and Monetary Union.

John Perry

Question:

51 Mr. Perry asked the Minister for Finance the results, if any, of the consultation with exposed sectors of the economy regarding the problems faced by them in relation to entry into EMU as promised in the Government's programme; the action, if any, he will take to address these concerns; and if he will make a statement on the matter. [19615/97]

Minister for Finance (Mr. McCreevy)

One of the requirements for Ireland's successful entry into and participation in EMU, will be to create the right macro-economic environment within which strong economic growth can be maintained. Central to this strategy will be the achievement of tighter fiscal discipline as our Action Programme for the Millennium indicates. In adopting this approach we have to ensure that we make adequate provision for the greater investment needs of our economy, for improvements in the delivery of essential social services and for continued reform of our personal and business tax regime, while at the same time fully observing the Maastricht criteria as detailed in the Stability and Growth Pact. My forthcoming budget will set out this Government's objectives in these areas. This budget together with the terms of the Partnership 2000 Agreement will ensure that the conditions for successful participation in EMU will be created and sustained. Indeed, Partnership 2000 includes a specific provision that:

In the event of unforeseen changes in economic circumstances arising from EMU the arrangements for monitoring the new Partnership will be utilised to provide a mechanism for reviewing this Agreement should this be necessary.

An EMU Business Awareness Campaign is managed by Forfás on behalf of the Government, in consultation with the Departments of Enterprise, Trade and Employment; Finance and Tourism. It has as its objective the delivery of relevant information on EMU and the changeover to the euro to enterprises so that they can prepare effectively for the changes that will arise. The Campaign involves a wide range of business and professional organisations, as well as state agencies dealing with enterprise, through the mechanism of a Consultative Committee that brings all these groups together.

In relation to the implications for Irish industry of the UK remaining outside EMU for the present, consultants have been appointed by Forfás on behalf of the Campaign to determine appropriate strategies for groups of enterprises, likely to be particularly sensitive to fluctuations in the sterling/euro exchange rate. The study also involves consultations with the sectors in question, both through industry associations and through workshops conducted with representatives of the companies concerned. The consultants are expected to report by the end of the year.

The Tánaiste and Minister for Enterprise, Trade and Employment will bring the results of this report to the attention of the relevant business groups and the Ministers with responsibility for the sectors mentioned by the Deputy. I expect that on foot of this, my colleagues in Government will have appropriate consultations with the business sectors directly concerned.