Written Answers. - Single European Currency.
Ivor Callely
Question:
118
Mr. Callely
asked the
Tánaiste and Minister for Enterprise, Trade and Employment
the early indications of the effect that the euro has had on enterprise and trade; if she has satisfied herself that Irish business is prepared for the euro and adhering to regulations; and if she will make a statement on the matter.
[4253/99]
As yet it is somewhat early to make an assessment on the impact that the euro has had on enterprise and trade in this country, since the euro has only been introduced in a limited fashion, for non-cash transactions, since 1 January 1999. Notes and coins will not come into circulation until the year 2002. Notwithstanding this fact, Forfás which manages a business awareness campaign in regard to the introduction of the euro on behalf of myself and the Department of Enterprise, Trade and Employment undertook at the end of December 1998 a survey of 624 businesses conducted by Irish Marketing Surveys with the objective of assessing the awareness of Irish business, and the extent of its preparations for EMU on the eve of the commencement of European Monetary Union. From that survey there is strong evidence that a significant number of Irish companies will operate in euros during 1999. The December survey undertaken by Irish Marketing Surveys indicates that 49 per cent of companies plan to price in euros, and 38 per cent to invoice in euros during 1999. Other major developments planned for 1999, according to this survey, are that 49 per cent of companies, including those who have already done so, will adapt their accounting systems to cater for the euro and 46 per cent will open a euro bank account. Over one in four of the businesses surveyed have spoken to their customers and suppliers in regard to their plans for changeover, and over half the businesses claim that their customers and suppliers have informed them of their plans.
Besides the above findings in the survey other developments include the following: some supermarkets are currently pricing in both euros and in Irish pounds, and also advertising their product prices through the media in euros in addition to Irish pounds; a number of the financial institutions are now issuing bank statements in euros in addition to Irish pounds and showing individual transactions in both currencies; wages and salaries in net terms are now being printed by some organisations onto payroll slips in euros in addition to the Irish pound amount. Such developments as those outlined above are bound to increase as the year progresses and will have a major impact in both educating the public generally and in assisting small businesses in coming to terms with the EMU environment especially when euros are brought into circulation in notes and coin in the year 2002.
In conducting their business awareness campaign on behalf of both myself and the Department of Enterprise, Trade and Employment, Forfás has made extensive contact with businesses, particularly small businesses and its representative associations on a regular basis since the inception of the campaign in December 1996.
In the course of the Forfás campaign it has distributed over 54,000 information packs on how businesses should prepare for EMU. It has distributed 104,000 summary brochures to businesses, outlining in brief terms the preparations which should be made. It has issued over 86,000 retail brochures specifically aimed at the medium to smaller retail businesses. Over 40,000 booklets setting out the guidelines to be observed in preparing IT systems have been issued, and 14,000 copies of a guide to conversion and rounding have also been distributed. Finally Forfás has also recently distributed 70,000 copies of a leaflet outlining various publications available to businesses from the overall campaign. This leaflet was distributed during the December-January period and concentrated on publications which were particularly relevant to companies in the SME sector.
In addition to all the above material which was distributed to small businesses and the various consultations with the business representative organisations. Forfás has conducted many seminars throughout the country instructing local business people as to how they should prepare for the EMU environment.
My Department in conjunction with the Office of the Director of Consumer Affairs is currently at an advanced stage of preparation of a national code of practice on dual pricing in the context of the euro. This code of practice is currently in draft form and is expected to be ready for publication shortly. This code will form part of this Department's strategy to protect consumers in the changeover process and will assist businesses to prepare for dual display during the changeover period.
Notwithstanding all of the above there may still be some businesses who feel they have had insufficient information on the preparations necessary for the euro regime. Forfás, during the coming year, will be continuing its efforts to ensure that all business operations in this country, particularly small businesses, and all business people are given every opportunity to avail of their comprehensive bank of information on the business implications of EMU.
