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Dáil Éireann debate -
Thursday, 4 Oct 2001

Vol. 541 No. 3

Other Questions. - Euro Changeover.

Jim Mitchell

Question:

6 Mr. J. Mitchell asked the Minister for Tourism, Sport and Recreation if he has satisfied himself that the tourism sector is prepared for the introduction of the euro; the research which has taken place; and if he will make a statement on the matter. [22415/01]

Michael Bell

Question:

51 Mr. Bell asked the Minister for Tourism, Sport and Recreation if he has satisfied himself with the level of preparation in the tourism sector for the introduction of the euro; and if he will make a statement on the matter. [22323/01]

David Stanton

Question:

178 Mr. Stanton asked the Minister for Tourism, Sport and Recreation if he has satisfied himself that the tourism sector is prepared for the introduction of the euro; the research which has taken place; and if he will make a statement on the matter. [22667/01]

I propose to take Questions

Nos. 6, 51 and 178, inclusive, together.

The latest survey by the Forfás EMU business awareness campaign was carried out in May 2001. The hotel and restaurant sectors were among those covered by its scope. The survey found that 64% of firms surveyed have prepared or are in the process of preparing a plan to manage the changeover to the euro. Some 78% have received information on what is involved in the changeover and 79% have someone with specific responsibility for managing the changeover.

To address the issue in the tourism industry, CERT has designed and is delivering a series of workshops at regional locations to help tourism operators identify key issues and to develop phased action plans aimed at addressing these. In the period January to June of this year, CERT ran a total of 18 workshops attended by 280 managers from the industry. These workshops were held in Dublin, Cork, Waterford, Limerick, Sligo, Galway, Castlebar, Killarney and Clonmel. They are being run for the Restaurants Association of Ireland, the Irish Hotels Federation and the Licensed Vintners Federation. A further series of eight workshops will be delivered over the July to December period and it is estimated that 200 industry personnel will attend these.

Apart from its own preparations for the introduction of the euro, which included the commencement of staff training in April 2001 and dual currency display in all print material for 2001, Bord Fáilte has used the opportunity of its regional roadshows to heighten awareness in the industry of the implications of the euro.

Industry is also playing its part. In September 2000, the Irish Hotels Federation, in conjunction with the Restaurants Association of Ireland, recommended to all members that they should subscribe to the IBEC-EAN Ireland code of practice regarding the changeover. This code, which has been approved by the Director of Consumer Affairs, will provide a framework for self-regulation by the industry with regard to pricing, currency display and conversion and consumer information. In May and June of this year, the Irish Hotels Federation conducted a series of regional seminars to highlight to its members the issues involved in the changeover. This was followed in September with a series of follow-up seminars to provide more specific guidance and encouragement. The changeover is also the subject of updates in the federation's newsletter as well as of specific mailings to the membership.

I am satisfied that the tourism agencies under the aegis of my Department, particularly Bord Fáilte, and the professional associations within the tourism industry are making careful preparations for the introduction of the euro and that they, in co-operation with other organisations such as the Euro Changeover Board, Forfás and the IBEC, are doing all possible to exhort and prepare the industry for changeover. It is now up to each individual business to work to ensure it is ready in good time for the changeover.

In light of our earlier discussions and the financial pressures under which the industry labours, has the Minister considered providing financial assistance to the players in the industry who must bear the costs of the changeover? What would be the typical cost of the changeover for a small business in the tourism sector? Is the Minister aware of insurance-related problems in regard to the need for businesses to maintain large amounts of cash on their premises during the changeover period?

I do not intend to provide incentives, cash or otherwise, to businesses during the changeover period. The changeover is part of the open market and businesses have had sufficient time to prepare themselves. Governments should not be expected to lend a crutch to all manner of changeovers.

I do not know what costs will accrue to small businesses as a result of the changeover – this matter is probably more relevant to the Department of Enterprise, Trade and Employment. On the issue of insurance, I do not know what action could be taken in this area. We underwent a successful changeover in 1973 and, given our levels of technology and the calibre of our young men and women, I feel confident we will adapt.

Has the Minister considered the confusion which will arise as a result of the existence of different currencies on both sides of the Border, namely, sterling and the euro? Some enterprises span both sides of the Border. For example, people using the Ballyconnell canal may have to use both currencies. Has the Minister established a sub-committee to consider the problem and propose possible solutions?

The changeover is a matter for the Department of Finance which has publicised the matter through advertising campaigns etc. My Department is attempting to prepare the tourism industry and small businesses through a series of roadshows as outlined earlier. Some 64% of the firms surveyed have prepared a changeover plan or are in the process of doing so. Some 79% have a specific person to manage the changeover. Those figures are very encouraging. I accept that problems will arise along the Border in regard to sterling and it will take time to deal with these. We can only envisage that there will be teething problems, as there are in any changeover. I am quite sure we can adapt to the changes. However, the overall euro changeover is a matter for the Department of Finance.

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