Michael D'Arcy
Question:96 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether retail businesses are prepared for the euro changeover; and if she will make a statement on the matter. [23247/01]
Other Questions. - Euro Changeover.
Brendan McGahon
Question:127 Mr. McGahon asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself with the rate of progress on the euro changeover. [23234/01]
Liz McManus
Question:158 Ms McManus asked the Tánaiste and Minister for Enterprise, Trade and Employment the specific proposals she has to ensure the maximum possible level of preparation by small companies for the introduction of the euro; and if she will make a statement on the matter. [23199/01]
These three questions are oral questions. Not more than 18 minutes is allocated.
I propose to take Questions
Nos. 96, 127 and 158 together.
Our Department has specific responsibility for providing information to assist all businesses, including SMEs, with their preparations for the changeover to the euro on 1 January next. The EMU business awareness campaign, which is managed by Forfás on behalf of our Department, has undertaken this task since it was launched back in December 1996.
A survey undertaken in July on behalf of the Forfás EMU business awareness campaign showed that there were still a large number of businesses throughout the country that have yet to prepare for the changeover. Following this my Department provided an additional £1.26 million (1.59 million) to finance the campaign to the end of the year.
The campaign produced two key information resources during 2001: "Getting your Business Ready for the Euro"– over 215,000 copies have been distributed; and "Getting your Retail Business Ready for the Euro"– over 230,000 of these have been distributed. With further specific emphasis on retailers, Forfás produced a training kit for retailers in September 2001 which has been distributed to approximately 40,000 retailers. It includes a one function euro calculator, ready reckoner conversion charts and a euro training manual.
Also, in association with FÁS, an extensive programme of training sessions for retailers has been planned throughout the country until the end of November. Ultimately, however, it is the responsibility of each firm to ensure that they are able to conduct their business in euro from 1 January next, and the EMU business awareness campaign can only assist in providing the necessary information that will assist them to do this. We are satisfied that the necessary information has been, and continues to be, provided to Irish businesses to facilitate them with this task.
I thank the Minister for his reply. My experience of the response to a training session in Longford organised by the enterprise board is that there was a very small turnout. The organisers were disappointed. Either everybody knows everything about it already or few know anything. I opt for the latter. The Minister of State's response endorses my view. The Department has done little about it and the ordinary retailers are being left to carry the can. People in businesses are being asked to act as bureaux de change. Leave it to the shopkeepers. That is the situation.
Is the Minister aware that if a customer walks into a commercial bank now and asks for £100 over the counter he will be told to go to the hole-in-the-wall for it? That is happening. Does the Minister expect the ordinary shopkeeper to do the Government's job in this situation?
I reject the allegation that the Department has not done enough. The job of making businesses aware has been undertaken by Forfás since 1996. Numerous publications involving 1.7 million pieces of literature have been circulated. This survey shows that there is still a lot of work to be done by businesses. I reject that the agency has not done its job well but I agree with the Deputy that the business community needs to redouble its efforts. It needs to get its act together 9and get into top gear. We dealt with the consumers' role earlier and much useful work has been done but businesses should up their performance in the coming weeks. Some of the statistics show that there is considerable work still to be done in regard to software and staff training. I accept that but there is time to do it. The Deputy is right and he mentioned two possible reasons for the lack of interest in the meeting he attended. Some elements of the business community have a lot of work to do in the weeks ahead.
Is the Minister aware of the huge expense for retailers in the changeover to the euro which is a point that people have not addressed? Also banks charge £7 for £1,000 of coins. All retail outlets and banks must be addressed by the Minister. There is little reference to the banking fraternity, which is a major oversight. Is he aware that dual pricing is not on display at all outlets, as was meant to be the case from 1 October? The insurance for holding cash during the dual currency period and charges for electronic payment and credit cards must be looked into. As Napoleon described Britain, we are a nation of shopkeepers and the Minister has taken the wrong approach. Much literature has been distributed but the consumer is uneducated about the currency exchange. There is a vacuum.
The Deputy has crossed into an earlier question but I am happy to answer about dual pricing. We encourage retailers to display dual pricing.
Encourage.
I mentioned already the many organisations which have signed up to this. Both the director of consumer affairs and I advise consumers to shop where they see the logo which is displayed where the dual pricing code is honoured. Consumers have considerable power in this area over the coming weeks. Electronic payment and banks is the subject of another question from a colleague of the Deputy's and I will address that then.
I repeat that much information is available and there are seminars—
It is not being read.
—and panels of speakers. Am I expected to hold the business community's hand and do everything for it? My concern is to protect consumers. We have provided information and speakers for seminars for the business community, but that community must come forward. I mention particularly issues such as training, software and talking to their customers.
It is like the Nice treaty.
The business community must play its part. We should—
Retailers do not have the time.
—not do the work for them.
(Carlow-Kilkenny): In view of the concern still expressed, is it the Department's view that the January sales will go off without a hitch?
The sale of the century.
(Carlow-Kilkenny): I asked before that they be postponed and Europe asked the same. Is the Minister maintaining his position?
As the Deputy can see in my declaration of interest, I do not have an interest in any major retail outlet, but that is an important element in how the retailers treat their consumers during the changeover. I am confident they will hold their sales at the right time and that sufficient work will be done between now and then to allow consumers to get familiar with dual display. As the Deputy knows, a great deal of work is being done by my Department and the euro changeover board under the aegis of the Minister for Finance, Deputy McCreevy. By 1 January, we will all be sick of the information. It is an important point but should be addressed to the retail sector.
Many people are concerned about a price hike when the euro comes in. Is the Minister aware that some prices have increased substantially in the past six months? I can give him details about two products that I bought in August whose price was increased substantially in September.
Give that woman a membership card.
Perhaps he has already answered a similar question. Also, prices like £2.99 or £3.99 will not easily convert to euro. It will be a problem if people round up substantially to give the "99 pence" feeling.
I am aware of the Deputy's point, which Deputy Rabbitte raised earlier, and I share their concerns. I also have information about some businesses raising prices. It is important that consumers take note of that since they have the right to take their business elsewhere. There are specific rules in the code that I mentioned earlier about rounding. Those who have signed up to the code, but are not honouring it, can be reported to the Director of Consumer Affairs who has the ultimate sanction of refusing them the right to display the logo. It is incumbent on consumers to play their part and both the director and I will work with them to expose anyone taking advantage of the changeover period.
To clarify, I am not referring to individual retailers putting up the price in the shop but to the wholesale price of a product being raised. I am concerned about that broad issue, not just individual retailers.
I had not intended to intervene until I heard the Minister of State's reply. His attitude displays no leadership. He is too laid back and blasé. We are down to weeks now and he states that we should be reassured because 1.7 million pieces of literature were distributed. As the survey shows, it is not being read and people are not coming to the seminars. Unless he provides leadership there will be widespread confusion on 1 January and during the changeover period.
(Carlow-Kilkenny): I reiterate the concerns about confusion. The Minister must accept that 1 January will bring the introduction of the euro and the January sales come on top of that. They are chaotic normally but if people must count change and question the changeover from pounds to euro, it will add to the confusion. Will the Minister consider putting the sales back for three weeks?
I do not think the Deputy is arguing that we will not see the sales situation we see every year. It is hard to argue against sales. I accept that there may be an argument about the timing and the retail sector should note that. I would be happy to raise that with its main players.
(Carlow-Kilkenny): I have raised it with you.
There are huge responsibilities on companies to ensure that they are adequately prepared. Forfás was active since 1996 and gave adequate support with additional assistance in place. If any business has not updated its systems, it should do so immediately. I acknowledged that many must get properly prepared. I am satisfied that on 1 January the consumer will be properly informed but some businesses need to do more. There will be another survey at the end of this month and we will know then what improvements have been achieved.