Written Answers. - Euro Changeover.
Ivor Callely
Question:
36
Mr. Callely
asked the
Minister for Finance
the measures in place to ensure the smooth transition to the euro; the acknowledged fundamental role of the retailer in this regard; and if he will make a statement on the matter.
[29860/01]
Breeda Moynihan-Cronin
Question:
42
Mrs. B. Moynihan-Cronin
asked the
Minister for Finance
the anticipated cost to the Exchequer of the changeover to the euro at the latest date for which figures are available; if he is satisfied with the level of public awareness of the changeover; and if he will make a statement on the matter.
[29959/01]
Billy Timmins
Question:
59
Mr. Timmins
asked the
Minister for Finance
if all outstanding bank drafts in punts will have to be cashed in or changed into euros in line with the euro changeover; and if he will make a statement on the matter.
[29863/01]
I propose to take Questions Nos. 36, 42 and 59 together.
Ireland's cash changeover plan outlines the main measures in place to ensure a smooth changeover to the euro. On 1 January 2002, accounts in banks, building societies, post offices and credit unions will be converted to euro free of charge. From then on withdrawals from accounts will be in euro; ATMs will begin dispensing euro notes; wages, salaries, pensions and social welfare payments will be in euro; banks, building societies, post offices and, where feasible, credit unions for members, will exchange IR£ cash for euro and will continue to accept IR£ cash in lodgments.
The key requirement for retailers is that, from 1 January 2002, they charge only in euro and give change only in euro. Several features of the plan are aimed at facilitating retailers in this regard. The dual circulation period is less than six week long, and it is expected that the bulk of cash transactions will be in euro by the end of two weeks. ATMs will initially dispense mainly ten and 20 euro notes – more than 80% of ATMs should be dispensing euro notes by the evening of 1 January – and in the first week of January, social welfare payments made at post offices will generally include at least four five-euro notes. These measures will help to put low-value notes into circulation quickly, so helping retailers as regards giving change in euro.
A wide variety of other measures have also been put in place. Banks will not charge cash handling charges on euro cash provided to retailers in advance of 1 January 2002, and will not charge cash lodgement charges on Irish notes and coins lodged by retailers between 1 January and 15 February. In addition, banks will not debit retailers' accounts for the advance euro cash provided to them, until 2 January 2002 at the very earliest.
Starter packs of euro coins will go on sale to the public from mid December. These packs will help people to familiarise themselves with the euro coins before they go into circulation and should also help to facilitate a smooth changeover. The Forfás EMU business awareness campaign has been providing extensive information to the retail sector. Very large numbers of a guide to help retailers to plan for the changeover have been distributed since the spring, both directly to retailers and by various other channels. Forfás has also distributed a retail training kit to every retailer. The kit includes a euro calculator; a ready reckoner; a handy conversion chart; dummy notes and coins for training purposes; and posters for display in-store, as well as a training manual.
Forfás have also worked closely with FÁS, which is providing euro training for retailers and sales assistants. The training is being delivered at local level in FÁS training centres, locally in major towns, in urban shopping centres and where appropriate on retailers' premises.
Forfás also sent a leaflet on cash management to retailers in August, and a further pack of leaflets will start to issue to retailers this week covering the final key messages. The public is being advised, through the euro handbook and through leaflets that will be widely distributed, how we can all as individuals help to make the changeover run smoothly.
As regards Deputy Moynihan-Cronin's question, from estimates supplied to my Department in respect of Departments and relevant bodies, the cost to the Exchequer of the changeover to the euro is estimated to be of the order of £100 million, approximately 127 million. Changeover costs are of course once-off, whereas economic and monetary union confers ongoing benefits.
As regards public awareness, survey results indicate that substantial majorities of the public have seen pictures of the euro notes and coins and know the date of introduction of euro cash and the value of the Irish pound in euro; and know that the euro is made up of cent, that they will receive their change in euro from 1 January, and that euro notes and coins can be used in all the euro countries. I should add that the Euro Changeover Board of Ireland, ECBI, has been carrying out a very extensive public information campaign on the changeover. As part of this, a handbook on the euro changeover was sent to households in October, and An Post expects to complete distribution of an electronic converter to households by 10 December. These initiatives will build on the public's existing levels of awareness in the run-up to the changeover. In addition, the ECBI is distributing more than half a million information items a month, is running an extensive advertising campaign, and operates a LoCall helpline and a website.
Finally, bank drafts are prepaid instruments and there is no time limit on their validity. After 1 January 2002, Irish financial institutions will continue to accept Irish pound drafts that are dated on or before 31 December 2001. Value will be given in euro when they are presented for lodgment or encashment. However, in the interests of facilitating the early changeover to euro, it would be advisable that this be done, where possible, before 9 February 2002.
