asked the Minister for Industry, Commerce and Energy the study, if any, which has been undertaken, of the industries most likely to be threatened by our proposed entry into the EMS; and if he will make a statement on the matter.
Written Answers. - European Monetary System.
156.
Studies have been carried out into the effect on industry here of our adherence to the EMS, on the basis of various assumptions. For the purposes of these studies a distinction was made between short-term effects and long-term effects in the light of different possibilities in regard to the membership of the new system. There are so many variables involved that it would be wrong to conclude that any sector of industry would necessarily be adversely affected by our entry into the new system. Under certain conditions, however, Irish firms competing in the home and UK markets against goods of British origin, particularly in price sensitive products, could be under pressure in the short term. The extent of the repercussions would depend on a number of factors and in particular the size of any possible appreciation of the Irish pound and the degree and the speed with which costs here could be restrained. The Government's approach to any problems which might arise would be sympathetic and positive.