Dáil Éireann díospóireacht -
Tuesday, 22 Oct 1996

Vol. 470 No. 4

Written Answers. - Single Currency.

Bertie Ahern

Ceist:

273 Mr. B. Ahern asked the Minister for Enterprise and Employment the preparations, if any, being made in his Department for the advent of the single currency; if he will give details of the reports, if any, on the effect of the single currency on the farming sector and related industries; and if he will give details of the research, if any, conducted into the effect on those sectors of the United Kingdom remaining outside the single currency. [19325/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

As the Deputy will be aware, national responsibility for policy in this area is primarily a matter for the Minister for Finance. As regards my departmental interests, on 12 September of this year in the course of my address to the third Sunday Business Post national small business conference in Dublin Castle I announced my intention to develop a European Monetary Union Business Preparation Awareness Campaign.

The concept behind this initiative is to help ensure that businesses have the information which is available to assist them to prepare appropriately for the challenge which economic and monetary union presents in an informed way so that they can avoid disruption to their businesses when the changeover to single currency becomes effective. In launching this initiative I have asked Forfás to co-ordinate an information campaign for enterprise, especially small and medium scale enterprise, on the implications of the economic and monetary union for business operations. Forfás is currently in the process of developing this initiative. Forfás's work in this context is being developed in coordination with associated work being planned in other Government Departments. While this initiative is still in the formative stage, I anticipate that the dissemination of appropriate information to business sectors and organisations will commence soon.

As regards preparations for economic and monetary union within my Department and in the industrial development agencies, a single currency officers team was formed earlier this year under the chairmanship of the Department of Finance. All Departments are represented on this group whose remit is to help ensure that Departments make appropriate arrangements for the changeover to the single currency. In addition the industrial development agencies have themselves established planning groups to handle the changeover to economic and monetary union as it affects their particular operations.

The Deputy also asks about reports on the effect of the single currency. In July 1996 the Economic and Social Research Institute published their Policy Research Series, Paper No. 28, entitled, economic implications for Ireland of economic and monetary union.

This study was undertaken on behalf of the Government by the ESRI, and the terms of reference indicated the comprehensive nature of the economic analysis which the Government required. The resulting report entitled, economic implications for Ireland of economic and monetary union, is a comprehensive economic analysis of the impact of the single currency on the various sectors in the Irish economy including the agriculture sector, and it also examines in detail the potential impact on individual sectors of Irish business of a situation where Ireland is a member of economic and monetary union but the United Kingdom, for whatever reason, remains outside the single currency regime.

Papers have been produced by various bodies on particular aspects of economic and monetary union. A number of conferences have been held or are planned. The ESRI study represents the most comprehensive economic appraisal of the likely implications of economic and monetary union membership for Ireland, a copy of which was sent to all Members of the Oireachtas.