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Dáil Éireann díospóireacht -
Tuesday, 26 May 1998

Vol. 491 No. 3

Written Answers. - Economic and Monetary Union.

Derek McDowell

Ceist:

132 Mr. McDowell asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures, if any, her Department has taken to ensure that preparation for the introduction of the euro in January 1999 throughout Irish commerce is sufficiently advanced to permit a smooth transmission; and if she will make a statement on the matter. [12149/98]

The planning and preparation process for the introduction of the euro is extensive with an intent in particular to assist the business community to be ready for the changeover. In this context, the key to a successful transition to the euro is early preparation by the business sector. This is a central message of the EMU business awareness campaign which is managed by Forfás on behalf of my Department and the Department of Finance.

The issue of preparation for the euro among the small business sector has been a particular focus of the business awareness campaign over recent months. A number of initiatives designed to specifically target smaller businesses have been initiated in this regard. Features of the campaign include:

— A consultative committee has been formed comprising representatives from employer organisations, professional bodies, trade associations and state agencies to act as a forum for co-ordination, co-operation and informaton exchange. In addition working groups for the retail sector, for information technology, and for training have been formed whose remit is to address and make recommendations on specific issues relating to EMU.

— Detailed information has been prepared in the form of an information pack, of which over 35,000 copies have been distributed. It includes a planning framework and tools for business impact and analysis and functional checklists. The information pack is regularly updated.

— Preparation of a short user friendly brochure summarising the key issues for small business in relation to the changeover to the euro. Over 82,000 copies of this brochure have been distributed to businesses through their representative organisations, state agencies etc. and through special distribution with, and advertising in, magazines targeted at small firms.

— Relevant EMU material outlining how EMU issues should be dealt with has been distributed to over 140,000 businesses as part of a mailing with the Revenue Commissioners.
— An advertising campaign on the radio has alerted businesses to the advent of the euro and the need for preparations and offered businesses the opportunity to phone a dedicated euro line for information.
— An inter-agency co-ordination group has been formed in order to ensure that support to enterprises from the state agencies is fully mobilized to assist them as far as possible in their preparations for EMU. A programme of staff briefings has been completed and detailed targeting of companies is under way at the regional level.
Finally, the Government has published its own national changeover plan outlining the arrangements that will be made by Government Departments, the Central Bank, the NTMA and the Revenue Commissioners as well as banks, building societies and the Stock Exchange. This will serve as a useful guide for businesses of all sizes and in all sectors as they prepare for the changeover.
I am satisfied therefore that Government plans are sufficiently advanced to facilitate the business community in its preparation for the changeover to the euro. Continued co-operation with and preparation by the business community will, I am sure, result in the transition to the euro proceeding successfully.

Bernard J. Durkan

Ceist:

133 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment whether she has evaluated the impact for Irish trade and industry of the United Kingdom remaining outside the EMU after the introduction of the euro; the measures, if any, she proposes to take to safeguard Irish interests; and if she will make a statement on the matter. [9615/98]

Both the Government of which I am a member and the previous Government have undertaken assessment of the impact for Irish trade and industry of the UK remaining outside of EMU.

The previous Government authorised the then Minister for Finance to have an in-depth study undertaken of the likely economic implications of EMU for Ireland with particular reference to employment, including at sectoral level, in the context of various membership scenarios for relevant member states.

This study reached an overall conclusion that, assuming prudent policies, EMU membership would be favourable for Ireland that this conclusion held whether or not the UK also joined. Of course, the most favourable scenario would be if the UK did join. Nonetheless it was found that the balance of quantified effects was still favourable to Ireland even if the UK remained outside.
As part of the EMU business awareness campaign, which Forfás is managing on behalf of the Government, Forfás is preparing a report to identify actions that companies could take to counter possible variations in the sterling-euro rate after EMU begins. The focus of the report is therefore very much on contingency planning at company level. In carrying out this work, analysis was made of which sectors were likely to be most affected by such possible currency variations. This study will be available later this week.

Bernard J. Durkan

Ceist:

134 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the proposals, if any, she has to introduce guidelines or regulations to ensure the protection of the consumer from any risk of exploitation in the course of the transition from the punt to the euro; and if she will make a statement on the matter. [9614/98]

A framework is being put in place at EU level to facilitate the smooth transition to the euro. This framework, which has a strong emphasis on consumer protection, contains both regulations which have direct effect in Ireland, as well as European Commission recommendations on the practical aspects of the changeover to the euro. These recommendations, which have been endorsed by the European Council, put in place standard codes of practice for retailers, banks, other service providers and public authorities in the areas of dual display of prices, bank charges and monitoring of prices.

The recommendations are broadly aimed at facilitating a smooth changover to the euro while at the same time providing consumers with clarity and certainty over the transitional period. The recommendation on dual pricing also covers existing euro regulations on the use of conversion rates and rounding rules. In addition they address the main issues identified during a process of consultation by the Commission with the private sector and consumer groups.

I fully support the voluntary approach put forward in these recommendations and consider that they provide a reasonable basis on which to agree voluntary codes. My Department is responsible for policy in this area and my officials and the Director of Consumer Affairs will be fully involved in the development and monitoring of the voluntary codes.

For example, on dual pricing the Office of the Director of Consumer Affairs has already been involved with the food, drink and tobacco federation of IBEC which has drawn up a code of practice for its grocery trade members. The Director's office is also involved with the Forfás retail group which consists of representatives from a large number of retailers' bodies, as regards codes of practice for the changeover including the area of dual pricing.
The Director of Consumer Affairs will also take the lead role in relation to monitoring of prices throughout the period of transition from the Irish pound to the euro.
I am satisfied that the measures now in place at European level, backed up by action at national level, provide an adequate framework for a smooth transition to the euro and also provide clarity and protection to the consumer.
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