Vol. 530 No. 6
47 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will make a statement on the progress made to date in preparations for the changeover to the Euro; and if he has satisfied himself that the period over which existing currency will be withdrawn is sufficient to allow the public to adapt to the new currency. [4672/01]
The changeover requires legislation, production of Euro notes and coins, preparations by the public sector and businesses, and widespread public information. Substantial progress has been made and further preparations are in hand.
Much legislation dealing with the euro has already been put in place at EU level and at national level. More recently, the Euro Change-over (Amounts) Bill, 2001, which I published on 5 February 2001, provides for the substitution, with effect from 1 January 2002, of convenient euro amounts for Irish pound amounts at specific references in listed Acts and Statutory Instruments. Together with the Finance Bill, 2001, and the Social Welfare Bill, 2001, and other forthcoming legislation it will provide a framework of convenient euro amounts to apply from 1 January 2002, in the principal areas of law under which citizens regularly transact business with the State. Irish pound amounts in law that are not affected by this national legislation will be converted to euro on 1 January 2002 at the conversion rate, under Council Regulation (EC) No. 974/98.
Production of euro banknotes and coins by the Central Bank is on target, while Government Departments confirm that progress on preparations by the public sector is satisfactory. These preparations will continue to be monitored by my Department.
The Forfás EMU Business Awareness Campaign has provided extensive information to help businesses prepare themselves for the changeover. The results of a recent Forfás survey on business preparedness were announced at the national conference at the Loughrea euro town project yesterday. It indicated that preparedness is increasing but there is more to be done. Earlier this month Forfás began fresh radio advertising aimed specifically at business. It will continue on a phased basis. It is continuing its presentations to business, trade and professional organisations as well as participating in exhibitions and conferences aimed at SMEs.
Consumer matters are for my colleague, Deputy Tom Kitt, Minister of State with responsibility for Consumer Affairs, and for the Director of Consumer Affairs. The National Code of Practice on the Euro Changeover was re-launched by them last December, along with an action plan for consumer protection during the changeover. Interest in the national code and approved sectoral codes is increasing among retailers. A number of premises have dual price displays on products and till receipts. The level of this will rise sharply closer to 1 October 2001, the date for its commencement under the national and sectoral codes. Other codes on dual display will continue until 9 March 2002, a month after the withdrawal of Irish notes and coins.
The Euro Changeover Board of Ireland (ECBI) has carried out extensive public information activities since its establishment in 1998. These have included a leaflet to every household in 1998, 1999 and 2000, widespread circulation of posters and leaflets, provision of a local inquiry line (1890 201050) and website (www.euro.ie), distribution of information packs to schools and of guidelines to every teacher, provision of material to people with special needs, for example literacy difficulties, and part funding for non-governmental organisations promoting euro awareness. The Euro Changeover Board has run advertising campaigns. A November 2000 public awareness survey by the board showed that 77% knew the year of introduction of euro cash and 83% of these the month. These figures are up on the July survey.
The date for the withdrawal of legal tender status from Irish notes and coins, 9 February 2002, was announced last April in the Cash Changeover Plan for 2002, and I expect to bring the necessary Order and resolution for approval of it, before each House of the Oireachtas before Easter. It was decided following extensive consultation and I am satisfied that the period of almost six weeks strikes the right balance between allowing people to adapt to the new currency and avoiding a long period of dual circulation. All euro area member states intend completing the changeover in a period of two months or less and all have indicated that they expect that the bulk of cash transactions will be in euro by the end of two weeks.
Is the Minister concerned that a recent survey showed only 1% of Irish companies' transactions is conducted in euros? This is the lowest in the EU. Only a third of Irish businesses have considered what has to be done to change over at the start of next year.
It would be preferable if more transactions were carried out in euros and if businesses were more prepared than surveys indicate. Over the past 18 months, awareness has been increasing. I would remind everyone that soon all business will have to be conducted in euros. They should start preparing.
Written Answers follow Adjournment Debate.
