Written Answers. - Euro Changeover.
John Bruton
Ceist:
235
Mr. J. Bruton
asked the
Minister for Finance
if his attention has been drawn to the contents of a recent newspaper report (details supplied) which suggests that there is a serious lack of urgency in the preparations being made here for the conversion from the punt to the euro; and if he will make a comprehensive statement on all of the issues raised in this report.
[19671/01]
I have seen the article referred to by the Deputy.
The article is critical of the lack of an efficient interbank system for handling cross-border retail payments in the euro area. The European Commission and the European Central Bank have made it very clear that they wish to see a single payments area where there is no frontier effect from cross-border payments within the euro area. Ultimately this is a matter for the banking sector at EU level to deliver. The European Banking Federation has recently informed the Commission of a project to create a multilateral interbank committee to reduce the cost of interbank transfers in Europe.
The article also suggests that information for business preparations, including in the retail sector and for the public, is not being provided with sufficient urgency; and that the Government is leaving the euro campaign to the last minute and has abrogated its responsibility for explaining the workings of the changeover to others, specifically the banks. I reject these suggestions.
An extensive range of activities has been carried out to provide information to businesses and to the public about the euro. The following is, necessarily, only a summary of the main initiatives involved.
The Department of Enterprise, Trade and Employment has responsibility for providing Irish businesses with the information they need to make the necessary preparations for the changeover to the euro. The EMU Business Awareness Campaign, which is managed by Forfás at the request of that Department, has undertaken this task since the campaign was launched in December 1996.
The campaign has produced a comprehensive range of publications about the euro changeover and these have been, and continue to be, widely disseminated to Irish businesses in very large numbers. This year alone the activities of the Forfás campaign has included the following: a major advertising campaign using television, radio, press, trade publications and Internet advertising; a new guide for SMEs on preparing for the changeover. The guide covers such areas as accounting in euro, software issues, payroll, dealing with the Revenue Commissioners, banking issues and staff training. Some 160,000 copies of this guide have been distributed to businesses throughout Ireland; and the distribution of almost 50,000 copies of the campaign's supplementary publications, that is its newsletter, strategies guide, IT guide, case studies brochure and cross-border document.
The campaign also provides speakers to address conferences and-or seminars of professional, trade and business organisations, as well as participating at exhibitions and trade shows, particularly those that represent companies in the SME sector. Furthermore, a LoCall helpline is provided by the campaign to assist businesses with their changeover queries. In the first five months of this year the campaign dealt with some 3,000 queries.
The Loughrea euro town project, which was launched in March 1999, has been an integral part of the Forfás campaign. This project was a demonstration exercise whereby 30 businesses in Loughrea, County Galway were helped to change over to euro based trading at an accelerated rate. The project was based on an original concept by the Loughrea Chamber of Commerce and was developed by the Forfás EMU business awareness campaign with the support of the Euro Changeover Board of Ireland and the Department of Enterprise, Trade and Employment. The results of the project were presented at the national euro conference held in Loughrea last February. The project, which highlighted the changeover experiences of the SME firms as they changed over to euro, has identified practical solutions to many of the problems facing small businesses in making the changeover. Further information on the project can be found on its website www.eurotown-loughrea.ie.
As regards retail businesses, a range of initiatives have been undertaken to help retailers prepare for the cash changeover. The Euro Changeover Board of Ireland has developed and launched a computer programme to help retailers assess their euro cash requirements for the first week of 2002. More than 10,000 copies of this programme have been distributed. It is available as a compact disk and it can be downloaded from the board's website. Forfás has produced a document entitled Getting Your Retail Businesses Ready for the Euro. Almost 200,000 copies of these guidelines have been issued, including one to every retailer in the country.
As I announced in Dáil Éireann on 8 May, in order to facilitate the changeover process, agreement was reached with the banks by the Euro Changeover Board of Ireland and the Central Bank of Ireland whereby, in return for a lodgement fee provided by the Central Bank, banks will not charge cash handling charges on euro cash provided to retailers in advance of 1 January 2002. Banks will not enforce cash lodgement charges on Irish notes and coins lodged by retailers during the dual circulation period and for a short time afterwards – that is from 1 January 2002 until the end of the week after legal tender status is withdrawn from Irish notes and coins, that is 15 February 2002.
In addition, banks are working closely with retailers in relation to the latter's requirements for euro cash in advance of 1 January 2002. Banks, retail and business organisations have been holding seminars for retailers and for businesses generally to help them prepare for the changeover.
Forfás is currently preparing a training pack which will be issued to every retailer before the end of the summer.
As regards the arrangements for the changeover itself, in April 2000 I published Ireland's Plan for the Changeover to Euro Cash in 2002. The cash changeover plan outlines what we should all do as individuals to make the change over to the euro as smooth as possible for everyone; recommends that the dual circulation period should end at midnight on Saturday, 9 February 2002; describes how the changeover will be implemented; and outlines the plans of the sectors and individual organisations that will be most closely involved in implementing it.
Contrary to the impression given in the article, this plan was made widely known. More than 150,000 copies of the plan were distributed, mainly to businesses, and a summary of it was sent to every household in the country in summer 2000.
Also contrary to the impression given in the article, the plan makes it clear that banks, building societies, post offices and, where feasible, credit unions will continue to exchange household amounts of Irish notes and coins for euro. These institutions will also continue to accept them in customer lodgements for a time after the dual circulation period. The Central Bank will also continue indefinitely to give value in euro for Irish notes and coins.
The article also mentioned prices. The consumer aspects of the changeover are being addressed by Deputy Tom Kitt, Minister of State at the Department of Enterprise, Trade and Employment who has special responsibility for consumer affairs, and by the Director of Consumer Affairs. Last December they relaunched the national code of practice on the euro changeover, along with an action plan to protect consumers, as far as possible, from unwarranted price increases during the changeover. A key aspect of the code is that subscribers to it, and to any sectoral code approved under it, commit themselves to carrying out the changeover fairly and to seek no advantage from the conversion.
The newspaper article mentioned public information. The Euro Changeover Board of Ireland has been carrying out very extensive public information activities since its establishment in May 1998. Among a wide range of items, the board has sent a leaflet about the euro to every household every year since 1998. It has done so again this year. This year's household leaflet emphasised the importance of using up hoarded coin. This theme was also stressed in a recent Central Bank advertising campaign on the same topic. The board has organised widespread circulation of posters, booklets and other information materials, including educational material for schools and materials for every teacher. It has run several advertising campaigns on television and radio and in the press. A particular feature of the board's advertising campaigns is that they are run through media and at times which are particularly focused on reaching groups at risk of low awareness – older people, people on lower incomes and people based in the home. This is contrary to the article's allegation of neglect of such groups in the euro context.
The board has set up a LoCall helpline and a website, the latter has a special section for schools. It has made a train-the-trainers pack widely available for general use. It is operating a roadshow which between May and October will visit every county. Since 1998 the board has run a programme of part funding for non-governmental organisations carrying out euro information activities. Under this programme a total of 68 grants have been paid to voluntary and representative bodies in respect of euro preparations and awareness programmes. Under the most recent phase of the programme, applications for which closed in April, more than 150 projects have been approved for funding totalling 750,000 euro.
Public awareness of the euro is monitored by the board. In June I announced the top-line results of the board's most recent survey which was published in May. These showed that 95% of people know the name of the single currency; 91% have seen prices in euro; 79% know that euro cash will be introduced in January 2002; 78% have seen pictures of what euro notes and coins will look like; and 64% know that a pound converts to one euro and 27 cent. In addition to monitoring public awareness, these surveys also identify the sectors and the themes on which advertising effort needs to be focused.
The needs of low awareness groups are being addressed and continue to be addressed through the board's specialised material and targeted advertising. These groups include older people, people not participating in the workforce and people with sensory or learning disabilities. The board's consultative panel, set up in 1998 and composed of organisations representing people in low awareness groups and people likely to have special needs in the changeover, helps to identify and meet these needs. Many of the projects in the board's NGO programme relate to these groups.
Public information activities will intensify greatly in the autumn. The European Central Bank will be unveiling the security features of the euro notes at the end of August, and they and the appearance of the notes will be widely advertised from then on. The Euro Changeover Board will be increasing its advertising campaign substantially from September onwards and will also be distributing a booklet on the changeover to every household. Extensive dual display of prices will begin from 1 October, the latest date for its introduction under the national and approved sectoral codes. A simple to use electronic converter will be distributed to every household in November. Starter packs of euro coins will be put on sale from 17 December. So as well as the very extensive activities already carried on to date, there will be a great deal of further activity aimed at making sure that the public is ready for the changeover when it begins on 1 January 2002.
