Liam Aylward
Ceist:446 Mr. Aylward asked the Minister for Finance if he is satisfied that the criteria used for the euro changeover were adequate; and if he will make a statement on the matter. [2616/02]
Written Answers. - Euro Changeover.
The Government's aims in its preparations for the changeover were that public sector preparations be completed in good time, that the public be well informed and that the changeover be completed smoothly and efficiently and with minimum disruption to commerce and the public. These aims were achieved. There were essentially six elements in the changeover preparations: legislation; the production and distribution of euro cash; preparations by the public sector; preparations by the private sector; consumer matters; and the provision of public information.
As regards legislation, the Finance Act 2001, provided for convenient amounts in euro to replace IR£ money amounts in the tax code from 1 January 2002. The Social Welfare Act did the same for the social welfare code. The Euro Changeover (Amounts) Act 2001, provided in necessary cases elsewhere in law for convenient amounts in euro to replace IR£ amounts from 1 January 2002. These, and other similar changes, were introduced with a view to facilitating the day to day transaction of business with the State. In all cases where convenient euro amounts in law were provided for, the Government acted on the principle of favouring the citizen. In July 2001, I signed a ministerial order to withdraw legal tender status from IR£ notes and coins at midnight on 9 February 2002, as recommended in Ireland's cash changeover plan. Previous legislation in 1998 had already adapted Ireland's Central Bank and monetary law to cater for the launch of the euro, while more recent legislation catered for such matters as copyright and counterfeiting.
Cash production by the Central Bank involved over 200 million euro notes and over 1 billion euro coins. The frontloading of euro cash to banks and the sub-frontloading of retailers ensured that the notes and coins were widely available for the transaction of business in euro from 1 January 2002. Starter packs of euro coins were put on sale to the public from 14 December 2001, mainly through post offices.
In the public sector, each Government Department and body was made responsible for the changeover of its own operations and regular reports confirmed that progress was on target. These preparations included conversion of payroll and accounting systems and staff training. Each Department and body also had to make appropriate arrangements in respect of its own business clients. Thus, for example, the Revenue Commissioners provided business customers with the facility of conducting tax and customs affairs in euro from 1 January 1999. The 2002 Estimates for the public service and my recent budget were presented predominantly in euro.
The Forfás EMU business awareness campaign was established in 1996 to provide businesses with the information they needed to prepare themselves for the changeover. The campaign distributed a wide range of information materials very extensively and in autumn 2001 a retail training kit, containing among other things, a euro calculator, a detailed training manual and a ready reckoner, was distributed to over 45,000 retailers throughout the country. Similar kits were provided in December to taxi and hackney licence holders. Practical training for retailers and their staff was also provided by FÁS and through business representative organisations.
The consumer aspects of the changeover were addressed by my colleague, the Minister of State with responsibility for consumer affairs, Deputy Tom Kitt, and by the Director of Consumer Affairs through the national code of practice on the euro changeover. Subscribers to the national code committed themselves to carrying out the changeover to the euro fairly and to providing dual display of prices, as far as practicable, from 1 October 2001.
As regards the public, the Euro Changeover Board of Ireland carried out very extensive public information and advertising activities. These activities included a range of materials and support mechanisms to meet the needs of low awareness and special needs groups. The final phase of the board's campaign saw nationwide household distributions by An Post of a comprehensive euro handbook and an electronic converter. The board's advertising in late December-early January gave practical advice to the public on how everyone could help the changeover run smoothly.
The board's cash changeover plan, drawn up in conjunction with the key changeover organisations, was implemented efficiently from 1 January. Early on that day, accounts with financial institutions were converted to euro, ATM machines began dispensing euro notes – 85% were dispensing in euro by 6 p.m. – and electronic point of sale systems, which support credit card and similar payments, were also converted to euro. Retailers who opened on that day systematically gave change in euro only or, in some cases, provided exchange facilities so as to enable transactions in euro only at the tills. From 2 January, euro cash became even more widely available through withdrawals from financial institutions, social welfare cash payments and change giving by retailers generally. By the end of the first weekend the bulk of cash transactions was taking place in euro and the changeover was virtually complete within a week. Withdrawal of IR£ cash by the Central Bank is now well in hand.
To sum up, the changeover went very well. I am glad to take this opportunity on behalf of the Government, and on my own behalf as Minister for Finance, to express our thanks and congratulations to all those involved, including the public at large, for making it so successful.