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Appendix 1Responses of bodies and institutions to the recommendations contained in the December 1998 Report of the Joint Committee on Economic and Monetary Union
Mr. Mícheál Ó Corcora, Clerk to the Joint Committee, Joint Committee on European Affairs, Leinster House, Dublin 2. Report of the Joint Committee on European Affairs on Economic and Monetary Union Dear Mr. Ó Corcora I refer to your letter of 2 March 1999 concerning the recommendations of the Report of the Joint Committee on European Affairs on Economic and Monetary Union. The attached note outlines the Department of Finance’s position in relation to recommendations 1, 2, 6, 11, 12, 14 and 15 of the report. Yours sincerely,
P.H. Mullarkey Secretary General. 28 April 1999. Recommendation 1The Committee recommends that the proposed six months of dual currencies (January-June 2002) be shortened to perhaps two months starting 1 February, 2002. In this way the winter sales would be over and also a shorter “dual period” would be less confusing for consumers and less expensive for retailers. The Minister for Finance and the Taoiseach should report back to the Oireachteas on their efforts with ECOFIN and the European Council in this regard. 1 January 2002, the date for the introduction of euro notes and coins (E-day) was decided in 1997 (and that date is contained in an EU Regulation (EC) No 974/98 of 3 May 1998) A change to that date would require a change in the Regulation, and that would require unanimity of the eleven Member States participating in EMU. Before the 1 January 2002 date was decided Ireland and Netherlands, alone among Member States, argued for a different date on the grounds that 1 January was a bad time for introducing a new currency, and sought its introduction in February. However, no other Member State supported a date other than 1 January 2002. Recently Belgium suggested that E-day be brought forward. The suggestion was discussed informally at ECOFIN in January 1999 but the majority of Ministers did not favour changing the date. The position of the Minister for Finance on the Belgain proposal is set out in the attached reply to a Parliamentary Question last month. Regulation (EC) No 974/98 provides that national currencies will lose their legal tender status six months after 1 January 2002; it also provides that this period may be shortened by national law. The logistics of putting euro notes and coins into circulation and withdrawing Irish pound notes and coins are currently under examination with a view to completing the changeover to the euro in the shortest period feasible. Recommendation 2The Committee recommends that the Department of Finance lay a report on the continuing implications for the Irish economy of the Stability and Growth Pact (SGP) before the Oireachtas twice annually, before any such report is submitted to European institutions. The Stability and Growth Pact requires Member States to prepare each year a Stability Programme setting out the Government’s medium-term budgetary objective, showing how it is to be achieved, and the economic and budgetary assumptions on which the Programme is based. The first such Stability Programme was published on Budget day, 2 December 1998 and it is intended that in future such programmes will be published in conjunction with the annual Budget. The position therefore is that at present a report on the implications of the Stability and Growth Pact on the economy is presented to the Dáil each year by the Minister for Finance as part of the Budget Day documentation and then submitted to the European Commission. It is not considered practicable to prepare two such reports per year, the second of which would not have the necessary budgetary context for its preparation. Recommendation 6The Committee recommends that concerns it raises regarding the availability of computer packages be given priority consideration by the Government, if not addressed by the time this report is issued. The Forfas EMU Business Awareness Campaign provides information to help businesses prepare themselves for the changeover to the euro and has already produced an IT Guide entitled EMU: the issues for IT. It is understood that Forfas will be responding to the Joint Committee’s recommendation No 6 concerning the availability of computer packages. Recommendation 11Sterling devaluation could cause serious problems for Irish indigenous industry. The Committee therefore recommends that a special strategy be put in place to provide for such a possible eventuality. The Minister for Finance should lay plans for such a strategy before both Houses of the Oireachteas. When analysts speak of a “sterling shock” they are usually referring to a sharp fall in sterling from its equilibrium level. However sterling is currently well above what most commentators consider to be its equilibrium level so sterling would have to fall considerably before its level could be considered to be an economic “shock” While it would be inappropriate to speculate about the future value of another country’s currency, the Department acknowledges that a large and sudden depreciation in sterling would cause problems for Irish indigenous industry. The loss in competitiveness by Irish industry would need to be addressed through incomes restraint and greater efficiency. However, the British Government’s stated aim is to join EMU if the economic conditions are right for British and to meet the conditions to do so in the interim. One of the conditions is exchange rate stability against the euro for two years prior to joining EMU. As a result the Department feels that any depreciation in sterling is likely to be gradual and that Irish industry will have sufficient time to make the necessary adjustments to retain competitiveness. The Government however has not been ignoring the need to prepare for the possibility of problems for Irish industry as a consequence of sterling falling significantly below its equilibrium level. The implications for different sectors of Irish industry of possible movements in sterling was examined in detail in the ESRI report “Economic Implications for Ireland of EMU” (July 1996). This report was commissioned by the Department of Finance. In July 1998, Forfas launched a document which summarises the results of a study commissioned by their EMU Business Awareness Campaign. This examined which actions in the fields of finance, marketing and distribution that firms could consider as part of their planning for to possible consequences of a sterling “shock”. Recommendation 12The Committee recommends that part of the forecasted annual budget surpluses be allocated to investment in needed additional infrastructure in such a way as to attract private partnership co-funding. Investment by the Government has increased significantly over the last two years in order to tackle the infrastructural deficit. The Government is currently drawing up a National Development Plan which will outline its investment plans up to 2006. It is envisaged that an ambitious programme will be drawn up committing considerable additional resources for investment purposes. It is the Government’s intention that the fruits of future growth will be significantly directed towards tackling our infrastructural deficit. The issue of public private partnership is being treated as a matter of priority. The issue of public-private partnership is being treated as a priority, in the context of the National Development Plan. The scope and scale of PPP in meeting investment needs will be considered in the context of the NDP as a whole. A list of pilot PPP projects will be announced shortly, on which substantial progress is expected to be made by the end of this year. The key considerations in selecting pilot projects are long-term value for money and their priority at national level. In order to develop the PPP process, the Government has recently approved the establishment of a central Public Private Partnership Unit in the Department of Finance, to lead, drive and co-ordinate the PPP process across and in conjunction with Line Departments. Units have also been set up in the Departments of the Environment and Local Government and of Education and Science. Recommendation 14The Committee suggests that consideration be given to the creation of a National Contingency Fund, into which part of the forecasted future budget surpluses be paid to provide for possible unforeseen events arising from EMU. There is a general contingency provision in the budgetary arithmetic. This represents a prudent provision in the overall budgetary projections for the second and third year of the three year multi-annual budgetary cycle against possible adverse factors outside the control of Government. Examples are variability in tax buoyancy resulting from slower economic growth than that assumed in the projections or exceptional costs arising in areas of public expenditure. There is no provision made in the first year of any Budgetary cycle as the factors likely to affect revenue and expenditure are assumed to be known more clearly. From time to time, the question of setting up a statutory contingency fund1 has been mooted to provide for unforeseen factors which could have an adverse impact on the budgetary position. However, it is considered that the most appropriate approach to addressing such contingencies is to manage the public finances in accordance with the spirit and intent of the Stability and Growth Pact. In particular, this means adopting a budgetary stance which would allow sufficient room to meet the temporary or short run costs of an adverse shock to either revenue or expenditure while keeping firmly within the Maastricht fiscal criteria. It should also be noted that running budget surpluses allows the retirement of debt which, by definition, would create some leeway for borrowing during years of poor budgetary performance. These approaches create the capacity to respond to shorter-term adverse events at which the contingency fund in question would be addressed. Recommendation 15The Committee recommends that the ESRI be asked to undertake further studies on how income flexibility to cope with economic shocks can be extended in the private sector and implemented in the public sector. In EMU it is recognised that there is a need for greater flexibility in the event of an economic shock. This issue needs to be considered further in the context of the negotiations for a successor to Partnership 2000. The Committee’s recommendations in this regard will be kept in mind by the Department. DÁIL QUESTION NO To ask the Minister for Finance his views on whether the euro currency notes and coins should be introduced at an earlier date than that anticipated; and if he will make a statement on the matter. - Bernard J. Durkan * For ORAL answer on Thursday, 25th February, 1999. Ref No: 5466/99 REPLY The date for the introduction of euro notes and coins was decided in 1997 and is contained in Regulation (EC) No. 974/98, which provides for their introduction on 1 January 2002. An amendment to the Regulation would be required to change the date and such an amendment would require the unanimity of the eleven Member States which have adopted the euro. An idea floated by the Belgian Finance Minister to bring forward the date for the introduction of euro notes and coins was informally discussed at the Council of Economic and Finance Ministers in Brussels last month. The European Commission was invited to carry out a final review of the question but the majority of Ministers did not favour changing the date. In the discussions leading up to the decision to introduce euro notes and coins on 1 January 2002, Ireland and the Netherlands argued against a date of 1 January, because it is close to Christmas and new year sales are being held. However, no other country supported a date other than 1 January. I would have been prepared to support an examination of the possibility of a new date now provided it could be shown that a new and earlier date was feasible at this stage in view of the preparations already made on the basis of 1 January 2002 and that unanimous agreement could quickly be reached. However, the majority of the euro Member States do not support changing the date and I do not feel, therefore, that there is a realistic prospect that the date will be changed. Office of the Director of Consumer Affairs 31 May, 1999
Dear Mícheál I refer to previous correspondence in relation to the Joint Committee’s Report on Economic and Monetary Union and I regret the delay in replying. In response to your request to outline the present position in relation to Recommendations 3, 4 and 8, I would make the following comments: “Recommendation No. 3 The Director of Consumer Affairs should be authorised, and funded to appoint a “Yell and Tell” Consumer Representative in each Euro parliamentary constituency on a modest fee, free-lance basis during the changeover period” The Committee will be aware that the European Commission in its Recommendation of 23 April, 1998 on dialogue, monitoring and information to facilitate the transition to the Euro, invited Member States, including where appropriate local authorities, “to establish suitable facilities and preferably to set up observatories on the transition to the Euro, for monitoring the introduction of the Euro, and the fairness and transparency of professional practices. Each observatory should involve representatives of all relevant business sectors, the public administrations concerned and members of the public, including representative bodies, particularly consumer organisations. Observatories should carry out the following tasks at local level: reception, guidance to sources of information, providing feedback, mediation and assistance to citizens, including keeping an eye on the banks’ code of practice and any information provided by them”. The Euro Changeover Board and this Office are already carrying out some of the functions of an observatory. However, more needs to be done and the Department of Enterprise, Trade and Employment has had discussions with the Changeover Board and with me in this regard, and efforts to involve national organisations with country-wide members are underway. The work of this Office on Codes of Practice is one of the areas where we are carrying out some of the functions of an observatory and in which there is a “Yell and Tell” aspect. A National Code of practice on Dual Pricing is nearing completion following widespread consultation. This voluntary Code provides for the display, in a clear and unambiguous way, of the prices of goods and services in both currencies for approximately a six-month period commencing on 1 October, 2001. All suppliers of goods and services will be encouraged to subscribe, either as individual businesses or through their representative associations. The National Code may be supplemented by other more detailed codes suited to the individual circumstances of individual industries. These Codes will require my approval and subscribers to them will be deemed to be subscribers to the National Code. A logo (including the phone number of this Office as a contact point) will be publicly displayed in subscribers premises. The contact point is for use by consumers in any case where they feel that the commitments are not being adhered to and the subscriber in question is unable or unwilling to sort out the problem. The Code allows me to withdraw a subscriber’s entitlement to use of the logo and to publicise such cases, in effect “yell and tell”. “Recommendation No. 4 The Committee recommends that the Director of Consumer Affairs pay particular attention to money-lending practices and how interest rates are applied by money-lenders, to ensure that poorer persons are not further exploited in terms of interest charges”. The Committee will be aware that the Director of Consumer Affairs assumed responsibility for the licensing of moneylenders on the commencement of the Consumer Credit Act, 1995 in May, 1996. The Act entitles the Director to refuse a person a licence if in the Director’s opinion “the cost of credit to be charged is excessive or any of the terms or conditions attaching thereto are unfair”. Moneylenders licences are valid for a period of 12 months and must be renewed each year. Since the commencement of the Act, the Office has processed three rounds of money-lending licences (i.e. 1996, 1997 and 1998). I am aware that in processing applications for moneylenders licences during these three licensing rounds, my predecessor did use his powers under the Act to warn a number of moneylenders who were in his view charging excessive rates to their customers that unless they reduced their rates of charge, their licences would be refused. I would wish to assure the Committee that I will also exercise the relevant powers under the Consumer Credit Act should I find instances of moneylenders charging excessive rates of charge. I feel it important to point out that when considering the rates of interest charged by licensed moneylenders, it should be borne in mind that money-lending for a variety of reasons is inherently an expensive form of credit. I would agree with the sentiments expressed by my predecessor in his 1997 Annual Report to the effect that, as the licensor of moneylenders, he was concerned that in seeking to eliminate excessive rates of charges by moneylenders that the net outcome does not result in driving legal moneylenders out of business to be replaced by illegal lenders charging much higher rates and employing totally different business practices. I am in total agreement with his conclusion that the only real solution to this dilemma of excessive rates of charges being imposed on persons who are unable to avail of mainstream credit is the introduction of some form of social lending as applies in other Member States of the European Union. “Recommendation No. 8 The Committee recommends that the Director of Consumer Affairs publish details of her intentions in relation to assistance to SMEs, especially under Section 149 of the Consumer Credit Act, as soon as possible”. First, I would like to point out to the Committee that whereas the majority of the Parts of the Consumer Credit Act, 1995 are concerned solely with consumers (which the Act defines as a natural person acting outside his trade, business or profession), part XII of the Act (essentially Sections 149 and 150) which obliges credit institutions to notify the Director of all customer charges refer to customers/group of customers. The Act does not define “customer”. It is my view that this Section covers a person / company etc. who is a customer of a credit institutions. I note from the Committee’s report that its primary interest in this area related to the charges that credit institutions would impose on SMEs for transacting in “Euroland” currencies. As stated in my evidence before the committee, reductions of between 20% to 30% (and in some instances even higher) in the cost of “Euroland” currency transactions have occurred since the introduction of the Euro on 1 January, 1999. These reductions have benefited all customers of credit institutions providing foreign exchange facilities including SMEs. In issuing my directions to foreign exchange providers prior to the introduction of the Euro, I obliged them to publish certain details of their post Euro charges in the national newspapers. I also required them to produce information leaflets outlining all their post Euro charges for all their products which I insisted should be available to customers in all outlets providing foreign exchange. My basic message to customers of foreign exchange providers was / is that they should consult the newspaper advertisements and the information leaflets to see which institution will give them the best value for the particular foreign exchange transaction that they wish to carry out. I would strongly reiterate that message to any SMEs who engage in foreign exchange transactions in “Euroland” currencies. Indeed in view of the likelihood that SMEs may engage in more transactions than ordinary consumers and also that they may use products other than cash (which is the main type of foreign exchange transaction carried out by consumers) such as drafts, cheques etc. and having regard to the tight margins on which a lot of SMEs operate, it is all the more important that they should shop around for value in foreign exchange. For the Committee’s information, I am aware that since the introduction of the Euro some institutions have been forced to reduce their charges for transactions in “Euroland” currencies in respect of particular products because they are found to be uncompetitive (as a result of customers opting to shop around). Significant reductions have been made by a number of foreign exchange providers in products such as drafts (a product which is frequently used by SMEs for foreign payments). I hope, therefore, that the facilities, have benefited in some measure through reduced charges for “Euroland” currency transactions since the introduction of the Euro on 1 January, 1999. The full benefits of the single currency will obviously not occur until Euro notes and coins are in circulation in 2002. I hope that the foregoing is of assistance in outlining the current position as regards the recommendations specified in your Report. Yours sincerely
Carmel Foley Director of Consumer Affairs ForfásMr Míchéal Ó Corcora Clerk to Joint Committee on European Affairs Dáil Eireann Leinster House Dublin 2 14th April, 1999 Dear Mr Ó Corcora I am writing in reply to your letter of 2nd March, 1999 to the Chairman of Forfás in connection with the report of the Joint Committee on European Affairs on Economic and Monetary Union. At the outset, I would like to congratulate the Joint Committee on its report, which provides an excellent analysis of Economic and Monetary Union and the range of issues concerned with the introduction of the single currency. You have asked that the present position in relation to recommendations 5, 7 and 9 of the report of the Joint Committee be outlined in so far as Forfás is concerned. The position is set out in the following paragraphs: Recommendation 5: The Committee recommends that Forfás and IBEC intensify their efforts to educate employees and customers in advance about issues surrounding the euro, encouraging companies and helping to design specific programmes Forfás agrees fully on the need to educate employees and customers in advance about the issues surrounding the euro, encouraging companies and helping to design specific programmes. The Business Information Campaign on the changeover to the euro, which Forfás has been asked to undertake on behalf of the Government, has, since its outset in late 1996, been directed at the information needs of the business sector. It is based very much on the principle that the information required by business to prepare for EMU and the changeover to the euro be provided in a timely and efficient way - both directly and, where relevant, through the business and professional bodies of which they are members. Actual preparation is, of course, the responsibility of business firms themselves. In undertaking the Campaign a vast range of material has been distributed, and continues to be distributed to business firms in all sectors and of all sizes throughout the country (i.e. hundreds of thousands of pamphlets). This has been followed up by a continuous stream of articles, seminars, conferences and so on geared to the needs of business. In all cases companies are encouraged to communicate with their customers on the implications of the changeover to the euro. Specific advice is provided on how this can best be accomplished. With regard to the specific question of information for employees, the Forfás Business Information Campaign has, in consultation with ICTU, prepared a brochure for trade union representatives that provides an outline of the main issues concerned with EMU and the changeover to the euro. A total of 35,000 copies of this brochure have been distributed and a number of follow-up seminars have been conducted. Apart from the general emphasis of the Campaign that firms work closely with their customers in preparing for the changeover to the euro an active retail-working group, containing representatives from all the principal associations of smaller retailers has been established. This group has provided an important source of advice and analysis and has led to the preparation of a guide on EMU issues for the smaller retailer, 80,000 copies of which have been distributed. In focusing on the requirements of retailers, especially small retailers, in the changeover period customer needs are addressed: retailers are encouraged to make adequate preparation for the changeover, including in such customer-related areas as dual pricing, dual display, currency handling, and general provision of information. As the Joint Committee will be aware the Minister for Consumer Affairs has also recently published a draft voluntary code of practice for retailers on dual display during a transition period that begins before the introduction of notes and coins and concludes with their removal. IBEC, which is a member of the Forfás Consultative Committee on the Business Information Campaign, together with a wide range of other business associations, professional bodies, Government Departments, State Agencies and the Central Bank, has also issued a Code of Practice for the changeover from Irish pounds to euros in the Irish Grocery Trade. Recommendation 7: The Committee recommends that the campaign of Forfás and the euro Changeover Board be re-examined so as to ensure that SMEs are targeted for special assistance towards preparation for EMU Forfás shares the concerns of the Committee in relation to the less advanced level of preparation of SMEs for the changeover to the euro. The Business Information Campaign, through objective six monthly surveys tracks the level of understanding and preparation of different sectors of business, including the SME sector, in relation to the changeover to the euro. The information collected in these surveys is used to gear the Campaign to the specifically identified needs of the SME sector (e.g. hence the special information programme developed for small retailers referred to above). It should also be noted that the various steering, advisory and consultative groups, which have been established as part of the Campaign, are heavily representative of the SME sector. An Inter-Agency Co-ordination Group, brings together the principal State agencies concerned with the enterprise sector and co-ordinates their initiatives with regard to preparing their client firms. The Group has prepared a statement (issued as Document 20 of the Information Pack produced by the Campaign) that sets out the services available from State Agencies to assist firms in making the changeover. The services of the County Enterprise Boards, which focus especially on firms with fewer than 10 employees, are outlined in the document and these bodies are active in targeting SMEs for assistance in preparing for EMU. In order to further disseminate the key issues in relation to EMU and the changeover to the euro that arise for smaller firms, and how these should be addressed, a special leaflet has been prepared by the Campaign. In six pages, it sets out the key issues and represents a distillation of the analysis contained in the larger Information Pack produced by the Campaign. While some 50,000 copies of the Information Pack have been distributed, the SME leaflet has been distributed more widely, and the total of copies sent out now exceeds 100,000. These have been distributed through business associations, professional bodies, Chambers of Commerce around the country, the County Enterprise Boards, and in response to direct enquiries. A particular difficulty in providing information on EMU issues to the SME sector is that, in many cases, small firms are not members of any representative organisation. Accordingly, in addition to using business associations, professional bodies and so on to distribute information to SMEs other direct methods of reaching out to small firms and alerting them to the need to make preparations for EMU are also used. Advertising has been the principal medium for this. The Business Information Campaign in December 1998 and again in January 1999 has carried out a significant amount of newspaper advertising in both the national and regional press, in order to alert all business people to the availability of information from the Campaign. Radio advertising, especially the use of local radio stations, has also been extensively used and will continue in 1999. A follow-up help line has also been established. With the co-operation of the Revenue Commissioners, a special direct mail initiative has also been undertaken in which the key messages for small firms were compiled and distributed to all registered businesses. A total of 490,000 leaflets of this kind have been distributed. A further means of information dissemination has been to make use of existing publications directed at small business. The inclusion of leaflets from the Campaign has been carried out in a number of such publications. They include Running Your Business, Business Contact (Dublin Chamber of Commerce), Business Plus, Inside Business (Chambers of Commerce of Ireland), and Business and Finance. Approximately 103,000 leaflets have been distributed in this way. A summary of the activities undertaken by the Business Information Campaign to encourage preparations by the SME sector for the changeover to the euro prepared at the request of the EU in March 1999 is attached. Recommendation 9: The Committee recommends that Forfás and the euro Changeover Board give careful consideration to ways and means of assisting sectors of industry to change to euro invoicing together where practicable Forfás agrees that there is a good deal of merit in the suggestion put to the Joint Committee that (firms within) certain sectors of industry change to invoicing in euros at the same time. Forfás will ensure that, as part of the Business Information Campaign, the Joint Committee’s recommendation in this regard is fully considered. Initially Forfás will discuss and support the recommendation with the members of the various business associations (representing different sectors) represented on the various management advisory and consultative groups established as part of the Business Information Campaign. I hope that the comments are of some value to the Joint Oireachtas Committee. If I can be of any further assistance please let me know. Yours sincerely
John Travers Chief Executive Officer
JD/MMcG Mr Mícheál Ó Corcora Clerk to Joint Committee Joint Committee on European Affairs Leinster House DUBLIN 2 18/06/99 Dear Mr Ó Corcora I reply to your request for an outline of IBEC’s response to Recommendation 5 of the Joint Committee on European Affairs and Economic and Monetary Union. I enclose a summary of our EMU awareness campaign to date and of our plans for 1999. More specifically in 1999 we have been having ongoing discussions with Minister Tom Kitt and his officials concerning the operation of a Code of Practice on Dual Pricing. Now that these discussions have concluded we are awaiting approval of the IBEC/EAN Code by the Director of Consumer Affairs. Once the code is approved we will embark on a campaign amongst retailers and retail trade associations to encourage them to sign up to this code. Several thousand copies of the code will be printed with useful guidelines for retailers on how to prepare for the changeover. This process will be used to launch an awareness campaign amongst retailers of the whole changeover process and how to deal with maintaining consumer confidence. We will continue to distribute our Euro Preparation Guide for Retailers. We also have an ongoing retail working group comprising the main retailers to keep them up to date with Euro developments and to represent them on the Euro Changeover Board of Ireland. This is now critical as IBEC is a member of the ECBI’s Cash Changeover Working Group, which is charged with producing a changeover plan for the introduction of euro notes and coins. IBEC will keep its members fully briefed on the developments of this plan. IBEC offers a briefing session every fortnight for all member companies on a wide range of issues. IBEC is also including a session on EMU and HR issues on most of our half day and full day training courses. The EMU Human Resource Working Group is finalising a new pamphlet The Euro and Human Resources which addresses best practice for information and communication to employees of euro issues. This will be published shortly and sent to all companies. It will also be distributed at training courses and other euro awareness meetings. IBEC continues to produce the regular Euro Currency Countdown newsletter and to operate a euro web site and euro hotline. Yours sincerely
John Dunne EURO CHANGEOVER COMMUNICATIONS PLANIncreasing Business AwarenessOBJECTIVES-To continue IBEC’s high level of research and information associated with the introduction of the Single Currency. -To increase the awareness of the business community and especially the SME sector and the retail sector throughout the economy of the essential features of EMU and the practical steps that must be taken by companies to make the changeover. To continue to work intensively with the Small Firms Association in addressing the particular information needs of small firms. -To anticipate and respond to on-going queries about the changeover. -To provide the business community with a unique forum to exchange views about their practical concerns. -To use the information gathered from this close contact with companies to input to Government to ensure that business corporate plans and the Government’s National changeover Plan proceeds in harmony. -To provide a dedicated service to the retail sector and maintain on-going contact between banks, retailers and their suppliers. To help tease out the problems and solutions associated with the introduction of notes and coins. -To promote a code of practice by retailers and provide a back-up service to help retailers. -To develop training modules and cover such issues as dual pricing, customer education and software requirements. -To work with and through IBEC’s range of sectoral federations and associations in their preparation for the changeover and to facilitate and encourage co-operation and co-ordination between them in the interests of businesses and consumers alike. WHAT HAS BEEN ACHIEVEDIBEC has carried out an on-going comprehensive communications campaign, developed an information package for all companies but especially SMEs and retailers, worked with companies, Forfas, the Government and the Commission to create the conditions for the smooth introduction of the euro. ConferencesIBEC notified the ECBI of its active participation in over 150 conferences and comprehensive company briefing/training sessions in the year to mid 1998 which were attended by over 7,000 people. IBEC continued this activity under the last programme September-December part funded by the JIP Group and beyond into 1999. Since September IBEC has held some 34 conferences/workshops and 27 in-depth company briefings which have been attended by some 2000 people. IBEC has attended over 50 meetings on EMU of various kinds. IBEC has maintained its international contacts by participating in workshops and seminars abroad. It also took part in initial attempts to develop cross border links with Northern Ireland. IBEC has held conferences in its own right, worked with other organisations to hold joint conferences or has spoken at other organisations’ conferences. At these conferences and briefing sessions we have produced folders with Euro Preparation Guides, IBEC’s special Currency Countdown Newsletter, copies of slides and other information produced for the conference and more recently ECBI material. We have also distributed the information leaflets produced by the Government’s Forfas Business Awareness Campaign. Numerous conferences were held with the Small Firms Association. Samples of presentations are given in. IBEC published its own changeover plan at the beginning of the year in part as a communications effort to members to demonstrate the importance of having a euro strategy and communicating it to their business partners. Working GroupsIBEC established a number of working groups to look at the practical aspects of introducing the euro: (a)FDT/IBEC retailer group was established to develop a code of practice to reach an agreement between grocery suppliers and retailers on the timing of the business-to-business transactions, the format and timing of invoices, pricing, the dual display of prices and consumer information. A copy of the code is given in. (b)IBEC/EAN Ireland (Article Numbering Association) Working Group was established in March 1997 to look at the special problems of the retail sector. The Working Group has developed a similar code of practice to the grocery code for all retailers. Both codes of practice have involved the Director of Consumer Affairs and are supported by the Forfas Business Awareness Campaign. A copy of the code, which has been submitted to the Director of Consumer Affairs, is given in. IBEC has worked closely with retailers and retail associations to bring out the issues which need to be tackled to implement the introduction of notes and coins as smoothly as possible. A number of trade associations have adopted the IBEC code or have adopted it with some minor amendments. These include: RGDATA, the Irish National Newsagents Association, the Licensed Vintners Association, the Vintners Federation of Ireland, the Irish Hardware Association, the Society of Irish Motor Industries, the Irish Tea Trade Association, the Irish Hotels Federation and the Irish Petroleum Industries Federation, the Irish Fashion and Footwear Association. In addition other retail trade associations have expressed an interest in signing up to the code. (c)A Building Materials Federation (an IBEC affiliate) Euro Working Group has promoted the adoption of a timetable for the co-ordinated move to the euro in early 2001 for the building sector. The Construction Industry Council agreed a date of April 2001 for the changeover at the end of 1998. (d)A Human Resources Working Group is examining best practice in terms of information, training payroll, and treatment of rounding. InformationEuro Preparation Guide for Companies IBEC has participated in many of the working groups (to enhance its expertise) organised by the Association for the Monetary Union of Europe (AMUE). IBEC’s Chief Economist is a sherpa to the Board of the Association and participated in the Workshops regarding the preparation of SMEs. This programme resulted in the AMUE Euro Preparation Guide for Companies. IBEC participated in the research in Ireland for the guide and also proofread the final texts. IBEC has purchased 20,000 copies of the Guide. Euro Preparation Guide for Retailers IBEC’s Chief Economist chaired the AMUE Workshop on the Euro and the Consumer. This resulted in the AMUE Euro Preparation Guide for Retailers. He co-wrote the Guide with the Director of AMUE. Some 10,000 copies of this Guide have been purchased and to-date the majority have been distributed. Euro Currency Countdown Newsletter IBEC writes a Quarterly Newsletter entitled “Euro Currency Countdown” which is sent out to over 5,000 members. A total of eight Newsletters have been published. Euro Checklists Both of the Euro Preparation Guides contain useful checklists that can be used by companies and retailers as manuals for ensuring that all the major tasks associated with the changeover to the euro have been tackled. Participation in Video IBEC participates in radio and TV interviews and writes articles in the news media. The Chief Economist collaborated closely with Esperanza Production in the making of a video entitled “Your Business and the Euro”. Euro Web Site IBEC has established a Euro Web Site which keeps companies informed of euro developments and has direct links to the European Commission’s site and that of AMUE. Hotline A Euro hotline has been in operation since March 1997 and is serviced by two experienced members of IBEC’s Business Information Unit. IBEC’s promotional material publicises the hotline and the web site as well as recognising the financial contribution of the Commission Publicity IBEC has featured regularly on euro issues in the press. THE 1999 CAMPAIGNIn the period April to October IBEC will continue to organise conferences and workshops raising awareness, especially of SMEs, working with the Small Firms Association. It will work through its range of sectoral federations and associations to further encourage and facilitate co-operation and co-ordination of the changeover to the Single Currency. IBEC will develop half-day training workshops aimed at practical approaches to tackling the changeover. The Human Resources Working Group is developing a “best practice” approach to the HR side of the introduction of the euro. It will produce a pamphlet on best practice and hold a series of awareness seminars on HR issues. It is the intention of IBEC to register the Code of Practice for the Retail Trade with the Director of Consumer Affairs. IBEC will also encourage other sectors to affiliate to the code and have them registered with the Director of Consumer Affairs. IBEC will publish between 60,000 and 100,000 of these codes with some helpful guidelines on how to solve certain practical issues. Following on the success of the AMUE/IBEC Euro Preparation Guide for Retailers, IBEC has begun discussions with AMUE to produce a Euro Guide for Small Retailers. This will involve developing a core guide, which will be customised specifically for conditions in Ireland. Armed with the Code of Practice and the Retail Guide, IBEC will offer practical EMU workshops for small retailers working through local Chambers and trade associations. IBEC will administer and offer practical advice to all companies that wish to sign up to the IBEC Code of Practice. Much of the retail effort is contingent upon the successful registration of the IBEC Code of Practice with the Director of Consumer Affairs and reaching some accommodation with the Department of Enterprise and Employment whereby companies might not be dissuaded from participating in the IBEC Code in preference to the National Code of Practice on Dual Pricing. Our submission assumes a successful outcome. IBEC will produce at least two Euro Countdown Newsletters to keep businesses up to date on the changeover. IBEC will continue to operate a euro hotline serviced by two experienced members of IBEC’s Business Information Unit. IBEC will continue to offer a euro web site to keep companies informed of euro developments and is linked to other web sites such as the European Commission and the Association for the Monetary Union of Europe.
15 March 1999 Mr Mícheál Ó Corcora Clerk to Joint Committee Joint Committee on European Affairs Leinster House Dublin 2 Dear Mr Ó Corcora I write in response to your letter of 2 March 1999, with which you enclosed a copy of the recommendations of the Joint Committee on European Affairs on Economic and Monetary Union and asked for an outline of the present position in relation to Recommendations 7 and 9 insofar as the Euro Changeover Board of Ireland (ECBI) is concerned. At the outset I should say that we welcome the report of the Joint Committee and will give ongoing consideration to its recommendations in our work. Recommendation 7 recommends re-examination of the Board’s and the Forfás compaigns so as to ensure that SMEs are targeted for special assistance. Forfás and the Board maintain close links in our respective tasks of providing information for business and providing information for the public: for example, Forfás are represented on the ECBI and a senior officer from our Secretariat is on the Management Committee of the Forfás Campaign. SMEs have always been a particular focus of the Forfás Campaign and I understand that in its response to the Joint Committee, Forfás will include a summary of the initiatives it has taken to encourage preparations in the SME sector. For our part, we in the ECBI are careful to include mention of the Forfás Campaign in our public information material wherever appropriate. For example, last summer we circulated an information leaflet to all households (some 1.3m leaflets) and later in 1998 we distributed the same leaflet in large quantities via Post Office counters and retailers; this year we circulated a new leaflet to all households, and again we are distributing it via Post Office counters and other outlets. We were conscious that these leaflets, because of their very wide circulation, should carry mention of the Forfás Campaign, in order to alert business people to it - and especially those in SME’s, who perhaps might not otherwise be aware of the Forfás Campaign. Accordingly, the leaflets contained special direction for business people to the Forfás Campaign and included its address, phone number and e-mail and internet addresses. In addition, in 1998 the ECBI operated a Programme under which £200,000 was provided to Non Governmental Organisations to promote awareness of the euro. Activities to promote awareness among SMEs were identified as one of the key areas for support and applications involving such activities were allocated a substantial proportion of the 1998 funding. Applications are currently being received for the 1999 Programme (closing date 23 March 1999) and the SME sector has again been identified as one of the priority sectors for support. We will continue to work with Forfás to ensure that we play our part as appropriate in our public information programme, and with Forfás in their campaign for business, in maintaining a special focus on the needs of SMEs in the changeover process. Recommendation 9 recommends that we and Forfás give careful consideration to ways and means of assisting sectors of industry to change to euro-invoicing together where possible. The Joint Committee will be aware that Forfás information material stresses the importance of businesses communicating with their customers and suppliers about their changeover plans. The best means of considering the Joint Committee’s objective further may well be via the Consultative Committee of the Forfás Campaign, which includes representatives from a number of business sectors and which we also attend. Forfás is, I know, also considering other ways of promoting this idea, and we will of course continue to cooperate with them in their work in this area. I trust that the Joint Committee will find these responses useful. I assure you that we will continue to keep the Committee’s recommendations carefully in mind as the changeover to the euro progresses. Yours sincerely
Philip Hamell Chairperson
29 March 1999 Clerk to Joint Committee Joint Committee on European Affairs Leinster House Dublin 2 Attn. Mr. Mícheál Ó Corcora Report of the Joint Committee on European Affairs on Economic and Monetary Union Dear Mr. Ó Corcora The Secretary General has referred to me your letter of 2 March concerning the present position with regard to the Communicating Europe Taskforce. By Government decision in 1994, IR£100,000 was set aside to fund a new communications initiative, Communicating Europe (CEI), which was intended to address the comprehension deficit identified by European Union Heads of State or Government in 1993 following the ratification of the Maastricht Treaty. The Task Force on Communicating Europe was established and headed by Mr Tom Kitt T.D. then Minister of State for European Affairs at the Departments of the Taoiseach and Foreign Affairs. Membership of the Taskforce include representatives from the Government Information Service, the Department of the Taoiseach, the European Commission, the European Parliament, the European Movement Ireland, and the Institute for European Affairs. Since the transfer, the Taskforce has met nine times, on 9 October 1997, 13 March, 8 May, 2 July, 8 October, 23 November, 16 December 1998, and 1 February and 8 March 1999. The allocation to the Taskforce for 1999 is IR£100,000. The Task Force is chaired by the Economic Division of the Department of Foreign Affairs, at Assistant Secretary level, and the Press Section of the Department carries out the administrative work related to the initiative. All decisions of the Taskforce in relation to requests for funding are made subject to the approval of the Minister for Foreign Affairs. Yours sincerely
J. F. Cogan Assistant Secretary Economic Division
18 June, 1999 Mícheál Ó Corcora Uas Clerk to Joint Committee on European Affairs Leinster House Dublin 2 I refer to the Report of the Joint Committee on European Affairs on Economic and Monetary Union and in particular to recommendation No. 13 in relation to the provision of more local authority housing. The local authority housing construction programme has operated on an annual basis for many years. As and from the year 2000 the programme will operate on a multi-annual basis and it has been decided by the Government to increase the number of houses to be provided to 22,000 over the four year period 2000 - 2003. This is equivalent to an increase of over a fifth in the number of rented local authority houses in the country. Local authorities have been requested to immediately set in train the necessary preparatory work to implement a new multi-annual programme and to ensure that any necessary land availability is secured in good time. Four year programmes including the funding profiles will be agreed between local authorities and the Department of the Environment and Local Government early in the new year. While the need for an increased programme of housing construction is recognised, local authorities must also facilitate an increased level of voluntary and non-profit housing output. This sector makes a significant contribution to meeting housing needs and it is envisaged that output from this sector will increase to 4000/5000 units per year. Each local authority will be required to demonstrate how they will utilise all social housing options, including the new Affordable Housing Scheme, to meet the social housing needs of their area over the next four years. Social housing output (including new local authority housing, vacancies in existing stock and output under the other social housing measures) met the needs of about 9250 households in 1998. It is estimated that the needs of over 10,500 households will be catered for in 1999.
Peter McCann, Principal, Housing Construction Section. |
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