TÁNAISTE LAUNCHES NEW EMU GUIDELINES FOR BUSINESS

"The success of Irish business over the coming years will be dependent to a significant extent on the preparations that companies make now for EMU and the changeover to the euro," according to the Tánaiste and Minister for Enterprise, Trade & Employment, Mary Harney.

The Tánaiste was speaking at the launch today (Monday, 27th July 1998) of comprehensive new guidelines to give further assistance to Irish businesses with preparations for EMU and the changeover to the euro that have been produced by the Forfás EMU Business Awareness Campaign. The three new publications entitled are EMU: The Issues for IT; IT Planning for Business-Where to Begin, and Is Your Retail Business Ready for the Euro?. They expand the range of information material that the Forfás campaign currently makes available to companies to facilitate business preparations for the introduction of the single currency.

The new publications focus on two distinct but equally important areas for Irish enterprise, the issues facing the retail sector and information technology issues for business. The new guidelines were prepared in consultation with two of the Working Groups which have been established by the Forfás EMU Business Awareness Campaign, the IT Working Group, chaired by Jennifer Condon of the National Software Directorate in Enterprise Ireland, and the Retail Working Group under the chairmanship of Paddy O'Boyle, Institute of Chartered Accountants.

Speaking at the launch, the Tánaiste said that, "it is imperative that all companies consider at the earliest possible stage the key implications of the introduction of the euro on their own particular business. In particular, companies need to focus on the strategic or commercial implications for their business, especially if Irish firms are to be well placed to take full advantage of the significant new opportunities that may arise as a result of EMU, as well as preparing for any potential competitive challenges."

"The production of these new guidelines will further facilitate and assist business preparations in Ireland. I would strongly encourage any business that has not already begun to prepare for the introduction of the euro to do so without delay," she commented. "I would also like to take this opportunity to acknowledge the contribution of all the Working Groups and Committees established by the EMU Business Awareness Campaign who have been so active in encouraging business preparations among the enterprise sector in Ireland. In particular, I would like to commend the work of the Campaign's IT and Retail Working Groups who have been involved in the preparation of these documents today."

Commenting on the introduction of the Campaign's new information material, John Travers, Chief Executive, Forfás, said that the new publications would prove to be a particularly invaluable resource for business, dealing as they do with such vitally important areas for Irish enterprise. "IT systems play such a critical and integral role in the overall operation and management of any business undertaking. Computer systems are a key strategic part of almost every business operation supporting a range of other business functions within the enterprise.

"Therefore it is vital that all IT systems are handled effectively and efficiently to deal with the changeover to the euro, to ensure the continued success of the enterprise as a whole."

In relation to the retail sector, all retailers irrespective of size will have a particularly vital role to play in managing the changeover process not only within their own particular enterprise but also among the population as a whole, according to Mr. Travers. "Retailers will be to the forefront in communicating the changeover process to consumers, indeed for many consumers their first contact with the new currency will only occur when they visit their local newsagent or grocery store on or after 1 January 2002, when euro notes and coins will have been introduced. As well as ensuring that their own operations are prepared for the changeover, retailers will be relied on to a large extent to educate and inform the consumer. Retailers will therefore play a key role in ensuring that consumer confidence is maintained throughout the changeover period."

EMU: The Issues for IT outlines the impact of the introduction of EMU on IT systems and highlights the key issues that a business needs to address when preparing its computer systems for the euro. It provides a checklist of questions that should be addressed to determine the state of euro-readiness of an organisation's IT systems. The publication also clearly sets out the conversion and rounding rules that all software systems used to process transactions and convert monetary amounts must follow precisely. These rules have been set down out in EU Regulations and must that must be stringently followed when converting between the euro and national currency amounts.

In addition, the guide also provides a checklist of the IT systems that will be affected, dealing with hardware, software as well as electronic link systems. The impact of EMU on some of the more commonly-used software applications is also detailed, from order processing and invoicing to quotations and contract prices, order taking, payments, accounting and reporting and payroll.

Document 14.1, IT Planning for Business-Where to Begin is a summary of the key issues contained within the main IT guide that has been prepared for inclusion as a new document within the Campaign's Information Pack.

Is Your Retail Business Ready for the Euro? is a concise summary brochure that highlights some of the areas where EMU is likely to impact on a retail business. It has been prepared to provide assistance particularly to the smaller retailer. The guide outlines some of the issues that retailers should consider during both the transitional period (from 1 January 1999 until 31 December 2001) as well as during the dual circulation period (from 1 January 2002 until 1 July 2002 at the very latest) when euro notes and coins will be in circulation alongside Irish pound notes and coins.

Copies of the new publications are available on request from the Forfás EMU Business Awareness Campaign at Wilton Place, Dublin 2 (Tel 01 6073299) or by e-mail at emuaware@forfas.ie