Address by Mr Tom Kitt, T.D., Minister for Labour, Trade and Consumer Affairs, at the launch of "The Euro & You: A Consumer's Guide" European Parliament Offices, Dublin 2 Tuesday, 29th June, 1999.

May I begin by thanking the European Consumer Centre for asking me to participate in the launch today of the new consumer's guide to the euro.

The booklet entitled "the Euro and You: a Consumer's Guide" will provide a valuable guide to the consumer as we advance towards the changeover to the euro which will fully arrive in the year 2002. Publication of the booklet is a key part of the information campaign on the euro which the European Consumer Centre will run during 1999 with the aim of raising awareness of the practical aspects of the euro for consumers

We recently passed a major milestone in terms of the euro on 1 January 1999 when the exchange rates of EMU currencies were fixed and the euro became useable for cashless transactions. The business community, banks and money markets are gearing themselves up for the forthcoming changes. As consumers you may have noticed equivalent euro amounts detailed on transactions with the major companies. Just as the business community needs to be kept informed of the changes required in advance of the euro, as Minister for Consumers Affairs I believe that consumers must be fully informed during the transitional phase of the changeover to the new currency. Accordingly, I welcome the publication of this booklet which will contribute to the overall awareness of consumers in the countdown to the euro.

From January, 2002 seven euro notes and eight euro coins will start circulating throughout the country and will be used by consumers in their daily transactions. Six months later the punt and penny will have become collectors items and all of us will be obliged to think and use only euros and cent.

It is important that consumers get used to the concept of the euro now during the transitional phase so that major confusion is avoided during the actual changeover period. In addition to becoming acquainted with all the facts about the euro consumers will also have to build a new scale of values for themselves. Prices in euro will look higher than prices in Irish punts but the value will stay the same.

I recently launched a Code of Practice on Dual Pricing which is another important element in the provision of information to consumers about the euro and may help to avoid confusion. The purpose of the Code is to inform consumers by providing for transparency in the pricing of goods and services during the changeover from the pound to the euro and to assist consumers, in a practical way, to become familiar with pricing in the new currency. The Code is designed for retailers and other suppliers of goods of services.

The Code adopts a voluntary approach and is designed to complement codes devised by business organisations, such as IBEC. I very much appreciate the energetic and pro-active approach which IBEC and other organisations have been taking on dual pricing, not just in relation to codes but also in relation to information and education initiatives.

Compliance with the Code will be the responsibility of the subscribers and complaints should, in the first instance, be directed to the subscribers or associations, where the latter subscribe on behalf of their members. While the Director of Consumer Affairs will be prepared to deal with any unresolved complaints, it is hoped that such complaints will be few. It is a voluntary code and I expect that businesses and associations which subscribe to the Code will be serious about meeting their commitments.

The logo for the Code will consist of the logo used by the Director of Consumer Affairs and the logo of the European Commission. The former will be instantly recognisable to Irish consumers whereas the EU logo will be familiar to European visitors. The logo will include a contact point for use by consumers where they feel that the terms of the Code have not been complied with.

In conclusion , may I say that I am very much aware of consumer concerns that they might be "ripped off" during the changeover process. This booklet addresses some of their concerns. There is a suspicion that the euro will be used as an excuse by retailers and service providers to increase their prices. I have said it before and will say it again - price hikes on the back of the euro are not on. I am determined that consumers will be adequately informed in advance about the changeover. To-day's launch can be seen as another measure to ensure that there will be no information deficit for consumers.