Address by Mr. Tom Kitt T.D. Minister for Labour, Trade and Consumer Affairs, to the CREST Retail Excellence Awards

at Dromoland Castle on Friday, 30^thNovember 2001

Introduction

Good Evening, Ladies and Gentlemen.

It gives me great pleasure to be here this evening in these magnificent surroundings for the FBD/CREST Retail Excellence Awards.

The Retail sector

The retail sector is a significant contributor to the Irish economy. It accounts for 11% of employment in the economy and plays a critical role in sustaining national competitiveness.

The sector is constantly facing new challenges - it has, in the past, responded to competition from new entrants to the Irish market from abroad; it has adjusted to changes in the shopping patterns of customers; and it has dealt with the challenge, in recent times, of sourcing staff in a tight labour market. But perhaps the most significant challenge is yet to come.

Preparing for the Euro

We are now only a matter for weeks away from the introduction of the Euro.

The retail sector will be to the forefront in the changeover. It will be through retail outlets, large and small, in our major cities and in rural areas, that most people will encounter the Euro for the first time as a working currency.

The retail sector will therefore play a key role in making the transition to the Euro a success.

My Department and its agencies, including FORFAS and the Office of the Director of Consumer Affairs, have worked hard during this year to raise awareness of the need for businesses to be prepared for the transition.

All businesses, at this stage, should have drawn up a detailed changeover plan dealing with issues such as Dual Pricing, Computer Systems, Accounting, Cash Management issues and Staff Training. It is important, also, that retail outlets show a willingness to assist consumers in a practical way, from 1^st January, to become familiar with pricing in the new currency.

As retailers, you have a key role to play in ensuring fairness, clarity and accuracy in dual pricing of products in Irish Pounds and in Euro. It is important for the consumer and for the economy, that all sectors of business carry out the changeover fairly, and seek no advantage from the conversion.

Businesses can sign on to either the National Code on Euro Changeover, prepared by the Office of the Director of Consumer Affairs, or alternatively, to sectoral codes which have been approved by the Director. Subscribers to the Codes are entitled to display the Director's Euro Logo as evidence of a commitment by them to implement the changeover fairly.

My message to consumers is: "Shop where you see the Logo." Consumers must use their consumer power of choice and award their custom to outlets where they are given fair prices and good service.

Creating the single market

I want to remind everyone here this evening that the changeover to the Euro not just a technical issue. It is about improving trading opportunities with our EU partners. It is about breaking down barriers to cross-border trade. It is about making the single market a reality.

The advent of Euro coins and notes in January 2002 across Europe, represents the biggest single initiative in terms of developing the single market. One of the acid tests of whether a single market exists will be the ability of consumers to readily avail of goods and services throughout the whole of the Eurozone. Clearly, the single currency will allow consumers to compare prices across borders.

With the future enlargement of the EU, the European market will be further increased by over 100 million consumers over the coming years. This should bring greater prosperity for all, new and older Member States alike.

Importance of Training

In the changeover to the Euro, staff training will be of vital importance to ensure customer's queries can be dealt with and that the period of dual circulation is well managed.

The CREST network has been very proactive in recognising the need for training for the retail sector. I have no doubt, therefore, that members of the CREST network will have trained their staff in preparation for the Euro and will strive to provide good customer service when the currency is introduced in January.

My Department is placing an increased emphasis on the need for training for people in employment. I mentioned earlier the many challenges which the retail sector has had to face - the changing demands of the consumer, increased competition, and continued internationalisation. To successfully respond to these challenges, businesses need staff who are multi-skilled and adaptable. The potential for the development and growth of the retail sector lies within the industry itself and in the quality of its staff. The type of staff you have, the type of staff you can retain, will depend on your commitment to training and up-skilling them.

The National Training Fund came into effect this year to provide a new resource base for training of people in employment and for employment.

The Tanaiste recently announced the establishment of a new National Training Advisory Committee, which will provide high-level advice on the overall strategy for enterprise training in Ireland. The Committee will identify the priority training needs to be supported by the National Training Fund. It will help to ensure that we have a co-ordinated policy approach in relation to enterprise training in Ireland, and one which is relevant to the needs of industry.

The more successful companies in our economy and in other economies have come to realise that training is fundamental to maintaining competitiveness. Customers today are more discerning than ever, and learning and up-skilling must be a continuing process to ensure that as the needs of customers change, so too does the skills-base of the people serving those customers' needs.

Skillnets

The Training Networks Programme, run by Skillnets, shows that companies, employer associations and trade unions are equal to the task of developing and applying innovative training solutions.

Skillnets has been instrumental in raising the profile of enterprise training in Ireland since it was established in 1999. Almost 13,000 employees, including staff of CREST network members, have benefited from training funded by Skillnets.

Skillnets was established to kick-start networks, with a view to them becoming self-sustaining. In providing financial support to companies, we must always strive for balance. We do want to encourage companies to do more training. But we do not want to foster a "rent-seeking" grant mentality. In that regard, we must always be conscious of the fundamental principle underlying EU State Aid rules that grant aid, where allowable, should be for a limited duration.

In deploying our resources, therefore, we want to ensure that a broad range of firms can experience the benefits of training and can internalise the commitment to lifelong learning as a part of their everyday operations.

Concluding comments

In conclusion, I want to compliment CREST on their achievements over the last two years. I want to acknowledge, also, the support of FBD Insurance in sponsoring these awards tonight. I understand that FBD is investing its expertise in offering a Health and Safety assessment consultancy service to all CREST members. As Minister with responsibility for Health and Safety issues, I welcome this initiative, which can help to reduce the risk of accidents in the workplace.

Ladies and Gentlemen, like me, I'm sure you're all anxious to know who has won the Retail Excellence Awards for 2001. So without further ado, I'll hand you back to Miriam (O'Callaghan - MC).

Thank You.