Concern over euro in North

Small firms in Northern Ireland are likely to suffer increased currency charges and costs with the introduction of euro notes and coins next year, according to one of the largest business bodies in the North.

The Federation of Small Businesses, which represents more than 2,500 firms, believes costs will rise as prices are "rounded up or marked up to the nearest euro".

Mr Bill Jeffrey, chairman of the federation, said there is a lot of concern among its members about the introduction of the euro, and he added that many are still not fully aware of its implications. The federation is now planning to launch a major campaign in partnership with the Euro Preparations Forum across the North over the summer to help micro businesses understand how the introduction of the euro will affect them. "We fear that a lot of micro businesses will be caught out when the new currency descends on us at the beginning of next year. The UK may not be part of the euro zone but many small firms are very dependent on their export business with the Republic for survival. As the only country in Europe with a land border to a euro zone this is a major issue for Northern Ireland businesses," Mr Jeffrey said.

Businesses will have no choice but to open euro accounts, leaving them exposed to additional bank charges, he said and added that small businesses will face increased administration costs due to the knock-on effect the euro will have on suppliers and existing customers.