SFA says time running out over euro

The beginning of next month is a key time for euro changeover preparations for thousands of small companies, according to the Small Firms Association.

The SFA says that 85 per cent of small companies will require staff training at some level before the end of this year at an estimated cost of around £1,000 each (€1,269).

October 1st is the day when 56 per cent of small businesses, which employ fewer than 50 people, will change their systems from punts to euros. Hard euro prices will be displayed from that date and invoices will be issued in euros first and pounds second. Software systems and payroll changes will begin in earnest from that date.

The SFA itself estimates that the cost of the changeover for all business could be in the region of £800 million (€1,015.79 million). Training costs for all businesses could be in the region of £136 million (€172.68 million).

Most small businesses will incur costs for software changes, printing costs, signage, staff training and payroll costs.

In its third-quarter euro survey, to which 615 small firms responded, the SFA found that almost 80 per cent said they were well or very well informed on the euro, while 14 per cent said their knowledge was poor and 3 per cent were indifferent. Seventy-one per cent said the introduction of the euro would have a positive impact on their business; 23 per cent did not know and 6 per cent said the impact would be negative.

Seventy-one per cent had appointed one member of staff with responsibility for the euro, while 16 per cent had made no arrangement and 12 per cent still had the matter under consideration.

Mr Pat Delaney, director of the SFA, said that while substantial progress had been made since the last survey at the end of the second quarter, a great deal of work remained to be done. Companies should not defer practical preparations until the last moment because this could lead to bottlenecks where companies were competing for essential services.