More than 30 per cent of Irish firms still have not worked out the practical implications of the euro for their businesses, and almost half have not drawn up a corporate strategy for the changeover, a new survey shows.

While companies in Dublin are best prepared, those in the rest of Leinster seem least ready for the single currency.

The survey, conducted by IMS for the industrial policy agency Forfas, shows many companies unsure about when they will switch key business functions to the euro. While 25 per cent have changed their basic accounting systems, only 3 per cent have switched their tax returns and payroll systems.

According to the survey, 55 per cent of all firms have now worked out the strategic implications of EMU, up from the 43 per cent recorded in a similar survey last December. Some 69 per cent of firms have identified the practical implications of the changeover, an increase from 60 per cent in the previous survey.

"Although the survey found that considerable progress has been made since the last survey by companies with regard to their overall levels of basic preparation, this planning has yet to translate into practical action, particularly with regard to the actual use of the euro in business transactions," Forfas said.

On a sectoral basis, the chemicals, mining and textiles industries were best prepared for the euro. The construction and food industries appear least prepared.

By region, Dublin is still ahead while firms in Connacht and Ulster have made good progress since the last survey, moving from the least prepared region in December 1998 to next best behind Dublin. Firms in Leinster, excluding Dublin, now appear to be the least prepared.

Some 21 per cent of all firms are pricing goods and services in both Irish pounds and euros, and a further 14 per cent plan to do so before the end of this year. However this falls considerably short of the total of 49 per cent of companies which indicated in December 1998 that they would be dual pricing by 1999.

The survey shows 20 per cent of firms are already invoicing in Irish pounds and euros, with a further 18 per cent planning to do so by the end of the year. This is in line with the 38 per cent of companies which indicated in the last survey their intention to do so by 1999, Forfas said.

The project manager of the agency's EMU business awareness campaign, Mr Eoin Gahan, said the levels of actual take-up of the euro for use in business transactions had fallen significantly below what was originally planned by firms before the commencement of EMU. There was a danger of "euro complacency", he added.