This time next year consumers will have the option of paying their ESB, Bord Gais and Telecom Eireann bills as well as their taxes in the new European currency, the euro. Arrangements have also been put in place to allow bank customers to issue cheques, make credit transfers and hold deposits in the new currency, although it will be at least July 2002 before euro notes and coins replace pound notes and coins as legal tender.
The second edition of Ireland's National Plan for the changeover to the single currency envisages that the various public sector bodies and financial institutions will be ready to accept cashless payments in euros immediately after Ireland joins European Monetary Union on January 1st, 1999.
The plan, which was launched by the Minister for Finance, Mr McCreevy, yesterday, states that Bord Gais, the ESB and Telecom Eireann bills will continue to be issued in pounds, but that payment will be accepted in euros. Mr McCreevy said Ireland was among the best-prepared EU states for the single currency. Any banking services required in the new currency will be available in Ireland for customers and bank charges on these accounts will be the same as those which apply to normal pound accounts, according to the plan. An Post will accept payments in both currencies into its savings accounts.
At the request of customers, banks and building societies will also convert existing accounts held in pounds or any other participating European currency into euros on a once-off basis free of charge, according to the plan. The Revenue Commissioners will accept tax payments in both currencies and will also accept returns and declarations in the euro from companies and individuals who fall into the self-assessment category.
From January 1st next, Irish companies may file their accounts with the Companies' Registration Office in euros and those tendering for public contract may submit their tenders in the new currency. The Stock Exchange will deal only in euros next year. Irish equities traded and settled in pounds now will be settled on the exchange in euros only.
The plan states that, in general, the public sector will continue to maintain its internal financial and accounting systems in pounds, with staff pension and social welfare payments to be made in the Irish currency. All budgetary, financial and economic publications from the Department of Finance, such as the Budget Estimates, will provide summary information in euros. The Central Bank's operations in the Dublin money market will be denominated in the new currency from next year and the Dublin interbank market interest rate, will also become redundant, to be replaced by a European equivalent which will become the standard reference rate on which Irish interest rates will be based.
Other changes will be seen in new issues of Government bonds. Bills and notes that would otherwise be denominated in pounds or other currencies which are being replaced by the euro will be issued in euros.
Mr McCreevy said that, assuming the European Council confirmed this year that Ireland fulfilled the necessary conditions for entering EMU, a currency changeover board would be established under the direction of the Department of Finance to oversee the transition to the single currency.
Euro notes and coins will not be available for a further three years, coming into circulation on January 1st, 2002. Mr McCreevy said the Irish currency would cease to be legal tender no later than July 1st, 2002 and possibly earlier, being replaced by the euro.
