HC Deb 01 July 1999 vol 334 cc257-8W
Mr. Heathcoat-Amory

To ask the Chancellor of the Exchequer if(a) the Inland Revenue, (b) Customs and Excise and (c) HM Treasury have incurred expenditure on (i) extra staff, (ii) acquisition of accommodation, (iii) development of IT systems and (iv) the acquisition of supplies in preparation for possible United Kingdom entry to the European single currency; and if he will make a statement. [88748]

Ms Hewitt

Inland Revenue, Customs and Excise and HM Treasury's Euro Preparations Unit have worked to ensure that UK business and public authorities were ready for the introduction of the euro in 11 other European Union countries on 1 January 1999. There is a continuing need to provide UK business with the information that they need to help them remain competitive in this new European business environment. In line with the Government's stated position that the public sector will take a lead in planning, departments have also been considering the implications of possible UK entry to the European Single Currency. This work has been part of the normal business of departments and to date changeover work has not involved expenditure on extra staff, accommodation or the development of IT systems.

Mr. Maude

To ask the Chancellor of the Exchequer what estimate he has made of the amount of public funds to be spent on preparing for the possibility of UK entry into the single currency before a referendum. [88907]

Ms Hewitt

The cost of euro preparations would depend on the detailed approach that the UK took to the changeover. Where computer systems are being upgraded, all departments will build in euro compatibility where that represents value for money. In the case of the DSS, the Inland Revenue and Customs and Excise, the scale and complexity of their computer systems makes advance preparations critical. Prior to a referendum they may therefore need to spend up to some tens of millions of pounds, spread over a number of years to make their IT systems euro-compatible, so that we can maintain the flexibility for Britain to make the changeover as quickly and cost effectively as possible if that is what Government, Parliament and the people decide.

Provisions were therefore included in the Finance Bill and the Welfare Reform and Pensions Bill which will provide specific statutory authority for this spending. Expenditure will be voted by Parliament in the normal way.