§ 10. Mrs. Ann Winterton (Congleton)What estimate he has made of the total cost to small businesses of preparations under the national changeover plan for conversion from sterling to the euro. [77042]
§ The Secretary of State for Trade and Industry (Mr. Stephen Byers)The cost to businesses will depend on the detailed approach that they take to any changeover. The best way to keep costs down for business and the economy as a whole is to plan ahead. The Government have started this by publishing the outline national changeover plan.
§ Mrs. WintertonIs the Secretary of State aware that Lloyds TSB has estimated that the costs of changeover to the euro for small businesses will be £2 billion—a further cost, with absolutely no return, added to those imposed on small businesses by the Government? Will he provide an official Government estimate of the cost to small businesses of changeover, given that the Government publish every other cost of changes that they have introduced—for example, the working time directive?
§ Mr. ByersAs I said, it depends on the state of readiness of individual businesses, and on how they change their systems. In the period between where we are now and any decision that might be taken by the Government, Parliament and the British people on whether or not to join the single currency, there will be many opportunities for businesses to ensure that they are in a good state to adopt the single currency—if that is what is eventually decided.
§ Mr. Peter L. Pike (Burnley)Is not it unrealistic for us not to prepare? If we do not prepare for the changeover, we will lose more jobs in the long term, and that will be a great cost. Are not the Conservatives being totally unrealistic in terms of euro and the Government's preparation plan?
§ Mr. ByersThe Conservative Opposition are being unrealistic. They are an example of how political dogma can triumph over reason, and the right hon. Member for Wokingham (Mr. Redwood) is a particular example of that. Some 500,000 small businesses are already trading in the euro zone. They know what the single currency is all about because they are doing business in it and creating profits. That is what is happening in the real world. It is about time that the right hon. Gentleman and the rest of the Conservative party realised that they are well out of touch with the views of business on the single currency.
§ Mr. John Redwood (Wokingham)A company would be foolish to spend money on abolition of the pound before a referendum was held, not least because we would win that referendum and keep the pound. Will the 518 Secretary of State assure companies that any changeover plan for a referendum will leave companies enough time for implementation after it has taken place? Does he accept that abolition of the pound will cost British business more than £10,000 million? Will he confirm that British business, including the Confederation of British Industry, has no wish to enter the euro at our exchange rate mechanism rate, which is close to the present market rate of sterling, and is all that is on offer from the Government?
§ Mr. ByersThe questions from Opposition Members have given us the whole variety of estimates being propounded. The hon. Member for Congleton (Mrs. Winterton) suggests £2 billion, and the right hon. Gentleman offers £10 billion. In reality, the cost will depend on the circumstances of individual businesses.
I was intrigued by the fact that the right hon. Gentleman could not stop himself smiling when he talked about winning the referendum. If we get to the stage of holding a referendum, there will be an interesting debate, but the important thing will be that British business is prepared for whatever outcome the referendum produces. The right hon. Gentleman's approach would ensure that British business was not prepared for the outcome of the referendum. We should prepare, then let the British people decide. Prepare, then decide, is the best approach for business and for Britain, and adopting it will ensure that a reasonable approach is being taken in an important area.