142/98
1 September 1998
Helping small and medium sized British business to prepare for the Euro to advertising campaign begins
High profile TV advertising to alert 4.5 million UK small and medium size enterprises (SMEs) to what the introduction of the single currency on 1 January 1999 may mean for them begins today.
Launching the TV advertising phase of the Government's campaign, Lord Simon, Minister for Trade and Competitiveness in Europe, said:
"On 1 January 1999 the introduction of the single currency - the euro - will change the economic landscape within which UK firms must compete and thrive. For many, the whole way they do business will change.
"Our research shows that too many small and medium sized businesses do not know enough about the euro or, in some cases, have wrongly assumed that because the UK is not joining the single currency on 1 January 1999, it will not affect them.
"It is true that many will not be affected initially, but unless they check they cannot be sure. They will be unable to take an informed decision and could risk losing competitive advantages or miss opportunities to improve their business position.
"All UK businesses, especially small and medium sized firms, must consider whether and how the euro will affect them and what to do to be ready for it.
"The TV advertisements starting today are a vital step in drawing attention to the challenges and the opportunities that lie ahead, underlining the importance of acting NOW to be ready for changes only four months away.
"They will alert them to a mail shot which will be sent to 1.6 million SMEs most likely to be affected by the euro, and show them where to go for the essential information they need to plan ahead."
Seven television advertisements (three 40 second and two pairs of 20 second at the beginning and end of advertising breaks) will be broadcast nationally during September. These and parallel radio and print ads will draw the attention of SMEs to the mail shot, which will reach businesses in the target group from early September.
The advertisements feature the character of "Martin Skinner", owner and manager of an SME, in a range of scenarios reminding staff and business contacts of the starting date of the single currency and ways in which it may affect their business, and alerting business viewers to the mail shot.
The TV campaign was developed by HM Treasury Euro Preparations Unit (EPU), advertising agency TBWA GGT Simons Palmer, with the assistance of the Central Office of Information (COI).
NOTES FOR EDITORS
1. The Government set up the EPU in December 1997 (HMT press release 156/97) to provide support for businesses in preparing for the euro. The aim is to provide information that small and medium sized firms want, and to equip intermediaries who are best placed to offer individual professional advice to businesses.
2. In May 1998, the EPU commissioned a Business Omnibus questionnaire of about 1,000 small and 300 medium-sized businesses. This showed that :
- only 11% knew that the single currency starts on 1 January 1999
- 31% felt it was important for their business to make specific preparations but:
- only 5% had done anything to prepare for it
- 17% did not know what impact the single currency would have on their firm,
- while 46% said it would have no impact because they are a UK based company
The report is available from the EPU on 0207 270 4447/5078.
3. Publication of the first ten "business preparations for the euro" factsheets to help smaller businesses find out what the introduction of the single currency may mean for them was announced by Economic Secretary Helen Liddell at a Government EMU Business Awareness Seminar in Glasgow on 8 June (HMT press release 92/98).
4. The first ten factsheets are:
- Why you need to know about the euro and how to use the factsheets
- What is EMU ?
- The UK position on EMU
- The introduction of the euro and the implications for the UK
- Is your organisation affected ?
- Strategic and practical issues for UK businesses
- Planning checklist
- Foreign exchange rate risk
- Conversion between sterling and the euro
- Where to go for more information
These are available to business and business intermediaries from the EPU telephone line on 08456 01 01 99.
5. They are also available, together with additional material including business case studies, ministerial speeches, news releases, Standing Committee minutes and a more detailed factsheet on conversion between sterling and the euro and a "What's New" page, on the EPU website.
6. Further factsheets covering topics such as marketing, pricing, accounting, contracts and legal other issues, IT, tax and the euro, company administration, notes and coins, a banking checklist and "your questions answered" are in preparation. These can be viewed on the website from 1 September. All callers to the telephone line who receive the first set will be sent the further factsheets automatically when printed copies are available in mid-September 1998.
7. Media enquiries and requests for any of the material above should be directed to the Treasury Press Office on 0207 270 5188.