HM Treasury News Release

142/98                               1 September 1998
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HELPING SMALL AND MEDIUM SIZED BRITISH
BUSINESS TO PREPARE FOR THE EURO
                                
TV 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 0171 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 at
     http://www.euro.gov.uk.

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 0171-270
     5188.

     


# = pounds sterling