Senior Business Staff On The Euro
Half of senior business people within the British Chambers of Commerce (49%) want the Chancellor to wait and see how the Euro develops before joining, even if the 'five economic tests' are satisfied, according to new research by MORI.
The research -- commissioned by the British Chambers of Commerce (BCC) -- asked views amongst senior staff such as managing directors, owners and chair persons. It shows more than a third (35%) would give him an immediate green light to Euro entry, while 13% say the UK should never join under any circumstances.
The survey shows senior business people at larger companies (with 250 or more employees) and those trading internationally take a more positive stance with 46% and 42% respectively supporting swift adoption of the Euro. Senior business people at smaller companies (those employing between one and 19 people) tend to take a less positive stance with half (50%) thinking the UK should wait and see how the Euro develops before making a decision.
Topline Results
- MORI interviewed 1,005 members of the British Chambers of Commerce.
- All Chambers were invited to take part in the survey. 41 of the 59 Accredited Chambers provided a random sample from their membership database, as did 4 of the 9 Associate Chambers. Each Chamber sampled from their membership database following strict sampling instructions provided, and verified, by MORI.
- In addition, the Birmingham Chamber of Commerce contacted members to offer them the opportunity to be part of the sample, and 22 members came forward.
- From the membership details provided, MORI then interviewed a random sample of 1,005 members by telephone between 21-25 October 2002.
- Results are based on all respondents (1,005) unless otherwise stated.
- Data are not weighted.
- An '*' indicates a finding of less than 0.5%, but greater than zero.
- Survey conducted by MORI on behalf of the British Chambers of Commerce.
Q1 If the Government announces that the Chancellor's five economic tests have been met, which one of the following statements, if any, would best reflect the point of view of your business?
| % | |
|---|---|
| The UK should adopt the euro as soon as practicable (i.e. within 24 to 30 months of a positive referendum result) | 35 |
| The UK should wait and see how the euro develops before making a decision | 49 |
| The UK should never adopt the euro | 13 |
| Don't know | 3 |
Q2-8 I am going to read out a number of different statements about the UK adopting the euro. For each one, I would like you to tell me what you think the likely impact will be. Firstly ...
| Higher | Lower | Stay the same | Don't know | |
|---|---|---|---|---|
| % | % | % | % | |
| Interest rate levels in the UK would, on average, be ... | 36 | 25 | 30 | 8 |
| The tax burden in the UK would be ... | 54 | 4 | 34 | 9 |
| The amount of inward investment into the UK would be ... | 43 | 16 | 34 | 7 |
| The amount of regulation would be ... | 68 | 4 | 23 | 4 |
| UK export levels would be ... | 52 | 9 | 33 | 7 |
| Stronger | Weaker | Stay the same | Don't know | |
|---|---|---|---|---|
| % | % | % | % | |
| The Government's ability to manage the UK economy would be ... | 9 | 63 | 25 | 3 |
| UK business competitiveness would be ... | 48 | 20 | 28 | 5 |
Q9 If the UK were to vote in a referendum to join the euro, what would be a sustainable euro-sterling exchange rate for your business?
| % | |
|---|---|
| Below 60 pence | 5 |
| 60-64 pence | 21 |
| 65-69 pence | 17 |
| 70-74 pence | 10 |
| 75-80 pence | 4 |
| Above 80 pence | 6 |
| Other | 2 |
| Don't know | 35 |
| Mean | 67 pence |
Q10a What, if any, preparations has your business made for using the euro as a foreign currency?
| % | |
|---|---|
| Yes, has made preparations | 40 |
| Checked and adapted, computer software to accept the euro | 15 |
| Appointed people within the organisation to lead the business's preparations | 1 |
| Obtained information and advice | 3 |
| Adapted accounting systems and practices to accept the euro | 15 |
| Opened a euro bank account | 22 |
| Checked and adapted cash handling equipment (such as tills) to accept the euro | 3 |
| Prepared for the consequence of all prices in countries using the euro being quoted in one currency | 6 |
| Prepared for the consequence of businesses in countries using the euro all trading in one currency | 3 |
| Other | 3 |
| Have made no preparations | 58 |
| Don't know | 2 |
Q10b You said that your business has made no preparations for using the euro as a foreign currency. For what reasons, if any, is that?
Base: All respondents whose business has not made preparations for using the euro as a foreign currency (584).
| % | |
|---|---|
| We do not import/export within Europe | 46 |
| The euro has little impact on our business/Does not affect us | 26 |
| Not necessary/No need at the moment | 9 |
| It would be very easy to change currency/It wouldn't take much | 5 |
| We are waiting to see what happens before we invest time and money | 5 |
| Hope we don't/never join the euro | 3 |
| We have not given it much thought | 3 |
| Other | 9 |
| Don't know | 2 |
Q11a What, if any, preparations has your business made for using the euro as a possible future currency for the UK?
| % | |
|---|---|
| Yes, has made preparations | 32 |
| Checked and adapted, computer software to accept the euro | 14 |
| Appointed people within the organisation to lead the business's preparations | 1 |
| Obtained information and advice | 3 |
| Adapted accounting systems and practices to accept the euro | 13 |
| Opened a euro bank account | 16 |
| Checked and adapted cash handling equipment (such as tills) to accept the euro | 2 |
| Prepared for the consequence of all prices in countries using the euro being quoted in one currency | 5 |
| Prepared for the consequence of businesses in countries using the euro all trading in one currency | 2 |
| Other | 2 |
| Have made no preparations | 66 |
| Don't know | 3 |
Q11b You said that your business has made no preparations for using the euro as a possible future currency for the UK. For what reasons, if any, is that?
Base: All respondents whose business has not made preparations for using the euro as a possible future currency for the UK (662).
| % | |
|---|---|
| We will prepare for it when necessary / No need to prepare at the moment | 24 |
| We don't import / export within Europe | 13 |
| It would be very easy to change currency / It wouldn't take much to change | 13 |
| Uncertain if / when the UK will join the euro | 11 |
| It's too expensive / Time consuming a risk to take if the UK doesn't join the euro / We will wait and see what happens | 7 |
| We don't want the UK to join the euro | 5 |
| It is not a big priority of our business / We don't see it as urgent | 5 |
| Not relevant to our business / It will have little impact on our business | 5 |
| We don't think the UK will join the euro | 4 |
| We have not given it much thought | 4 |
| We are a very small business | 3 |
| The decision would be made by head office | 2 |
| Some preparations have been made | 2 |
| We use dollars only | 1 |
| Other | 5 |
| Don't know | 1 |
| No answer | 1 |
