Firms 'should bring in euro now'

BUSINESSES were today urged to force the Government's hand over euro entry by using the new currency to set wage levels and buy materials.

Nick Reilly, Vauxhall's managing director and CBI economics chief, said Britain's second largest car firm would lead the way.

Vauxhall is tying a small percentage of its UK wages directly to the euro.

And it will increasingly quote and pay continental suppliers of components in the new currency. Mr Reilly said that if other firms backed Vauxhall's move, business might help to "force a change".

Mr Reilly, 51, who has been promoted to a job with parent company General Motors in Europe, warned that Britain's isolation from the euro was seriously harming trade links and profits and that big business had to act now to avoid lasting damage.

"We have got to develop a strategy that takes the risk out of the currency fluctuations for the UK," he said. "Firms using the euro could increasingly be the case.

"This sort of thing has got to be part of the wages consideration, as it has with paying suppliers.

"We cannot just ignore the damage - it is some time until we will know if we are going into the euro." Mr Reilly criticised the Government for failing to declare its intentions.

He also said he regretted the failure of the London Motor Show. He said it would be a "huge mistake" to give up Britain's motor industry heritage.

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