The exchange rate used by the State to compute Euro/Sterling conversion is in direct conflict with the threat by Enterprise Minister Ms. Mary Coughlan to bring in legislation to stop retailers from profiteering.

This was stated by Marian Harkin MEP when she accused the State of using an exchange rate which unfairly penalised people on small sterling pensions.

“We have a situation where the State itself is engaged in the very same practice as profiteering retailers.  It uses a sterling exchange rate that is well out of line with the current rates and in doing so denies benefits and entitlement to those who would otherwise qualify.

“Retired persons or others living in Ireland with small Sterling pensions, or payments, are being penalised by the State which fails to use a fair currency conversion rate on assessing their right to entitlements and other payments.

“The Euro/Sterling conversion rate of 1.27 being used by the Department is well out of line with the current exchange rate of 1.12.  According to the Department, the rate is set every 3 months and is based on the previous 3 months average.  However, the previous 3 month average was 1.19 which is considerably lower than the figure of 1.27 used by the Department.  The upshot of all of this is that when people are being assessed for entitlements, pensions etc their means are calculated at approx 78% more than they actually are.

“This is unjust, it is discriminatory and it shows that the state is engaged in practises that the Minister wants to outlaw”, Marian Harkin MEP concluded.