A REGIONAL organisation has warned the government that adopting the euro will lead to extra costs for businesses and force up prices.

Mr Don Greenhalgh, chairman of Blackrod-based construction company Allen plc, is co-chairman of Business for Sterling North West, the regional body of the national campaign group. It is putting the economic and business case for keeping the pound.

He said: "Leading retail organisations have estimated that joining the euro would cost businesses up to 2.5 per cent of their turnover and it is the smaller, local retailers who would be hardest hit.

"Banks are expecting the euro to increase their operating costs by as much as six per cent because of the cost of staff training and changing cash machines.

"It is the customer who pays for all these extra costs. The euro is bad news for consumers."

Business for Sterling is calling on the government to abandon its National Changeover Plan.

Mr Greenhalgh added: "Why should businesses be expected to waste money preparing for the euro when we have not even decided to join and when more than two thirds of the public are against it?"