IT companies back UK over EMU stance

Investment in UK manufacturing will continue claim foreign ITvendors.

Foreign computer manufacturers are standing firm against Toyota and Unilever's claims that a UK outside European Monetary Union (EMU) would be a UK without further investment.

Top investors in network equipment manufacturing including 3Com, IBM and Shiva denied that a boycott of EMU by the British Government would lessen spending at their UK plants.

Despite ruling out a rethink of spending at its Greenock site near Glasgow if the UK retains sterling, IBM has added its weight to the pro-EMU lobby. The Euro will make exporting easier.

"IBM is in favour of EMU and anything which simplifies international trade. IBM's role is also to support its customers transition to EMU," a spokeswoman said.

Mark Hollister, channel sales director at 3Com, said the dependence of the IT industry on the dollar means that EMU affects computer manufacturing far less. "Companies like Toyota face different issues than IT firms in manufacturing because they are heavily dependent on manual labour," he said.

Shiva echoed the sentiments, claiming that the IT industry operates on an International dollar basis in the European, Middle East and African regions. EMU will have less impact than on the motor industry and consumer goods, it claims.

3Com's Hollister added that he could only see potential problems arising if there are significant changes in the way import and export taxes operate once EMU is up and running.

The announcements come as welcome news for UK users, because any withdrawal of local computer equipment manufacturing would push prices up and increase delivery times, industry watchers claim.

Meanwhile, the Republic of Ireland's almost certain membership of EMU will benefit Bay Networks and Cabletron, which have plants in Limerick.