Businesses in the North may be happy to accept the euroas payment, but when it comes to joining the euro zone, many are less than keen - according to the Business for Sterling campaign.

Tens of thousands of euro notes are at this moment sitting comfortably in bank vaults across Northern Ireland, poised to compete with the British pound at cash tills across the North.

Euro-friendly zones such as Derry and Newry report brisk trade in the single currency, but a quick glance at any euro-only queue in a Sainsbury's or Marks and Spencer store confirms that it is no threat to the might of sterling in the North.

But while consumers remain largely unaffected by the arrival of the euro, businesses in Northern Ireland have had no choice but to embrace the new currency if they trade in any of the 12 euro-zone countries.

Mr Bill Jeffrey, the emeritus chairman of the Federation of Small Businesses in the North, says most businesses have now adapted to the changeover and are enjoying the benefits of dealing in just one foreign currency.

He believes a large percentage of firms now have euro accounts up and running and are also taking advantage of buying raw materials and services in euros. But while they may be actively trading in the euro, he believes the heart and soul of Northern Ireland plc remains firmly outside the euro zone.

Mr Jeffrey is a council member of Business for Sterling Northern Ireland, which is part of the UK-wide "No To The Euro" campaign.

This non-party political project, established by Business for Sterling and New Europe, supports British membership of the European Union, but believes the UK should keep the pound for the foreseeable future.

No-campaign supporters in Britain include Mr Joe McNally, chairman UK & Ireland of Compaq Computer Ltd and Mr Peter Barton, deputy chairman of Alliance & Leicester plc.

Northern Ireland Business for Sterling's council members also include Mr David Agnew, chairman of Isaac Agnew Holdings, one of the largest car dealerships in the North, and Mr Howard Hastings, chief executive of Hastings Hotels Group, Northern Ireland's largest hotel chain.

Mr Jeffrey says businesspeople in the North support the Business for Sterling campaign because they do not see the UK meeting any of the five economic tests, which the Chancellor of the Exchequer has set as a prerequisite for joining the single currency, in the immediate future.

THE tests include a sustainable convergence between the UK's economy and the economies of the single currency and whether there is sufficient flexibility to cope with problems if they emerge.

The other three tests govern the effect which joining the euro zone would have on investment levels in the UK, the impact joining would have on the financial services industry and whether it would increase the number of jobs in the UK.

"We are not close to sustained structural convergence and the euro has certainly not proved itself a successful single currency yet," Mr Jeffrey added.

He believes one of the key concerns businesspeople have is the UK's ability to keep control of its economy.

"At the moment the Bank of England's monetary policy committee dictates interest rates and controls inflation. In Northern Ireland we depend on these regulations and we also believe that we can make our voice heard to the Bank of England via its Belfast office.

"If the UK was part of the euro zone we would lose that valuable input and control of our economy would pass to an organisation who might not fully appreciate the issues in Northern Ireland," Mr Jeffrey adds.

He says many businesses in the North do not support the view that being part of the euro zone would help stimulate investment in Northern Ireland.

"We believe that the euro is part of a process that goes far beyond the currency issue.

"We do not want to be in a position where control of the UK economy passes into the hands of the French or Germans who have their own agendas to pursue," Mr Jeffrey says.

He says Business for Sterling Northern Ireland would not rule out joining the euro in the future, but it was unlikely this would happen within the next three years.

"We have more crucial issues in Northern Ireland to concentrate on such as education, health and the growing levels of crime on our streets.

"We need to concentrate on the issues which we can influence," Mr Jeffrey says.