RECENT coverage about the "strength of Sterling" and the effect that this is having on some sectors of British manufacturing misses an important truth -- the pound is not strong; it is the euro that is weak.

The pound has been relatively stable against other world currencies and has actually devalued slightly against the dollar over the past year. In contrast, the euro has proved very volatile and has fallen in value by some 17 per cent since it was launched.

Not all sectors of the British economy have been damaged by the weakness of the euro. Some industries import many of their raw materials and inputs from the Eurozone and then export their finished products to other world markets.

For those companies, the weakness of the euro has made them more competitive because it has reduced their input costs but they have enjoyed stability in their trade with the rest of the world.

As Eddie George, the Governor of the Bank of England, recently pointed out, the weakness of the euro has also made it possible for the Bank to set interest rates in Britain lower than would otherwise be necessary because it has dampened down prices and led to a stable business environment. For those who export to the Eurozone, the euro's volatility has caused problems but that is not an argument for joining EMU. If we were to join the euro now, we would be locked in at the current level which would simply perpetuate the difficulties that Eurozone exporters face.

Ireland joined the euro from the outset but is now experiencing high inflation and an unstable business environment. Had Britain joined from the outset, we too would have high inflation -- which would have undermined our competitiveness in the new global economy.

Our success in the future will depend on our being competitive and that means keeping control of our economy by keeping the pound.

Business for Sterling is a non-political organisation which supports British membership of the EU and the single market, but opposes adoption of the euro for the foreseeable future for sound economic and business reasons.

DAVID BRIGGS, Chairman, Business for Sterling North West, Chapel Street, Manchester.