LABOUR MP Hugh Bayley today warned York could miss out on hundreds of new jobs and millions of pounds of investment if Britain delays joining the euro.

The city MP spoke out after urging Chancellor Gordon Brown to consider the

economic consequences of not joining the single European currency.

At present, the Treasury's five crucial economic tests focus on whether joining would have a negative impact.

Mr Bayley said the city's Inward Investment Board (IIB) had attracted 2,000

new jobs over the past five-and-a-half years.

Many of the 50 new companies lured to the city are from America and Japan, which prefer to do business in English-speaking countries which are part of the EU.

The MP is concerned that, if Britain delays joining the euro, further jobs may slip away.

He believes the biggest threat to York will come from within the Republic of Ireland - which is already trading in euros. During a conversation with IIB boss Paul Murphy, Mr Bayley was told a lot of U.S. and Japanese firms were asking when Britain intends to join.

Mr Bayley, who favours an early referendum on joining-up, said: "I do think it is important the Chancellor looks at what will happen if we don't join - and not just if we do.

"I was encouraged by his answer, as I believe it is the first time he has said this will be taken into account."

Mr Brown has told him: "Clearly, we have to consider both sides of the

debate. Our studies are yielding a great deal of information about what motivates inward investment and what is happening to investment as a whole."

Meanwhile, Mr Bayley warned York could also suffer a slump in tourist numbers if euro entry is delayed.

Last year, 355,000 tourists from within the Eurozone visited the city - spending 150m euros.

He said: "York is the sort of place where people visit for a weekend, rather than a two-week holiday.

"This means it is competing with places such as Frankfurt and Paris. Someone living in Holland, for example, may not want to have the fuss of

changing money and that could be the deciding factor."

Mr Brown is due to publish the findings of his five economic tests in June.

If he finds the tests have not been met, a referendum ahead of the next General Election would become very unlikely.

Updated: 10:19 Tuesday, March 04, 2003