N.Z. ahead in axing low-denomination coins

Press, 14 November 1987, Page 8

N.Z. ahead in axing low-denomination coins

PA Wellington New' Zealand would be in step with the rest of the world in introducing dollar-denomination coins — but the proposals of a Treasury consultant for the axing of 1c and 2c coins is in advance of minting trends in Britain, America and Australia.

Canada, Norway, Japan, West Germany, Britain and Australia have all successfully introduced a dollar coin or its highdenomination equivalent in the last 10 years, and the Netherlands is introducing a similar coin soon.

A group of United States congressmen is moving to replace that

nation’s dollar bill with a new, gold-coloured coin, and Australia plans to introduce a $2 coin next year.

But the United States, Australia, and Britain have no plans to follow the New Zealand proposal to dump small-denomina-tion coins.

New Zealand’s $l, $2, and $5 notes look certain to be replaced by coins and Ic, 2c and 5c coins will become a thing of the past, if the recommendations of a report compiled by Mr Jack Searle are followed.

Mr Searle was responsible for introducing decimal currency to New Zealand 20 years ago. His proposals for the updated

coinage have gone to the Treasury and Reserve Bank for discussion before being put to the Government next year for new legislation. Mr Searle’s findings came after a year of extensive discussions with retailers, slot machine companies, overseas mints, legal experts, and designers. The minting of the $l, $2 and $5 coins in a gold alloy mix of aluminium, zinc and copper will also mean a new set of 10c, 20c and 50c pieces. “I have suggested that the $5 coin be a fraction smaller than the present 50c piece,” he said. The lesser denominations will decrease in size

according to their value.

Mr Searle said that 80 per cent of 1240 New Zealand households surveyed for the report indicated that Ic, 2c and 5c coins were not wanted.

“Astonishingly, we have a lost a lot of these bronze coins,” he said. “Since 1967, 992 million 1c and 2c pieces . have been minted. That is 300 for every man, woman and child so there must be a lot stashed away in jars and tins.”

Mr Searle said the average life of $l, $2 and $5 notes was six months.

“Retiring $9O million of banknotes every six months at a cost of 7c each adds up to a lot of taxpayers’ money.”