THE STANDING SENATE COMMITTEE ON NATIONAL FINANCE
December 13, 2010 | http://www.parl.gc.ca/40/3/parlbus/c.../13dec10-e.htm
Senate Committee on National Finance to Hold Press Conference to Discuss Report on the Costs and Benefits of the Penny
Tuesday, December 14, 2010 | 3:45 p.m. E.T.
National Press Theatre, 150 Wellington Street, Ottawa
The Standing Senate Committee on National Finance invites journalists from outside Ottawa to participate in the press conference via webcast and teleconference. Details on how to participate can be found below.
North America: 1-877-413-4803 | Participants must quote Conference Identification Number: 4083051
On April 27, 2010, the Senate authorized the Standing Senate Committee on National Finance to examine the costs and benefits of Canada’s one-cent coin to Canadian taxpayers and the overall Canadian economy.
Senator Joseph A. Day (Saint John-Kennebecasis, New Brunswick), chair of the committee and Senator Richard Neufeld (British Columbia), deputy chair, will present the report’s recommendations as proposed by the Standing Senate Committee on National Finance at the press conference.
"Only the insane have the strength enough to prosper. Only those that prosper may truly judge what is sane."
New Zealand was awesome. They got rid of the penny and the nickel. And posted prices generally included the tax. There was so little change in my wallet, it was glorious!
Penny should be scrapped: Senate panel
Canadians are hoarding the coins, not spending them
The Senate finance committee is recommending that the federal government remove the penny from circulation and that guidelines be established for rounding off purchase prices for cash-only transactions.
The committee also recommends that production of the penny for circulation cease "as soon as practicable" with 12 months notice, until the copper is no longer considered legal tender.
Canadians' emotional attachment to coppers gathering dust in their jars, cars, pockets and cans "far outweighs their value," said Senator Richard Neufeld, the committee's deputy chair.
"The fact is, the penny is not much use anymore," Neufield told reporters on Tuesday in Ottawa.
The report also recommends that the Bank of Canada continue to redeem pennies indefinitely, while banks could choose how long they'd redeem the one-cent pieces.
It also called for the federal government to encourage charitable organizations to implement fundraising campaigns that would assist in removing the penny from circulation.
P.O.V.: Is it time to retire the one-cent coin?
The Bank of Canada says the copper-plated coin has lost 95 per cent of its purchasing power since 1908, when it was first produced in Canada.
Cost to make a penny: 1.5 cents
It now costs more to produce the penny — about 1.5 cents each — than the coin's actual face value, while items that cost a penny 100 years ago now cost 20 cents, the report said.
The Royal Canadian Mint has been forced to sharply increase penny production in recent years as more and more Canadians hoard, rather than spend, their one-cent pieces.
The committee recommended that the mint be allowed to decide whether it is profitable to continue limited production of the one-cent coin for direct sale to collectors.
The senators estimated that hoarding of pennies amounted to 600 coins per person across the country.
Getting rid of the two-dollar note was a mistake. At least they backed off on getting rid of the five.
"Only the insane have the strength enough to prosper. Only those that prosper may truly judge what is sane."
Don't toss your pennies away quite yet. Emperor Steve I disagrees with move to kill pennyMeanwhile the prime minister’s office told QMI the status quo will remain when it comes to Canadian coinage.
“We have no plans to eliminate the penny,” said Dimitri Soudas, the prime minister’s chief spokesman.
Previous attempts to kill the penny have never received popular support in the House of Commons.
"No plans" and "We're never going to do it" are thankfully different things.
As it says, the Finance Dept will be looking over it. The PM's spokesman obviously isn't going to commit either way.
The Tokyo metro's rechargeable SUICA fare card can be used all over the city, and in some places outside Tokyo, to make quick payments, and it's even possible to get cell phones with built-in SUICA capability. Imagine paying for groceries with your cell phone!
Regarding the penny? Let it die. It's a waste of money in production, and a waste of time in exchanging money (for those who do bother with change!).
And consider that they have a 5 "dollar" coin, and still have a 1 "cent" coin!
The only thing that makes it managable was that prices generally lined up to nice even numbers.
With this government the PMO trumps Finance every time.As it says, the Finance Dept will be looking over it.
Nor is he going to say anything substantive until the PM puts the words into his mouth.The PM's spokesman obviously isn't going to commit either way.
Look, I'd love to see the penny die. As long as the troglodytes on whom Harper depends to elect the bulk of his MPs have any say in the matter, we're stuck with the penny. And yes, I'd love to be proven wrong in this case.
I will maintain that they said nothing. They haven't even had enough time to discuss it in caucus. The Conservatives are very calculated, and will form no public opinion on anything until they're certain about its political viability.
I would fully support Stephen Harper leaving Canada penniless. At $0.015 cost to Canadians to produce something with the value of $0.01, only politicians could see value in such waste.
Or as someone observed, in the next federal budget Harper may leave Canadians both figuratively and literally penniless.
Bank of Canada Issues $100 Bill – First Canadian Polymer Bank Note
14 November 2011 | Bank of Canada | Link
The Bank of Canada today began circulating the new $100 bill – Canada’s first polymer bank note. This new note will be available at financial institutions from coast to coast to coast over the next few weeks.
The $100 note features a portrait of Sir Robert Borden, Prime Minister of Canada between 1911 and 1920, on the front and celebrates Canada’s contributions to innovation in the field of medicine on the back. It was officially released into circulation by Governor Mark Carney at an event in Toronto, Ontario, at the MaRS Centre – a hub for public-private sector innovation and collaboration between the business and scientific communities.
Governor Carney was joined at the event by Dr. Ilse Treurnicht, Chief Executive Officer of MaRS Discovery District.
Dr. Treurnicht discussed the importance of creating an environment that encourages and supports innovation in fields such as health care and life sciences. “Such an environment spurs the development of Canadian expertise and sets the stage for Canadian companies to lead the way,” she said. “These companies will, in turn, develop new ideas and technologies that return significant economic and social benefits, not only to Canadians but, through global partnerships, to the world.”
Remarking that the new polymer bank notes are themselves the product of Canadian ingenuity, combined with innovative technologies from around the globe, Governor Carney said the $100 note is an important step toward significantly increasing the security of Canada’s bank notes. “Just as the images on this note depict Canadian achievements at the frontier of medicine, the advanced security features embedded in these new polymer bills are at the frontier of bank note technology,” Governor Carney said. “This will protect Canadians against tomorrow’s counterfeiting threats. As well, these new notes will last at least two-and-a-half times longer than paper notes and will be recycled – saving money and being better for the environment.”
“Safer, cheaper and greener: these new bank notes are a 21st-century achievement in which all Canadians can take pride and place their confidence,” he concluded.
The new polymer bank notes, among the most advanced in the world, contain leading-edge security features that make them difficult to counterfeit but easy to verify; for example, a large transparent area extends from the top to the bottom of the note and contains complex holographic features that can be viewed from both sides.
Since unveiling the polymer bank note series in June 2011, the Bank of Canada has been working closely with financial institutions and the manufacturers of bank note equipment to support a smooth transition to the new notes. Through its regional offices across the country, the Bank has also been working with law enforcement and retailers to ensure that front-line police officers and cash handlers are familiar with the new security features and to encourage the regular authentication of bank notes.
The $50 note, which was also unveiled in June, will be issued in March 2012. The $20 note will begin circulating in late 2012, followed by the $10 and $5 notes by the end of 2013. Detailed images of the notes and information on their designs will be released on their official unveiling dates.
Bank Note Launch
Remarks - Mark Carney, Governor of the Bank of Canada
Presented to: MaRS Discovery District, Toronto, Ontario
14 November 2011 | Bank of Canada | Link | Webcasts
Watch The Video
It is a great pleasure to be here in the MaRS Discovery District, where science and innovation meet.
I am here to announce the issue of the new $100 bank note which is available, as of today, in banks across the country.
We are very proud of our innovative polymer bank notes. They are more secure, more economical, and better for the environment than any we have issued previously. These notes are also potent symbols of our rich heritage.
The design of the $100 bank note celebrates Canadian innovation in medical research, including the discovery of insulin to treat diabetes. We are honoured to issue this note on the site where Banting and Best conducted their groundbreaking research almost a century ago.
Many forget that diabetes was once a death sentence. The discovery of insulin changed that.
It was at that desk, Sir Frederick Banting’s desk, where science and innovation met and the lives of hundreds of millions of people changed.
Today’s date is no coincidence. November 14 is World Diabetes Day and the 120th anniversary of Sir Frederick Banting’s birth.
This $100 note is a tribute to Canadian researchers who have left their mark in many areas. Allow me to mention the transformational work of John Hopps, who invented the pacemaker in 1950. He developed this life-saving device at the University of Toronto's Banting Institute, located across the street from here.
This spirit of innovation carries on today and so the note also celebrates the scientists who continue to make our world a better place by improving the lives of many. Here in MaRS, medical professionals are mapping the human genetic code as well as tackling some of the most daunting medical challenges of our time, including cancer and macular degeneration.
These polymer notes don’t just celebrate innovation; they are themselves at the frontier of bank note technology. They were developed by a team of physicists, chemists, engineers and other experts from the Bank of Canada and from across the bank note industry.
There is no other currency like it anywhere in the world. These new notes contain a unique combination of transparency, holography and other sophisticated security elements.
In addition to impressive security features to stay ahead of counterfeiting threats, these bank notes will last longer—at least two-and-a-half times longer than paper—and will therefore be more economical.
These bank notes are also green. Their environmental footprint is smaller than that of the old currency made from cotton-based bank note paper. Once these new notes are removed from circulation, they will be recycled into other products right here in Canada.
Since the new notes were unveiled last June, Bank of Canada staff across the country have been training the millions of cash handlers and tens of thousands of police officers about how to check the security features of the notes. This training, of course, is ongoing. The RCMP continues to be a strong and committed partner in the fight against counterfeiting.
Reports of the death of cash are greatly exaggerated: Our research shows that cash is used for more than half of all shopping transactions. Canadians need a currency they can trust. That is why we are launching today the most secure and advanced note series in the Bank’s history.
In short, these new bank notes are a 21st century innovation in which all Canadians can take pride. We are honoured to launch them here at MaRS, with its links to past glories, current successes, and the promise of future Canadian medical innovation.
Eliminating the Penny
March 29, 2012 | Finance Canada | Link
- In Economic Action Plan 2012, the Government announced it will eliminate the penny from Canada's coinage system.
- Over time, the penny's burden to the economy has grown relative to its value as a means of payment. It costs the Government 1.6 cents to produce each new penny. The estimated cost to the Government of supplying pennies to the economy is about $11 million a year.
- Due to inflation, the penny's purchasing power has eroded over the years. Today it retains only about one-twentieth of its original purchasing power. Given its declining purchasing value, some Canadians consider the penny more of a nuisance than a useful coin.
- While the cent will remain Canada's smallest unit for pricing goods and services, the Royal Canadian Mint will no longer distribute pennies as of Fall 2012.
- The penny will retain its value indefinitely and can continue to be used in payments. However, as pennies are gradually withdrawn from circulation, price rounding on cash transactions will be required.
- In removing its lowest denomination coin, Canada will follow on the successful experiences of many other countries, including Australia, Norway, Switzerland and the United Kingdom.
Canadians can redeem pennies at their financial institutions. The Government encourages Canadians to consider donating them to charities.
Consumers can continue to use pennies indefinitely.
What it Means for Consumers
- The Royal Canadian Mint will no longer distribute pennies as of Fall 2012.
- However, consumers can continue to use pennies for transactions indefinitely.
- When pennies are not available, cash transactions should be rounded to the nearest five-cent increment in a fair and transparent manner.
- Rounding on cash transactions should only be used on the final bill of sale after the calculation of GST/HST.
- Non-cash payments such as cheques, credit and debit cards will continue to be settled to the cent.
- Canadians can redeem their pennies at their financial institution. Financial institutions may require that pennies be properly rolled.
- Removal of one-cent coins in other countries, such as New Zealand and Australia, did not cause an increase in price inflation.
What it Means for Businesses
- Businesses do not need to update cash registers for rounding, since prices and the final total payment will still be set at one-cent increments.
- GST/HST will be calculated on the pre-tax price, and not the rounded price. When customers do not have exact change, it is only the final total for cash payments that must be rounded.
- Electronic payments, such as credit and debit cards, will not be rounded and will still be paid to the nearest cent.
- Consumers can continue to use pennies for cash transactions indefinitely and businesses are encouraged to continue to accept the coin as a means of payment.
- Businesses are expected to round prices in a fair, consistent and transparent manner.
- Rounding guidelines will be adopted by all federal government entities for cash transactions with the Canadian public.
- Experience in other countries that have eliminated low denomination coins has shown that fair rounding practices have been respected.
A rounding guideline that has been adopted in other countries, and that will be adopted by the federal government for cash transactions with the Canadian public, is:
The calculation of the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on purchases, whether for cash or non-cash transactions, will continue to be calculated to the penny and added to the price. It is only the total cash payment for the transaction that will be rounded.
What if its $1.88? Then i'm two cents down. What if it's $1.87. Then i'm two cents up? I guess it makes sense, in a way. They say it costs 1.6 cents to make a penny, but as my grandmother always said, " if you save the pennies, the pounds will come." What can i tell her now? Will retail giants use this to make the extra 2 cents on every dollar? Have we now seen the last of $5.99 specials (i hope so!). bring it if it reduces my taxes but not if it pads the pockets of the government and provincial worker elite.