Dáil Éireann debate -
Thursday, 14 Feb 2002

Vol. 548 No. 4

Adjournment Debate. - Euro Changeover.

Mr. Enright

I call on the Government and the Minister for Finance to consult the European Central Bank about introducing €1 and €2 notes. It is important that every effort is made to maintain the euro's standing in international currency markets, but also important to the ordinary European people that their currency is consumer friendly and convenient to handle. The unit of currency can help to ensure stability of prices so that Governments are not allowed to withdraw smaller coins, like the one and two cents. For the affluent sections of society, such coins may not count for much, but for the less well-off, they can help control prices.

We have eight coins and effectively five notes – for I have never seen a €500 note. I doubt if the Minister, his European colleagues, or Wim Duisenberg of the ECB visit shops and supermarkets regularly.

Mr. McCreevy

I will be doing so shortly.

Mr. Enright

That is good, but the people at the ECB must not know how shopping is done and are out of touch with how ordinary people live. If any of them witnessed the delays at checkout points and counters in shops, supermarkets, pubs and hotels as customers empty out purses to count coins there would be a rethink about €1 and €2 notes.

I have here my wife's purse and the Minister can see all the coins in it. People are expected to cope with all these at supermarkets and shops.

Mr. McCreevy

I know the Deputy's wife and I am sure that she has no bother in coping as she is one of the most capable wives in Ireland.

Mr. Enright

I thank the Minister for the compliment.

In America the almighty dollar, as it is called, has stood the test of time irrespective of currency fluctuations. It is a paper currency and will continue to be strong for generations to come.

I welcome the common European currency, which avoids the cost of currency exchange and takes away much inconvenience for people travelling or doing business in Europe. Yet, we must have the €1 and €2 notes. I raised this issue with the Minister in October 2000 as I foresaw the difficulties that these coins would bring. The difference between a pile of coins at checkout points and the convenience of notes has not been fully appreciated. Seven out of ten of the people I spoke to about raising this issue tonight agreed with me, although the Minister was among the three who did not. The difficulties that coins bring belittles the currency while notes emphasise its importance. Also, notes help keep prices down which would benefit the less well off.

Mr. McCreevy

I appreciate that Deputy Enright has had a longstanding interest in this and his doggedness in pursuing it. However, I do not intend to propose to the European Central Bank that it introduce the notes in question. It would not be practical at this stage to suggest a change in the denominational structure of the single currency. The coins' and banknotes' threshold was considered during the planning phase and there was agreement that €5 should be the lowest value note and €2 the highest coin.

Production of coins and notes in the relevant member states was planned and carried out on this basis. These are now in circulation. The Deputy is aware of the substantial effort in putting the currency into circulation. There was a similar effort in familiarising the public with the new currency's features, training cash handling staff, and adapting vending machines and other equipment to cope with the euro.

At the time of the changeover, the unit of currency in many countries, including Ireland, was already in the form of a coin, a situation which evolved over time with the change in monetary value. To introduce a €1 note would not make sense even in the light of Irish experience. The value of a €1 note would be less than 79p.

Mr. Enright

The equivalent of the US dollar.

Mr. McCreevy

Its life would be very short, probably less than three months – indeed, when the IR£1 banknote was withdrawn from circulation, its lifespan was only six to eight weeks. By contrast, coins have an almost indefinite lifespan.

The introduction of €1 and €2 notes would involve the withdrawal of the corresponding euro coins which have just been issued. Over 125 million of them are in circulation in Ireland alone.

Mr. Enright

They could work together, side by side.

Mr. McCreevy

The alternative would be to have both notes and coins of these denominations circulating simultaneously, which would lead to confusion. For these reasons, I see no merit in raising the subject of introducing either a €1 or €2 note with the European Central Bank. Neither do I see any prospect of support for such an idea among the other member states.

I take this opportunity to reiterate my thanks to all those involved, including the public at large for making it so successful.