I am glad to be here to present this Bill to the Seanad. The Bill deals with three different aspects of the coinage — a proposed new £1 coin, the issue of a series of ECU commemorative coins and a change in the metal composition of the 1p and 2p.
I know that Senators have commented in the past on the design of our coins and many have expressed the desire to see the continuation of the Metcalfe designs. Therefore, I hope Senators will be pleased to know that the new £1 coin, proposed in this Bill, will feature a red deer in the Metcalfe style. The design specification is not part of the Bill. This will be done at a later stage by order under section 3 of the Decimal Currency Act, 1969. However, given the importance of the design I felt that this should be mentioned at the outset.
I am confident that the design will find favour with the public. The red deer is native to this country. The Government feel that such an animal would be very suitable for use on the coin and would fit in well with the Metcalfe style and design. I have made available several sample coins for Senators to inspect. The Metcalfe designs have served us well over the years and are pleasing to the eye. The Government have decided that these designs should be retained as the uniform design theme of the coinage and that the existing motifs on the 1p and 2p should be replaced by two of Metcalfe designs dispensed with on decimalisation. I will return to this later on.
Mr. Tom Ryan, President of the Royal Hibernian Academy was commissioned to prepare the drawings of the new coin. These were based on photographs of actual red deer submitted by Mr. Seán Ryan of County Cork, an acknowledged expert in this field. I should like to express the Government's thanks to both these gentlemen for their contribution.
The question of a £1 coin has been under consideration for some time. The proposal was mentioned in this Chamber as far back as 1986 when the order approving the issue of the 20p was introduced. The short lifespan of the pound note and the increasing production cost has made it unattractive to continue to produce £1 notes. I think all Senators would agree that the tattered condition of our £1 notes, which arises all to quickly after their issue, is not good for the country's image.
The coin itself will be made of cupronickel material similar to the 50p, 10p and 5p. It will be 31.1mm in diameter and will be lighter than the existing cupronickel coins. The coin will be issued in June and the £1 notes will be withdrawn from circulation from that date over a period of months.
The introduction of the £1 coin should be seen as a first step in the Government's overhaul of the coinage over the next three to four years. The first priority in 1991 will be the issue of a new, lighter and round 50p. The coin will be reduced in size by about 5mm and will carry the current woodcock design. I am aiming to reduce the weight of our coins generally for the convenience of the public.
In 1992 it is planned to issue a new 5p and 10p on which the two existing designs, the bull and the salmon, will be reversed to face left. This will give a uniform orientation to all the motifs. Both coins will be reduced in size and weight.
As I indicated earlier, I am pleased to say that it has been decided to revert to the Metcalfe designs for the 1p and 2p. The 1p will feature the Irish wolfhound from the old sixpence while the 2p will have the hare which appeared on the pre-decimal 3 pence.
As with all new coins, many organisations have been consulted in relation to the new £1 coin. For example, the users and makers of coin-operated machines and representatives of the visually impaired have been consulted. Sample coins will be made available prior to the issue to allow any necessary changes and familiarisation to take place. The visually impaired should be able to distinguish the £1 coin from other coins.
The size and weight alone will be of assistance to the blind. In addition, the milling on the edge has been so constructed that it will be recognisable by touch. This milling is unique to the £1 coin as it contains a milled edge with inset beading. There is a clear size differnce between the 2p and 10p and the new coin.
The Arts Council were consulted on the design of the £1 coin. They agreed with the choice of the red deer and supported the retention of the Metcalfe theme for the coinage. In addition, we sought their advice on a number of other matters relating to the coinage generally and we have taken on board most of their suggestions. I would like to thank the Arts Council for their advice. We will be consulting them further as individual coins are redesigned.
The other main purpose of this Bill is to allow for issue of a series of commemorative ECU coins. These will mark the Irish Presidency of the EC Council and will be issued in June to coincide with the EC Council meeting in Dublin Castle. Nineteen hundred and ninety is an important year in the development of the Community and will see the finalisation of some of the legislative framework for the 1992 objective. The commemorative coins will be an enduring reminder of the Irish Presidency.
The Government have decided to issue the coins in gold and silver. The coins will be purely commemorative and not legal tender. Other member states have issued commemorative coins in the past. Most recently, Spain produced a set of five coins in precious metals to mark their first Presidency of the Council.
The coins will be issued through the Central Bank and will consist of a series of three — a gold 50 ECU piece, a silver coin 10 ECU, and a silver 5 ECU piece. The gold coin and smaller silver coin will be roughly the same size as the 10p while the larger silver coin will be of "crown" size, that is somewhat larger than the old half crown.
The gold coin will be 22 carat gold and the silver coins will be sterling silver. They will be issued in proof standard to encourage interest among coin collectors.
It is envisaged that the gold coin will be priced in the region of £250. The larger silver coin will cost £20-£25 while the smaller silver coin will be priced at £10-£15. These prices are tentative since much depends on the value of gold and silver at the time of purchase of the metals. However, while the gold coin and larger silver coins will be of interest mainly to collectors, the smaller silver coin at £10-£15 should be of interest to the ordinary citizen who wishes to have a keepsake of the occasion.
This is our first step into the market of specialised coins. There are certain risks associated with the issue of precious metal coins. The metals must be purchased in advance and may fall in price subsequently, thus affecting market value. There is also the risk the market demand might not be as strong as anticipated.
On the advice of the Central Bank, it is proposed to issue 5,000 gold coins and 20,000 of the larger silver coins and 20,000 of the smaller silver coins. These are the minimum levels necessary to offset the manufacturing costs. An issue of this size will, it is felt, minimise the risks and enhance the scarcity value for collectors. Initial indications of interest in the coins are good and I believe that the issue will be a success.
The Government decided that the design of the red deer should be used for the ECU coin. Given the increased concern about conservation of the environment, the symbol of the Irish red deer is very appropriate. The use of this theme will also increase awareness of our coinage abroad. On the obverse side, it is intended to reproduce the harp surrounded by the 12 stars which is the logo of the Community. The coin denomination will appear on this side also. The use of the stars is common to issues by other countries and again symbolises this country's adherence to the Community.
The final purpose of the Bill is to allow for a change to the 1p and 2p. These coins are made of bronze at present and cost more than their face value to produce. Consequently, the Central Bank has recommended that the metallic composition of these coins should be changed to a copper coin with a steel core. There will be no change in the outward appearance of the coins. This change will enable the Bank to break even on the production of these coins. Coins of this sort are common on the Continent and I note that the UK Royal Mint have recently announced a similar change in the UK coinage.
I now turn briefly to the provisions of the Bill. Section 1 deals with definitions and is self-explanatory. Section 2 relates to the ECU coins. Subsection (1) allows for the issue of coins in ECUs in such sizes, metallic composition, design and weights as the Minister for Finance may decide. Sub-sections (2) and (3) allow the coins to be sold through the Central Bank at a price determined by the Minister.
Sub-section (4) provides that the coins will not be legal tender. Subsections (5) and (6) apply certain sections of the Decimal Currency Act, 1969 to coins issued under section 2. By virtue of these the Central Bank will bear the expenses of the issue and the income from the sale of the coins will accrue to the Bank. The Bank will also bear the cost of any redemption. Sub-section (7) applies section 57 of the Copyright Act, 1963 and vests the copyright in the design in the Minister for Finance. This is a standard provision of coinage legislation.
Section 3 (a) inserts a new section 4A in the Decimal Currency Act, 1969, to enable the provision of 1p and 2p coins in the form of copper coins with a steel core. Section 3 (b) is a technical amendment of section 14 of the Decimal Currency Act, 1969, to include a reference in that section to coins issued under section 2 of this Bill.
Section 3 (c) amends the First Schedule to the Decimal Currency Act, 1969 to provide for the issue of a £1 coin. The amended Schedule specifies the standard weight and composition of the coin and the permitted variation from these standards. The size and design of the coin will be dealt with separately by an Order under the 1969 Act. Section 4 is the short title and construction of the Bill.
The coinage of a country is an important symbol of its nationhood. The coins of a country are used by its citizens every day. Consequently, the design of the coinage is a matter of importance and a subject on which many people will have an opinion. The designs on the Irish coins are of an accepted high standard and the Government are anxious that this should continue to be the case.
In introducing new coins one cannot hope to please everybody but the design of the Irish red deer is a design which I think will find favour with most people. The issue of the ECU coins is a suitable way to commemorate the Irish Presidency of the EC and is an important first step for us into a specialised market.
I was heartened by the generally favourable reception which the new coinage received in the Dáil. I hope that Senators will express a similar welcome. I am anxious to hear the comments of the House and for Senators to share their advice and knowledge with me. The Bill opens up a new area of the coinage with the issue of commemorative pieces and we are willing to listen carefully to the views of the House.
I commend this Bill to the House.