Dáil Éireann Debate, Wednesday - 16 January 2013
212. Deputy Kevin Humphreys asked the Minister for Finance if he will provide an explanation for the expenditure of €26,709,000 on Central Bank - Coin Issue under Note 5 Non-Voted Current Expenditure in the December Exchequer Statement; and if he will make a statement on the matter. [1922/13]
View answerThe Central Bank produces euro coins to meet the demands of public and businesses. Traditionally, the Central Bank retained the proceeds from the issue of coin in its currency reserve. In the light of the introduction of euro coin from 1 January 2002, and to bring the position into line with general practice in other EU Member States, legislation was passed in March 2002 (Section 137 of the Finance Act 2002) to permit the proceeds from the issue of coin to be transferred directly to the Exchequer every year.
Section 14(A) of the Economic and Monetary Union Act 1998 requires that, should the proceeds of the issue of coin be less than the cost of producing it, the Minister for Finance must make up the deficit to the Bank from the Exchequer.
Section 14(4) holds that if the currency reserve account is at any time unable to meet outstanding debits “then the Minister shall advance to the general fund of the Central Bank of Ireland from the Central Fund or the growing produce thereof an amount at least equal to the amount which stands to be defrayed from the general fund of the Central Bank of Ireland less the amount standing to the credit of the currency reserve in respect of the accrued public moneys arising from the issue of coin and the Central Bank of Ireland shall credit the currency reserve by this amount”.
The payment of €26,709,000 to the Central Bank in December 2012 addressed the deficit from the issue of coin in 2012 which was due to a significant return of coin to the Central Bank from the commercial banks.
Payments to the Central Bank from the Exchequer to make up the deficits arising from the production of coin were made in 2009 (€30 million) and 2010 (€8.5 million).
Receipts from the Central Bank to the Exchequer as a result of the production of coin were made in 2003 (€78.2 million), 2004 (€42.7 million), 2005 (€45.4 million), 2006 (€39.5 million), 2007 (€59.1 million), 2008 (€30 million) and 2011 (€20.7 million).
