I move:
That Dáil Éireann confirms the following Order, as made by the Minister for Finance on 5 February 1986:
New Coinage (Twenty Pence) Order, 1986,
a copy of which Order was laid before Dáil Éireann on 11 February 1986.
This order, which provides the necessary statutory basis for the issue of a 20p coin, was made on 5 February 1986, under section 3 (5) (a) and section 4 (2) (a) of the Decimal Currency Act, 1969. The Act provides that it shall not come into force until it has been confirmed by resolution of each House of the Oireachtas. It was confirmed by the other House on 12 March.
Since the adoption of the decimal system in 1971 the coinage has consisted of six coins. There are three bronze coins, the halfpenny, the penny and the 2p and three cupro-nickel coins, the 5p, 10p and 50p pieces.
The primary purpose of coins is to serve as a medium of exchange. In a modern economy they are used mainly to pay for the many small purchases and services that are an essential part of daily living. It is, therefore, important to provide coins in the denominations that best serve the needs of the public. They should also, of course, be of convenient size and weight.
It has been clear for some years that the six existing coins no longer satisfy these criteria. As the value of money has declined the number of coins required for daily transactions, especially the number of higher denomination coins, has increased progressively. At the end of 1985 there were almost 40 million 50p pieces, more than 186 million 10p pieces and nearly 150 million 5p coins in circulation. By international standards these are large and heavy coins. They are inconvenient to handle and carry about in quantity. A British study a few years ago showed that the average pocket or handbag at that time was likely to contain an assortment of coins to a value of 81 pence and weighing about 84 grams or three ounces. We may be sure the situation has not improved.
The Central Bank, which issues the coins, were also concerned at the growing cost of providing increasing quantities of coins. They advised that the introduction of a denomination between the 10p and 50p would relieve the situation and make the coinage more suitable to the demands being made on it. A new coin of 20p or 25p seemed to be needed. The bank favoured a 20p. It would fit better into the decimal progression and studies suggested that it would take more 10p coins out of circulation than would a 25p coin. I might mention at this point that within the European Community, most of our partners use the 1:2:5 or 10:20:50 sequence in their coin systems. Australia and New Zealand also issue 20 cent coins.
In order to ascertain as well as possible public feeling on the matter, my Department canvassed the views of a wide range of public and private sector groups. A substantial majority expressed a preference for a 20p coin. In 1982 the then Minister for Finance, Deputy Mac-Sharry, announced that the provision of this coin was being considered. Following further work in my Department and the Central Bank it was announced in August 1984 that the Government had decided on the introduction of the coin. Since then work has continued on the details of the specifications and the design.
The Order before the House provides for a 20p coin weighing 8.47 grams and composed of a metal alloy containing 79 per cent copper, 20 per cent zinc and 1 per cent nickel. It lays down also the remedies or maximum acceptable variations from the weight and standard composition. At 8.47 grams the coin will be heavier than the 2p and 5p but will be lighter than the 10p by almost 3 grams.
The alloy of copper, zinc and nickel has not been used before in Irish coins. It has several advantages. It is a yellow colour, which will help in identifying the new coin; it will yield a cost saving of up to 25 per cent against cupro-nickel in the production of the coin and it will make possible a reduction in weight vis-a-vis cupro-nickel. Since the Central Bank meet the costs of the issue of coins and receive the proceeds, any increase in the profitability of the coin issue will be reflected in the amount of the bank's surplus income, which is paid over to the Exchequer. The bank have indicated that they plan to mint between 30 million and 50 million pieces initially, and that it will take approximately six months from completion of the statutory procedures to produce the new coin.
As soon as the Coinage Order has been confirmed I propose to make regulations under section 3(6) and 4(5) of the Decimal Currency Act, 1969, prescribing the dimensions and the design of the new coin. The regulations do not need to be confirmed by the Oireachtas but it is proper that I should indicate their content to the House — as the Minister did to the other House — in view of their bearing on the order under discussion. I believe this will facilitate the debate and enable members to take a comprehensive view in their contributions.
I will take the design first. The reverse side of the existing series of six coins contains two design motifs. The cupro-nickel coins carry original designs from the series produced by Percy Metcalfe for the first coinage of the State, introduced in 1928. The three bronze coins were designed by the late Gabrielle Hayes, Mrs. O'Riordan, for the decimal series. They bear adaptations of Celtic ornament.
The Government were concerned to find a design for the 20p coin that would fit in with the designs of the existing coins, that would be acceptable to the majority of people and that would not involve undue delay in the issue of the coin. We considered that a design competition would be difficult to justify for one coin and would be likely to hold up the issue. The Government concluded also that the introduction of a third design motif into the series would not be desirable.
After careful consideration the Government decided that one of the Metcalfe designs from the discontinued pre-decimal coins should be used. The designs available were the hen, the sow, the hare, the hound and the horse. The advice of the Arts Council was sought on the selection and adaptation of one of these designs, considering that the coin would be different in size and colour from all the pre-decimal coins. The council recommended the use of the horse, the Irish hunter, which figured previously on the half-crown. The Government accepted this recommendation. The Arts Council subsequently had the opportunity to view a manufactured sample and expressed satisfaction with the transfer of the design to the new coin. Indeed, the Director of the Arts Council reported, and I quote:
There is a unanimity of view as regards the excellence of the design. The Council believes that this new coin will be a worthy successor to the many coins of fine design which Ireland has produced.
I concur with this view. The Metcalfe designs are of a high standard and are particularly pleasing designs, in my view. They have always been acclaimed at home and recognised abroad as being distinctively Irish. I feel sure that people will welcome the reintroduction of this particular emblem, the horse, to the national coinage. I feel it is very apt that we have the horse back on our coinage. We must remind ourselves occasionally that the National Anthem was played abroad over Irish horses many decades ago. As on all our existing coins, the harp together with the inscription "Eire" and the year will be on the obverse of the coin.
Next the dimensions. The coin will be round, 27.1 millimetres in diameter and, although this is not specified in the regulations, it will be about 2 millimetres thick. Thus it will be larger and thicker than the 2p coin which is, of course, a different colour. It is intended also that, as an aid to tactile identification, the edge of the coin will have alternative arcs of plain and milled surface. I trust the blind and persons with limited vision will find this helpful.
The coinage does not often come up for discussion in the House. I would like to take this opportunity, a Leas-Cheann Comhairle, to mention some other relevant matters which I think Deputies will find of interest. When my Department sought the views of public and private sector groups on the 20p coin the opportunity was availed of to seek reactions to other changes in the coinage. There was much support for the issue of a £1 coin. The Central Bank Act of 1971, however, provides that the Irish pound shall be issued in the form of a legal tender note and the legislation would have to be amended before a coin could be issued. The matter is being pursued by my Department and the Central Bank.
The idea of making the coins smaller and lighter also drew a favourable response. As I have said the current coins are inconveniently large and heavy. The have become quite expensive to produce, especially the bronze coins. Since our entry into the European Monetary System, and the ending of the one for one parity with sterling, there is every reason to differentiate our coins clearly from their British counterparts. All these factors were taken into account when the specifications for the 20p coin were settled. It will not have escaped notice also that it is quite different from the corresponding British coin.
The reintroduction of a uniform design series is something which will be considered. The co-existence of two design series is not completely satisfactory in my view and I believe that a uniform series, as was the case with the Metcalfe designs for the pre-decimal currency, would be preferable. A strong case exists for a return to the Metcalfe series, which, as I said earlier, I regard as particularly pleasing and I think many would share my view on this. The ultimate decision, however, will have to take account of artistic and technical factors, such as the decisions on the sizes and metallic composition of the various coins. It is the Minister's intention to consult fully with the Arts Council in due course about the best way to proceed.
I would like to mention two other relevant matters to the House. First, it is the Minister's intention to make an order in the near future, under section 12 of the Decimal Currency Act, 1969, calling in the halfpenny with effect from the end of this year. The purchasing power of this coin is now less the one-fifth of what it was in 1971 when it was introduced and it costs significantly more to produce than its face value. Demand for the coin has declined steadily, except for numismatic purposes. Much modern point-of-sale equipment, cash registers for example, do not provide for it and this is making the coin increasingly inconvenient to traders and members of the public.
Representations have been received seeking the withdrawal of the coin from circulation. A survey on the prevalence of the halfpenny in pricing was conducted by the National Prices Commission which concluded that it is not used on a large scale in the pricing of food items. Under the terms of the proposed order and in accordance with the Act, the demonetisation would take effect in January 1987. The coin would cease to have legal tender status and would be withdrawn progressively from circulation. The Central Bank, however, would continue to give value for quantities of coins presented after the effective date.
The second matter which I wish to touch on is one which is raised from time to time inside and outside the House. This is the issue of coins for commemorative and numismatic purposes. As has been indicated to the House on several occasions, it has been our policy to provide coins for domestic use and not to venture into the international numismatic market. The only departures from that policy were the ten shilling silver coin issued in 1966 to commemorate the 50th anniversary of the 1916 Rising and the issue of some polished sets of the decimal coins in 1971.
The numismatic market has grown greatly and many countries, including some of our EC partners, have become active in it. The issue of commemorative and special coins could be profitable and could enhance the prestige of our country, if undertaken in a suitable manner. I think we would all be at one that our coins must be dignified and must be presented in a manner that would enhance our reputation. I can say — and I think all Ministers for Finance had the same experience — that the commercial propositions that are constantly presented to me leave me less than happy on that score. If we enter this market the Central Bank should control the entire process, from design through production to marketing, from beginning to end. For the present the Central Bank's mint will be fully occupied with the issue of the 20p coin and then with the redesign of the coinage, which I mentioned earlier.
There is one other point to be made about commemorative coins, to which I attach great importance. A coin is much less ephemeral than, say, a postage stamp. It is a long lasting artefact that reflects its time and culture. Some last so long that they become invaluable historical records. I believe the issue of commemoratives should be relatively limited, that the occasions should be of major significance and that they should tend to unify rather then to divide. I am sure these are sentiments with which the House would concur.
I know some Deputies have a strong interest in numismatics. I hope I have said enough to show that our participation in that market is not ruled out and, provided it is done in a suitable manner, would be to the national benefit and would meet with general approval.
To return to the order before the House, I hope all will welcome the new 20p coin. The issue of this coin is a first step towards making our currency more convenient to handle. Like the Arts Council I believe it is worthy of the national coinage.
I therefore commend this order for approval by the House.
