asked the Minister for Finance if his attention has been drawn to the increasingly insanitary condition of the paper currency in circulation in this country, particularly in the case of £1 and £5 notes; if his attention has further been drawn to the fact that no other EC country permits banknotes to remain so long in circulation as to become dirty; the reason this undesirable situation obtains in this country; and the proposals he has in this regard.
Written Answers. - Paper Currency.
58.
I am aware that, due to the decline in the value of money in the last decade or so, the lower denomination notes are being used more frequently in ordinary, everyday transactions. As a result, they tend to recirculate rather than return to the banking system for replacement. This has made it difficult to control the deterioration in the quality of the notes. I do not subscribe, however, to the use of the term "insanitary" to describe the currency in circulation.
To cater for the increased usage of the lower value notes, the Government has included an amendment to existing legislation in the Central Bank Bill, 1988, to allow for the issue of a £1 coin to replace the £1 note.