Say goodbye to the penny, Canadians. That’s right; the Standing Senate Committee on National Finance recommended the removal of the one-cent coin as a net benefit to Canadian taxpayers and the overall Canadian economy.
Considering it costs 1.5 cents to produce the one-cent piece, the move makes fiscal sense. Also, the coin has become largely symbolic rather than functional.
The study tabled today includes the views and opinions of various groups, including the financial institutions, federal government, the retail industry, consumer associations, charitable organizations, collectors, universities and foreign governments.
“The testimony we heard was compelling. It is fair to say that this issue proved immeasurably more complex and more interesting than we had expected,” said Senator Joseph A. Day, Chair.
“We have concluded that removing the one-cent coin from circulation is long overdue. We urge the government to undertake this initiative in a consultative and deliberate manner and with due regard for the interests of all stakeholders.”
The committee outlined numerous ways to ultimately do away with the currency.
“The penny has simply outlived its purpose. It is a piece of currency, quite frankly, that lacks currency,” said Senator Irving R. Gerstein.
“In fact, a penny can’t even buy a penny anymore, and this is the heart of the issue. It costs far more than a cent to produce and distribute each penny.”
Among the committee’s steps:
• Establishing clear, voluntary guidelines for rounding after-tax totals to the nearest nickel.
• Immediately ceasing the production of one-cent coins with removal from circulation primed at one year.
• Encouragement of charitable organizations to implement penny fundraising drives.
If the government were to adopt the committee’s recommendations, it would be rather historic,” said Senator Richard R. Neufeld, Deputy Chair.
“It would be the first time any piece of Canadian currency became no longer legal tender. But many other countries have eliminated their low-denomination coins with good results, and we’re convinced it would have good results in Canada as well.”
It remains to be seen whether the penny has seen its final days. If the penny is removed by the Royal Canadian Mint, the value of fountains just went up.
Source: Senate Finance Committee
Considering it costs 1.5 cents to produce the one-cent piece, the move makes fiscal sense. Also, the coin has become largely symbolic rather than functional.
The study tabled today includes the views and opinions of various groups, including the financial institutions, federal government, the retail industry, consumer associations, charitable organizations, collectors, universities and foreign governments.
“The testimony we heard was compelling. It is fair to say that this issue proved immeasurably more complex and more interesting than we had expected,” said Senator Joseph A. Day, Chair.
“We have concluded that removing the one-cent coin from circulation is long overdue. We urge the government to undertake this initiative in a consultative and deliberate manner and with due regard for the interests of all stakeholders.”
The committee outlined numerous ways to ultimately do away with the currency.
“The penny has simply outlived its purpose. It is a piece of currency, quite frankly, that lacks currency,” said Senator Irving R. Gerstein.
“In fact, a penny can’t even buy a penny anymore, and this is the heart of the issue. It costs far more than a cent to produce and distribute each penny.”
Among the committee’s steps:
• Establishing clear, voluntary guidelines for rounding after-tax totals to the nearest nickel.
• Immediately ceasing the production of one-cent coins with removal from circulation primed at one year.
• Encouragement of charitable organizations to implement penny fundraising drives.
If the government were to adopt the committee’s recommendations, it would be rather historic,” said Senator Richard R. Neufeld, Deputy Chair.
“It would be the first time any piece of Canadian currency became no longer legal tender. But many other countries have eliminated their low-denomination coins with good results, and we’re convinced it would have good results in Canada as well.”
It remains to be seen whether the penny has seen its final days. If the penny is removed by the Royal Canadian Mint, the value of fountains just went up.
Source: Senate Finance Committee
