Canada's penny is on the phase-out track
BY ROB GILLIES Associated Press
Tuesday, February 05, 2013
2/05/13 at 6:40 AM
TORONTO - Canada started phasing out its penny, the coins that clutter dressers and cost more than their one-cent value to produce.
The Royal Canadian Mint on Monday officially ended its distribution of pennies to financial institutions. Canadian Finance Minister Jim Flaherty said last year they were a nuisance and have outlived their purpose.
While people may still use pennies, the government has issued guidelines urging store owners to start rounding prices to the nearest nickel for cash transactions. Electronic purchases will still be billed to the nearest cent.
The government has said the cost of the penny exceeds its monetary value. Production is $11 million a year. The coins, which feature two maple leaves and Queen Elizabeth II in profile, will remain legal tender until they eventually disappear from circulation.
Opposition New Democrat Member of Parliament Pat Martin gave a poetic goodbye to the penny in Parliament on Monday.
"There's nothing a penny will buy anymore, not a gum ball or small piece of candy," Martin said. "Note the penny is a nuisance. It costs too much to make. They clutter our change purse and they don't circulate. They build up in piles in old cookie jars under our beds and in our desk drawers. You can't give them away. They cost more than what they're worth. It's time to put them all out to pasture, put them out to the curb. No, the penny is useless, but there is one thing I'd say, I hope they don't start treating old MPs this way."
Google is marking the passing of the penny with a dedicated doodle on its Canadian home page.
The currency museum at Canada's central bank has already taken steps to preserve the penny's place in Canadian culture. A mural consisting of nearly 16,000 one-cent pieces has been assembled at the museum to commemorate the coin's history, said assistant curator Raewyn Passmore.
New Zealand, Australia, the Netherlands, Norway, Finland, Sweden and others have also dropped the penny.
The U.S. Treasury Department has said the Obama administration has looked at possibly using cheaper materials to make the penny, which is now made of zinc.
Two bills calling for the end of the U.S. penny, introduced in 2002 and 2006 by Republican Rep. Jim Kolbe, failed to advance in the House of Representatives.
The U.S. zinc lobby has been a major opponent to suggestions that the penny be eliminated.
Original Print Headline: Canada stops making pennies
Associated Images:
The household penny jar may soon become a thing of the past in Canada. The Royal Canadian Mint is officially ending its distribution of one-cent coins to Canada's financial institutions. Retailers are urged to round consumer cash transactions to the nearest nickel. RYAN REMIORZ / The Canadian Press / Associated Press
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