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Retailers tell Canadian Mint: Get rid of the penny

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Date: Wednesday Oct. 10, 2007 7:16 PM ET

OTTAWA — Canadians have given the Royal Canadian Mint more than their two cents worth about what they can do with that ubiquitous brown coin filling jars around the house.

In a survey on the future of the penny, Canadians and particularly retailers have told the Mint that it should follow the example of Australia and New Zealand and get rid of the nuisance coin.

The poll found that an overwhelming majority (63 per cent) of small retailers _ the fast food restaurants, grocery stores and coffee shops that regularly come into contact with the coin _ want the penny to be removed from circulation, while only 19 per cent favoured its continuance.

The opinion was more split with customers. Of 1,500 Canadians polled, 42 per cent agreed with retailers that the penny is not worth the copper it's minted with, although 33 per cent said they still wanted it around.

One reason for customers' greater reluctance to get rid of the penny is that Canadians overwhelming believe retailers will use this as an excuse to round prices up, rather than down.

The two most often cited reasons for getting rid of pennies by retailers are that they cause them to carry too much change and they are practically worthless. In fact, the vast majority of retailers say they allow customers to purchase a product even if they are a penny or two short.

And customers told the Mint that they often toss their penny change into a jar on the counter.

But the penny has its defenders, including large retailers that are concerned about limiting pricing options and tax implications.

A spokesperson for the Mint said no decision has been made on whether to act on the survey results, adding that it would be up to government to order the penny's removal.

And Christine Aquino of the Mint wanted to clear up one general misconception _ the penny is worth more than it costs to make it, although it's a close call.

The Mint survey does make it clear that removing the penny would not be an easy proposition. There are approximately 26 billion in circulation and the Mint churns out a billion more each year.

The easy part would be to simply stop making them. But after that it gets more complicated, the Mint says.

For instance, some suggestions are for the Mint to buy back all the pennies and melt them down, although collecting 26 billion pennies would take time. And what would happen to hoarded pennies that were not turned over for destruction, would they remain legal tender?

Another reason to retain the penny, a large majority of Canadians told the Mint, is that it is simply part of Canada's heritage. And that is worth something.

Comments are now closed for this story

Larry Pike - St. John's
said

Lose the penny, and the nickel as well. They made sense until the inflation of the 70's, but they just have no real value anymore. Round to the 10. I despise carrying a pocket weighed down with practically useless nickels and pennies. In an era where a bag of chips costs 1.29 - 1.99 and a movie is 11.00, the days of the low-value coin are long gone.


Kevin Commonsense
said

Get rid of pennies. If Australia/New Zealand can do it, what's stopping Canada? The part about Canada's heritage is weak - is that how Canadians are defined and symbolized in world affairs - by the presence of the penny??? There's nothing stopping retailers rounding prices up/down anyway other than we stop shopping there. Do you see Cdn prices dropping as a result of the rise in the Cdn dollar vis-a-vis the US$? And while they're getting rid of the penny, follow Australia and other countries and make all prices include tax. How many people can calculate 7% or 13% tax on final product prices. Sticking to Old World practices and trying to claim it's our heritage is absurd.


VBiggar
said

I'd just like to point out that the accounting types are not real fans of rounding. Neither are businesses, if your till happened to be 40 or 50 cents off at the end of the night because of rounding some employers are going to be upset. It makes it more difficult to catch real mistakes when a till has that much inaccuracy due to rounding.


Andrew
said

That's modern democracy for you. The powerful elites- the quarter, the dime, and the nickel- rule the roost while the powerless minority, the poor little penny, gets the shaft!


Susan
said

Keep the penny. I can't see the gov't rounding down the tax percent. GST and PST would be 10% each to compensate for the lack of the cent. Frankly I feel we pay enough taxes already. By the way I use every penny I earn.


Happy Canadian
said

Don't get rid of the penny!
My wife and I used to collect change to give ourselves weekends away!
These things add up!
Just another way for retailers to take advantage of us!


JTJ
said

There is no debate here, keep the penny because as the French saying goes "c'est avec des cents qu'on fait des piastes". The only thing that should be removed is the GST!!!


Richard (Vancouver)
said

If we get rid of the penny retailers will just raise the price of everything. Whether it be 1-5 cents, that could add up after a while. Let's say you make 60 purchases in 1 month, you could pay as much as 3.00 more, over a year 36.00. That 36.00 could mean a Christmas for some people


Brian Lang
said

I say we get rid of the penny, and the nickel too. Prices would then end in 10ths of a dollar. We could then eliminate the second place after the decimal and round prices accordingly, just as we do now with pennies.


Uwe Warkholdt, Elliot Lake, Northern Ontario
said

To get rid of the penny only makes me think of how many companies would round up rather than round down. The next time you need gasoline look at the price per litre. It is in the 10's of cents. If the fuel companies would round up and in my opinion they would, it would add up to millions of dollars when you consider all of Canada's consumers.

Are they not making enough money as it is or would you like to fill their pockets just a little more?

"Just food for thought".


dan
said

I say keep them, as a young father I have many bills including food, to pay for, I use pennies alot as well as save them, every cent counts hey if you don't want your pennies you can mail them to me!


Kevin
said

Like johnn said, rounding to the nearest nickel, you may lose two cents or gain two cents... it's really not that big of a deal. If you really want to end to the nuisance of the penny (or any cash/change for that matter), but want keep the value of the cent, just debit everything or put in on a credit card. That's what I do. I hate carrying cash.


Brian E
said

I agree, the penny is no longer necessary and should be gotten rid of. If a total purchase ends in 1 or 2 the price drops down to the nearest nickel. If it end in a 3 or 4 then it increases to the nearest nickel.


CM
said

As a single parent who has returned back to university in order to improve my employment opportunities, every penny counts in this household. After all, they really do add up over time. Besides,...a penny saved is a penny earned....


A. C.
said

Well if no one had pennies to put in a jar to give to charity would that mean they get none?

Why do we have to be like some other country, why can't Canada be unique?

Keep the penny!


BJ
said

How can they get rid of pennies when the government makes us pay GST and PST? Something that costs $1 ends up being $1.13 or something anyway.


Dan S
said

Like most people, my pennies fill a jar at home and then I dump them into some charity collection box. I don't believe most people actually use them. It is time to say au revoir to the penny.


johnn
said

Personally, I think pennies are a PITA.
About 25 years ago, I was in The Netherlands. Their solution: Price everything just the way it is now, calculate the taxes, and look at the bottom line amount.
Round it off to the nearest nickel, and that's what you pay.
On some purchases you lose two cents, on others you gain two cents.
No more pennies to worry about or carry around.
Simple . . . (too simple, perhaps?)


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