How many pennies have you got in your pocket?
Many Canadians have tons of the little copper coins hanging about, but they could soon become worthless as the Senate finance committee has considered eliminating pennies from circulation.
The Canadian penny, which now features two maple leaves on the same twig, was first struck on Jan. 2, 1908 at the official opening of the Ottawa branch of the Royal Mint. Except for 1967, it has featured the same design since 1937.
Despite being more than 100 years old, according to the federal government it now costs more to produce a penny than the coin is actually worth. As a result, last month the committee recommended the government should stop its production.
It was recommended financial institutions be given the choice on how long they redeem the coins and charitable organizations should be encouraged to fundraise in an effort to help remove the penny from circulation.
Long-time Okotoks resident Allen King said he does not believe the federal government should cease circulation of the coin.
“My opinion is that we still need pennies,” he said. “Many businesses need that penny and it is not wise to go down to the nickel. Rounding does not answer a lot of questions.”
King has early memories that reflect his fondness of the coin.
“When I was a boy, my mum used to give me five cents to take to Sunday school, and I would always want five pennies rather than a nickel,” he said.
Owner of Okotoks Country Florist, Jodie Berrington, does not agree maintaining the penny is necessary.
“You used to be able to buy one-cent candies, now you can’t really get anything for a penny. Customers don’t use them much, and don’t want them back in change” she said.
Berrington said she believes it would make it easier for her as a business if they were discontinued.
“They just sit in the till, and the ones I have now have been sitting here for ages. I don’t even count them in the float anymore. ”
Other local businesses agree. “I think that if it costs more to produce a penny than it is actually worth, it makes sense to stop making them,” said Monika McLachlan, owner of All Through The House.
She added, “There isn’t really any use for the penny anymore. Candies that used to cost a penny are now nickel candies or may even cost 25 cents.”
It seems that even local financial institutions are not worried about the prospect of losing the penny.
“It is not a matter that we have given much attention as it is not a priority for us right now. It may save us a small amount of time, but the coinage machines are already set for the pennies anyway,” said Mike Dickinson, spokesperson for Servus Credit Union.
“I think the larger impact will relate to what happens to prices. No consumer wants to face price impacts, and this might be a concern. However, for us as a bank I don’t think it will have a big impact, it wouldn’t make a difference either way,” he added.
The federal government is now reviewing the recommendations, and depending on the outcome, Canada could follow in the footsteps of Australia and New Zealand which both discontinued their penny in the early 1990s.
