HL Deb 23 November 1982 vol 436 cc787-8
Viscount Hanworth

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will now cease minting the halfpenny coin, since its real value is now about one quarter of that when it was introduced and must add to the cost of keeping our currency in circulation.

The Secretary of State for Trade (Lord Cockfield)

No, my Lords. The halfpenny coin continues to meet substantial demand. But we shall keep the question under review.

Viscount Hanworth

My Lords, I thank the Minister for his Answer. May I ask him whether or not he thinks that the halfpenny coin is totally artificial? There is no detriment to the consumer while we have inflation because it is purely a question of the interval before firms put up their prices. If any notice is given it will make no difference at all to the consumer. Finally, may I ask the Minister to give an estimate of the cost of keeping this wretched coin in circulation?

Lord Cockfield

My Lords, I would regard the halfpenny coin as real rather than artificial. In the first six months of this year, 44.3 million of them were issued by the Royal Mint, which indicates a substantial and sustained level of demand. The coin is used in pricing by a number of organisations, including grocery chains and supermarkets, and as long as the demand for it exists there is a strong case for the Government meeting that demand. So far as the last part of the noble Lord's supplementary is concerned, the coin is still economic to produce.

Lord Leatherland

My Lords, would the noble Lord the Minister bear in mind that Scotsmen find this coin very useful when giving tips?

Lord Cockfield

My Lords, the noble Lord's interventions are always worth a great deal more than half a penny.

Viscount St. Davids

My Lords, is the noble Lord not aware that it would be very expensive to abolish this very useful coin, as we would then all have to buy screwdrivers to screw and unscrew the many domestic appliances which this coin seems to fit?

Lord Cockfield

My Lords, I note the noble Viscount's comment. I appreciate that the coin has a wide number of uses other than as currency.

Lord Bruce of Donington

My Lords, is the noble Lord aware that his Answer will be quite reassuring to millions of people, including old-age pensioners and people on very low incomes, for whom a halfpenny is a matter of some significance? Will he also bear in mind when reviewing the position of the halfpenny that, as and when it should be abolished, there is always a tendency to round upward rather than downward?

Lord Cockfield

My Lords, I entirely appreciate the point which the noble Lord makes. It is a serious point, because there always is a risk that if this coin disappeared there would be a tendency for people to round up rather than round down. Therefore to that limited extent it does help against inflation.

Lord Wallace of Coslany

My Lords, may I ask the Government whether or not it would be better if the one penny were to be divided into, as Malta does, 10 mils, thus avoiding increases in prices far greater than are actually necessary?

Lord Cockfield

My Lords, the noble Lord is suggesting that we should now have a coin of even smaller denomination.

Lord Wallace of Coslany

My Lords, I was trying to explain that in Malta they have three coins known as mils, amounting to 10, and that equals one penny. This would avoid price increases of a small nature, because the present halfpenny is worth more than the old penny.

Lord Cockfield

My Lords, with respect to the noble Lord, it sounds to me as though he is advocating the introduction of a coin of the value of one-thirtieth of a penny. I thought we had sufficient trouble with coins of a denomination of one half of a penny.

Lord Whaddon

My Lords, is it not a fact that the real reason the Government are keeping these halfpenny coins is because they suspect that they will come in very handy for paying for Britoil shares?

Lord Cockfield

My Lords, the noble Lord's wit never deserts him, even in an emergency. But on the present occasion I would suggest that the one-thirtieth of a penny of the noble Lord, Lord Wallace of Coslany, would be nearer the mark.

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