Currency

HC Deb 22 November 1979 vol 974 cc328-9W

Mr. Neubert

asked the Chancellor or the Exchequer whether he will introduce coins for 20p and £1 and banknotes for £2.

Mr. Lawson

I have no plans to introduce a banknote for £2. The question of the development of the coinage is kept under review.

Mr. Neubert

asked the Chancellor of the Exchequer what estimate he makes of the administrative costs of the continued inclusion of a vulgar fraction in the decimal currency system.

Mr. Lawson

It is not possible to make a separate estimate of these costs. The ½p coin does, however, help to ensure that price rises are as low as possible.

Mr. Neubert

asked the Chancellor of the Exchequer, whether he will arrange, as an economy, for halfpennies to be minted of aluminium in future.

Mr. Lawson

This is not necessary since striking the ½p coin is still an economic proposition which yields a small benefit to the Government.

Mr. Neubert

asked the Chancellor of the Exchequer what is the present value of the halfpenny compared in real terms with the old halfpenny at the time of its abolition in 1969.

Mr. Lawson

The purchasing value of the halfpenny in October 1979 was equivalent to 75 per cent. of the value of the old halfpenny at the time of its demonetisation in August 1970.

Mr. Neubert

asked the Chancellor of the Exchequer what is the present value of the halfpenny compared in real terms with the farthing at the time of its abolition in 1961.

Mr. Lawson

The purchasing value of the halfpenny in October 1979 was about 4 per cent. greater than the value of the farthing at the time of its demonetisation in 1961.

Mr. Neubert

asked the Chancellor of the Exchequer what is the total number of new halfpennies struck since the coin's introduction; and what is his estimate of the number remaining in circulation.

Mr. Lawson

A total of 3,000 million new halfpennies have been struck. The number estimated to be in the hands of the banks and the public is roughly 2,400 million.

Mr. Neubert

asked the Chancellor of the Exchequer by how much the value of the halfpenny declined from February 1974 to May 1979, what was then its worth compared to its value in old pence on decimal day; and what would be its value by the same comparison in May 1984, if the annual rate of inflation were to average 10 per cent. in the interim.

Mr. Lawson

Between February 1974 and May 1979, the purchasing power of the halfpenny declined by 53 per cent. The purchasing value of the halfpenny in May 1979 was equivalent to 43 per cent. of the value of the old penny in February 1971.

If the annual rate of inflation between May 1979 and May 1984 were 10 per cent. the value of the halfpenny in May 1984 would be equivalent to 27 per cent. of the value of the old penny in February 1971.