§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
What is the estimated cost to the taxpayer of the fault in the new (Elizabeth Fry) £5 note, enabling serial numbers to be rubbed off and making it necessary to suspend issuance. [HL4568]
§ Lord McIntosh of HaringeyFollowing recent reports that it is possible to remove the serial number from some of the newly released £5 notes, the Bank of England took the precautionary measure of asking the commercial banks and the Post Office to suspend issuance. The Bank is currently in the process of carrying out tests and investigative work on the notes to establish the cause of the fault and how widespread it is. At present it is too early to estimate the potential costs of the exercise.
§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Whether they will encourage the Bank of England to issue many more of the previous (George Stephenson) £5 notes while the issue of the new (Elizabeth Fry) £5 notes is suspended in order to alleviate the present shortages; and [HL4569]
What steps they and the Bank of England are taking to ensure the shortage of £5 notes, following non-issuance of the faulty new notes, do not disrupt trade or interfere with the public's enjoyment of the Jubilee celebrations and the start of the World Cup over the double Bank Holiday weekend. [HL4570]
§ Lord McIntosh of HaringeyOn 27 May 2002, when the Bank of England decided to suspend the issue of6WA the new £5 note in order to carry out investigative tests, there were around 200 million old £5 notes in circulation. This is in addition to many millions of £5 notes held in commercial cash centres around the country and a small amount held in the Bank's own cash centres. All these notes are available to meet immediate demand from the public.