§ Mr. Neubertasked 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; what estimate he makes of the administrative cost of the continued inclusion of a vulgar fraction in the 146W decimal currency system; and what other currencies feature such a fraction.
§ Mr. Denzil DaviesThe present value of the halfpenny compared in real terms with that of the farthing at the time of its abolition in 1961 is 1.26 farthings.
No estimate has been made of the administrative costs of the continued inclusion of a vulgar fraction in the decimal currency system as this would involve disproportionate costs. But the retention of the halfpenny is still warranted by its use in price shading.
I understand that Ghana, Nigeria, Sierra Leone and the Irish Republic use fractional coins; and there are several other countries whose currency systems involve the division of the major unit into a thousand parts.