Dropping the penny ‘change for the better’
Production to end this fall, merchants asked to round bills up or down
The federal government resorted to penny pinching in its budget tabled Thursday, announcing that the copper coin will be phased out starting this fall.
According to budget documents, inflation has caused the penny to become a “burden to the economy,” costing Canadians 1.5 cents for every penny produced by the Royal Canadian Mint.
The government estimated this initiative will save Canadians $11 million this year.
“The penny is a currency without any currency,” Finance Minister Jim Flaherty told Postmedia, encouraging Canadians to donate the outgoing currency to charity.
In line with a 2010 Senate report, the government will stop making pennies this fall and ask Canadian businesses and consumers to simply round up (or down) to the nearest five cents at the cash register.
However, if you’re using plastic, you’ll still pay down to the nearest cent.
In Montreal, the news of the penny’s demise was met mostly with relief.
Peel Pub waitresses downtown said they hardly see the coin and won’t feel the lack-of-penny impact, but those working just a few doors over said it would be a change for the better.
“I already ignore the penny,” said Ali Karmali, who owns the Depanneur Pizza Peel Convenience Store on Peel St.
“If I didn’t have to see another penny in my life, I’d be a very happy man.”
Karmali said he has already priced his wares to “round out” so he doesn’t have to deal with the copper coin on a daily basis, and believes the government made the right choice to scrap the coin.
Copper in the international market, he argued, is already high and steadily climbing.
“The feds are saving us a lot of money. People are stealing copper from pipes the stuff is worth so much!”
Julie Gair, who manages a Second Cup on Ste. Catherine’s St. W., said baristas already round out their totals at the cash from time to time to avoid the penny.
“I often work with pennies, and they’re just a nuis- ance,” Gair said. “I’m pleased they’ve abolished it.
“It might not seem like much, but it makes a big difference to us and I anticipate (servers) will be faster at the cash (once it’s gone).
“It’s just less hassle for everyone.”
Her neighbour Hamza Alsaadi, who works at the Super Exchange currency store next door, was of the same opinion.
“People hardly come in with pennies at all,” he said.
“We try to give out as many rolls of pennies as we can because we want to get rid of them, actually,” Alsaadi added with a laugh.
“This is a good move by the government.”
Canada will join other countries like Australia, Britain and Israel, which removed the coin from circulation in 1992, 1984 and 1991, respectively.