‘Inform the public before you axe cents’, say retailers

Retailers are calling on the Government to roll out a major information campaign before sounding the death knell of 1c and 2c coins in order to reassure consumers they are not being ripped off.

The call comes as Finance Minister Michael Noonan today prepares to deliver a memo to cabinet proposing to withdraw the coins from circulation.

Government sources say the plan proposes cash register totals be rounded up or down to the nearest 5c.

Consumers will not be forced to take part in the scheme, which will apply to cash payments only; they may choose not to pay the rounded price. The 1c and 2c coins, which will remain legal tender, will still be produced by the Central Bank. However, if the rounding scheme is a success, demand for the coins should fall and, over time, fewer will need to be produced.

Tara Buckley, director general of RGData, a representative association for more than 4,000 retailers, said consumers need to be fully aware of the move before it is implemented.

“Retailers don’t want people thinking they are just trying to get more money from people, or that this is something they are doing on a whim. They want people to know this is coming from the Government,” she said.

“Some of our members took place in a trial run in Wexford and they found as long as customers were well informed, that a full information campaign was established, they were quite happy to allow prices to be rounded up or down.”

Ms Buckley also called for a cut in cash lodgement fees which, she said, are “extremely high” throughout the country.

“At the moment some of our members are paying 68c to lodge €100 which has a significant impact on small businesses. If there are fewer coins to count there should be a reduction in the bank lodgement fees.”

In 2013, more than 250 businesses in Wexford agreed to round their sub-totals up or down to the nearest 5c as part of a trial to see how the initiative would work.

In general, retailers and customers found the scheme to be mutually beneficial. After the trial, which lasted for one month, research showed the project did not result in any additional costs for consumers.

“We found it to be an overwhelmingly positive experience for Wexford. People wanted this and thought it was a very good idea,” said Madeline Quirke, the chief executive of Wexford Chamber.

“From a retailer’s point of view, an awful lot of work goes into counting small coins and from a consumer’s point of view they were just a nuisance and it was a case of accumulating them and converting them to something else down the line.”

After the trial, the Central Bank recommended this rounding scheme be rolled out nationally, removing the need for people to carry around smaller change.

A number of EU states have already opted to get rid of smaller coins, which cost more to mint than they are worth — it costs 1.7c to make each 1c coin.

The Central Bank said there is €35m worth of 1c and 2c coins in Ireland — three times more than the average in other countries using the euro.

Giving their two cents...

Ollie O’Reilly, Cloughduv, Cork

“I think it’s a good idea to get rid of them. I do my best to get rid of them but they build up anyway. Places aren’t going to round down their prices — they’ll all round up. But it won’t be much so if it makes my life easier and I’ve less crap in my pocket I’ll take it.”

Tim O’Mahony, Aherla,

Co Cork.

“I think getting rid of them is a good thing. “I worked in Centra for, like, six years and the 1c and 2c are just difficult. “Customers used to always give out about them. It’s invisible money.”

Noelle O’Donoghue,

Rochestown, Co Cork.

“I’m absolutely delighted — they’re a total nuisance. Particularly when people are paying you out in pennies and tuppences and you have a queue of people. At home we have a jar we throw them into and every so often we bring them into the shop and usually just use them for change. I’d prefer if I didn’t have to.”

Martha Sansquest, Douglas, Co Cork.

“I always find 1c on the street so it will be a pity if I don’t find them any more! But I know people don’t like them so I can understand why they want to get rid of them. I keep the coins and I go to Tesco and there’s a machine you put them in and it changes it for you.”

Reidín Doyle, Madeline Curtin, Saoirse Doyle , St Luke’s.

“I think it would be handier but I don’t think it’s necessary. I think we’ve got bigger issues to deal with than 1c and 2c.

“It might make things more complicated. Shops will round up their prices which would make a difference.

“I put them all in a jar and I never, ever do anything with them.”

Mortimer O’Leary, Blarney St, Cork.

“I keep all the little coins for the Mercy Hospital.

“I stockpile them and then I give them to the Mercy. I’d prefer if they kept the 1c and 2c

in circulation.

“I imagine charities would be affected if people weren’t giving them their small coins any more.”