The Conservatives gave their two cents on how the government’s finances should be run as they officially scrapped the penny with the release of their federal budget March 29.
The government will stop production of pennies effective September 2012. Getting rid of the coin will save Canadians $11 million per year.
“Due to inflation, the penny’s purchasing power has eroded over the years,” according to a pamphlet issued by the federal government, “Some Canadians consider the penny more of a nuisance than a useful coin.”
While the Royal Canadian Mint will no longer be making pennies, Canadians can still use the coins “indefinitely,” according to the pamphlet. Annual production of pennies had already gone down about 60 per cent in the last five years, according to statistics from the Mint.
“In removing its lowest denomination coin, Canada will follow on the successful experiences of many other countries, including Austria, Norway, Switzerland and the United Kingdom,” the pamphlet reads. Penny eliminations in New Zealand and Australia didn’t cause any sort of price inflation, according to the pamphlet.
