posted 01-11- 03:41 PM               

THE reductions in VAT introduced in the last
Budget have once again highlighted the shortage of
copper coinage throughout the State as pennies
and two pence pieces remain locked away in jars,
jugs and piggy banks.

By cutting VAT by 1pc, Finance Minister Charlie
McCreevy unwittingly created a need for 1p and
more particularly 2p coins throughout various
sectors of the retail market and particularly in the
country's pubs, where the price of the pint has
been cut by 2p.

Whether by coincidence or design most publican's
prices were priced in multiples of five, obviating
the need for the irksome 1p and 2p coins.

The new pricing has annoyed some publicans who
don't like cutting prices any further than they have
to because of a shortage of copper coins.

Just before Christmas, the Central Bank launched
an appeal of its own, asking the public to be more
mindful of how they spent their money not to
break a £10 note for instance when you already
have the change in your pocket.

The Central Bank also commissioned MRBI to
carry out a survey in a bid to ascertain just how
much coinage is hoarded in homes around the
country.

The survey came to the conclusion that
approximately £30m worth of coins are kept in
jars and other receptacles, a figure which
represents about 550 million individual coins, the
majority of them of the copper variety.

Previous attempts to get these coins back into
circulation they represent two years worth of coin
production by the national mint have failed badly.

The most recent was an offer by AIB of £11 for
every £10 worth of copper coinage brought to
any of its branches.

However, quick thinking members of the public
were turning up in other banks to collect £10
worth of copper and then simply walking into the
nearest AIB and swapping it for £11.

It was a quick and easy 10pc gain for their
trouble.