Written answers

Tuesday, 8 July 2014

Department of Finance

Central Bank of Ireland

Photo of Kevin HumphreysKevin Humphreys (Dublin South East, Labour)
Link to this: Individually | In context | Oireachtas source

197. To ask the Minister for Finance the losses the Central Bank of Ireland has made on the exchange of punts to euro since 2002 taking into account the original provision of €60 million in 2002 for future transactions; the total exchange of punt notes and coins, respectively, since that provision was made; and if he will make a statement on the matter. [29631/14]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Central Bank that the total amount of Irish Pound notes and coins redeemed between 9 February 2002 - when they ceased to be legal tender -  and 30 June 2014 is €730m, consisting of €489m in respect of banknotes and €241m in respect of coins. As of 31 December 2002, notes to the value of €299.7 million were outstanding. A provision of €60 million was created in respect of future redemptions of Irish Pound banknotes. The balance of €239.7 million, which it was estimated would not be presented for redemption, was accounted for through the Profit and Loss account. This windfall gain then formed part of the payment of Surplus Income to the Exchequer for 2002, as proposed by the Minister for Finance in December 2001.

Since 2002, the Central Bank has continued to redeem Irish pound banknotes which have been charged against the provision of €60 million. At end 2010 and 2012 amounts of €10 million in each case were transferred from profits to replenish this provision. At 31 December 2013 the provision stood at €11.6 million. The total amount of Irish Pound banknotes redeemed between end 2002 and end June 2014 is €69.2m.

In respect of coin, as of 2002, the net proceeds from the issue of coin are passed directly to the Exchequer on an annual basis in accordance with section 137 of the Finance Act 2002. This transfer is net of any amount of Irish pound coin redeemed by the Central Bank. Irish Pound coin to the value of €124 million is still in circulation and is redeemable by the Central Bank on behalf of the Minister for Finance. The value of the amount outstanding in respect of Irish pound banknotes and coin as at 30 June 2014 was as follows: Irish pound banknotes - €230.5 million; Irish pound coin - €124 million. The question of setting a date after which Irish Pound notes and coins would no longer be redeemed is being kept under review.

Comments

No comments

Log in or join to post a public comment.