How Much Does It Cost To Make A Penny Canada
March 24, 2012 by staff
How Much Does It Cost To Make A Penny Canada, Canada’s venerable penny now costs more than a cent to make, according to secret documents obtained by Canwest News Service.
The documents, obtained through the Access to Information Act from the Bank of Canada, say that “due to rising labour, metal and other manufacturing and distribution costs, each penny now costs more than one cent to produce.”
The line was contained in a “Facts-on-the-Penny” section, which was marked secret in notes, from a tripartite group of government officials – which include the bank, the Finance Department and the Royal Canadian Mint, a Crown corporation.
The group met last Dec. 5 and of the 22 pages obtained from that meeting, only the facts page and a list of attendees at the meeting came through uncensored.
The rest of the notes were blacked out under a section of the access law that allows the government to refuse to release some information.
The fact the documents state the penny costs more than a cent to produce is significant because the mint has always said it costs less than a cent to make and because the future of the coin is the subject of debate within the government and with independent economists.
The group – called “The Penny Review Group” – met at least twice last year, the documents show, with another meeting in January 2008. At both 2007 meetings there were 14 and 15 officials present, respectively.
The mint has been very coy about revealing the actual cost of the penny and what it includes to calculate that cost. It cities competition for not saying exactly how much a penny costs to make, even though it has a monopoly on coin production in Canada.
“When you take the material cost, the metal cost, currently it is just slightly less than a cent,” said Christine Aquino, a mint spokeswoman. “But there are other things involved when you make a penny such as production, packaging and all that. Metal, alone, is less than one cent, but we do not give out the total value of that – the cost – because we’re in a competitive business with other countries in making coins.”
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