So what went wrong this time? Well, it seems that the savings we can expect from getting rid of pennies are about $7 million less annually than Jim Flaherty said they would be, at least over the next six years.
Honestly though, I can’t be mad at this. The country is still saving money and we don’t have to use pennies as cash anymore. We still win, just a little slower than anticipated.
Here’s how the math works.
It’s expected to cost $53 million to pay the banks for the face value of the coins, as well as another $27 million in handling and administration costs by the Royal Canadian Mint.
Recycling the zinc and copper from melted-down pennies will bring in about $42.5 million in revenue, leaving the government in the red at just over $38 million.
Adding the $11 million in annual savings from not minting any more pennies gives the government annual savings of almost $4 million per year.