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House of Lords Official Report Vol. 729 Friday No. 184 15 July 2011 PARLIAMENTARY DEBATES (HANSARD) HOUSE OF LORDS OFFICIAL REPORT ORDER OF BUSINESS Coinage (Measurement) Bill Second Reading Live Music Bill [HL] Committee Rehabilitation of Offenders (Amendment) Bill [HL] Committee Media: News Corporation Motion to Take Note Written Answers For column numbers see back page £3·50 Lords wishing to be supplied with these Daily Reports should give notice to this effect to the Printed Paper Office. The bound volumes also will be sent to those Peers who similarly notify their wish to receive them. No proofs of Daily Reports are provided. Corrections for the bound volume which Lords wish to suggest to the report of their speeches should be clearly indicated in a copy of the Daily Report, which, with the column numbers concerned shown on the front cover, should be sent to the Editor of Debates, House of Lords, within 14 days of the date of the Daily Report. This issue of the Official Report is also available on the Internet at www.publications.parliament.uk/pa/ld201011/ldhansrd/index/110715.html PRICES AND SUBSCRIPTION RATES DAILY PARTS Single copies: Commons, £5; Lords £3·50 Annual subscriptions: Commons, £865; Lords £525 WEEKLY HANSARD Single copies: Commons, £12; Lords £6 Annual subscriptions: Commons, £440; Lords £255 Index: Annual subscriptions: Commons, £125; Lords, £65. LORDS VOLUME INDEX obtainable on standing order only. Details available on request. BOUND VOLUMES OF DEBATES are issued periodically during the session. Single copies: Commons, £105; Lords, £40. Standing orders will be accepted. THE INDEX to each Bound Volume of House of Commons Debates is published separately at £9·00 and can be supplied to standing order. WEEKLY INFORMATION BULLETIN, compiled by the House of Commons, gives details of past and forthcoming business, the work of Committees and general information on legislation, etc. Single copies: £1·50. Annual subscription: £53·50. All prices are inclusive of postage. © Parliamentary Copyright House of Lords 2011, this publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey, TW9 4DU; email: [email protected] 983 Coinage (Measurement) Bill[15 JULY 2011] Coinage (Measurement) Bill 984 I am sure that your Lordships will appreciate that House of Lords this removes a technical and legislative obstacle to the proposed Olympic coins and will allow the Royal Mint Friday, 15 July 2011. to develop and continue to develop new and innovative 10 am designs and exciting opportunities to continue to push coinage boundaries. We hope that our 2012 Olympics Prayers—read by the Lord Bishop of Chester. will be the best Olympic coin programme to date—and, of course, it will be self-funding. Coinage (Measurement) Bill The striking of kilogram coins has recently become Second Reading part of the Olympic Games tradition. Most other host 10.05 am nations in recent years, such as Australia, Canada and China, have issued coins of this type and they have Moved By Lord Risby been extremely popular. Indeed, in the past 10 years Lord Risby: My Lords, apparently, the Olympic over 40,000 Olympic kilogram coins have been issued Games organisers some 2,531 years ago introduced around the world. The Bill will allow the Royal Mint the idea of coins for those games to appease those who to continue this tradition in commemoration of the were not able to get seats to watch them. I do not London 2012 Olympic and Paralympic Games—and, know if there is any particular parallel to be drawn indeed, any future important cultural or national events, from our current situation, but that is not the essence subject to the approval of Her Majesty the Queen, the of what this Bill is all about. Chancellor of the Exchequer and the Royal Mint Advisory Committee. I am grateful for the opportunity to present the Bill to the House this morning. Initially, therefore, I will Because of their large size, the kilogram coins will deal with its technical aspects. This two-clause Bill be an exciting, artistic and eye-catching part of the makes a minor technical amendment to the Coinage Olympic Games. The intention is for them to be Act 1971, which governs the striking of coins by the significant works of numismatic art. The Royal Mint Royal Mint and contains various standards in respect would approach high-profile artists to prepare these of a coin’s weight, fineness, composition and dimensions designs, and that is under way. Currently, the plan is to with which coins struck by the Royal Mint must produce 60 gold coins and 14,000 silver coins, with a comply. The Act also makes provision for permitted nominal value of £1,000 and £500 respectively. Judging variations from those standards. Section 1(6) of the from the reception that similar coins have had around Coinage Act 1971 requires that the variation from the the world, and after consulting with representatives of standard weight of any coin be measured as the average the coin trade and collectors, the Royal Mint is confident of a sample of not more than 1 kilogram of that coin. that United Kingdom kilogram coins will be extremely This is perfectly fit for the purpose for which it was well received. These coins are being produced to the originally conceived. The current weights of UK highest standards of socially responsible business, and circulating coins range from the 5-pence piece at the accreditation has been given. 3.25 grams to the £2 coin at 12 grams. A sample of a The Royal Mint proposes to make its kilogram kilogram is therefore a perfectly reasonable measure coins from 22-carat gold and fine silver. These coins of the tolerated variation from the standard weight. will be the largest ever UK coins, with a diameter of However, circulating coins is just once part of the 10 centimetres. The Olympic programme would generate Royal Mint’s business. As with all good businesses, it is royalties for both London 2012 and the Exchequer, constantly seeking to evolve, expand and explore new as the Royal Mint corporate entity is 100 per cent technologies and commercial opportunities. Such a owned by Her Majesty’s Treasury. Under the UK coin commercial opportunity, of course, is presenting itself contract, the Royal Mint pays a royalty to Her Majesty’s in that London will next year be hosting the Olympic Treasury for commemorative coins. It is estimated that and Paralympic Games. To commemorate this historic the Olympic coin programme, including the kilogram occasion the Royal Mint has designed an Olympic coins, would generate an estimated royalty payment coin programme that is likely to be one of the largest of approximately £2 million. At the current prices, ever in the history of the Olympics. It is worth visiting 1 kilogram of gold costs approximately £32,000 and the Royal Mint’s website. Its 29 coins have been struck 1 kilogram of silver costs approximately £750. The for each of the 29 participating sports. We should retail prices are therefore likely, on today’s estimates, congratulate the Royal Mint on the quality of its designs. to be £40,000 and £1,250 respectively. As part of that programme, the Royal Mint is keen Through these royalties, the Olympic coin programme to strike kilogram coins. As I set out earlier, the will contribute to funding the London 2012 Olympic current wording of the coinage act would effectively and Paralympic Games. This is of course a commercial prohibit this. It is not possible to measure the variation enterprise and the Olympic coin programme will also from the standard weight in the case of the proposed generate revenue for the Royal Mint. The amount that Olympics coins because the weight of each coin is the Royal Mint will make will depend on sales and on likely to be equal to or greater than the 1 kilogram the final price of the coins, which will largely be aggregate limit in Section 1(6) of the Act. Clause 1 of determined by the price of gold and silver closer to the the Bill therefore amends the Coinage Act so that the event. The Royal Mint being 100 per cent owned by variation from the standard weight of any coin can be the Treasury, all profits will end up in the public purse. specified by royal proclamation as provided for in For the past three years, the Royal Mint has paid a Section 3 of the Coinage Act 1971. That provides dividend from profits directly back to the Treasury as flexibility. a shareholder. 985 Coinage (Measurement) Bill[LORDS] Coinage (Measurement) Bill 986 [LORD RISBY] commemorative coins. In 1986, my noble friend Lord Noble Lords will be reassured to hear that these Lawson, as Chancellor of the Exchequer and, therefore, kilogram coins form just one part of a whole range of Master of the Mint, and I had the honour of presenting products that the Royal Mint is issuing to commemorate a coin for Her Majesty’s approval. That coin was a the 2012 Olympics. The striking of kilogram coins will £2 piece, which was connected to the holding of the not be limited to commemorating the Olympics. To 13th Commonwealth Games in Scotland at that time. ensure that London 2012 and future events of national Could we have launched a £2 coin for currency at that significance can be appropriately celebrated with stage? I do not believe that we could. We had just been commemorative coins that will be held in posterity for through rather a traumatic period, trying to get public years to come, it is first necessary to make these minor acceptance of the £1 coin because people were so amendments to the Coinage Act 1971.
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