Summary of reactions to proposed changes
The Bank commissioned AC Nielsen to undertake representative surveys of:
- 200 members of the general public (January 2004);
- 20 small retailers (January 2004); and
- 25 large retailers (May/June 2004)
Summary of the key findings
1. AC Nielsen reported that for the general public, "When initially presented with the proposal, reactions were mixed, with half considering it a good idea, compared with four in ten considering it a bad idea. After reading an explanation of the reasons for the proposed change, there was a significant increase in support for the proposal, from half to two-thirds thinking it is a good idea. After being shown a set of blanks ... there was a slight but not significant drop."
2. The main reasons for supporting the removal of the 5 cent coin were that "They don't have any value and are useless." The advice that withdrawal would generate financial savings was significant in changing some people from opposing to supporting change. Concern that prices would rise was the main reason why some people wanted to retain the coin.
3. A majority of both small and large retailers favoured the introduction of smaller, lighter "silver" coins. Advantages included that they would be easier to store, lighter for staff to move and there would be more room in tills. The main expected disadvantages were that machines would need to be recalibrated and that the coins might be hard to distinguish.
Table 1: Views on smaller, lighter coins
General Public (%) |
Small Retailers (%) |
Large Retailers (%) | |
Positive |
60 |
65 |
32 |
Neutral |
3 |
10 |
48 |
Negative |
37 |
25 |
20 |
Net Positive |
23 |
40 |
12 |
Withdrawal of the 5 cent coin
4. Members of the general public were asked, "Do you think personally it is a good idea or a bad idea to remove the 5 cent coin from circulation?" Initially, 58 percent responded positively. After reading reasons for the change support rose to 68 percent.
5. A majority of both small and large retailers favoured the withdrawal of the 5 cent coin. AC Nielsen reported that, "The main reason for supporting the removal of the 5 cent coin was that they're a hassle to deal with." There would also be less work and sorting, and therefore reduced costs. Supporters of the 5 cent coin said there would be rounding difficulties and that the 5 cent coin is good for children.
Table 2: Views on withdrawing the 5 cent coin
General Public (%) |
Small Retailers (%) |
Large Retailers (%) | |
Positive |
68 |
70 |
40 |
Neutral |
4 |
0 |
41 |
Negative |
28 |
30 |
19 |
Net Positive |
40 |
40 |
21 |
6. Rounding
Retailers were asked what rounding policy they would adopt if the 5 cent coin was withdrawn. The results are shown in Table 3 below. They show that about as many retailers would round 5 cents down as would round it up.
Table 3: Retailers' rounding policies
Rounding policy |
Small Retailers |
Large Retailers |
1-5 round down, 6-9 round up |
4 |
7 |
1-4 round down, 5-9 round up |
1 |
7 |
No rounding policy/minimum 10c intervals |
10 |
5 |
1-9 round up |
2 |
4 |
1-9 round down |
2 |
0 |
7-9 round up, under 7 round down |
1 |
0 |
Undecided |
0 |
2 |
Total |
20 |
25 |
Note: The full AC Nielson report on Reactions to proposed coin changes (PDF 879KB) is available.