Friday, January 13, 2012

New loonies, toonies to be released by spring; $40 M in upgrades expected for vending machines

The Royal Canadian Mint is releasing new loonies and toonies made out of steel instead of nickel and copper in an effort to cut down cost. "What that gives the tax payer, basically, is a savings…an annual savings of up to $15 million a year," explained Alex Reeves from the Mint. For some businesses, though, the coins will mean an extra expense. Colin Stone owns a vending machine business. He said the new coins mean upgrades for the thousands of machines he supplies or maintains in Winnipeg. "The new coin will have a new, magnetic signature on it," he said. "So we'll have to just reprogram all of the acceptors to take and accept the new coins." Those upgrades will cost the vending machine industry around $40 million across the country. Those in the industry describe the changes as cutthroat and say the time it will take to reprogram the machines can make or break a business. The old loonies and toonies will remain in circulation and will work in vending and parking machines.
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Don Quixote Note: These new coins will not be accepted by the parking meters we have in Vernon. In this years budget we will have to approve a $77,000 cost for upgrading our existing parking meters to accept the new Loonies and toonies. (this is a 77,000/241,792 = .32% tax increase.

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