FOR PRESS P. M. No. 11/ 966
CHANGEOVER TO DECIMAL CURRENCY
Statement by the Prime Minister. Mr. Harold Holt
Tomorrow we arrive, after years of discussion, planning
and organisation, at a landmark in our financial and commercial
history. It marks the introduction of a new system of money
dollars and cents which will finally bring this country into
line with the vast majority of the world's people, 95 per cent.
of whom already use decimal currency.
The change will be closely watched by official
observers from the United Kingdom and New Zealand. New " ealand
will be introducing its own decimal currency system in 1967.
The United Kingdom has understudied a report received from a
special committee set up to report on the advisability of a
decimal system for the United Kingdom.
In Australia, the new currency will carry subst-ntial
advantages in its train. For example
Increased efficiency for Australian commerce and industry;
Methods of teaching money arithmetic in the Australian
schools will be streamlined and simplified. More time
will be available for teachers and students to concentrate
on other aspects of their work;
Our exporters will " speak the same tongue" as most of their
trading partners ana should be all the more welcome
for it;
Many migrants and tourists will be assisted by it.
Not all of these factors will show themselves overnight.
The greatest gains may take a number of years to slhw
themselves fully. To many of us, decimal currency will seem
somewhat strange for a time after the familiar pounds, shillings
and pence. We should not become unduly concerned. Certainly
nobody will automatically lose money in the conversion to decimal
currency. This point seems to be worrying a number of people
who apparently fee they will lose twopence in every shilling
when their savings are converted to decimal currency.
They may set their minds at rest on this point.
It is not true. The misconception arises from the mistaken belief
that because the one cent is the nearest full-cent value to
one penny, a cent and a penny are exactly the same thing. But
in fact they are significantly different one cent being worth
4. ne and one-fifth pennies. This means that ten cents is worth
exactly one shilling and not tenpence as some people seem to think.
One shilling will be converted eyaotly into ten
cents and ten shillings will be converted exactly into one dollar.
There will be no loss to anybody on these conversions. / 2
-2-
Gains from Decimal Currency
The nation has already made three important gains
from decimal currency. First we have introduced much-needed coinage
reform, which has 6rought a completely integrated set of coins
of common sense size. We are going to find them much more
cenvenient for our daily cash transactions.
Secondly, we now have new and distinguished designs
for our notes and coins, which more faithfully reflect the
spirit of the nation.
Thirdly, we have built a highly efficient Royal
Australian Mint to help produce the new coins. Its performance
is well up to expectation but it is proving an asset in another
useful direction. In keeping with our " new look" coins and
notes, the new Mint is a notable tourist attraction in Canberra,
and is the enly Mint in the world which freely opens its front
door and observation areas to the general public.
The Cost of Decimal Currency
Progress has its price and decimal currency must
be paid for, particularly in the short term. Machine conversion,
for example, will cost 54 million ( E27 million) the bulk of
the changeover cost. However large though this figure appears,
it is some LOmillion below the original official estimate of
cost. There are some 500,000 machines to be converted to
decimal eperation. They range from cash registers to taximeters
from petrol pumps to adding machines. These will be
converted in carefully planned, nationally co-ordinated programmes.
This work is estimated to take up to two years,
according to the business machine companies which have contractCd
to carry it out. We believe however that the companies will be
able to speed their worf and we Aepe that Australia will be
operating solely in decimal currency some months before the twoyear
period is up. We shall be doing what we can to achieve this.
Tomorrow's Events Changeover day may produce some temporary inconveniences.
Thesemay prove unavoidable in a change of this
magnitude. The careful planning of the Decimal Currency Board,
supplemented by parallel and co-ordinated planning in so many
important sectors of the community, from banks to business houses,
from retail stores to government departments should do much to
minimise these. Changeover day should go smoothly, even quietly.
If it does so, it will be a tribute to our maturity
as a people who can welcome progress and can co-operate
successfully for its achieement even when it brings the need
for adjustment in our daily routines.
CANBERRA, 13th February, 1966