Select Committee on Treasury Appendices to the Minutes of Evidence


Annex

YEAR END

  Some members experienced processing/supply problems in November/December owing to late deliveries from the Royal Mint: specifically £1 and 50p coins. The 20p coin was also in short supply.

  Co-operation between members avoided any serious "stock out" positions.

  With the exception of bronze, coins stocks at the end of 2000 are well up on 1999 but down on 1998, bronze and £2 excluded. (Bronze levels at each of the three-year ends have remained consistent.)

FORECASTING

  Up to the end of quarter three, total coin bought from the Royal Mint as a percentage of the original forecasts was as follows:

Denomination
Percentage
Comment
£2
64
Original forecast reduced during Q2: revised % = 93
£1
93
  
50p
40
Cancelled orders for coin not delivered on time
20p
62
  
10p
63
  
5p
77
  
2p
73
Requirement forecast for Q4
1p
82
Requirement forecast for Q4


  It is anticipated that with one year's detailed forecasting and tracking almost complete, member forecasts will be closer to actual demand across all denominations.

  Bearing in mind the Royal Mint's request for a percentage of the forecast to be for a firm order and subject to the "notice" rules for increasing/decreasing the order being confirmed, it is proposed (if requested by the RM) that the start point is 60 per cent.

  The following caveat should apply:

    The RM recognises that members must receive adequate notice of any action by the Royal Mint or Bank of England, which is likely to impact on the demand for a given denomination. For example, Bank of England action to boost the number of £5 notes in circulation is likely to reduce the demand for £1 coins and hence the order.


 
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