Rushen MHK, Juan Watterson, asked Alf Cannan, Treasury Minister, at yesterday's sitting of Tynwald, what assessment he has made as to whether the Island is likely to be a greater target for fraud as a result of keeping the round pound coin; and whether there will be an increase in the number of Manx ?1 notes issued?

In his response Minister Cannnan confirmed that the "Treasury acknowledges that there is potential for an increased flow of counterfeit coins to the Isle of Man. However the overall risk needs to be taken into context. The Royal Mint estimates that around 3% of UK coins are counterfeit, so there are around 40-50 million already in circulation. Clearly they are not all in one place and
it would require considerable effort and expense to bring a significant number to the Isle of Man.

"Treasury recognises the need to increase public knowledge of fake coins and will be undertaking an awareness exercise to help individuals and businesses understand how to spot counterfeits. Fake UK ?1 coins should normally be rejected by vending
machines.

"Round UK ?1 coins will be actively sorted and repatriated over the coming months. Eventually there should only be 12 sided UK coins and Manx round coins in circulation on the Island. Any counterfeit UK ?1 coins would then be much more visible to the eye.

"The cost to remove and replace all round ?1 coins would be significant as there are several million in circulation.

"Additionally, the sorting of coins along with the repatriation of UK round pounds is a significant undertaking which we could not realistically expect the banks to do in such a short period of time.

"As soon as the stock of UK round pounds is judged to be at a manageable level, an instruction will be issued to individuals, retailers and banks that they are no longer acceptable. This will further reduce our susceptibility to fraud.

"Treasury would be delighted to issue more Manx ?1 notes and will make a concerted effort to increase the number in circulation when the new UK ?1 coin is introduced and especially up to and including the TT period. During the transition period Treasury will also encourage the greater use of all other Manx currency and the new set of Manx circulating coins will be available from April."