New one Pound note

Press Release

Isle of Man Government / The Treasury

[Estimated release date: January to April 1988; estimate by S.Š.]

In November 1983 the old purple paper one Pound note was replaced by the present green "plastic" one pound note.

The change from paper to plastic was in response to a general reduction in the average life of the lower denomination notes and the consequent increase in the annual costs of maintaining the note issue.

At that time and for similar reasons other countries were changing from notes to coins and this was evidenced by the new one Pound coin in the United Kingdom and the new Susan B. Anthony Dollar coin in the United States. The Isle of Man has experience in retaining both coins and notes is parallel circulation and this includes the denominations of 50 Pence since 1971, one Pound since 1978 and five Pounds since 1981. The indications are that there is strong Manx consumer preference in favour of notes instead of coins. That is why the more durable green plastic note issued introduced in 1983 instead of simply replacing the one Pound note with a one Pound coin.

The change over four years ago from paper to plastic attracted a great deal of international media attention, most of the comment being favourable. During the four years since then the new material seems to have found general acceptance and favour with the Manx public, although there has been some criticism. From a technical view point the note has only been a moderate success. Certainly the note has great durability, but inkwear/adhesion may not be as good as on a conventional rag paper note. This may however simply be a reflection on the notes' greater average life.

Also there have been some problems with the plastic substrate itself. These aspects may not be so important to a larger country but in the Island the policy has been to recognise our notes as excellent off Island ambassadors and to therefore maintain a clean-note policy. The condition of the bulk of the present Tyvek® notes in circulation is not consistent with this clean-note policy.

In February 1986 the company previously printing Manx Government notes was sold to Thomas De La Rue and Company Limited. At the same time the former owners withdrew both the technical support for and the supplies of Tyvek® 919, the material used in producing the plastic one Pound notes. After an unsuccessful search for a technically sound and cost effective alternative to Tyvek®, Treasury reluctantly agreed to abandon the plastic note.

In looking for a successor to the plastic one Pound note Treasury were mindful of the need to provide a publicly acceptable solution. Whilst the one Pound coin was used in the U.K. because the English Pound note has been withdrawn, there appears to be regional pride in the continued presence of Scottish and Northern Irish notes. The one Pound coin is more cost effective and in some cases more practical than a note, but appears to be less popular. Treasury have decided therefore to re-issue the purple paper one Pound notes which were last issued in November 1983 and this will be issued alongside the present one Pound coin. The plastic note will continue to be honoured indefinitely.

During May this year, at which time the stock of Tyvek® notes will be exhausted, the traditional purple paper one Pound note will reappear. At the same time the public will be encouraged to make greater use of the one Pound coin.

Coins and notes make an important contribution to Governments income—over two million Pounds this year. The bulk of the income comes not from the overseas sales of commemorative coins, but from the coins and notes circulating in the Island.

Every U.K. coin or note circulating in the Island represents a free loan to the U.K. Government. In order to maintain the Manx Governments income it is important therefore to choose Manx for preference, whether it be notes or coins.

C J Tovell

Accountant