Background
4.When the United Kingdom bid to host the Olympic Games in London in 2010, an undertaking was given to the International Olympic Committee that if the bid was successful the United Kingdom would strike commemorative coins. After London was awarded the Games, the Royal Mint agreed with the London Organising Committee of the Olympic Games to strike commemorative coins with a standard weight of one kilogram or more.
5.The Coinage Act 1971 governs the striking of coins by the Royal Mint. The 1971 Act contains various standards in respect of a coin’s weight, fineness, composition and dimensions that coins struck by the Royal Mint must comply with. The 1971 Act also makes provision for permitted variations from those standards.
6.Under section 1(6) of the 1971 Act, the variation from the standard weight of any coin (other than a gold coin of a denomination mentioned in Schedule 1 to the 1971 Act) must be measured as the average of a sample of coins which cumulatively weigh not more than one kilogram. It is not possible to measure the variation from the standard weight in the case of the proposed Olympic coins in this way because the weight of each coin is likely to be equal to or greater than the one kilogram aggregate limit in section 1(6) for a sample.
7.The effect of the amendments made by the Act is that the 1971 Act will provide that the variation from the standard weight of any coin shall be measured in accordance with provisions made by Royal proclamation as provided for in section 3 of the 1971 Act.