Hon. HUMPHREY MITCHELL (Minister of Labour):

I should like to table copies of orders in council P.C. 1713 and P.C. 1714, dated April 16, 1948, each having to do with operation of the Government Annuities Act.

Mr. KNOWLES:

Shame.

Mr. MITCHELL:

My hon. friend said "shame" before I read the statement. These socialists make me smile; they always want to run everything in reverse.

Mr. KNOWLES:

That is what this is, a step in the wrong direction.

Mr. MITCHELL:

The orders have changed the rate of interest to be used in computing the purchase price of annuities from four per cent per annum to three per cent per annum, compounded yearly. In other words, it is a reduction in the rate allowed on money paid for purchase from four to three per cent.

Changes have been made in the mortality table to be used in computing the purchase price of annuities and direction given as to the interest rate and mortality table to be used in calculating the liability for any annuity. Provision has also been made for necessary alterations resulting from these changes in the forms of application for annuities.

The change in the interest rate has been made in order to make it the same as the rate paid on long term government bonds.

The government will, of course, continue to contribute towards the cost of administration of the annuities branch so that, from an investment point of view alone, the purchase of annuities will be attractive. Actually the contribution through the cost of administration will be increasing.

In selling annuities it will be appreciated that the length of life of the purchaser is of vital importance. Recent figures published by the national office of vital statistics of Washington

show that the average length of life of the American people in 1945 reached a new high of nearly 66 years. This was two and a quarter years more than the corresponding figure in the immediate pre-war period and 16% years above the level prevailing at the beginning of the century.

Canadian experience probably approximates that in the United States and the trend is continuing. The present mortality basis established in 1937 allowed a small margin for improvement in mortality and has measured, with a slight margin, the actual experience. The new mortality basis is considered necessary to provide a margin of safety for contracts maturing in future years.

These orders have effect as of the 19th day of April, 1948, but do not change existing contracts.

The Government Annuities Act is in my judgment an excellent act and I consider it most advisable that it be kept on a sound basis.

Mr. BOUCHER:

I should like to ask a question on these orders in council which have just been tabled. Has any change been made in the regulations with respect to the assignment of annuities? In the past certain difficulties have arisen where joint annuities have been taken out. Can the minister tell us whether there has been any change in the situation with respect to this matter?

Mr. MITCHELL:

I think I can say to my hon. friend that consideration is being given to amendments to the annuities act, and I shall bear his observation in mind.

Mr. HARRIS (Danforth):

Since the

minister intends to bear in mind my hon. friend's observation, will he also make sure that no income tax is payable on the capital portion of annuities, present and future?

Right Hon. J. G. GARDINER (Minister of Agriculture):

In answer to a request made by the leader of the opposition I should like to lay on the table two copies of the signed agreements with Great Britain on food.

Questions

1. What was the total amount of printing let by the government of Canada to commercial printing firms in each province of Canada in each of the past five years?

2. What are the names and addresses of firms receiving in excess of $5,000 for government printing in any or each of the past five years, and what amount wias paid to each?

3. What value of government printing is it estimated was used in each of the provinces of Canada in each of the past five years?

4. What was paid for freight or express on government printed matter sent out of Ontario or Quebec to other provinces by departments of the federal government during each of the past five years?

Mr. PROBE:

With respect to the fourth part of this question, which has been standing on the order paper for nearly two months, it has been drawn to my attention by the department concerned that it will be difficult to get the information in the form in which the question was asked. I therefore wish to drop the fourth part of the question, provided that such explanations as are readily available will be forthcoming.

Mr. SPEAKER:

Part 4 dropped; parts 1, 2 and 3 stand.