Hon. Milion F. Gregg (Minister of Labour):
Mr. Speaker, I should like to reply to the question asked yesterday by the hon. member for Winnipeg North Centre (Mr. Knowles). The question, as reported at page 1078 of Hansard, was as follows:
Would the minister say whether the new 31 per cent interest rate on government annuities applies only to contracts taken out after April 1, 1952, or will it apply to moneys paid in after that date respecting contracts taken out during the period when the rate was 3 per cent?
The answer is that the rate in effect at the time the contract was made applies throughout the life of the contract. As to contracts made when the interest rate was 4 per cent, that rate continues to apply. As to those contracts made when the rate was 3 per cent, the same is true. In respect of contracts made on or after April 1, 1952, the interest rate will be 3 J per cent.
Subtopic: APPLICATION OF NEW INTEREST RATE