generous to the employee, because with old age pensions at $20 a month, starting at the
age of 70
we hope it will be reduced to 65 when possible-a person with a very small income would feel it hardly worth saving to provide for his own old age unless there was some incentive. Five per cent on SI,200 a year would be $60 a year, which in forty years would amount to $2,400, plus accumulated interest, and the income on that sum would be less than the old age pension. People should be encouraged to save and provide for their own old age. I had the problem presented by a member of my staff whether it was worth while saving for an annuity because after a certain period of years the amount received would be hardly more than the old age pension.
The explanatory note says that sections 13 and 14 are to prevent double taxation. I thought the minister did not object to the principle of double taxation. He told me once there was no .objection to it.
I think perhaps I can explain it. There is some bond interest which is payable either in Canadian or in foreign funds. The provision first was that if a resident of Canada elected to take his interest in a foreign currency which was at a premium he would be subject to a 5 per cent tax. Certain debtors evaded that provision.