January 28, 1997 * Provincial Treasury [to Jan 2010]The Provincial Treasurer, the Honourable Patricia Mella, announced today that the Provincial Treasury will discontinue to take deposits under the Provincial Deposit Receipts program effective immediately. The Provincial Treasurer wishes to stress that the money currently invested in PDRs is secure and will continue to pay interest under the established interest rate setting mechanism. When this Government examined the financial situation of the Province, and during the Pre-Budget Consultations held by the Provincial Treasurer, it was found that the Province had a significant level of debt at high rates of interest. The Provincial Treasurer directed staff to examine options to reduce the interest charges on debt and to recommend areas of potential savings. The PDR program, given the variability in both interest rates and level of deposits, no longer offers the Province a stable low cost source of funding. The Provincial Treasury intends to replace PDRs with alternative sources of financing. This measure is the first part of an overall debt management program being developed by the Provincial Treasury, and details will be forthcoming as part of the Budget Address. The Provincial Treasury will honour the commitments under the PDR payroll deduction plan until October 1997. For more information, contact Roy Spence at (902) 368-6167. Media Contact: