28(1)In order to facilitate the adjustment of Newfoundland to the status of a province of Canada and the development by the Province of Newfoundland of revenue-producing services, Canada will pay to the Province of Newfoundland each year during the first twelve years after the date of Union a transitional grant as follows, payment in each year to be made in equal quarterly instalments commencing on the first day of April, namely,U.K.
| $ | |
|---|---|
| First year | 6,500,000 |
| Second year | 6,500,000 |
| Third year | 6,500,000 |
| Fourth year | 5,650,000 |
| Fifth year | 4,800,000 |
| Sixth year | 3,950,000 |
| Seventh year | 3,100,000 |
| Eighth year | 2,250,000 |
| Ninth year | 1,400,000 |
| Tenth year | 1,050,000 |
| Eleventh year | 700,000 |
| Twelfth year | 350,000 |
(2)The Government of the Province of Newfoundland will have the right to leave on deposit with the Government of Canada any portion of the transitional grant for the first eight years with the right to withdraw all or any portion thereof in any subsequent year and on the thirty-first day of March and the thirtieth day of September in each year to receive in respect of any amounts so left on deposit interest at the rate of two and five-eighths per centum per annum up to a maximum period of ten years from the date of Union on the minimum balance outstanding at any time during the six-month period preceding payment of interest.