Thank you, Mr. Chairman. The purpose of the Write-Off of Assets and Debts Act, 1994, is to authorize the write-off of certain debts listed in the schedule to the act. Pursuant to the Financial Administration Act, the write-off of assets or debts exceeding $20,000 for the government and most boards and agencies must receive Legislative Assembly approval.
The write-offs being proposed in this act will not require a new appropriation. The write-offs will be charged against allowances for bad debts which were established in previous department budgets. At the time it was determined that collection of the debts would be unlikely.
Mr. Chairman, a large component of the accounts being written off are loans made by the Business Credit Corporation. The number of loans being written off is significantly greater than usual. This is due to the Business Credit Corporation doing a comprehensive review of its accounts in order to update its records.
I wish to emphasize, Mr. Chairman, that the write-off of a debt does not relieve a debtor of the liability for repayment or mean that the government will not continue to attempt to collect the outstanding amount. Through continued reviews by my staff and those of the Business Credit Corporation, future recovery of the debts may still be achieved. In addition, we track the principals of each firm for future credit reference.
Mr. Chairman, I am, or the appropriate Minister is, prepared to answer questions on these proposed write-offs. Thank you, Mr. Chairman.