Mr. Chairman, the Financial Administration Act says that if we're going to write off anything exceeding $20,000 we have to report it to this House, which is what the act is doing. I guess what we're doing is trying to be realistic and saying that instead of carrying these debts on our books and hoping to get them paid in future years, we're being realistic in saying -- as all businesses and governments do -- we do not think we will be able to collect these portions of our debts at the present time Secondly, we're saying that in the event that they are collectible in the future, we will try to do that. It doesn't mean that we won't try to pursue that money in the future. So if somebody has a turn of luck and they have made certain commitments when they took out the loan, we will try to get those people. As I said before, if their financial situation changes in the future, to get that money back. But only within the terms of the loan agreement that they signed, Mr. Chairman. So it may be possible for an individual to not have to pay anything on these particular loans, yet still be in business in the Northwest Territories and appear to be successful. It depends upon the agreement that was signed between themselves and the government, in this case, at the time the loan was let out. That may have included personal guarantees. It may have included using their own personal homes to back the loan, it may not have.
So I think in the instance that the Member was talking about where somebody had owned a company and the company had gone down, it depends on what was pledged from that company or from those shareholders to the government. If it wasn't anything personal, theoretically, those shareholders could go away and become business people in other parts of the territories and not have to pay these loans back. It changes from loan to loan. In this instance, we are being realistic in saying that we don't think we can get this money back.
With regard to changing acts, I think that the Minister of Economic Development and Tourism would agree with me that since the time that the majority of these loans were made, things have changed over at the Business Credit Corporation. It is a much more professionally-run organization. Although the Minister says it will take higher risks than a bank, it is certainly getting the "i's" dotted and the "t's" crossed before money flows. In some of these cases, perhaps things were done absolutely to the tee.
I think when Mr. Arvaluk asks if we should be changing things, I think the Minister would concur with me that policies have been changed within the BCC to try to prevent some of these
things from happening in the future. Thank you, Madam Speaker.