In the Legislative Assembly on April 7th, 1995. See this topic in context.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Bill 22, Forgiveness of Debts Act, 1994-95. Is the Minister responsible for the bill prepared to introduce the bill to the committee? Mr. Pollard.

Minister's Introductory Remarks

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

Mr. Chairman, thank you. The purpose of the Forgiveness of Debts Act, 1994-95 is to authorize the forgiveness of certain write-offs listed in the schedule to the act. Pursuant to section 25(1) of the Financial Administration Act, the forgiveness of a debt or obligation exceeding $1,000 to the government and most boards and agencies must receive Legislative Assembly approval. When a debt is forgiven, no further collection action shall be pursued. The forgiveness being proposed in this act will not require a new appropriation. Allowance for doubtful accounts appropriations were affected at the time it was determined that collection of the debt was considered unlikely.

Even though an account is written off, Financial Management Board Secretariat government accounting still pursues collection action against the debtor. In the files that have been identified for forgiveness, it is determined that collection of the debt is no longer possible. Mr. Chairman, a large component of the accounts being forgiven are bankruptcies, negotiated settlements and unsubstantiated debts. The number of accounts being forgiven this year is significant, due to the fact that the last forgiveness act was for the year 1988-89. A review of the write-off files is being conducted on an ongoing basis. To date, these files have been identified for forgiveness. Thank you, Mr. Chairman.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Thank you, Mr. Minister. Is the chairman of the Standing Committee on Finance prepared to make his comments? But before I turn to you, I noticed Mr. Dent had his hand up. I would like to take this opportunity to recognize in the gallery, the Honourable Ethel Blondin-Andrew, Member of Parliament for the Western Arctic.

---Applause

Here we are, now wasn't that worth the wait, Mr. Dent? The chair recognizes Mr. Dent.

Standing Committee On Finance Comments

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Charles Dent

Charles Dent Yellowknife Frame Lake

Certainly, Mr. Chairman. I have the report on behalf of the Standing Committee on Finance.

Mr. Chairman, the Standing Committee on Finance reviewed Bill 22 on April 5, 1995. Members discussed the bill and agreed that it should be moved into committee of the whole for further discussion and action.

The total amount of the debts being forgiven by this bill is substantial, over $1.25 million. Standing committee Members understand that many of these losses were the result of bankruptcy or negotiated settlements with debtors and that the amounts are unrecoverable.

However, Members may have some questions regarding some of the items in this bill and we'll take this opportunity to raise them with the Minister. Thank you, Mr. Chairman.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Thank you, Mr. Dent. Mr. Minister would you like to take the witness stand. Will you need some assistance with other member of your department to deal with this matter?

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

If I might, Mr. Chairman.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Does the committee agree than that the Minister take the stand and bring in witnesses?

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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An Hon. Member

Agreed.

---Agreed

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Thank you. Mr. Sergeant-at-Arms, would you help the Minister.

Welcome, Mr. Minister. Would you please introduce you witness to the committee.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

Thank you, Mr. Chairman. I have with me Mr. Lew Voytilla, the secretary to the Financial Management Board. Thank you.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

April 7th, 1995

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The Chair

The Chair Tony Whitford

Welcome, Mr. Voytilla. General comments on Bill 22. The chair recognizes the Member for Thebacha, Mrs. Marie-Jewell.

General Comments

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Jeannie Marie-Jewell Thebacha

Thank you, Mr. Chairman. Not being on the Standing Committee on Finance -- I know as an alternate, I was once discussing part of this -- I would like to know whether or not the Minister could provide an explanation to the House on each of these write-offs or debts forgiven by the government.

Over the past couple of days, we have been hearing extensively from Ministers about the need to save funding, the need to be able to watch our funding, and the demands that are going to placed upon us. I would like to know what efforts were made to allow for the debts to be forgiven. And, as a Member, I would also like to know the purpose for each of them. Thank you.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Thank you, Mrs. Marie-Jewell. Mr. Minister.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

Thank you, Mr. Chairman. The first one that I have is Dionne Furs, purchase of inventory; the amount was $8,817.88 and the reason for the forgiveness was bankruptcy.

Number two, the Receiver General for Canada, it was a reimbursement claim for special art projects, $70,083.06, and we were unable to help.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Mr. Minister, could you do them in the order that they are listed here? You missed number one, you missed Voyages, you started at number two with Dionne furs.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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John Pollard Hay River

Yes, Mr. Chairman. In the order of the bill then, Mr. Chairman, with Voyages Goliger Quebec Inc., this was a contribution under the financial assistance to industry policy, $25,000 and the cause was bankruptcy.

Dionne Furs, I believe I did, Mr. Chairman.

The next one is Red Carpet Distribution Inc., the amount was $46,199.25. It was a bankruptcy, Mr. Chairman, and negotiated settlement.

The next one is Robert Edward Galbush, that is medical travel, Health. It was incurred in 1989-90 and in the amount of $2,413.75. The reason was bankruptcy, Mr. Chairman.

The next one is Michel Dupuis, ration assistance, Personnel, 1988-89. The amount is $2,000 and the reason is bankruptcy.

The next one is David John Lundrigan, operating, I believe, Crazy Dave's Audio Visual, the creditor was Public Works and Services, the year was 1988-89, the amount was $2,703.68. It was for rent of a retail store and the reason for the forgiveness was bankruptcy.

Then we have the Canada Tungsten Mining Corporation, the reason for that is medical expenses.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Tony Whitford

Mr. Minister, I regret to interrupt you, but the clock has reached 2:00. I have to rise and report to the Speaker.

Bill 22: Forgiveness Of Debts Act, 1994-95
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Speaker Samuel Gargan

Good afternoon. Item 20, report of committee of the whole. Mr. Whitford.