Thank you, Mr. Chairman. I have just a few short opening comments for Bill 2, Write-off of Debts Act, 1995-96. The purpose of the Write-off of Assets and Debts Act, 1995-96, is to authorize the write-off of certain debts listed in the schedule to the act.
Pursuant to section 24 of the Financial Administration Act, the write-off of government assets or debts exceeding $20,000 must receive Legislative Assembly approval.
Pursuant to section 82 of the Financial Administration Act, the write-off of debts owed to a public agency exceeding $20,000, must receive Legislative Assembly approval. The write-off of debts owed to the Workers' Compensation Board exceeding $50,000 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 departmental budgets at the time it was determined that collection of the debts would be unlikely.
I wish to emphasize 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, future recovery of the debts may still be achieved, Mr. Chairman. In addition, we track the principals of each firm for future credit references. Thank you, Mr. Chairman.