Thank you, Mr. Chairman. Just a few short comments. The purpose of the Forgiveness of Debts Act, 1995-96, is to authorize the forgiveness of certain debts listed in the schedule to the act.

Pursuant to section 25(1) of the Financial Administration Act, the forgiveness of a debt or obligation to the government exceeding $1,000, must receive Legislative Assembly approval.

Pursuant to section 83 of the Financial Administration Act, the forgiveness of any debt or obligation to a public agency, regardless of dollar amount, must also receive Legislative Assembly approval. The only exception would be if the act of that agency addresses forgiveness of debts and the section of the act operates notwithstanding the Financial Administration Act.

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. Allowances for doubtful accounts were charged to an appropriation at the time it was determined that collection of the debts was considered unlikely.

The Financial Management Board Secretariat, government accounting, pursues collection action against the debtor on all outstanding accounts, including accounts which have been previously written off. In the files that have been identified for forgiveness, it has been determined that collection of the debt is no longer possible.

The accounts being recommended for forgiveness are the result of bankruptcies, negotiated settlements and public interest. Thank you, Mr. Chairman.