Thank you, Mr. Chairman. Mr. Chairman, the purpose of the Forgiveness of Debts Act, 1997-98 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 $1,000.00 must receive Legislative Assembly approval. When a debt is forgiven, no further collection action will be pursued.

The forgiveness being quoted in this act will not require new appropriation. Allowances for doubtful accounts were charged in the appropriation at the time it was determined that collection of the debt, or debts, was considered unlikely.

The accounts we recommend for forgiveness are a result of bankruptcy, compromise settlements and/or in the public interest. In cases where a compromise settlement is reached, the following factors have been considered, the possibility of future recoveries, the cost of continuing legal actions and the value of the security, for example, Mr. Chairman, do the personal guarantees hold a realizable worth? Thank you, Mr. Chairman.