Thank you, Mr. Chairman. The purpose of the Forgiveness of Debts Act, 1998-99, 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 of the government exceeding $1,000 must receive Legislative Assembly approval. When a debt is forgiven or made, no further collection action shall be pursued. The forgiveness being proposed in this act will not require any appropriation. Allowances for doubtful account were charged to an appropriation at the time it was determined that the collection of the debts was considered unlikely.
The account has been recommended for forgiveness as a result of bankruptcies, compromised settlements, and/or in the public interest. In cases where a compromised settlement is reached, the following factors are considered, possibility of future recoveries, the cost of continued legal action and the value of the security. For example, do the personal guarantees hold a reasonable worth? Thank you, Mr. Chairman.