Agreed.

Thank you. Bill 7 is now ready for third reading. I would like to thank Mr. Arlooktoo and the witnesses for appearing before the committee. Thank you. Now, we move on to another item, as we agreed to, which is Bill 10. Thank you. Moving along accordingly. Mr. Todd, do you have any opening remarks dealing with Bill 10, Forgiveness of Debts Act, 1998-99? Mr. Todd.

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.

Thank you, Mr. Todd. I believe we will ask the Minister if he wishes to bring in any witnesses. Mr. Henry, do you have a remark on behalf of the Standing Committee on Government Operations? Mr. Henry.

Thank you, Mr. Chairman. The Standing Committee on Government Operations reviewed Bill 10, Forgiveness of Debts Act, 1998-99, at its meeting on March 23, 1999. The committee would like to thank the Minister of Finance and his officials for presenting the bill. This bill would authorize the government to forgive approximately $252,000 in debts. The committee noted that this is relatively consistent within recent years. In the majority of cases, the debts have been discharged by the courts following bankruptcy proceedings. Mr. Chairman, committee Members may have additional comments or questions on this bill during the review in committee of the whole. This concludes the report of the Standing Committee on Government Operations on Bill 10, Forgiveness of Debts Act, 1998-99. Thank you, Mr. Chairman.

Thank you, Mr. Todd is already seated at the witness table. I do not know if he is ready. Mr. Todd, would you introduce the witness, please.

Thank you. The floor is now open for general comments. Details. Agreed?

Agreed.

Thank you. Bill 10, Forgiveness of

Debts Act, 1998-99, clause 1. Agreed?

Agreed.

Thank you. Clause 2. Agreed?

Agreed.

Thank you. Flip the page over, we have a schedule. Agreed?

Agreed.

Thank you. Page 4. Total, $252,533.92. Agreed?

Agreed.

Thank you. Bill as a whole. Agreed?

Agreed.

Thank you. Does the committee agree that Bill 10 is ready for third reading. Agreed?

Agreed.

Bill 10 is now ready for third reading. Thank you, Mr. Todd and Mr. Voytilla.

We move on to Bill 11, Write-off of Assets Act, 1998-99. Mr. Todd is the lead Minister to make an opening remark. Mr. Todd.

Thank you, Mr. Chairman and colleagues. The purpose of the Write-off of Assets Act, 1998-99, is to authorize the write-off of the granular program revolving fund assets 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.

The write-off being proposed in this act would not require an increase in appropriation. The write-off would be charged against Public Works and Services appropriations and will not result in an over expenditure to that department. This write-off is comprised of two components. The first is to reduce the book value of the granular material on hand to the actual surveyed value. The second one is to account for the deterioration of the value of the granular material where there is no market due to lack of requirement or protocol in material where the stock value is too small to monitor on a cost-effective basis, or whether the remaining material is contaminated.