The Standing Committee on Infrastructure reviewed Bill 13, An Act to amend the Financial Administration Act, on March 23, 1998.
The committee would like to thank the Minister of Finance and his officials for presenting the bill. The bill will amend the Financial Administration Act to expand the definition of a public officer to include a person acting as an agent of the government, authorize the investment of funds in the consolidated revenue fund and money belonging to public agencies in specified classes of investment, add a regulation-making power respecting the investment of money by the government and public agencies, and finally, permit the Workers' Compensation Board to invest in any securities and investments that it deems to be prudent.
The committee expressed concern that the amendment would not ensure investments meet conventional standards of creditworthiness. The Minister assured the committee that the amendments would provide the necessary regulation-making ability to set prudent and comfortable standards of investment guidelines.
Finally, the committee was concerned as to why an amendment was required now when the investment guidelines under the Canadian and British Insurance Companies Act expired in 1991. The Minister replied that the government's investment guidelines need to be established to ensure a greater degree of clarity and accountability.
Mr. Chairman, following the committee's review, a motion was carried to report Bill 13, An Act to Amend the Financial Administration Act, to the Assembly as ready for the committee of the whole. Additional comments or questions of Members may be posed as we proceed. Thank you, Mr. Chairman.