Yes, Mr. Chairman. The purpose of the Forgiveness of Debts Act, 2002-2003, is to authorize the forgiveness of certain debts listed in a 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. 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 is considered that the collection of debts is unlikely.
The accounts being recommended for forgiveness are the result of bankruptcy, compromised settlements and/or are in the public interest. In cases where a compromised settlement is reached, the following factors have been considered:
- the possibility of future recoveries;
- the cost to continue legal actions; and
- the value of security. For example, do the personal guarantees hold a realizable worth?
Mr. Chairman, I, or the appropriate officials, am prepared to answer Members' questions on these proposed forgivenesses. Thank you.