Bill 15 is now ready for third reading. With that, I would like to thank the Minister and his witnesses.

Thank you.

Is the committee ready to deal with Bill 18?

Bill 18, Forgiveness of Debts Act, 2002-2003. At this time, I would like to ask the Minister responsible for this bill if he has any opening comments. The Minister of Finance, Mr. Handley.

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.

Thank you, Minister Handley. Does the committee responsible for reviewing the bill have any general comments on the bill at this time? Mr. Dent.

Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight reviewed Bill 17, Forgiveness of Debts Act, 2002-2003, on August 13, 2002.

The committee would like to thank the Minister of Finance and his officials for presenting the bill. This bill will forgive $3,342,867.36. Mr. Chairman, during its review of the bill, the committee expressed a number of concerns. Committee members suggested that the credit history of an individual, corporation or other organization should be kept on file and considered in any future credit application to this government and its agencies. In 2000-2001, the committee had recommended to the government that a central credit monitoring system be established to reduce and better manage the government's lending risk. Committee members were encouraged to hear that the government has implemented the committee's recommendation.

The committee also noted that the bill would forgive the remaining debt of Great Slave Forest Products Limited. Great Slave Forest Products was a subsidiary of the Northwest Territories Development Corporation. Committee members requested additional information from the government. During the committee's consideration of the bill, it was confirmed that the assets of the subsidiary were sold by public tender and applied to the money owed to the Northwest Territories Development Corporation. The subsidiary was closed down as it continued to be a money losing operation, despite significant government subsidies. Patterson Enterprises, which comprised one of the three companies purchased by the Development Corporation to form Great Slave Forest Products Limited, is separate and distinct from Patterson Sawmills.

Mr. Chairman, following the committee's review, a motion was carried to report Bill 18, Forgiveness of Debts Act, 2002-2003, to the Assembly as ready for committee of the whole. Additional comments or questions of Members may be posed as we proceed. Thank you, Mr. Chairman.

Thank you, Mr. Dent. At this time, I would like to ask the Minister if he will be bringing in any witnesses. Mr. Minister.

Yes, I will, Mr. Chairman.

Does committee agree that the Minister bring in his witnesses?

Sergeant-at-Arms, escort the witness in. Mr. Minister, do you feel comfortable proceeding without your witness at this time?

Mr. Chairman, I am prepared to go ahead without him. If there are things I cannot answer, I am sure when they get here, we can come back to those issues.

Does committee agree?

General comments. Ms. Lee.

Thank you, Mr. Chairman. I am not trying to find a trick question the Minister cannot answer or anything, but something that the Minister said in his statement raised my interest. It has to do with criteria for cases where the outstanding loan or debt to the government is forgiven, which is what we are considering here. It says here that the criteria is where there was a bankruptcy, compromised settlements and/or are in the public interest. I wanted to get an elaboration from the Minister as to what constitutes a public interest? Thank you, Mr. Chairman.

Thank you, Ms. Lee. Mr. Minister.

Mr. Chairman, the term public interest is used as a catch phrase to take into consideration situations where it just does not make common sense to continue to pursue a particular debt. It may be because the amount owing is so small that it is not worth going after because it would cost us more, or it could be that all the efforts have been made and at this point, there is just no point in proceeding. It is a term that can be used generally for areas outside of bankruptcy or compromised settlements.

Ms. Lee.

Thank you, Mr. Chairman. I understand the general parameter of what public interest might include, but does the Minister have a written policy or direction or some kind of rule or guideline that tells him or the government that something would be or could be construed in the public interest to forgive? Thank you, Mr. Chairman.

Mr. Handley.

Mr. Chairman, I do not have the page in front of me, but there would be a provision in the Financial Administration Act and the Financial Administration Manual which would provide further direction on this, I would expect. Thank you.