Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight reviewed Bill 19, Write-off of Debts Act, 2003-2004, on August 28, 2003. This bill wrote off $162,433.72 in debts owed to this government and its public agencies. The Department of Education, Culture and Employment will write off this entire amount as it is comprised exclusively of student loans that have been deemed uncollectible.

The committee would like to thank the Minister of Finance and his officials for presenting the bill. This bill authorizes the write off of debts in accordance with the Financial Administration Act. Section 24 and 82 of the Financial Administration Act require an act for the write-off of a debt or an obligation owed to the government or public agency that is worth more than $20,000.

Mr. Chair, no debt or obligation or part of a debt or obligation that is written off shall be remitted, satisfied or forgiven as a result of the write-off. Debts contained in the bill will be written off as they are considered uncollectible.

The write-off proposed in this act would not require a new appropriation. The write-off will be charged against allowances which were established in the respective department budget at the time it was determined that collection of the debt would be unlikely.

Mr. Chairman, during review of the bill, the committee suggested the department should do more to encourage qualified students to utilize the department's interest relief program. The program assists students who reside in the NWT and experience difficulty repaying their student loans. Based on their gross family income and number of dependents, monthly loan obligations could be deferred if monthly payments exceeded a proportion of their gross family income. While receiving interest relief, students do not pay the principle and the territorial government absorbs the interest. Students may receive up to 36 months of relief. For example, some former students may not earn enough income to service the interest portion of their student loan. Consequently, their debt continues to compound with no chance of successfully meeting a repayment plan. The interest relief program may provide some people a chance to get on their feet so they can start making loan payments later on.

Mr. Chairman, from documents provided to the committee by the government, committee members understand that very few students have accessed the program. From that, we presume that many students who might qualify for the program may not be aware of its existence. The committee encourages the department to undertake more diligent efforts to further publicize the interest relief program. It may help us to avoid writing off some loans in the future.

Mr. Chairman, following the committee's review, a motion was carried to report Bill 19, Write-off of Debts Act, 2002-2003, to the Assembly as ready for Committee of the Whole. Additional comments or questions may be posed as we proceed. Thank you, Mr. Chairman.