Thank you, Mr. Chairman. The purpose of the Forgiveness of Debts Act, 2003-2004, 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 forgivenesses being proposed in this act will not require a new appropriation. Allowances for doubtful accounts were charged to an appropriation and at the time it was determined that the collection of the debts was considered unlikely.

The accounts being recommended for forgiveness are the result of bankruptcy, compromise settlements and/or public interest. In cases where a compromise 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'm prepared to answer Members' questions on these proposed forgivenesses.