Thank you, Madam Chair. The purpose of the Forgiveness of Debts Act, 2004-2005, is to authorize the forgiveness of certain debts listed in the schedule of the act. Pursuant to section 25(1) of the Financial Administration Act, the forgiveness of a debt of 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 was determined that collection of the debts was considered unlikely.
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 for future recoveries; the cost of continual legal actions; and, the value of security. For example, do the personal guarantees hold a realizable worth?
Madam Chair, I am prepared to answer Members' questions. Thank you.