Thank you, Madam Chair. The Standing Committee on Accountability and Oversight reviewed Bill 10, Forgiveness of Debts Act, 2004-2005, at its meeting on August 24, 2004. The purpose of Bill 10 is to authorize the forgiveness of debts to the government exceeding $1,000. This is pursuant to section 25(1) of the Financial Administration Act that states that the forgiveness of debts over $1,000 requires approval of the Legislative Assembly.
Unlike Bill 9, Write-off of Debts Act, once a debt is forgiven, there is no further collection action taken. Typically debts being forgiven are the results of bankruptcy, compromise or negotiated settlements or are in the public interest.
There is no new appropriation required to forgive these debts, as an allowance already exists within the departments' budget for doubtful accounts.
The committee considered and adopted one amendment at the request of the government during the committee review stage. This amendment reviews the amount of money that would have to be forgiven by $3,037.81. This is because one individual was able to provide the necessary paperwork for a portion of her student loan and the applicable interest to be forgiven under the Student Financial Assistance program.
The Standing Committee on Accountability and Oversight has no major concerns with the bill, as amended and reprinted. Individual members may have comments or questions as we proceed. Thank you, Madam Chair.