Mr. Chairman, I am here to introduce Bill 9, Write-off of Debts Act, 2007-2008. This bill authorizes the write-off of the debts listed in the scheduled to the act.
Pursuant to section 24 of the Financial Administration Act, Legislative Assembly approval is required for the write-off of government assets or debts exceeding $20,000.
Pursuant to section 82 of the Financial Administration Act, the write-off of debts owed to a public agency exceeding $20,000 and the write-off of debts owed to the Workers' Compensation Board exceeding $50,000 must receive Legislative Assembly approval.
The write-offs being proposed in this act will not require a new appropriation. They will be charged against allowances for bad debts which were established in department budgets at the time it was determined that collection of the debt would be unlikely.
I wish to emphasize that the write-off of a debt does not relieve a debtor of the liability for repayments. The government will continue to attempt to collect the outstanding amount.
Through continued reviews by staff, future recovery of the debt may still be achieved. In addition, in the case of debts owed by companies, staff will track the principals of each firm for future credit reference.
That concludes my opening remarks. I would be pleased to answer any questions Members may have.