Mr. Chairman, I am here to present Bill 2, Forgiveness of Debts Act, 2009-2010. This bill requests authority for the forgiveness of certain debts listed in the schedule of the act.
Pursuant to Section 25 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 forgiveness of certain debts 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.
The accounts being recommended for forgiveness are the result of bankruptcy, compromise settlements or are in the public interest. In cases where a compromise settlement is reached, the following factors have been considered:
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the possibility of future recoveries;
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the cost to continue legal action; and
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the value of security associated with the debt.
That concludes my opening remarks. I would be pleased to answer any questions Members may have.