Does the committee agree that Bill 4, Miscellaneous Statute Law Amendment Act, 2011, is ready for third reading?

---Bill 4 as a whole approved for third reading

Thank you, committee. Bill 4, Miscellaneous Statute Law Amendment Act, 2011, is now ready for third reading. I would like to thank the witness and ask the Sergeant-at-Arms to please escort the witness from the Chamber.

Moving on, committee, next on the agenda is Bill 5, Write-off of Debts Act, 2010-2011. I’d like to ask the Minister if he has opening remarks. Minister Miltenberger.

Thank you, Mr. Chairman, I am here to present Bill 5, Write-off of Debts Act, 2010-2011.

Bill 5, Write-off of Debts Act, 2010-2011, authorizes the write-off of the debts listed in the schedule to the act.

Pursuant to Section 24(3) 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(2) of the Financial Administration Act, Legislative Assembly approval is required for the write-off of debts owed to a public agency exceeding $20,000.

I wish to emphasize that the write-off of a debt does not relieve a debtor of the liability for repayment. 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.

Thank you, Minister. I’d like to call now on the chair of the standing committee, if he has comments. Mr. Menicoche.

Thank you very much, Mr. Chair. The Standing Committee on Government Operations met on May 9, 2011, to review Bill 5, Write-off of Debts Act, 2010-2011.

Following the clause-by-clause review, a motion was carried to report Bill 5 to the Assembly as ready for Committee of the Whole.

This concludes the committee’s general comments on Bill 5. Individual Members may have additional questions or comments as we proceed. Thank you, Mr. Chair.

Thank you, Mr. Menicoche. I’d like to ask the Minister if he wishes to bring in witnesses.

Yes, Mr. Chairman.

Thank you, Minister. I’d like to ask the Sergeant-at-Arms to please escort the witnesses into the Chamber.

Minister Miltenberger, if you could please introduce your witness.

Thank you, Mr. Chairman. I have with me Warren St. Germaine, the comptroller general for the Department of Finance. Thank you.

Thank you, Minister. Committee, we have before us Bill 5, Write-off of Debts Act, 2010-11. Comments, general comments. I’m hearing none. Does committee agree we go to detail?

Thank you, committee, and before we go to the detail, clause by clause, I’d like to first consider the schedule to the bill. Does committee agree?

Thank you, committee. Schedule, debts written off, total, $771,983.85 on page 3. Does committee agree?

Thank you, committee. Returning to page 1, on clause by clause, clause 1, clause 2.

---Clauses 1 and 2 inclusive approved

Thank you, committee. The bill as a whole?

Does committee agree that Bill 5, Write-off of Debts Act, 2010-11, is ready for third reading?

---Bill 5 as a whole approved for third reading

Thank you, committee. Bill 5, Write-off of Debts Act, 2010-2011 is now ready for third reading. Thank you, Minister and your witness, and I ask the Sergeant-at-Arms to please escort your witness from the Chamber, or did you wish to have him stay for the next bill? In which case, I will call on the Minister to introduce Bill 6, the Forgiveness of Debts Act, 2010-2011.

Mr. Chairman, I am here to present Bill 6, Forgiveness of Debts Act, 2010-2011.

Bill 6, Forgiveness of Debts Act, 2010-2011, authorizes 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:

• the possibility of future recoveries;

• the cost to continue legal action; and

• the value of security associated with the debt.

That concludes my opening remarks. I would be pleased to answer any questions Members may have. Thank you, Mr. Chairman.

Thank you, Minister Miltenberger. I’d like to call next on the chair of the Standing Committee on Government Operations, Mr. Hawkins, for comments based on the bill. Mr. Hawkins.

Thank you, Mr. Chairman. Your hardworking Standing Committee on Government Operations met on May 9, 2011, to review Bill 6, Forgiveness of Debts Act, 2010-2011. Following a clause-by-clause review, a motion was carried to report Bill 6 to the Assembly as ready for Committee of the Whole.

This concludes the committee’s general comments on Bill 6. Individual Members may have additional

questions or comments as proceed. Thank you, Mr. Chairman.

Thank you, Mr. Hawkins. We will now go to the bill itself. General comments. Mr. Abernethy.