Mr. Speaker, the government is not considering at this time any actions related to past loan guarantees and debt recovery that occurred under FILA. The government did not seize the assets of fishers to pay for loans that were guaranteed under FILA. Through FILA, the Department of Fisheries and Oceans provided loan guarantees so that fishers could receive loans at favorable rates from lending institutions. In the unfortunate case of defaulted loans, the lending institution followed through with a collection process, and in some cases assets were seized. DFO was not involved in those decisions; indeed, the Department paid the difference on any remaining amounts, relieving fishers of any further obligations to the lenders. After the government paid a claim to a lender for a loss incurred on a FILA guarantee, the debtor (the fisher) was still expected to repay the government for the loss paid on his or her behalf.
However, collection action by the government was only implemented when the financial circumstances of the debtor (fisher) improved to where a repayment plan was possible. For those who were unable to pay in the foreseeable future, borrowers were asked to submit documentary evidence such as a statement of affairs, employment record, health conditions, etc. The debt was then written-off, pursuant to Treasury Board guidelines, if it was deemed uncollectible (e.g. the debtor was bankrupt) or otherwise did not merit further action. No claims paid under FILA are outstanding and no collection action is being pursued. The government has written-off $13.5 million in paid claims, almost 85% of all defaulted FILA debts covered by DFO. With respect to programs established under FILA, government actions were consistent with FILA and Treasury Board guidelines. The government’s position is that it would be inappropriate to provide compensation and/or an apology for the actions of private financial institutions.