Government announces new initiatives for fine collection

Justice Minister Kelvin Parsons today announced government's intention to eliminate limitation periods placed on government's ability to collect taxes and fines.

Amendments to the Limitations Act will allow government to remove the six-year limitation period to collect taxes and the two-year limit to collect fines.

"In many cases, these time limits are not sufficient to collect taxes or fines due," said Minister Parsons. "The collection process required by law is quite complex and time-consuming. We simply do not have sufficient resources to ensure that collection efforts are undertaken with the huge volume of individual debtors within the limitation period."

The Department of Justice has embarked on new initiatives in fine collection. The Department of Justice information technology experts have implemented a system, which will make it possible to file judgments against debtors in a more timely manner with electronic filing. 

The current estimate of unpaid fines owed to the province is $18 million, of which about $13 million has remained unpaid for more than two years.

"Filing convictions with Supreme Court by electronic means is a more efficient process and therefore, will enhance collection efforts," said Minister Parsons.

The department has manually registered the top 50 fine defaulters within the last two years with the Supreme Court and more assertive collection efforts are under way with the Sheriff's Office.
The remaining outstanding defaulters who have fines amounting to $500 or more will be electronically registered with the Supreme Court Trial Division and then the Sheriff's Office.

"This threshold amount will likely be lowered at some future date," explained the minister.

Under the new electronic regime, once a judgment is registered it becomes subject to credit checks which can affect a person's credit rating. 

"Taxing statues and fine collection play an integral role in assuring that every citizen of Newfoundland and Labrador has access to necessary public services such as hospitals, roads and social assistance," said Minister Parsons.

"These stiff measures are necessary. It is government's responsibility to ensure that every possible action is taken to recover outstanding debts," said Minister Parsons. "Government cannot reward a person for failing to remit taxes or pay a fine by allowing a debt to expire."

Media contact: Edwina Bateman, Communications (709) 729-6985.

2001 12 18                           11:55 a.m.