Mr. Patterson.

Mr. Speaker, I appreciate the honourable Member explaining, or revealing the significant monies that have been spent on rehabilitation by the Workers' Compensation Board in recent years. I think that this does go to show that, amongst the criticism levied against the W.C.B. today in this House, spending on rehabilitation should not be one of the criticisms. In fact, there has been a significant expenditure in that area and it is a new program and it has increased significantly since it was established.

However, the Member properly questions whether we are getting value for our money in this area. Mr. Speaker, I can inform him that I have had discussions with the board chairperson about this area. It is an area of concern, and the board has undertaken an independent review of the whole rehabilitation area with a view to determine whether it is getting value for its dollars and, if not, what changes should be put in place to ensure a more effective program. Thank you.

Supplementary, Mr. Koe.

Mahsi, Mr. Speaker. The Minister should be ashamed of the fact that northern businesses are subsidizing southern fly-in operators. The Northwest Territories Chamber of Commerce has pointed out many southern based firms send workers to the Northwest Territories for brief periods of time, then leave long term Northwest Territories businesses carrying the burden of the W.C.B. costs.

In fact, the Minister should be aware that 70 per cent of the rehabilitation case load which cost roughly $2.5 million reside outside of the Northwest Territories.

What is the Minister prepared to do to ensure that northern businesses do not go under solely to keep transient workers coming north?

Mr. Patterson.

Mr. Speaker, the board has the capability to audit these very companies that the Member refers to, to ensure that they pay their share of assessments for their sometimes fleeting term of operation in the Northwest Territories and I am informed by the board that the person or persons engaged in this area earned their salary many times over by finding and pursuing these transient operators.

Mr. Speaker, one of the reasons, for better or for worse, that many of the employees on compensation do not reside in the Northwest Territories is that the cost of living is cheaper in the south and they can make their compensation and their pensions go further.

One way of possibly addressing that matter and perhaps providing more of a benefit to the economy of the Northwest Territories, would be to look at a two-tier YMIR such that there would be a rate paid for workers on compensation who are living in the north and a different and a lesser rate paid to those who are residing in the south. Whether this would generate savings overall is not clear but it is an option that should be examined and it would address the concern the Member expressed. I think that this is something that should be looked at in the context of the legislative review being proposed.

Supplementary, Mr. Koe.

My final supplementary, Mr. Speaker. The Workers' Compensation Board has attributed the huge increase in assessment rates to cost of accidents in 1991. I wonder if the board has considered looking at its own office complex, the glasswork palace in Yellowknife Centre Square Mall which is probably the most classy and over decorated office space in the city. Will the Minister immediately review the board's $1 million expenditure for office lease and renovations in 1991 and explain why that figure increased by $300,000 over 1990?

Mr. Patterson.

Mr. Speaker. I have been actively trying to address that issue with the Workers' Compensation Board since I have received this appointment. Mr. Speaker, the board was on the verge of sub-leasing space that Members will know is presently unused. They were on the verge of signing a lease recently and, unfortunately, the tenant received a better offer and reneged on the planned tenancy just at the last possible minute. So, some $160,000 per year of potential revenue has slipped out of our hands.

Mr. Speaker, as I said, the board has just undergone an intensive budget setting exercise and I am informed that significant reductions in the operating expenses of the board itself have been achieved in the budget exercise, which I will be presenting to this House, in due course. So I think the board has already scrutinized the cost of its own operations as the Member asks for. However, his question asks if I will continue to pursue that and I can assure the honourable Member that I will do so. Thank you.

Item 5, Oral Questions. Mr. Dent.

Mr. Patterson.

Mr. Speaker, this is an annual practice of the Workers' Compensation Board to hold a public information session to inform the public of the process used to set rates. I agree with the honourable Member that it may be seen as a frustrating exercise in that the rates have been announced and set. I think I could without holding out much hope that this can be amended, I could tell the House and the honourable Member that the setting of rates is always a provisional matter and that should circumstances change it may be possible to reconsider those rates. They are not completely set in concrete and we are awaiting the opinion of a second actuary which may shed some light on this situation, so there is possibly room for revision if some facts should come to light if no one was hither to aware of them. So it is not a complete fait accompli, Mr. Speaker, although I agree with the Member that on the eve of the new year, it is difficult to say there is a way around the present situation. Thank you.

Supplementary, Mr. Dent.

Mr. Patterson.

Mr. Speaker, the actuary who assisted the board in preparing the 1993 rates will be present along with the Chair of the board and officials. I am not sure if other board members will be present, but I know the Chairperson will be the prime spokesperson for the board. I will probably attend the session, but it will be as an observer. I think the prime accountability rests with the Chairperson and staff in light of the board's exclusive authority to set rates out of the present legislation. Thank you.

Mr. Dent, supplementary.

Mr. Patterson.

Mr. Speaker, I am aware that the Chairperson of the board has some plans to travel outside the capital to make himself available to members of the public and the business community who wish to discuss the issue. I am not aware of precisely where and when he plans to travel, but I know there have been some plans made for consultations. I also know that there are some sectors such as mine managers from mines across the territories who are taking it upon themselves to come here to consult with the board and its Chair. Thank you.

Supplementary, Mr. Dent.