Thank you, Mr. Chairman. Section 10 is on assessment. The standing committee on agencies, boards and. commissions received, surprisingly, little input during public hearings on the matter of rates assessed against employers. Although there were some general statements in some submissions conveying a perception that assessment rates are high, the larger industry associations appearing before the standing committee left the impression that they were, for the most part, satisfied with the classification of industries and the actuarial basis for employers' assessments. Instead, the standing committee noticed a significant concern on the part of employers about the potential for a sharp and rapid increase in rates. These seemed to relate variously to a fear that shifts in investment policy, additional administrative expectations or responsibility, would necessitate increased assessment revenues that would be subsequently passed along to employers. In just about every case, involvement or interference by members of the Legislative Assembly was indicated to be at the source of the concern.
The standing committee on agencies, boards and commissions was of the opinion that care should be taken not to erode the confidence which employers hold in the workers' compensation system. The Minister may wish to address any apparent need for reassurance in his ongoing consultation with employers' organizations.
The standing committee on agencies, boards and commissions discussed the matter of the timing of assessment notices. Concern was expressed that in the case of industries which follow a seasonal pattern, payment requirements can create a certain financial pressure. Most construction, for instance, does not commence in most northern communities until later in the spring. This means that some firms may lack significant cash income in the late winter or early spring, yet the Workers' Compensation Board has traditionally issued assessment notices early in the calendar year, with payment deadlines before the end of June. In some cases, construction firms are being required to come up with fees in excess of $100,000, which must be paid before the construction season even starts. A similar situation is encountered by other businesses which operate primarily on a seasonal cycle.
Motion To Accept Recommendation 18, Carried
Therefore, the standing committee on agencies, boards and commissions recommends and I move that this committee recommends that the Minister encourage the Workers' Compensation Board to revise its fee payment schedule for seasonal employers in order to spread fees out over a longer period of time.