The committee received a message loud and clear during the public hearings that the investment policies and decisions of the Workers' Compensation Board should not be made subject to political interference. Must of the input received can be summed up by the comments of the Northern Employers' Council on Workers' Compensation:
Or perhaps more bluntly from the Union of Northern Workers: "We are strongly opposed to statements from some MLAs that they would like the GNWT to be able to exert more influence over the management of the WCB financial reserves and investments. For instance, to require that those funds be invested in northern businesses. Again, WCB should be fully independent form government. This means complete autonomy to invest the funds where the board and its politically neutral financial experts determine it will get the best return."
The committee was somewhat perplexed as to the source of perceptions that the Legislative Assembly was interested in exerting direct control over investment decision making. Members of the committee agreed fully that the investment fund should be professionally and carefully managed. Further, at least, a cursory examination of investment policy and return suggests that this has been the case within the Workers' Compensation Board.
Also perplexing was the number of unelaborated references to political pressure exerted on the Workers' Compensation Board to become involved in riskier northern ventures that would place the investment fund at risk. Although several submissions made reference to this, only the presentation by the United Steelworkers of America provided a concrete example. The Steelworkers commented that:
The standing committee urges the Minister to continue the process of communication he has now initiated with various labour and industry groups interested in the workers' compensation system. He should do everything possible to reassure them that this government supports efficient, effective management of the Workers' Compensation Board investments. At the same time it is somewhat hard to understand how industries and unions whose respective memberships have made a commitment to living in the North and assume that investment in northern ventures automatically risk compromising the security of the funds. There is some thought that as a corporate citizen of the NWT the Workers' Compensation Board might wish to participate in the economic growth and development of what is truly one of the most rapidly changing and exciting regions of the world.
Members noted that on June 23, 1992, the standing committee on finance tabled Committee Report 12-12(2) which indicated that a review and options paper will be prepared on the investment of existing resources within Workers' Compensation funds and report back to the Assembly.
At this time the committee has no specific recommendation or further comment on this matter.