Thank you, Mr. Chairman. It is the assent of the standing committee on ABCs that presently the Minister responsible for the Workers' Compensation Board is quite limited to the role he can take in ensuring that the board is meeting the needs of people across the NWT. He can appoint directors to the board and members to the appeals tribunal, and should these individuals fail to meet the criteria he establishes for serving the interests of the NWT, he can ask for their resignation or fail to reappoint them upon term expiry.

He can establish periodic reviews which provide recommendations. However, it is not incumbent on the board to accept or implement the recommendation of any ministerial review committee. In fact, a significant number of the recommendations provided by review panels in 1986 and 1989 have still yet to be followed through. He can introduce new legislation or amend the existing act. He can exercise some authority for the review of the board's corporate plan under the terms of the territorial Financial Administration Act. He can use informal powers of persuasion associated with his good offices as a Member of the Executive Council.

It is the opinion of the standing committee on ABCs that this range of authorities is sufficiently narrow; that practical constraints are placed on how much influence the Minister has over the operations and policy of the board. Yet in the NWT when concerns are raised about the performance of the WCB, it is the Minister not the board, who has been hold accountable by the Legislative Assembly, and ultimately the public.

The committee takes the position that the Minister should be more directly involved in certain aspects of board operation. While the standing committee recognizes and agrees with the Meredith principles, which require that the workers' compensation be administered independently and at arm's length from the government, it is clear that the nature of that arm's length relationship should be considered for redefinition.

The standing committee noted that it was not alone in this view. In 1989 an independent review committee structured to represent the views of employers' organizations and labour, made the following recommendation: "11) that the Minister responsible for the Workers' Compensation Board be empowered to take a more active role in monitoring the management of the board. The Minister should ensure that the needed management reforms are carried out within one year, and on an ongoing basis, should verify that the board can assure it being operated with due regard to efficiency and economy; 62) that in future the Minister responsible for the Workers' Compensation Board be involved by the board in any major projects or policy decisions that involve significant financial or other implications on employers and workers. Policy guidelines should be established for such involvement.

"This recommendation is not intended to reduce the autonomy of the board. However, it must be recognized that for all practical purposes the Minister is ultimately accountable in the Legislative Assembly for the board and must provide an appropriate level of leadership to the board, dependent upon the situation. It is the finding of this panel that the board has not satisfactorily fulfilled its accountability to the public on its own."

The standing committee on ABCs concurs with the position taken by the 1989 review committee. However, the standing committee was quite concerned by the nature of the formal response from the WCB to these recommendations. In a response document issued on August 2, 1991 the board states: "11) Had the Minister taken a more active role in the monitoring of the management of the board would conflict with the role of the board of directors. It is their role to monitor management not the Minister. It must be kept in mind that the WCB is not a department of government but a statutory corporation at arms length from the government; 62) The board of directors through the chairman keeps the Minister appraised of any issues that they feel may have political impact."

It is clear to the standing committee on agencies, boards and commissions that the board was not prepared to consider seriously the recommendation of the 1989 review committee.

Motion To Accept Recommendation 9, Carried

Mr. Chairman, therefore the standing committee on agencies, boards and commissions moves that the Minister responsible for the Workers' Compensation Board be empowered to take a more active role in the monitoring and management of the board; and further, that the Workers' Compensation Act be amended to reflect the nature of that increased role; and further, that draft policy and/or regulations required for the implementation of the Minister's increased authorities be available for review at the time when amendments to the Workers' Compensation Act are introduced.