Mr. Chairman, part five, a regional presence for the Workers' Compensation Board. The standing committee on agencies, boards and commissions was concerned about the failure of the board to establish a profile outside of Yellowknife. The committee was made aware of the argument that because the majority of reported claims are

received from the Fort Smith region, the board must maintain its central location. However, it may be useful to know that the 1991 annual report tabled in the Legislative Assembly on June 22, 1992, showed that the proportion of claims from the Fort Smith Region has decreased from 67 per cent of the total in 1989, to 59 per cent of the total in 1991. Increases in the relative number of claims from the Kitikmeot and Baffin Regions were observed over the course of the same period. Only time will tell whether this is a signal of a shift in the proportional distribution of claims reported by the region.

The client service audit completed by the Workers' Compensation Board in February of 1991 indicates that, for the most part, there are few differences in the levels of satisfaction reported by workers and employers in various regions. However, the standing committee on agencies, boards and commissions was concerned that workers in locations outside of Yellowknife may know less about the board and its services. Certainly the fact that northern communities outside Yellowknife has been almost non-existent by members of the board, and rare at best by staff, has provided little opportunity for this agency to develop a profile across the Northwest Territories.

The standing committee on agencies, boards and commissions has noted that one of the central goals of the Workers' Compensation Board is to communicate and promote an understanding of workers' compensation. The standing committee feels that new approaches will be necessary in order for the board to fulfill that goal in locations outside Yellowknife or the rest of the Fort Smith Region. The standing committee was concerned that in many communities across the Northwest Territories, neither the role nor the procedures of the Workers' Compensation Board are well understood. The organization is seen as large, depersonalized, and Yellowknife-based.

Part of the stated responsibility of the workers' advisors on workers' compensation matters, is to travel to communities outside the larger centres, and the standing committee on agencies, boards and commissions was concerned to learn that no specific budget had been allocated for this purpose. Discussion with the workers' advisor during public hearings revealed that outreach travel to smaller communities had not been possible to date. Recommendation 5, Mr. Chairman:

Motion To Accept Recommendation 5, Carried

I move that the role of the workers' advisor be clarified with respect to responsibilities for communicating and promoting and understanding of workers' compensation in communities across the Northwest Territories; and further, that adequate funding be allocated to support activities undertaken in this area by the workers' advisor.

Thank you. I believe the motion was that the committee recommends. Is that the motion?. Thank you, Mr. Bernhardt. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? Opposed, if any? The motion is carried.

--- Carried

Mr. Bernhardt.

Mr. Chairman. A properly funded outreach program utilizing the office of the workers' advisor would undoubtedly make progress toward increasing general awareness of the board and the principles on which workers' compensation is based. It would not, in most cases, address the needs of injured workers who have questions about information requirements or time lines; persons who do not speak or write English or employers who wish clarification on board policy. It is not sufficient to take the approach that these individuals should pick up the phone and call Yellowknife. Enhanced communication and understanding can be facilitated by ensuring that there is a regional resource person in place to assist perspective clients and to respond to general information with the press. Generally people feel more comfortable in asking and more confident in trusting a member of their own community or region than an official telephone in the capital city several thousands of kilometres away.

The standing committee on agencies, boards and commissions was of the opinion that the volume of requests for assistance or information in any one region would not justify the establishment of regional offices or the allocation of full-time personnel. However, the standing committee believed that there could be considerable promise in the concept of establishing agreements which would ensure that a resource person was available on an as needed basis in regional centres or larger communities. One approach might be for the Workers' Compensation Board to establish agreements with regional health boards and in some cases hospital boards to identify a senior nursing professional or other senior health care officials who could serve as a regional resource. Through a moratorium of understanding the health or hospital board would build a Workers' Compensation Board on a fee for service base for hours spent by the regional resource person in dealing with workers' compensation matters. This would have the advantage of placing in each region at minimal administrative costs, a knowledgeable resource person capable of serving as an information conduit and providing interpersonal support of both workers and employers.

Motion To Accept Recommendation 6, Carried

I move that the Workers' Compensation Board establish memoranda of understanding with regional health boards and hospital boards to provide resource and supportive services to regional clientele.

The motion is in order. To the motion.

Question.

Question has been called. All those in favour? Opposed, if any? The motion is carried.

---Carried

Mr. Bernhardt.

The standing committee felt that other reasons existed for the establishment of a regional presence by the Workers' Compensation Board just as it is important to ensure that trying to live and work in regional settings across the NWT understand the board. It is also important for the board to be familiar with the character and issues of the regions, this is particularly critical with respect to the boards current direction toward involvement in work place safety education.

The committee was concerned that the awareness of regional character and familiarity with work place issues of importance to residents outside Yellowknife is not currently present within the Workers' Compensation Board. The committee believed there is significant benefits to be gained by any territorial board that takes the time and makes the commitment to visit northern communities outside its home base. The opportunity to associate faces to voices heard over the telephone, to meet and communicate with community leaders and to obtain the first hand awareness of local plans and projects that will involve workers, are all factors that would enhance the performance of the Workers' Compensation Board.

A two way exchange of information in the establishment of relationships builds trust and confidence at the local and regional level and would go a long way to removing perceptions that the Workers' Compensation Board is a monolithic, distant administrative body.

The standing committee felt this as summed up well with comments made by the NWT Association of Municipalities during their public hearings: "I think that the WCB, which is appointed by the territorial government, had best be looking at its own organization. The Association of Municipalities moves its board around three times a year and even moved our annual general meeting this year. I think that, as an association, we recognize that here is our headquarters, but there is absolutely nothing wrong with spending the extra dollars to move the board around to get that kind of input."

The standing committee on agencies, boards and commissions agrees that the benefits of first-hand experience outside the confines of Yellowknife and the Fort Smith Region, would greatly assist policy formulation and administrative decision-making within the board.

Motion To Accept Recommendation 7, Carried

Mr. Chairman, I move that the Workers' Compensation Board develop a strategy for meeting outside Yellowknife on several occasions over the course of each year to conduct business and acquaint itself with the issues and people of the regions.

I believe that the motion moves that the committee recommends. I would again remind Members here that when you are introducing motions it should be prefaced with I move that "this committee recommends." That is the way in which a motion should be introduced with the committee. An individual is not introducing the motion but rather the committee is making the recommendation. Just so that you are aware of that. The motion is in order.

Question.

Question has been called. All those in favour? All those opposed? The motion is carried.

--- Carried

Mrs. Marie-Jewell.

Board Accountability

Thank you, Mr. Chairman. With respect to board accountability, the standing committee on agencies, boards and commissions was very interested from the outset of its review in examining questions examining the accountability framework for the Workers' Compensation Board. Clearly, any government-created agency must exist within a system which allows evaluation of whether it is meeting its goals and fulfilling its mandate. The Workers' Compensation Board is certainly responsible for ensuring that internal procedures used for handling funds and making payments are monitored and evaluated. However, the assessment of whether the board is accomplishing the functions established under legislation and developing in directions best suited to meet the needs of the people of the NWT, cannot be solely the responsibility of the board.

Where should accountability lie for the board? The standing committee on agencies, boards and commissions takes the position that it lies with the Legislative Assembly. The direct responsibility for ensuring that the board is accountable in the larger sense, lies with the Members of the Executive Council, who is appointed as Minister responsible for the Workers' Compensation Board.

The standing committee on ABCs recognizes that considerable confusion exists with respect to the relationship between the Minister and the board and to the role which the Minister should play in ensuring that the board is held accountable for its decisions. Within this confusion there has been seen to be a sense of powerlessness and uncertainty on the part of all players with respect to how far a Minister can go in directing the activities or development of the board and what vehicles exist for ensuring board accountability.

This may be compounded by the manner in which the existing Workers' Compensation Act frames the board's statutory authority for jurisdiction. Subsection 7.(1) of the act states that the board has the exclusive jurisdiction to examine, inquire into, hear and determine all matters and questions arising under this act.

Subsection 7.(2), without restricting the generality of provisions dealing with the board's exclusive jurisdiction, provides an illustrative listing of matters that the board has authority to examine, inquire into, hear and determine. These include such things as determining whether an accident is an accident within the meaning of this act, whether earning capacity has been impaired by reason of an accident, and the degree in which it has been impaired and so on.

The standing committee on agencies, boards and commissions agreed that there is no question that control of the claims process and decision-making must remain with the Workers' Compensation Board. There is little benefit for the Legislative Assembly, its committees or cabinet in risking the perception of political patronage in decisions surrounding the size, nature or processing of the compensation payments. More importantly, there is no benefit to the workers' compensation system or to the people of the NWT that it has been developed to serve.

There are however, a range of other questions arising under the act which relate to whether the board is fulfilling its general mandate. It is legitimate, for instance, for the Minister to be directly involved in strategic planning for the delivery of services and any decisions to develop programs and services in areas for which other government agencies or departments are mandated. Standards for the conduct of ministerially appointed directors and officials cannot be assumed to be developed by the board in the absence of bias. To some degree, actions to ensure that interpretation of the Workers' Compensation Act are consistent with the understanding of the Legislature when the act was enacted, can be seen to fall within the jurisdiction of the Minister and Legislative Assembly.

Motion To Accept Recommendation 8, Carried

Therefore, Mr. Chairman, the standing committee on agencies, boards and commissions recommends that the Minister review the definition of "exclusive jurisdiction" in subsections 7.(1) and 7.(2) of the existing Workers' Compensation Act; and further, the committee moves that a new formulation for board authority be included for discussion in the legislative action paper.

Thank you. The motion is in order. To the motion.

Question.

Question has been called. All those in favour? All those opposed? The motion is carried.

---Carried

Mrs. Marie-Jewell.

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.

Thank you. I believe the that the motion introduction was "I move that this committee recommends," with that the motion is in order. To the motion.

Question.

Question has been called. All those in favour? Opposed, if any? The motion is carried.

---Carried

Mrs. Marie-Jewell.

Currently section 91 of the Financial Administration Act requires that each year all territorial corporations among which the Workers' Compensation Board is included, submit their corporate plan and obtain the approval of the Minister. In summary, corporate plans must include the following information:

The purpose for which the territorial corporation is established; the objectives of the territorial corporation for the period covered by the plan; the strategy to be used in meeting objectives; the expected performance of the territorial corporation as compared to its last set of approved objectives; and an evaluation of the efficiency, economy and effectiveness of the territorial corporation.

Subsection 91.(5) provides that "no territorial corporation shall carry on any business or act" in any period in a manner that is not consistent with the last approved corporate plan' or approved amendment.

This statutory provision is a useful tool in ensuring the accountability of the Workers' Compensation Board.

Motion To Accept Recommendation 10, Carried

Therefore, I move that standing committee on agencies, boards and commissions recommends that the Minister responsible for the Workers' Compensation Board make it a practice to table in the Legislative Assembly the corporate plan received annually from the Workers' Compensation Board.

I believe that the introductory was "I move that the committee recommends," with that, the motion is in order. To the motion.

Question.

Question has been called. All those in favour? Opposed, if any? The motion is carried.

--- Carried

Mrs. Marie-Jewell.