Thank you, Mr. Chairman. I am pleased to present to this Assembly the 1994 operations and maintenance budget for the Workers' Compensation Board.
The Workers' Compensation Board has produced a responsible, balanced budget for 1994, and has done so without increasing rates charged to employers or reducing benefits paid to injured workers. This budget sets out spending of just over $30 million, and projects a small surplus of less than $100,000.
We all know that the board had a financially difficult year in 1992. Throughout 1993, the board members and their staff worked to ensure that the programs being offered were cost-effective.
The board undertook three major financial initiatives in 1993. The first was establishing our own NWT impairment rating schedule to determine the percentage of physical impairment from permanent disability. This change away from the AMA guidelines was made to reduce subjectivity and increase fairness and equity between claimants.
The second was refocusing the rehabilitation program to effectively assist injured workers to return to work. The largest portion of rehabilitation costs are not paid directly to claimants, but to third parties like clinics, therapists and educators. The WCB insists on receiving value for money in these programs, and on programs being appropriate and effective for the worker involved.
The third initiative was adopting a funding strategy that will return the WCB to a fully-funded position by the end of 1994.
These efforts have resulted in a 13.4 per cent reduction in the overall operating budget, from $35.738 million in 1993 to $30.950 million in 1994.
Seven new staff positions were created, several of which replace services previously purchased from outside sources. These new positions increase the WCB's ability to meet stakeholder needs, without increasing overall costs.
Some of the initiatives that will increase costs, or introduce new costs are the WCB's affirmative action and official languages plans, which are in accordance with this government's own initiatives. The WCB's three year corporate plan, tabled during the last session, also indicated a number of cost items, including consideration of an early intervention approach to claims management, the development of a fraud prevention strategy, staff training to improve client services and increased communications with stakeholders.
The board is still considering changes to the classification system, introduction of a merit and surcharge program and enhanced safety education programs. These changes will not impact the budget until 1995.
You will also see an increase in appeals tribunal costs. The appeals tribunal commissioners have temporarily assumed an increased workload to deal with the backlog of appeals. These additional tribunal costs are not expected to continue.
The WCB is funded by assessments paid by employers. It is important that the trust of those employers be maintained, and that injured workers be protected and served cost-effectively. This budget has been prepared to that end.
Thank you, Mr. Chairman.