Thank you, Mr. Speaker. Mr. Speaker, I rise today to present the annual report of the WCB for the period ending December 31, 1994, in accordance with section 100 of the Financial Management Act.
The financial and statutory responsibilities of the WCB are threefold:
1. It must guarantee that compensation and the pensions awarded to injured workers of their dependants are paid in accordance with entitlement.
2. It must assess employers sufficiently and fairly to meet these obligations.
3. It should maintain stability and achieve a balance, providing benefits to injured workers, while keeping assessment costs to employers as low as possible.
These responsibilities are met by establishing and maintaining adequate reserves.
I am pleased to report, Mr. Speaker, that the financial position of the Workers' Compensation Board improved in 1994. This has allowed the board to restore its reserves to desirable levels.
The future liability reserve ensures that the board is able to pay the total entitlement of its claims. This capability is often referred to as "fully funded."
I am pleased to confirm that again in 1994, the NWT WCB is fully funded. I should add that this is an enviable position to be in compared to the fiscal situation of other boards across Canada.
Mr. Speaker, there are several reasons for the board's positive results:
1. Increased hiring by employers operating in the north resulted in assessment revenue exceeding projections.
2. Thanks to a lower than anticipated consumer price index, supplementary pension increases in 1994 were less than expected.
3. In cooperation with employers, more emphasis was put in training on the job, graduated return to work and alternative job placements.
4. Third-party actions concluded by the board in 1994 recovered additional monies.
Although much of this report focuses on fiscal responsibility, I must emphasize that financial stability is not the only measure of success at the NWT Workers' Compensation Board.
In 1994, the WCB undertook a number of significant initiatives to improve the level of services provided to its clients:
- Implementation of an early intervention claims management model, which will ensure early assessment and diagnosis for injured workers and a quicker return to the workplace;
- A memorandum of understanding with the Department of Renewable Resources to ensure that harvesters injured in the course of their traditional employment receive fair compensation;
- A more "common-sense" approach to rehabilitation services, resulting in greater emphasis on-the-job training, graduated return to work and alternative work programs;
- A Special Needs Committee created to address the special requirements of injured workers and pensions with significant disabilities;
- A comprehensive review and restructuring of the industrial classification system resulted in fewer subclasses and a more equitable system;
- A new multi-industry classification, which allows employers engaged in more than one industry to reduce assessment costs by applying for separate classification;
- The safety incentive rate reduction program which, when it takes effect in 1996, will impose penalties on unsafe businesses within each subclass; and,
- The development of new programs and increased training by the WCB's safety education unit.
Mr. Speaker, the 1994 Annual Report that I will table today confirms that the Workers' Compensation Board continues to operate in an effective and responsible manner. Thank you, Mr. Speaker.
---Applause