Thank you, Mr. Chairman. Mr Henry will be doing a report on our behalf. Thank you.

Thank you, Mr. Chairman. Mr. Chairman, the comment on Bill 15, in the committee of the whole. Thank you, Mr. Chairman. I wish to report that the Standing Committee on Government Operations has completed its review of Bill 15, an Act to Amend the Workers' Compensation Act on June 4, 1997. The year's maximum insurable remuneration known as YMIR is used to determine benefits payable to an injured worker, as well as the amount of payroll for which an employer will be assessed in the year.

The YMIR is an important component of workers' compensation. The Workers' Compensation Act states that the board must review YMIR every year. The YMIR was last amended by the House in 1966. This bill proposed an increase that YMIR from its present level of $49,000 to $52,000 effective January 1, 1998. This amount would apply for both benefits and assessment purposes.

The Union of Northern Workers noted in their presentation to the committee that the proposed rate of $52,000 is relatively low by national standards and that a figure of $58,000 is more realistic as the cost of living in the Northwest Territories is higher than in most regions. The committee agreed with the proposed act to amend the Workers' Compensation Act to increase the YMIR to $52,000. Members of the committee would like to mention that at this time, there should be better communication between the Workers' Compensation Board and the stakeholders. The committee received many concerns from stakeholders regarding the pre-amendment consultation process. Stakeholders were notified by letter. Unfortunately some stakeholders could not properly notify their members as they did not receive the letter until the day before their hearing.

The committee is also concerned with the effects of division on the Workers' Compensation Board especially the contact and consultation process between the board and the people it represents. Thank you Mr. Chairman.

Thank you, Mr. Chairman. I would like to, but I do not know who they are yet.

Thank you, Mr. Chairman. Gerry Meier is the president of the WCB. Thank you.

Thank you, Mr. Chairman. Mr. Chairman, just a general comment on the bill and the note of the increase in the YMIR from $49,000 in 1996 to $52,000 this year. An increase of $3,000, however, in previous years the YMIR did not keep up with the inflationary factors. I have a concern with that and at the appropriate time I will be asking some questions to the Premier and his witness on the YMIR and the reflection in the CPI. Thank you, Mr. Chairman.

Thank you. My question is for the Premier. I wonder if the Premier could explain if the YMIR reflects the CPI or other inflationary factors. Thank you, Mr. Chairman.

Thank you, Mr. Chairman, I will have Mr. Meier answer that question.

Mr. Chairman, the CPI is only one of a number of factors that the Board of Director's considers in making its recommendation to the Minister. In fact, the first and foremost consideration is to position the YMIR in a range of 70 to 80 percent of the full income of the average wage earner in the Northwest Territories. There are other considerations, one of which is the employers ability to pay, as well as the cost of living, and the board has purposely not tied itself to indexation of any kind, including the CPI.

Thank you. That sounds good, but in reality what percent of the sum of the total increase is actually based on the CPI or other inflationary factors? It sounds good to be able to say that you base it on the ability of the employer to pay, but the ability of the employer to pay is not keeping up with the cost of living, then it is all for naught. I wonder what percentage of the increase, in this case a $3,000 increase from 1996, is the actual increase based on the percentage of the CPI or the Consumer Price Index?

Thank you. I will call up my other witness, Mr. Todd, to answer that question.

My apologies for being late, Mr. Chairman, I was busy attending to some deputy minister matters that required my urgent attention. Could my honourable, enlightened colleague from Iqaluit repeat the question please?

Thank you, Mr. Chair. Mr. Chairman, I was trying to ascertain from the Minister, or the Premier, or whoever is sitting in that seat today, basically, how is the CPI or other factors, what part do they play in the actual YMIR increase. So we note that the increase from 1996 is $49,000 to $52,000 and the president of the WCB has indicated that indeed CPI does play a factor, but it also is one factor in many. I am asking what the Consumer Price Index, the inflationary factors, what part of that $3,000 increase would he consider to be the amount?