Thank you, Mr. Speaker. Mr. Speaker, the Workers' Compensation Board has experienced several years of exceptional financial results since finding itself in a deficit position in 1992. In 1997, it achieved an operating surplus of over $20 million. To date, the board has an accumulated operating reserve of over $35 million. These positive results can be attributed to several factors.
The total number of registered claims dropped last year to its lowest level in four years. On the other hand, increased economic activity in the NWT meant that employer revenue was higher than anticipated. Perhaps the most significant influence on the financial health of the WCB has been the success of its investment portfolio. In 1995 and 1996, the WCB made significant changes to its investment policy and asset mix model. A more aggressive and better balanced investment strategy has resulted in three successive years of solid investment performance. Mr. Speaker, since 1996, the WCB has consistently reflected its financial success by decreasing employer assessment rates and increasing benefits to injured workers.
Mr. Speaker, effective January 1, 1999, a further 35 percent decrease in the average assessment rate will take effect. This means the assessment rate for NWT employers will decrease from $1.87 to $1.21 per $100 of assessable payroll. This new average rate has been approved by the board of directors and will be maintained for three years. As well, Mr. Speaker, I will be introducing legislation in the Assembly this fall to increase the YMIR from $52,000 to $60,000, effective January 1, 1999.
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If approved, the new YMIR in the NWT will become the highest YMIR in the country.
This increase will allow the board to fully compensate 85 percent of the NWT workforce. The new YMIR will also provide greater coverage to the mining industry, where currently only 35 percent of the workers are fully covered. It should also be mentioned, Mr. Speaker, that increasing the YMIR will create inequities between those workers and their dependants who will be receiving pensions and those whose pensions are based on earlier YMIR's.
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