Detail. We are dealing with Bill 3, An Act to Amend the Financial Administration Act. Clause 1, Agreed?

Clause 2. Agreed?

Clause 3. Agreed?

Bill as a whole?

Does the committee agree that Bill 3 is ready for third reading?

Bill 3 is now ready for third reading. I would like to thank the Minister and his witnesses. Thank you.

-- Applause

As we agreed, the next bill we will deal with is Bill 7, An Act to Amend the Workers' Compensation Act. I would like to ask the Minister responsible for the Workers' Compensation Board if he has any opening comments. Mr. Handley.

Thank you, Mr. Chairman. Mr. Chairman, as the Minister responsible for the Workers' Compensation Board, I am proposing through Bill 7 to make an amendment to the Workers' Compensation Act to enable dependant surviving spouses who marry or remarry after the coming into force of section 15 of the Charter of Rights and Freedoms to retain their compensation benefits under the act.

Currently, section 36 of the act requires workers' compensation benefits paid to surviving spouses be terminated upon remarriage. Since the Charter of Rights and Freedoms came into force in April 1985, all Canadian jurisdictions with the exceptions of the Northwest Territories and Nunavut, have eliminated this provision from their respective acts. I think that it should be noted that the WCB developed a comprehensive legislative proposal containing a number of amendments to the Workers' Compensation Act in 1995-96. This package of amendments included the deletion of section 36. The government of the day did not introduce those amendments.

The WCB then proposed a solution which entailed bringing an application to the Supreme Court to decide the issue for all surviving spouses including those who remarried prior to the Charter of Rights and Freedoms equality section coming into force. Because there would be significant legal costs in such a case, the WCB has agreed to pay the surviving spouses' legal costs. The application will be heard May 1st and 2nd. The WCB's role is to provide evidence and explanations to the court on all matters related to surviving spouse pensions. The WCB is not taking a position, either pro or con, on the constitutional issues.

Mr. Chairman, having examined all of the issues closely, I have concluded that a proactive approach would best serve the interests of the surviving spouses. I see no point in putting widows who remarried after April 1985 through further delays and court proceedings before they receive what is rightfully theirs. In this bill, I propose that these surviving spouses be allowed to continue receiving pension benefits after remarriage.

In recognition of this potential liability, the WCB has set aside a contingency reserve of $5 million. It is estimated that the total cost to the accident fund of reinstating benefits to the 11 surviving spouses, whose pensions were terminated upon remarriage after April 1985, will be approximately $5 million.

Finally, it should be noted that this bill does not address the pensions of the five surviving spouses who had their pensions terminated prior to April 17, 1985 because of remarriage. To change the Workers' Compensation Act in a way that acknowledges that section 15 of the Charter of Rights and Freedoms is retroactive to an unspecified time would set a precedent with unknown implications.

The solicitor for the widows has expressed a desire to settle all outstanding claims without the need for litigation. Therefore, it is my intention to have the WCB pursue other ways of resolving the five pre-1985 cases as expediently as possible. If a settlement is reached, I would ask the Assembly to enact legislation to implement it. Mr. Chairman, that concludes my opening comments. I am pleased to answer any questions Members may have. Thank you.

Thank you, Mr. Minister. Does the committee responsible for overseeing this department have any comments? Mr. Roland.

Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight reviewed Bill 7, An Act to Amend the Workers' Compensation Act, at its meetings on March 16, 2000 and March 30, 2000. Currently, the Workers' Compensation Act contains provisions which allow for the termination of surviving spouse benefits if they marry or remarry.

This Bill proposes to enable dependant surviving spouses who marry or remarry after the coming into force of the equality sections of the Charter of Rights and Freedoms to retain their compensation benefits under the act. The proposed amendment restores compensation entitlements to those widows who married after April 17, 1985, the date the equality provisions of the Charter came into force.

The committee would like to thank the Minister responsible for the Workers' Compensation Board and his officials for presenting the bill and responding to the committee's questions. Members of the committee would also like to thank Mr. Joseph Arvay, legal counsel for a number of spouses who will, in part, be affected by the proposed amendments.

Committee members were encouraged to hear the Minister make a public commitment to also address the entitlements of those not covered by this bill: those surviving spouses who had their pensions terminated before April, 1985 because of remarriage.

We encourage the Minister and counsel for the pre-1985 widows to pursue other ways of resolving the pre-1985 cases as expediently as possible. The committee was encouraged to hear the Minister state that $2 million has been set aside as a contingency for the potential settlement of the pre-1985 claims. It is the committee's contention that the government must accept its obligation and deal with the remaining pre-1985 widows, The committee looks forward to the Minister implementing such a settlement.

Mr. Chairman, the standing committee supports the proposed amendments and awaits discussion during the clause-by-clause consideration of the bill. This concludes the committee's comments on Bill 7, An Act to Amend the Workers' Compensation Act. Thank you, Mr. Chair.

Thank you, Mr. Roland. At this time, I would like to ask the Minister if he would like to bring in any witnesses?

Yes, I will.

Sergeant-At-Arms, would you please escort the witnesses in?

Mr. Minister, would you please introduce your witnesses for the record?

Thank you, Mr. Chairman. On my right is Gerry Myer, president of the Workers' Compensation Board, Shawn Flynn, legal counsel with the Department of Justice, and on my left, Paul Bachand, legal counsel with the Department of Justice. I brought a lot of witnesses, in case we are voting. Thank you.

I am sorry, witnesses do not get to vote in this House. Welcome, witnesses. Are there any general comments on the bill?

Detail. We are dealing with Bill 7, An Act to Amend the Workers' Compensation Act. Clause 1. Agreed?

Clause 2. Agreed?