Debates of March 16, 2004 (day 1)

The question is directed to the Premier, Mr. Handley.

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Further Return To Question 7-15(3): Access To Aboriginal Language Services

Mr. Speaker, I didn’t hear a question so I can’t answer when there is no question. Thank you.

Ohhhh.

Thank you, Mr. Speaker. My questions this afternoon are in follow-up to my statement. I would direct them to the Minister responsible for the Workers’ Compensation Board. It is a well-known fact, Mr. Speaker, that the Northwest Territories and Nunavut, under a joint board, have enjoyed among the lowest assessment rates in Canada, but what is alarming is the rate of increase. From four years ago to now, we are looking at rates that are going from a $1 to about $2.40. It is this rate of increase, Mr. Speaker, that I would like to address. My question to the Minister is what are the principle drivers behind WCB assessment rates rising almost two-and-a-half times in just four years? Thank you, Mr. Speaker.

The Minister responsible for the Workers’ Compensation Board, Mr. Bell.

Return To Question 8-15(3): Rising WCB Assessment Rates

Thank you, Mr. Speaker. There are a number of factors at play here and I think the Members may be aware of a number of them. I have been receiving a number of queries on the 2004 assessment rates in my office, so what I have done is sent a letter to all Members of the Assembly to try to give them some background and some explanation as to why rates are increasing. For 2004, the rates are based on actual 2002 claims experience for that year and the average assessment rate will be $2.39 per $100 of assessable payroll. The board, though, will continue to subsidize by 20 percent those rates. So the average assessment rate will, in effect, the rate that employers will pay will be $1.91. I think it is important to keep that in mind, but obviously we know that the returns from investments over the past five years have not been what they were prior, and so the surplus has been diminished. As well as the 2002 claims experience, obviously the cost of claims has been going up as the cost of delivering health care across the country has been going up. So I suppose that is really no surprise, but there are a couple of factors here at work. Thank you, Mr. Speaker.

Supplementary, Mr. Braden.

Supplementary To Question 8-15(3): Rising WCB Assessment Rates

Thank you, Mr. Speaker. So we have a poor market and an increase in the cost of claims and health care coverage. I was interested in finding out really, you know related to the shared jurisdiction that we have here, have the incidents of accidents and the cost of claims been more or less consistent between Nunavut and the NWT? Thank you, Mr. Speaker.

Mr. Bell.

Further Return To Question 8-15(3): Rising WCB Assessment Rates

Thank you, Mr. Speaker. That is a very good question and one that I will undertake to get some more detail on. I do believe that the incidence of claims has been higher in the Northwest Territories, but I will confirm that and get back to the Member. Thank you.

Supplementary, Mr. Braden.

Supplementary To Question 8-15(3): Rising WCB Assessment Rates

Mr. Speaker, I look forward to getting that information. A bit more specific in the area of the recent increase in assessments in the fast food restaurant; this would, I think, apply perhaps largely to the service sector. The one business that I know of is experiencing a 69 percent increase in assessment rates from one year to the next. The information that I have, Mr. Speaker, indicates that there is a policy or guideline that wants to keep rates, if rates are going to increase, to no more than 25 percent. Could the Minister explain the discrepancy between that threshold or that cap and the 69 percent that this sector is experiencing? Thank you.

Minister responsible for the Workers’ Compensation Board, Mr. Bell.

Further Return To Question 8-15(3): Rising WCB Assessment Rates

Thank you. It is difficult to address this question concisely. It probably does require some background. In order to determine what various industries or subclasses will pay, the WCB analyzes the claims experience for those industries. I think there are 29 subclasses or industries. Now, some of these industries have very few employees. So if there happen to be claims in one year it can quite drastically skew the claims experience for that subclass or industry and if we go with the philosophy that each industry should pay its own way, this can be very difficult for an industry with fewer employees in a year. So there is a smoothing effect that takes place and there is a cross-subsidization. The WCB has been looking into this and believes that it is necessary to do a review to ensure that industries are bearing the full cost of that claims experience by industry and that it is not spread over or shared among other industries. I know that a consultant has been hired to analyze this and look at this and make sure that when they come back in the summer and have some discussion with the various different stakeholders and employers, there is more accurate information as to what goes on between subclasses.

As to a 60 percent increase, I don’t have that data in front of me to know if in fact that is the case. I will take the Member’s word for it; it does seem very high. I will go back and look at it and see if in fact that is the case, but the attempt here is to make sure that industries pay their own way and that there isn’t subsidization from other industries. Thank you.

Your final supplementary, Mr. Braden.

Supplementary To Question 8-15(3): Rising WCB Assessment Rates

Mr. Speaker, the Canadian Federation of Independent Business and the surveys that it did last year indicates that with the low rates that we have, we should be looking at this as a significant advantage. The CFIB points out that this is a competitive advantage for the NWT and Nunavut when it comes to setting up business and employing workers in the NWT. It even goes so far as to credit the board here as being a low cost and well managed board. What steps are we taking to protect that advantage especially in light, Mr. Speaker, of the indication that we have here that rates have increased by more than two-and-a-half times in only four years? Thank you, Mr. Speaker.

Mr. Bell.

Further Return To Question 8-15(3): Rising WCB Assessment Rates

Thank you, Mr. Speaker. Workplace safety is obviously paramount and the WCB makes many efforts to ensure that safety training is offered and provided and carried out where employers are concerned, and that we do our utmost to conduct safety inspections at worksites. I think the most important thing here to remember is that we need to keep the incidents of workplace injuries to an absolute minimum, and the WCB is striving to do that. I think it is also important to keep in mind that I would acknowledge that this is a competitive advantage. At one point, I believe we had the lowest assessment rates in the country and I still believe that we are one of the lowest, certainly in the top five. Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. My questions will be directed to the Minister responsible for the Housing Corporation. I am well aware that the needs survey is going to be tabled with us here today. However, I was getting some feedback from residents in Fort Liard that there was going to be no new allocations, there will be no new mortgage clients this year for 2004. I am wondering how these needs are assessed and want to know if the Minister can comment on that for me.

Minister responsible for the Housing Corporation, Mr. McLeod.

Return To Question 9-15(3): NWT Housing Needs Survey

Thank you, Mr. Speaker. Mr. Speaker, the arrangement in Fort Liard is with the community's cooperative arrangement. The core needs assessment the Member has referred to is currently being finalized. We don’t have that information before us and ready for the House at this point. We will be tabling that document, hopefully before the end of our session. In terms of what is being allocated for Fort Liard, I don’t have that level of detail in front of me so I would have to take that question as notice, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, my questions are for the Minister of Health and Social Services. There is a lot of pressure on our funding for health services in the Northwest Territories and one large-ticket item is medical travel. Certainly, the GNWT is probably a fairly significant customer to the major airlines here in the Northwest Territories that travel south, and probably not as significant as we used to be in relation to industry but certainly still very significant. On Northbeat last night, they’d indicated that in Nunavut, the Minister of Health had negotiated with First Air and Canadian North a reduced rate on the basis of guaranteed business. So one airline will get 60 percent guaranteed of the medical travel; one will get 40 percent. On that basis they were able to offer a significant reduction in the costs that will probably save the Government of Nunavut several million dollars over the next five years. I would like to ask the Minister, Mr. Miltenberger, if this is something that has ever been canvassed with the airline carriers here. Thank you.

The Minister of Health and Social Services, Mr. Miltenberger.

Return To Question 10-15(3): Medical Travel Arrangements

Thank you, Mr. Speaker. Mr. Speaker, I am aware that there were discussions in Nunavut, but it is not an approach that we have taken to date in the Northwest Territories. Thank you.

Supplementary, Mrs. Groenewegen.

Supplementary To Question 10-15(3): Medical Travel Arrangements

Thank you, Mr. Speaker. Mr. Speaker, would the Minister have a ballpark figure on what we would spend on medical travel, excluding that portion which is emergency medical travel which requires specialized equipment and aircraft? I just want the general, mainline carriers. What would we spend in a year on medical travel, approximately? Thank you.

The Minister of Health and Social Services, Mr. Miltenberger.

Further Return To Question 10-15(3): Medical Travel Arrangements

Mr. Speaker, the broad figure for medical travel, which I don’t have broken down in my mind, but I know the ballpark figure is about $10 million a year. Thank you.

Supplementary, Mrs. Groenewegen.

Supplementary To Question 10-15(3): Medical Travel Arrangements

Thank you, Mr. Speaker. Mr. Speaker, the Minister indicated that approaching the airlines with some kind of a proposal for a certain amount of business, sharing the business is not an approach that he has chosen to take. I was wondering with an expenditure like $10 million if this isn’t something that he might consider visiting that subject with the airlines. Thank you.

The Minister of Health and Social Services, Mr. Miltenberger

Further Return To Question 10-15(3): Medical Travel Arrangements

Thank you, Mr. Speaker. Mr. Speaker, I will commit to contact my colleague in Nunavut. As well, I will talk to the department about it and, as well, commit to discussing the issue in Cabinet to see what the possible broader implications may or may not be to the overall travel industry. Thank you.

Final supplementary, Mrs. Groenewegen.

Supplementary To Question 10-15(3): Medical Travel Arrangements

Thank you, Mr. Speaker. Certainly, I would not be supportive of anything that was detrimental to the airline carriers and I understand that is a very fragile business as well, but they do offer savings on an ongoing basis, things such as reduced rate seat sales, reductions for pre-booking a certain amount of time, also special rates for seniors. Does the department and the people in medical travel who make these arrangements on behalf of patients take advantage of at least those kinds of offerings that are made by the airlines? Thank you.

The Minister of Health and Social Services, Mr. Miltenberger.

Further Return To Question 10-15(3): Medical Travel Arrangements

Mr. Speaker, when we do medical travel we attempt to be as frugal as possible, as effective and efficient as possible. Oftentimes medical travel is booked on short notice so we don’t often get the benefits of long-range planning. We do attempt to be as careful as we can be. Thank you.

Thank you, Mr. Speaker. I have a written question for the Premier of the Northwest Territories.

Would the Premier provide and in-depth political analysis of those sections of the Constitution Act, 1982, which give constitutionality to other political institutions in the Northwest Territories, which you must consult with prior to the introduction of a bill of intent to achieve provincehood?

Will he provide analysis of the applicability of relevant past provisions of the BNA/Constitution acts?

Would the continuity of laws not consistent with those of the act be impacted?

Would changes to the judicial system be required? How would it affect the other territories? Would it require their participation?

Would revenue from federal government and provincial taxation be impacted?

Would the continuity of federal laws governing resources, such as the Territorial Lands Act, be impacted in the interim until provincial laws are established under Section 92? Thank you, Mr. Speaker.

Thank you very much, Mr. Speaker. I have a written question for the Minister of Justice.

Recently, on Saturday March 13, 2004, a young, mentally-challenged woman from my riding, from the Willow Lake River, was missing for over 24 hours and the RCMP were notified but did not respond for a search. I just want to ask the Minister responsible to see if there is a satisfactory answer by the RCMP in responding to a search for this young woman in Willow Lake River. Thank you.

Thank you, Mr. Speaker. I give notice that on Thursday, March 18, 2004, I will move the following motion. Now therefore I move, seconded by the honourable Member for Frame Lake, that the honourable Member for Nunakput, Mr. Calvin Pokiak, and the honourable Member for Kam Lake, Mr. David Ramsay, be appointed as deputy chairpersons of Committee of the Whole. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. Mr. Speaker, I give notice that on Thursday, March 18, 2004, I will move the following motion. I move, seconded by the honourable Member for Kam Lake, that the Speaker be authorized to set such sitting days and hours as the Speaker, after consultation, deems fit to assist with the business before the House. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I give notice that on Thursday, March 18, 2004, I will move that Bill 1, Appropriation Act, 2004-2005, be read for the first time. Thank you, Mr. Speaker.