Thank you, Mr. Speaker. Last week I spoke several times in support of our small businesses. We know that our small businesses are facing many costs, but what are they faced with today? This government has professed its commitment to supporting our small businesses and residents by helping with the cost of living and dealing with the basic costs for business. And what are those? Those are things like heating fuel, electricity, red tape, and WSCC employee issues and assessment costs. What are they experiencing in these areas that we have professed to be helping our businesses in, Mr. Speaker?
Let’s look at electricity. Electricity we are subsidizing over the next three years to the tune of over $65 million, and has gone up, according to the cost of living report we just heard, 8.7 percent this year. We are predicting almost a 30 percent increase in costs over the next three years.
Let’s look at heating fuel. Those costs have been soaring, as we all know, around the world due to global factors.
Let’s look at employee assessment rates. I have a constituent who talked to me recently, who got a letter saying her Class 7 employee assessment rates are going up, the government claims, 6 percent. Now it’s gone up from 48 cents to 58 cents per $100. That, to my Grade 3 mathematics, is a total of 23 percent. I don’t know where the government gets 6 percent, Mr. Speaker.
I am going to cut my remarks short because I see the clock is not working and I’m not sure exactly what time I have, but it’s clear that this government is failing on its professed commitments and, again, repeated commitments that we will come through and support our businesses and residents.
Costs are going up massively and I think a newsletter from WSCC said a 15.9 percent increase on average for employee assessment rates. Mr. Speaker, how can we possibly wonder why businesses are either throwing in the towel or choosing not to come to the Northwest Territories?
I will be asking questions in the House today on both of these related issues, and asking how we can really provide support for our businesses and keep them here as the engines of our economy in all of our communities. Mahsi.
Thank you, Mr. Bromley. The honourable Member for Range Lake, Mr. Dolynny.
Thank you, Mr. Speaker. The GNWT Safe Advantage penalties for Workers’ Safety and Compensation Commission have been tabled in this House and have risen from zero dollars in 2009-2010 programming, to $243,583 in 2010-2011 and a whopping $508,625 in 2011-2012.
In the Department of Human Resources’ own words, it claims to “have taken significant steps in the development of health and safety programs in the last few years. Current results demonstrate that there is work to be done across the GNWT to ensure the safety of all our employees and reduce claims cost experience.”
The Regular Members sure hope that the Minister and his department will clearly address this indicator of shortcomings from its own safety performance and lead by example, as we expect all our contractors to do the same.
However, I am not here today to shine a light on this huge cost to taxpayers. I am more interested in sharing my findings on how our poor performance in claims growth, as WSCC’s largest employer, has had on the whole industry. Moreover, the question that I think needs to be asked is: Is NWT business subsidizing our government’s poor ratings and costs to WSCC?
Let me explain. Most businesses would have received lately a WSCC notice of their 2013 employer assessments on their rates. In this notice it explains the doom and gloom of rising health care costs, the depressed markets, and the need to sustain the fund to protect employers and injured workers; all noble causes. It further explains that in July this year, WSCC advised employers of a 28 cent increase in the 2013 provisional target assessment rate, from $1.77 to $2.05 per $100 of assessable payroll. This, according to WSCC’s own numbers, works out to a whopping 13.7 percent increase this year on average.
Payroll premiums such as this are a significant expense for any employer, yet to most people this is a complex topic. The business community knows the level of premium an employer pays is directly related on the claims experience of such industry and class. Furthermore, depending on your previous year’s performance, it can have a significant impact on your assessment.
I seek unanimous consent to conclude my statement.
---Unanimous consent granted
In the case of the GNWT, the short-term recent poor performance over the last two years is concerning and very problematic. It is clear that while the government will enjoy a new rate of 79 cents per $100, it had only a slight increase from its original 66 cents per $100 in the wake of these huge penalties in claims growth. In essence, is the GNWT being treated more favourably or being capped in response to this recent poor performance and is business subsidizing the remaining balance sheet for the WSCC?
I will have more questions for the Minister of Human Resources on why the GNWT Safe Advantage penalties are so high and growing yearly, which departments are causing such claims growth, and why are WSCC payroll premiums not broken down by department to reflect a more realistic comparison in the industry rate classes and premiums.
Thank you, Mr. Dolynny. The honourable Member for Nahendeh, Mr. Menicoche.
