Debates of March 2, 2006 (day 40)

Thank you, Mr. Speaker. Mr. Speaker, my questions are to Mr. Dent and it’s following up on my Member’s statement. Mr. Speaker, we have a situation here where businesses like Tim Horton’s, McDonald’s, Quizno’s, Pizza Hut and all those businesses that are in Yellowknife have seen the increase of WCB rates at maximum levels for four years in a row. That’s more than double over four years. I have, in front of me, assessment rates for the last three years for all the other categories that WCB has, and no one has seen that kind of increase four years in a row. They have been doing everything they can to get the attention of the WCB Governance Council and the Minister. They have held meetings; they’ve had briefings; they’ve done everything they can to have them re-look at what can be done to improve this. I understand they’re meeting as we speak and I am not at all confident that we are going to be able to achieve any resolution or any positive feedback or as the Minister can tell here today otherwise. So I’d like to know what steps he’s prepared to take to work with the governance council and see if there could be any reprieve for this group, Mr. Speaker. Thank you.

Thank you, Ms. Lee. The Honourable Charles Dent, Minister responsible for the Workers’ Compensation Board.

Return To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. First off I would like to point out that everybody in the Northwest Territories, every employer in the Territories has typically seen an increase over the past three or four years. Until 2003, because of good investments, the accident fund was what was called over funded. The governance council thought that in order to reduce their over funded position and to give some money back to employers, that they would offer subsidies. So up until 2003 there was a 35 percent discount. Mr. Speaker, that means that if your rates were $1 per hundred that you were paying, after the discount, 65 cents per hundred. Between 2003 and 2006 that discount was taken off. It was reduced over time. That means that somebody’s rate has gone from, or apparent rate, has gone from 65 cents a hundred to $1 a hundred. If you look at it thinking that 65 cents is your starting point, you’ve seen a 54 percent increase in your rates.

So what has happened, that is something that is outside what is seen as or what has happened in terms of accident records to change rates. Over the same period of time, the accidents that have been seen in different categories have caused them to go up. Now, the board has a policy that changes of more than 25 percent will not be allowed. That’s a policy decision. It’s one that the board has instituted in order to make sure that sudden changes aren’t seen. I’m advised that if they had actually allowed the rates to go to where they should be for this category, that they would be in excess of $4 instead of at $2.93 per hundred. So right now, the board has already made a policy decision to make sure that the amount is, or that this group is, protected from a rate increase.

I think that the governance council members are meeting with the quick service restaurants as we speak, I believe, and I have no doubt that the same question will be put to them there. This is a policy decision that the governance council could take. They could take a position that a lesser amount of increase was allowed and I have no doubt that it is a question that they will consider. Thank you, Mr. Speaker.

Thank you, Mr. Dent. Supplementary, Ms. Lee.

Supplementary To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. As always, the Minister is burning up valuable question period time defending the status quo and not answering my question. Mr. Speaker, if he wishes, I’d be happy to go over the whole list. You know, I could do that just as well. My question is very simple, Mr. Speaker. Even with the subsidy, there are no categories that I have in front of me that have seen a 25 percent maximum increase four years in a row. These groups are stuck, and there’s nobody telling them what they can do to get out. There’s no way for them to get out of a different category. There’s no explanation as how they can improve so they can graduate from that category. There’s just no option. It’s like, you have to pay and pay up. There’s no means of appeal. The Minister knows already that that outcome is not positive, but I want to give him a chance to explain that. So I’d like to know, and I didn’t get the confirmation with the governance council today, would the Minister direct the GC or talk to them to review the whole cross-subsidization process so that no other group could see maximum increases four years in a row? Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Dent.

Further Return To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. Certainly I will request the governance council to consider that situation or that position and ask that they, at their next meeting, consider it. Thanks.

Thank you, Mr. Dent. Supplementary, Ms. Lee.

Supplementary To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. Mr. Speaker, would the Minister ask the governance council to at least take a leadership role? I mean, if he’s just going to ask the governance council and have the governance council come back and say, I could do that job just as well. You know? I could write a letter to the governance council and he could come back and say sorry, Ms. Lee, I considered your option and it ain’t going to happen. So I’d like to know what he can do as the Minister of WCB responsible for the portfolio and who’d have to answer to if businesses go down, what’s he prepared to do as a Minister to make some changes. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Dent.

Further Return To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. I certainly hope that we don’t see these businesses go down. I enjoy being able to access the services and products that they provide as much as anybody else. Mr. Speaker, just as insurance on a car is a cost of doing business, so is insurance for your employees. I’ve probably put $60,000 or $70,000 more into the pockets of insurance companies than I’ve ever claimed back for my car and I think that we’re going to have to recognize that there are costs to doing business. I’d be happy to, as I said, direct the governance council to consider this. I think all of the stakeholders have to be involved in considering an approach that the Member is suggesting, because it is a zero sum game. It takes X number of dollars to operate the WCB and look after the injured workers and so if one group is paying less, another group has to pay more. So I would be happy to ensure that this issue is considered, but I think we’re going to have to involve more of the stakeholders. Thank you, Mr. Speaker.

Thank you, Mr. Dent. Final supplementary, Ms. Lee.

Supplementary To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. Mr. Speaker, this is what’s most frustrating about this exercise that’s been going on for a very long time, because I don’t believe that the Minister and the governance council, from all of my meetings, that they really understand the QSR has a different problem than the rest of them. I am not interested in Minister talking about what his experience is like as a regular insurance payer because that tells me he does not recognize the unique circumstances under which this group finds themselves in, and they need attention, and they need careful review, and that has not been done, Mr. Speaker. So, in fact, I don’t know if I can do anything more. So I would like to ask the Minister, I understand this is something he could do directly, there is a vacancy on the board and I think we should get a direct input from this group so that they could have a different perspective, small businesses that’s not there. So I’d like to know if the Minister would consider appointing members from QSR into the boards. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Dent.

Further Return To Question 502-15(4): WCB Assessment Rates For Quick Service Restaurants

Thank you, Mr. Speaker. I had received an e-mail message from one of those groups suggesting that very thing. It is certainly something that could be considered. Typically the past practice of this in our government has been that pan-territorial organizations are consulted, but that doesn’t mean that other nominees can’t be considered. So, yes, I guess we could consider any nominee that comes in from the business community. Thank you.