Legislative Electronic Publications -- Government Accepts Recommendations Of Auditor General's Review Of Workers Compensation Board

Manitoba Government News Release:
Information Services, Room 29, Legislative Building, Winnipeg, Manitoba R3C 0V8 Telephone: (204)
945-3746 Fax: (204) 945-3988

January 17, 2006

GOVERNMENT ACCEPTS RECOMMENDATIONS OF AUDITOR GENERAL'S REVIEW OF WORKERS COMPENSATION BOARD
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Important Steps Already Taken on Key Recommendations; Other Action to Follow: Allan

Labour and Immigration Minister Nancy Allan today announced plans to address the auditor general’s recommendations to government on the Workers Compensation Board (WCB). The auditor made more than 50 recommendations, nine of which are directed at the provincial government.

"The government accepts the auditor general’s recommendations into the Workers Compensation Board and has already taken action to address key recommendations raised in the report," said Allan. "The province will also take additional steps to act on the remaining recommendations for government."

By passing the Workers Compensation Amendment Act, which was enacted with the unanimous support of the legislature and proclaimed into force on Jan. 1, the government has already taken action to address a number of the governance recommendations including:

WCB board members must be appointed for a fixed term not to exceed four years;
provisions have been made for staggered terms for WCB board member appointments;
the WCB must establish an investment committee of the board which is accountable to the board;
to obtain outside expertise as required, the board may appoint as many as three additional people who are not board members to the investment and audit committees;
each of the board committees must be chaired by a member of the board representative of workers, employers or the public interest;
the WCB must establish a stand-alone audit committee;
the WCB board must establish a policy and planning committee; and
the long-standing requirement the deputy minister of finance serve on the investment committee has been repealed.

The government will also take the following steps to act on the remaining recommendations for government in this report by:

taking steps to ensure provisions that protect investigations by the Office of the Auditor General from obstruction apply to all examinations or audits undertaken under the Auditor General’s Act;
introducing comprehensive legislation to protect public sector whistle-blowers;
working in consultation with the WCB board as well as labour and employer stakeholders to improve the board appointment process; and
developing guidelines to assist ministers should they be presented with concerns about arm’s-length organizations for which they are responsible.

"The minister is accountable in general to the legislature for the outcomes of the workers compensation system but must maintain an arm’s-length relationship from specific management or claims decisions," said Allan. "The new guidelines to be developed will work to assist ministers should they be presented with concerns about arm’s-length organizations for which they are responsible.

"We are pleased the WCB Act amendments recently proclaimed have addressed a number of the governance recommendations made in the review. The amendments along with the additional steps to be taken will ensure a greater level of accountability and will strengthen one of the strongest WCBs in Canada."

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BACKGROUND INFORMATION

Workers Compensation Board of Manitoba

Accomplishments

21 per cent reduction in the time-loss injury rate between 2000 and 2004.

Lowest average assessment rate in Canada in 2005, second lowest in 2006.

Lowest administrative cost per claim in the country at end of 2004.

One of the few fully-funded WCBs in Canada.

Reserves of over $70 million.

Second highest rate of return on investments of any province at 11.8 per cent in 2004.

Double-digit return forecast for 2005.

Second highest rate of return over the four years between 2001 and 2004.

RETURN