ANGUISH RELEASES NEVILLE REPORT

Released on February 8, 1996

Labour Minister Doug Anguish today released an independent expert's
report on the Workers' Compensation Board (WCB), which he believes will
alleviate concerns about the 1996 WCB rates and debt reduction special
assessments, while maintaining the system in a solid financial
position.

"The special report was prepared by Toronto-based actuarial consultant,
Bruce Neville," Anguish said. "The WCB has agreed to implement the
recommendations contained in the Neville report.

"Neville endorsed the principles which have guided the WCB in setting
its rates, but found that the board's rate-setting model is not working
appropriately and does not accurately forecast the cost of new claims."

"As a result, The WCB will take the following actions:

The maximum increase in any 1996 rate will be capped at 10.5% or
10 cents per $100 of payroll, whichever is greater.

The debt reduction special assessments issued in late 1995 and
early 1996 will be rescinded, and any deficits will be amortized
over a reasonable period of time, automatically, as part of the
annual rate setting process in future years.

A new rate assessment model will be developed and used to set the
rates for 1997 and future years.

"These changes will reduce the revenue collected by the Board in 1996,"
Anguish said. "But it will continue to have a surplus and maintain its
long-standing history of being a fully funded system."

Anguish said the major effects of the changes recommended by the
Neville Report are:

A reduction in the average rate increase for 1996 from 13.9% to
4.8%.

A reduction in the maximum rate increase in 1996 for any industry
group from 186% to the greater of 10.5% or 10 cents per $100 of
payroll.

A rescinding of the debt reduction special assessment bills sent
to employers in recent months which averaged $2,440.

A reduction in the assessment revenue collected by the board in
1996 from $155.4 million to $142.9 million, while maintaining the
board in a surplus position.

"We thank Mr. Neville for his thorough and sensitive review of these
important issues and believe his findings will be of lasting benefit to
the board, injured workers and employers both in this and future
years," Anguish said.

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For more information, contact

Ted Boyle
Labour
Regina
Phone: (306) 787-4156