Representatives of the P.E.I. business community spoke out against recent increases in Workers Compensation premiums Thursday, saying they do not address the real problems.

The Workers Compensation Board has raised premiums by five to fifteen per cent, but business representatives said the board's real problem is a $28 million dollar debt.

"If you used a private business model, the company is insolvent. It does not have enough resources to meet its obligations," said business representative Brian Stevens.

In a statement, Workers Compensation Board chair Jim Lee said: "WCB is fully aware of its serious financial situation".

The statement said the Board is working on solutions, and intends to have a three to five year strategic plan in place by April.

The workers compensation program is an insurance plan that covers workplace accidents.