Proposed Canada Grain Act regulatory amendments would see two Canadian Grain Commission user fees eliminated and two others reduced by Aug. 1, about seven months ahead of schedule.
The measures would save industry millions and limit the accumulation of surplus funds.
Consultation had been underway since March 1 on proposed changes to the fees as well as potential uses for the $107 million surplus that has built up at the commission because of higher than expected grain volumes and lower than expected spending.
However, fee changes were not expected until next April, and Grain Growers of Canada welcomed the early reduction of outward inspection fees.
Read Also
No special crop fireworks expected
farmers should not expect fireworks in the special crops market due to ample supplies.
“We applaud this regulation and look forward to working with government on the consultations around the new fee schedule and use of the current surplus,” said president Jeff Nielsen.
Reduced user fees are proposed for official weighing and official inspection. The changes would also eliminate supplementary fees for time-and-a-half and double overtime. Instead, these costs would be included directly in the official inspection fee.
Changes will save $9.99 million for this fiscal year and $15.14 million in subsequent years.
“This represents approximately $72.07 million in present value terms over a six-year period from 2017-18 to 2022-23,” said the regulatory impact analysis statement filed with the regulations in the Canada Gazette.
“CGC user fees revenue would be reduced by the same amount for this time period, which results in a zero sum net benefit proposal, but any monies that might contribute to the surplus under the status quo would appropriately remain with the grain sector.”
The statement notes that grain companies could reduce costs and increase competitiveness.
“Producers could also benefit through higher net delivery prices, as cost savings are generally passed down from grain handlers by way of lower handling tariffs that include CGC fees,” it said.
Proposed regulations were published April 22 and stakeholders have 30 days to comment. The comment period on the surplus continues until May 1.
