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CGC considers total cost recovery

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Published: December 23, 2010

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The Canadian Grain Commission would like to recover 100 percent of its costs, although not all at once.

It plans to launch consultations with farmers, farm groups, grain companies and grain industry associations, with a goal of implementing changes in 2012-13.

The commission currently recovers 50 percent of its costs through fees.

“We want input from those who pay for or benefit directly or indirectly from our services,” said Remi Gosselin, manager of corporate information services for the CGC. “Specifically we want feedback on cost recovery.”

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In the early 1990s, cost recovery was around 90 percent. But the commission’s fees have remained essentially unchanged for 15 years.

“The costs of doing business continue to go up but the CGC has not changed its fees since 1995,” he said.

“We’re asking how much more farmers and industry are willing to pay.”

Fee revenue is also affected by the size of the crop each year.

The commission has been depending on increased appropriations from the federal government to cover rising costs but Gosselin said that can no longer be counted on.

The commission will take the feedback from these consultations and plans to release proposals for changes to specific fees in March 2011.

Recommendations will be sent to the federal government and agriculture minister Gerry Ritz during the summer or early fall of next year.

In a Dec. 14 news release announcing the consultations, the commission said it wanted to hear stakeholders’ views on:

• its approach to modernizing fees as expressed during the consultations;

• its services, service standards and performance measures;

• the impact of any changes on stakeholders’ business operations.

The grain commission plans to hold public consultations in Montreal, Guelph and Winnipeg on Jan. 17, Regina, Jan. 19, Saskatoon, Jan. 24, Edmonton, Jan. 25, and Calgary, Jan. 26.

Meetings may also be held in Moncton, Peace River and Vancouver, if requested.

For more information, visit www.grainscanada.gc.ca.

COMMISSION REVENUE

Canadian Grain Commission fee revenue as a share of total funding (in million dollars):

2011-12: fee revenue $38.3, total funding $82.7, 46 percent

2010-11: fee revenue $38.9, total funding $81.5, 48 percent

2009-10: fee revenue $45.1, total funding $84.7, 53 percent

2008-09: fee revenue $38.9, total funding $74.2, 53 percent

2007-08: fee revenue $41.8, total funding $84.1, 50 percent.

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Adrian Ewins

Saskatoon newsroom

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