The influential finance committee of the House of Commons has urged the federal government to rein in its $3.7 billion user fee policy, making it more accountable, understandable, efficient and affordable.
In a report tabled in the Commons June 15, the Liberal-dominated committee accepted the complaints from many industry groups about poor service.
It cited agriculture user fees and veterinary drugs as two examples, but said the problem is government-wide.
“Though flawed implementation in the various departments and agencies clearly play a role, there is also a problem stemming from a lack of effective direction from Treasury Board, which is responsible for the policy,” the committee said in its report.
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“Central supervision and dispute resolution have proven to be ineffective or absent. Departments have been left to their own devices in designing and implementing user charges.”
With the support of all parties, the committee recommended:
- All new user fees or changes to existing ones should be checked and approved by a parliamentary committee before they are imposed.
- A red tape commission should be established to review government regulations and their cost to business.
- Where possible, fees should be reduced if service commitments are not met.
- An appeal process should be established and an ombudsman appointed to hear complaints.
- A parliamentary committee, rather than Treasury Board, should review the costs, effects and benefits of user fees across government.
- Government should create a policy that does not allow it to use cost recovery revenues as a way to reduce government funding for public policies.
The report drew rave reviews from Jean Szkotnicki, president of the Guelph, Ont.-based Canadian Animal Health Institute and co-chair of a business group on user fees.
She had complained to the committee that the animal drug and feed additive manufacturers represented by her institute are receiving worse treatment than ever from Health Canada’s bureau of veterinary drugs, even though user fees are charged.
The committee accepted her complaint and highlighted veterinary drug approval times and the cost of the process as one example of the problem.
“I think this is a great report,” Szkotnicki said in a June 15 interview. “I think the fact that it comes from this committee, and that it identifies it as an across-government problem, means this might be taken seriously. I hope so.”
She noted that the committee asked for a response from government within 150 days. She hoped the Liberals would not take that long to accept the recommendations.
Farmers and supply companies pay an estimated $127 million annually in user fees. Fees charged by other departments such as Transport Canada also have an impact when these are passed back to farmers.
