The federal government last week sent out mixed messages about its cost recovery plans while defending the cost recovery proposals of its most controversial example, the Pest Management Regulatory Agency.
When he presented government spending plans to Parliament, treasury board president Marcel MassŽ indicated the government plans to continue cost recovery expansion with an eye on its impact to industry.
“The government would like to develop cost recovery more fully,” he said. “However, we will move forward cautiously to avoid obstacles that might unduly inhibit the competitiveness of companies or the access of Canadians to service.”
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Moratorium anticipated
Farm leaders had hoped MassŽ or finance minister Paul Martin would announce a slow-down or moratorium on new fees until the impact of existing fees is calculated. That did not happen in last week’s budget or spending estimates announcements.
Still, in the detailed Agriculture Canada spending outlook, the department noted the new Canadian food inspection agency plans to raise $46 million annually in cost recovery fees. If industry resists, services will be cut.
“Strong resistance has been expressed to cost recovery levels by all segments of the industry,” said the department in its spending estimates document. “Should total new revenues not materialize, the department will adjust program delivery levels to compensate.”
Meanwhile, the government last week struck back at farm lobbyists who continue to target the PMRA as cost recovery out of control.
In the Commons, a Liberal backbencher asked if the government was listening to the critics.
Joe Volpe, parliamentary secretary to the health minister who is responsible for the PMRA, responded with a stout defence.
“The department has already paid attention to some of those proposals,” he said to Liberal applause.
