OTTAWA – The Canadian Grain Commission likely will announce some fee increases in 1997, even though it has been exceeding cost recovery targets for most of the past half decade.
Commission spokesperson Paul Graham said recently that the fee structure for the Winnipeg-based organization is being re-assessed.
He said the final decision on which fees are to increase and by how much likely will not be announced until May or June.
“There will be some increase but how much and how widespread and involving which fees is yet to be determined,” he said. “Fees have not been increased in five years.”
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The first indication of the fee review came last week when treasury board president Marcel MassŽ tabled in Parliament a list of regulatory changes the government is considering for the new year.
It identified grain commission fees as one of the targets. “It is expected that fees will be adjusted during 1997 to reflect operational and cost changes.”
Meanwhile, an analysis of cost recovery prepared by the commission and provided by Graham indicates that since it became a special operating agency in 1991, the CGC has almost always raised more than expected in user fees.
Fees paid costs
Last year, the $51.6 million raised through fees virtually covered the grain commission budget.
In 1991-92, cost recovery revenues of $58.2 million were 10 percent above target. Only in 1993-94 did revenues fall short of predictions.
In this fiscal year and for the next two years, the agency expects to exceed predictions, even without fee increases.
But Graham said labor negotiations with commission unions could add some costs to wages the CGC must pay, leading to pressure for fee increases.
Volumes unknown
He said revenues are difficult to predict, because they depend on grain volumes.
During 1997, the grain commission also will begin consultations with the grain industry on other possible changes to operations.
One area to be examined is a call by some companies to change the requirement that they now must accept what grain is delivered on a first-come, first-served basis.
Some companies want to end this equity provision in favor of being able to decide what grain they accept.
Graham said no changes will be proposed until the industry offers its suggestions during consultations.
In the outline of possible regulatory changes for 1997, the Treasury Board said the Canada Grain Act will be reviewed “to eliminate or reduce regulations where producers and the industry view such changes to be in their collective interest and are willing to accept more responsibility.”
Graham said the commission will not carry an agenda of preferred changes into the industry consultations.
