New legislation is expected to force the federal government and its agencies to be more accountable for user fees they charge.
Agriculture sector officials, who have been fighting the user fee battle for years, are hailing it as a victory.
On March 26, a private member’s bill sponsored by Toronto-area Liberal MP Roy Cullen was approved by Parliament and should be proclaimed into law soon.
It will require proposals for user fee increases to come before Parliament, which will give critics an appeal opportunity and will force the government to explain.
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“This really is tremendous news,” said Jean Szkotnicki of the Canadian Animal Health Institute and co-chair of the Business Coalition on User Fees.
“The agriculture community has had some outstanding concerns about services being delivered for user fees for a very long time.”
She said the legislation will force the government to justify what services are provided for user fees imposed by agencies ranging from the veterinary drug bureau and the Pest Management Regulatory Agency to the Canada Grains Council and the St. Lawrence Seaway.
“This will be welcome news to the grains and oilseeds sector,” said Cam Dahl, executive director of Grain Growers of Canada. “This has been a huge issue for our sector. I don’t think anyone in the industry is opposed to user fees, but what they want is value for money and what they want is not to have those fees make their industry less competitive.”
Farm groups have estimated that user fees cost the industry close to $140 million annually.
Canadian Federation of Agriculture president Bob Friesen said a key provision is that user fees cannot be higher than fees in competitor countries without a justification from the government. “That is an important principle.”
Cullen’s bill calls for user fees to be lowered if a review finds the agency is not meeting service-delivery promises.
“There is the goal of increased transparency with respect to why fees are applicable, what fees are charged, what costs are identified as recoverable, what private benefits are being conferred and whether performance standards are being met, “Cullen said.
