So-called private member's bills introduced by backbenchers
usually don't get far in Parliament. Some aren't even designated as
votable. But Bill C-212 on government user fees is -- and deserves
all-party support. It would make user charges for government-provided
services subject to parliamentary scrutiny and approval, the same as
required for taxes.
There's growing and legitimate discontent in the business community
over the explosion in government user fees imposed on companies in
recent years. Many businesses regard steep increases in what's charged
as an unfair tax grab.
Introduced last fall by Toronto-area Liberal MP Roy Cullen, the
proposed legislation would make Parliament rather than government
departments and agencies ultimately responsible for approving new user
fees or raising existing ones. It would ensure public debate over
whether services delivered actually give value for money.
There has been a big increase in user fees for a diverse range of
government services since the mid-1990s when an aggressive
departmental cost-recovery program was launched as part of Ottawa's
deficit reduction plan. The intention was sensible -- to defray the
costs of government services that provided a commercial and sometimes
exclusive benefit to businesses. Examples: food safety inspections,
ice-breaking operations, pharmaceutical product approvals, some kinds
of weather forecasting.
Fees were only supposed to be charged if there was a direct
business or individual benefit from the government-provided service.
The trouble was that government departments used the umbrella of
deficit reduction to go on a user-fee spree. Ottawa now rakes in
$4-billion a year in fees levied by about 50 departments and agencies
in connection with some 400 cost-recovery programs. Many charges were
set by way of regulation with little real consultation on their
business impact or how they compared internationally.
This raised the hackles of many business groups. They don't think
departmental officials have properly justified the level of new or
increased user charges or done enough analysis of how they affect
business competitiveness. They also accuse some departments of just
trying to expand revenues without caring about an adequate
relationship between what's charged and the cost and quality of the
delivered service. It's also not as if businesses have a lot of choice
in the matter. Government departments are often the sole providers of
necessary services. Certain kinds of companies couldn't stay in
business without them. An example: mandatory food safety inspection
services.
Business groups also complain that, in some cases, while fees have
gone up, services have deteriorated. As an example, they say charges
introduced in 1996 for reviewing new veterinary drug submissions are
twice as high here as in Britain or Australia, but the process now
takes twice as long as it did in the mid-1990s.
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