Bill C-212 (Historical)

User Fees Act

An Act respecting user fees

User Fees Act

[Bill Casey, Progressive Conservative, Cumberland—Colchester, NS]

Mr. Speaker, it is a pleasure to speak to this bill. We support the bill and we commend the member for bringing it forward. It is very comprehensive. It seems very fair and well thought out. It addresses not just user fees per se but many other aspects of the user fee issue.

I just wondered, as I sat here and listened to the debate, how the user fees that we face now would be different had this bill been in place. What comes to mind is the airline industry. On our airline tickets there is now a user fee for Nav Canada. It was always included with the Department of Transport expenses and it was not charged to people. Now there is a charge right on the ticket for Nav Canada air traffic control services. There is usually a fee for airport improvement. There is another fee now for airport security and one for a fuel surtax, which is not government.

I am sure that if the member's bill had been in place when the proponents of those user fees brought them in, they would not be as they are now and perhaps they would not be there at all.

For a Liberal bill, it is certainly a very good one. I compliment the member for bringing it forward. We will be supporting it when it comes to a vote.

Air traffic fees are the ones that come to mind. There is a toll highway in my riding. It is the only toll highway in Canada on the Trans-Canada Highway. It is the only section of the Trans-Canada Highway that is tolled. It was originally to be funded through a federal-provincial agreement, but a federal minister and a provincial minister in Nova Scotia decided to take some of the money out and move it to an area of their own riding. They even had the agreement changed. The funding was supposed to be specifically for national highways. The funding was there for this highway, but a former minister of transport a few years ago and a minister of transport in Nova Scotia decided to redirect the money. In the end we ended up with a toll on a section of the Trans-Canada Highway instead of being properly funded by the federal-provincial agreement.

This is simply a user fee. It costs $3.50 to go one way or the other. It is going to be $4.50 if the predictions are right about increases next year. What that means for the people where I live in Amherst who drive to Truro in the centre of Nova Scotia on a four lane highway and back is they have to pay $9 in user fees. However, for people in Pictou who drive the same distance to the same town on a four lane highway that is provided by the government, it is free. People in Halifax can drive to the same town of Truro on a four lane highway and back and it is free. It is just the people who live in my community in Cumberland County, Amherst and Springhill in Nova Scotia, who must pay a user fee. It is completely inconsistent. It is an aberration. It is not fair. That is the way it is with many user fees.

If this bill had been in place, I would say that the user fee would never have been allowed to stand. The requirement under the original funding agreement would have been imposed and the highway would have been paid for. It was a federal-provincial agreement with no user fee required.

It is the inequity in the system that is so unfair. Most people in my province of Nova Scotia can drive on a four lane highway for free. There is just one small group that has to pay $9 to go back and forth on a four lane highway. It is exactly the same as the other highways. It goes to exactly the same places. It serves exactly the same purpose. It is owned and operated by the province of Nova Scotia. However because there was no scrutiny, because there were no regulations, because there was no accountability, this user fee was imposed on that highway. It has been a thorn in my side from the beginning and it continues to be a thorn in my side.

The air costs are certainly imposing a great burden on the smaller airports and the smaller distance flights. The member for Gander—Grand Falls was telling me how the flights are being reduced so much because of the extra surcharges. Because of the surcharges the number of passengers is down. When the number of passengers is down, the flights are discontinued. To go home tonight he has to fly to St. John's, Newfoundland, stay overnight and then fly to Gander tomorrow because of the reduction in flights. That is a direct result of user fees being charged.

Again, I do not believe those user fees would be in place the way they are now had this bill been in place. All this bill does is it allows for accountability. It requires that there be scrutiny. It requires the proponents to explain and justify what they are doing. That was never done on the toll highway that I mentioned, the aircraft security fee or the Nav Canada fees. There was no scrutiny. There was no discussion and no debate. They went through and each is simply a tax.

These user fees are a dedicated tax that are focused on one specific group of people. If there is a tax imposed on Canadians, it should go through the House. It should be subject to committee scrutiny. It has to be justified, but by calling it a user fee, everything seems to slide right through, no questions asked.

We support the bill just the way it is. It is probably not perfect, but it is a heck of a lot better than what we have now. When it comes time to vote on the bill, we will be voting in favour of it, because again, it is simply accountability, fairness, equity and justification.

I hope all members look at this. I hope people on all sides think about this, realize how important the bill is and what a good move forward it would be. It will not cost; it will save. It will make people think. It will make people accountable and ensure that they do the right thing. It will force federal government departments, all departments, agencies, boards, crown corporations, departments of highways, ferries and everything else to apply to Parliament to justify their fees, their raises and whatever they plan to do. It will make them subject to committee scrutiny. Right now there is no such scrutiny. They just decide what they want to do and they do it. There is no accountability, no transparency and no justification.

In fact my colleague, the Conservative member for Kings--Hants about five years ago brought up the same kind of issue. He said that the government should implement its regulatory budget parallel to the traditional spending budget which would detail estimates of the total cost of each individual regulation, user fees, including the government enforcement costs as well as the cost of compliance to individual citizens and businesses, and include a risk benefit analysis of each regulation to enable cost benefit analysis of regulations for parliamentarians.

It differs a little in form and substance, but the same goal is there, the same philosophy is there to add some accountability to this loosey-goosey arrangement. Even though the member for Kings--Hants presented that five years ago prior to many of the user fees that have been brought in since then, it is certainly even more applicable now and is reflected in Bill C-212.

The underlying principle is simply more transparency and accountability. What could be more appropriate than that? It is something we talk about all the time.

The bill, if enacted, would provide parliamentary scrutiny and approval for federal user fees. It would provide greater transparency in the fee setting process. It would ensure public consultation, and there is none now, prior to introducing or amending these fees.

I have a list of organizations that support the bill. I will not repeat them because the member has done a good job of outlining them. One is the Canadian Federation of Independent Business which represents 103,000 small and medium size businesses. They are the people who end up bearing the brunt of many of the user fees that are in place now. Surely we should be listening to these small businesses, which are the backbone of communities like mine, the small and medium size towns in rural Canada.

If the government fees continue to go unchecked, they will continue to hurt small business. They have made this message very clear. In turn, this will impede job creation and hinder our country's overall productivity and ability to compete. In my area, every single cent is important. Every cost reduction is important. Everything that provides a hurdle for competitiveness is very painful for us and it costs us a lot in jobs.

I commend the member for his bill. Canadian taxpayers want value for their money. They want transparency. They want accountability and they want fairness.

Again, I go back to that toll highway. It should never have been a toll highway, but just because it was easy to do, even though there was a federal and a provincial contribution, the way it was handled resulted in a significant toll that will just go up. I believe if that issue had come back to the House, it never would have happened. Under the member's bill that whole issue would have been here. It would have been debated. It would have had public scrutiny. It would have gone to committee and it never would have happened. It is eminently unfair.

I have a lot more thoughts on this. Maybe I will have another chance to share them later on, but essentially we applaud the member for bringing forth the bill. We will support it just the way it is.

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, it is very important that the member for Etobicoke North has brought forward Bill C-212 today. Having listened to the debate and some of the rationale, it is good that this debate is taking place. The issue of user fees and the way the government provides services is rarely debated. This is a very important opportunity for us to put an area of government that is rarely examined under the microscope and shine a spotlight on it.

From the perspective of the NDP, we have very serious reservations about user fees in principle. The hon. member listed all the organizations that support his bill. I note that they are all business organizations. Obviously there is concern in the business community about how user fees creep in and how they increase and increase.

From our perspective, we also want to raise a broader issue, and that is how user fees have become so prevalent everywhere in society, particularly on individuals. One only has to look at the debate on medicare and the issue of user fees. One only has to pay a visit to the ATM or to a bank. Everywhere we go there are new user fees.

I take the member's point very well when he says that there is absolutely no relationship, whether in government or in private sector, between the amount of the user fee and the cost of the service that it is supposedly being provided. We get charged for using ATM machines and dinged a second time when the transaction goes through the bank.

We appreciate the fact that this issue has been raised but we want to broaden the debate and the understanding about this and put it in the context of the role that user fees play in our society.

User fees are a kind of sneaky, back door way of taxation. I can remember when I was a member of Vancouver city council back in the eighties. The mayor at the time was Gordon Campbell with whom I am sure most members are familiar. He is now the Premier of British Columbia. He was infamous in Vancouver for publicly saying on the one hand that he wanted to hold the line on taxes, but then the other hand, under his administration, he brought in massive user fees throughout the whole municipal arena. It was insidious and it happened quietly year after year. If people had examined what had taken place, they would have found that it was a massive tax increase on municipal taxpayers, whether they were developers seeking development permits or small businesses wanting to open up shops or something like that. It is a very insidious form of taxation and is something we should be very vigilant about.

The other problem with user fees, particularly as they apply to individuals, but also as they apply to businesses, is that they disproportionately affect low income people or small businesses. Compare a large corporation with more resources to pay user fees to a small business, or an individual or someone on low income. We will find that a much greater weight is being borne by people with less resources or living on a lower income. For that reason as well, we are very concerned about the expansion of a user fee philosophy.

With respect to the bill itself, I never knew the amount of revenue we were talking about, in terms of the federal government, until the member outlined it today; $4 billion annually. That is quite horrendous. If we added in all the other kinds of user fees in the private sector, that amount would also be quite massive.

I agree with the member that there is a systemic bias within departments to just merrily go on their way and increase user fees.

There is no accountability. There is no scrutiny. There is no transparency. There is no one checking what is going on. These user fees continue because it is in the interest of the department to keep rolling them in.

When we talk about the issue of accountability, let us be very clear that while we can look at it as an issue of systemic bias in any department that the member has raised, without a doubt there is also pressure on that department. If its funding is falling as a result of the public debate that takes place here and there are government cutbacks, and the Liberal government is responding to the pressure from the Canadian Alliance, it actually reinforces that kind of systemic practice of a department to increasingly rely on user fees instead of being up front with people and telling them the services it delivers and the costs of the services.

If we want to maintain high quality, public, accessible services, then we have a progressive taxation system to provide the revenue that comes in. I would much prefer that we take that route philosophically and politically than having a sneaky, backdoor way of bringing in money.

This is the first hour of debate on the bill. It is a votable bill. Certainly insofar as the bill does bring greater transparency and accountability to the user fee system that exists, it is something that is very supportable for the New Democrats. I would like to make it clear that we actually see it in a much bigger picture. Our concern also extends to the impact of user fees on individuals in our society, particularly where it involves the provision of public services.

I thank the member for bringing the bill forward. We look forward to the ongoing debate on it. We will have discussions within our caucus but we are generally supportive of it. Maybe there will be opportunities to raise further issues on the bill. Maybe there will be amendments but it is a bill that is very worthy of debate and support. It deals with a very important area of government operation.

[Charlie Penson, Canadian Alliance, Peace River, AB]

Mr. Speaker, I am happy to rise today to take part in the debate on Bill C-212, the private member's bill that talks about the criteria for user fees. I want to remind the House that this problem has been around a very long time. I will quote the auditor general from 1993 when he said:

We are concerned that Parliament cannot readily scrutinize the user fees established by contracts and other non-regulatory means. There does not exist a government-wide summary of the fees being charged, the revenues raised and the authorities under which they are established.

I submit that this was the reason that the member for Medicine Hat introduced a private member's bill on this same topic in 1997, Bill C-205. I know he intended that the private member's bill he introduced would be an opportunity to fulfill those concerns which were raised by the auditor general of the day.

I do not think anybody is against the idea of cost recovery. We certainly are not in the Canadian Alliance. In fact we think that user fees are a good way to go, but the user fees have to reflect the actual cost of doing business and they have to be established in coordination, conjunction and cooperation with the different groups that will be subject to them.

I think of the example in Alberta a few years ago where there was a fairly severe economic downturn. I know it was not only in Alberta but I know about it from being there at the time. The housing industry for example was devastated. I think it was as a result of the NEP at the time, where there was a massive raid by the federal government on the treasury of Alberta.

However the effect of that was a severe recession in Alberta but the bureaucracy of Alberta did not change. Although there were no homes being built during that period, the number of regulators remained the same. These people were supposed to be monitoring and giving authority to the housing industry on things like inspection on plumbing, heating and natural gas fitting in homes for example. As a matter of fact things got worse. The few people who were actually building houses in those years were subjected to harassment from all these bureaucrats who did not have anything to do. They had to justify their actions by going out and making somebody pay the price.

The reason I raise that example is that it is important to have a user fee system that is reflective of the situation in which the economy finds itself.

I know the member for Etobicoke North has raised a number of interesting areas and key points that need to be addressed. We agree with him, when he calls for the need for more parliamentary oversight when user fees are introduced or changed; the need for greater stakeholder participation in the fee setting process, which is part of what I just spoke about; the improved linkages between user fees, the federal department and agency performance specifications and standards; the requirement for more comprehensive stakeholder impact and competitiveness analysis when new user fees or fee increases are contemplated; the goal of increased transparency addressing these fees where applicable; the need for independent dispute resolution process; and the need for annual reporting outlining all user fees. Those are all very important aspects and we support the member in his request to have this changed.

However in addition to having parliamentary scrutiny on user fees, we submit the following principles should apply.

First, the fee must be based on the actual cost of providing the service. They are not necessarily set that way now unfortunately. Some fees are much higher than the cost of the service being provided.

Second, services must be cost effective. This is a key point. In many cases we believe the services are not being provided in a cost effective way and we have to ensure they are.

The member raised the point that there is $4 billion coming into the federal treasury in user fees. If that cost is reflective of the program that needs to be put in place to administer that in the way which has just been outlined so the different groups are not paying costs which are not their own or not inflated, then that is fine. However, in many cases we believe those costs are exaggerated, and it is another hidden tax on the industry itself.

Third, administrative costs must be low and the documentation requirements must be there in the operation of business.

Fourth, there should be no cross-subsidization of services for commodities or regions. That is an important point. We have seen too much of this kind of thing in the past. We have seen too many cases where there costs are borne by one area that should have been borne by another sector, another industry or another part of the country. Cross-subsidization should not be occur.

Fifth, wherever possible fees should be directly applied to prevent fee inflation to indirect application through the service provider.

Sixth, there must be a system in place for tracking the overall incidence of fees and the effect on industry with a process for consultation.

Simply put, we do not mind the idea of user fees or cost recovery. We think that is important. However the user fees must reflect what is a reasonable amount of cost recovery to actually do the job and should not bear out an over-inflated bureaucracy that does not adapt quickly to where that individual sector is itself.

In the case of the housing sector that I talked about, if it were the case that user fees had been set and the sector was in decline and it did not need that many staff to provide that service, that quickly would have to adapt. That means there would have to be consultation with the industry so that those user fees would be reflective of the current situation in terms of the economic well-being of that particular sector of the economy. Otherwise it becomes a cost that is too high and can affect their overall well-being and even competitiveness.

It is important to have a process that can quickly adapt. We believe that the member's bill, if adopted in its entirety, will do just that. We are supportive of it and wish him luck in furthering the cause of the auditor general from 1993, as well as furthering the cause of the member for Medicine Hat when he introduced his private member's bill. Perhaps this thing will move on. I think all parties in the House are in support of it. We would like to see the government pick this up and make it its own bill or pass this quickly to support our industry across the country.

It is important that these industries be allowed to function. We have a tough time already. Taxes are pretty high in the country. We have to compete internationally. Our productivity has fallen against that of the United States for about 25 years and we have to look at ways to cause that to change.

My party had some hearings across Ontario over the last few years. We were told that regulation was just as big a cost to businesses, especially small businesses, as taxation is. In fact it is disproportionately higher for small businesses because they do not have the people dedicated specifically to complying with regulation or people who are administering these cost recovery programs on them. Regulation is a huge cost. I think there were some studies done by the Fraser Institute that suggested it was a $100 billion cost to industry annually in Canada. That is a huge cost and it hurts them in terms of being competitive, and their bottom lines are affected.

It is important that we get this user fee regime right. This is a step in the right direction and I suggest that the members in the House should support this bill.

[Roy Cullen, Liberal, Etobicoke North, ON]

moved that Bill C-212, an act respecting user fees, be read the second time and referred to a committee.

Mr. Speaker, I am very pleased to speak to the House about my private member's bill, Bill C-212, an act respecting user fees.

The intent of this legislation is to bring greater transparency and accountability and parliamentary oversight to federal government departments and agencies when they attempt to recover costs through user fees.

User fees take many different forms. They are meant to defray some or all of the costs of a service provided by government, presumably in the public interest, but which also provides a specific service to a client, for example, licence fees, registrations, et cetera.

I would like to say at the outset that I support the government objective of recovering the costs it incurs by charging fees for users of property and specialized services. The bill that I introduced deals with the following issues:

The bill addresses the need for more parliamentary oversight when user fees are introduced or changed; the need for greater stakeholder participation in the fee setting process; and improved linkages between user fees and federal department and agency performance specifications and standards. There is a requirement for more comprehensive stakeholder impact and competitive analysis when new user fees or fee increases are contemplated. The goal is increased transparency with respect to why fees are applicable, what fees are charged, what costs are identified as recoverable and whether performance standards are being met.

There also needs to be a dispute settlement mechanism to resolve complaints or grievances from user fee payers, and an annual report that lists all of the user fees that are in effect. This report would be tabled in the House and referred to the relevant committee of the House, which might be the finance committee.

Our government has embarked on a very ambitious innovation agenda. We need to ensure that our regulatory environment supports and encourages this very important objective. The government recognized this connection when it launched the smart regulation initiative in the recent throne speech. The government announced that it will “move forward with a smart regulation strategy to accelerate reforms in key areas, to promote health and sustainability, to contribute to innovation and economic growth and to reduce the administrative burden on business”.

I would suggest to colleagues in the House that the government's cost recovery user fee policy runs counter to the innovation agenda and should be a major part of the smart regulation initiative. Bill C-212 does just that, in my view.

It is time for parliamentarians to take greater ownership of user fees. What began as a legitimate attempt to more fully recover costs for proprietary services and goods has developed into something that is beyond that which was contemplated.

User fees currently bring in $4 billion annually in revenues for the federal government. There is a systemic bias for federal government departments and agencies to increase user fees. Departments and agencies of the federal government have in many cases expanded the concept and introduced user fees, and increased user fees, beyond what is reasonable and more often than not without any reference to service or performance.

It is not that federal civil servants are bad managers. We have some of the best in the world. But we do know that individuals will respond to incentives that are built into the reward and recognition system. It is only natural. If they are rewarded for increasing user fees, if this assists them in their budget building process, they will respond accordingly.

Let us keep in mind that these are monopolies increasing their prices. If a company wishes to have a drug approved, for example, it cannot shop around if the price charged by Health Canada is excessive.

The fact that certain of these user fee revenues accrue to what are referred to as net votes may be a motivating factor as well. A net vote is one where user fee revenues are credited directly to the budget of the government entity. They do not accrue to the consolidated revenue account of the government as general revenues.

The result of user fee revenue that is credited to net votes is that the budgetary requirements of the department or agency are reduced because the fees are deducted from expenditure budget requests. Even where user fee revenues find their way to consolidated revenue and not to a net vote, this additional revenue implemented by departments and agencies is seen as a positive measure by Treasury Board, and the Treasury Board Secretariat, the body that recommends annual budgetary appropriations for these organizations for inclusion in the annual budget and budgetary estimates.

This practice strongly encourages departments and organizations to charge user fees and increase them above the amount originally planned. There is now incentive to systematically multiply these fees. The time has come to make this practice more transparent.

Companies in my riding of Etobicoke North, companies like BASF Canada and Bayer Canada which are exposed to such fees for drug approvals or approvals of chemical products, do not argue about the appropriateness of user fees for proprietary services. They understand that this is required. What they believe is seriously eroding their competitiveness however are increasing fees with no corresponding increase in service or performance. Since fees have been on the rise in most cases, there has been no corresponding improved service or response times.

In Canada for example, it takes an average of 750 days for a drug to be approved. In the United States the corresponding time is 500 to 550 days. In Europe the timeframe is less. User fee charges however are as high or higher in Canada when compared with these jurisdictions.

With drugs and chemical and agricultural products, competitive advantage often depends on being the first mover to the marketplace. It is easy to understand why our Canadian companies are seeing their competitive position eroded.

In the United States, the United Kingdom and Australia, user fees are tied in some way to the service provided and the quality of that service. The Government of Canada has not yet implemented this type of measure. In Australia, drug reviews must be carried out within the time period set out in legislation, and if not, the authorities lose up to 25% of their user fees.

In the U.S.A. written performance goals tied to the fee collecting authority were negotiated with the industry. The Medicines Control Agency in the United Kingdom sets targets for clearance times.

Bill C-212 would potentially affect Canadians from coast to coast to coast because it would apply to federal government departments, agencies, boards, crown corporations, commissions or any other body that has the power to fix a user fee or a cost recovery charge under the authority of an act of Parliament. Thus, individuals paying fees to visit a federal park, passengers paying the air traveller security charge, individuals paying a fee to the passport office for a passport, or provincial or territorial authorities paying fees to the Canadian Coast Guard for ice breaking services, would be affected by the bill.

I have introduced the bill because of a certain level of frustration with the lack of progress on this issue. The House of Commons Standing Committee on Finance some two years recommended significant changes to the cost recovery user fee policy, but progress to date has been minimal. In fact there are concerns by stakeholder groups that the policy may be moving in the opposite direction.

Bill C-212 would require that before a federal regulating authority introduces increases or expands the application of, or increases the duration of, a user fee, it must consult meaningfully with affected stakeholder and client groups.

It must take reasonable measures to notify clients and other regulating authorities with a similar clientele of the proposed user fee changes. That is because some of these user fees become incremental in nature. Different departments and agencies are adding these fees and, in totality, they become quite burdensome.

The regulating authority would be required to give all clients or service users a reasonable opportunity to provide ideas or proposals for ways to improve the services to which the user fee relates.

The regulating authority would be required to conduct an impact assessment to identify relevant factors and take into account its findings in a decision to fix or change the user fee.

The regulating authority would need to explain to clients clearly how the user fee is determined and identify the cost and revenue elements of the user fee.

Finally, the regulating authority would be required to establish an independent dispute resolution process to address a complaint or grievance submitted by a client regarding the user fee or charge.

To some, these provisions may appear completely reasonable; to others, they may appear to be quite onerous.

I will acknowledge that these measures would not simplify life for these regulating authorities. I make no apology for that. I believe that all these steps are necessary because these fees could have an enormous impact on companies and individuals in Canada. These groups may have some constructive ideas about how the service could be improved, especially if they are paying more for the service.

It is important to understand what costs are proposed to be recovered with the proposed user fee or fee increase. How expansive or limited is this definition? To what extent are direct and indirect costs, like departmental or agency overheads, included in the cost recovery formula? How costs are defined can make a major difference in the level of the user fee. We need more transparency and accountability in this area as well and Bill C-212 would provide that transparency and accountability.

Parliamentarians need to understand how departments and agencies define what is a public good and what is a private good. These definitions are usually not easy, to be sure. These definitions are typically not black and white, and some are easier than others to define. However, these are important considerations because user fees could only be charged for proprietary goods and services, and parliamentarians need to be involved in these debates. Bill C-212 would allow for that to happen.

Every user fee proposal under Bill C-212 must be tabled in the House of Commons and referred to a committee of the House by the relevant minister. That proposal would, first, explain in respect of what service, facility, authorization, permit or licence the user fee is being proposed. Second, it would state the reason for any proposed change in the user fee rate. Third, it would outline what performance standard is being proposed, as well as the actual performance level that has been reached. Fourth, it would provide an estimate of the total amount that the regulating authority would collect in the first three years after the introduction of the user fee, and identify the costs that the user fee would recover.

Should the amount of the user fee being proposed be higher than that existing in another OECD country the minister would be required by Bill C-212 to give reasons for the difference.

These questions are very important for the competitiveness of Canadian business. A case in point is the new substance notification program. Chemical companies in Canada, when they introduce a new product into the domestic market must appropriately obtain approval from the federal government prior to launching the product. The federal government reviews the application and makes a determination as to whether or not the product is safe and effective. To cover the cost of this approval process companies must pay a user fee. Companies have no difficulty with this.

They do question, however, why our government will not recognize assessments and approvals from our major trading partners, particularly the U.S.A. Questions such as this would attract more scrutiny from the House of Commons and the relevant committee.

Bill C-212 spells out what the requirements are when adjustments in the application of user fees are proposed. This provision is necessary because broadening the application of a fee can have as large an impact as a fee price increase.

If a regulating authority wishes to amend the definition of persons subject to the application of a particular user fee for the purposes of maintaining fairness or covering additional cost, the regulating authority may implement the amendments, but the minister must, within 40 days of their implementation, seek the committee's approval for the new measures. Failure to do so would invalidate the adjustments and any change must be consistent with the principles laid out in the act.

Despite this provision a regulating authority may not fix, increase, expand the application of, or increase the duration of, a user fee unless the result gives an additional benefit to clients.

The committee of the House would review every user fee proposal and make recommendations to the House of Commons as to the appropriate fee. Although this step would result in a large volume of work, at least initially, the committee of the House would design the appropriate mechanism to handle the volume of proposals. The formation of a user fee subcommittee or some type of exception reporting system are two such possibilities.

We currently have a number of examples where committees handle a regular volume of like matters and they institutionalize certain mechanisms to deal with that. There would clearly be a learning curve and a bulge of work at the launch of this initiative because many user fees have had limited or no scrutiny by Parliament. This work would become more regularized over time.

Early indications are that Bill C-212 has broad support across a wide spectrum. Support letters are continuing to come into my office and many more are expected. If members would like to see those letter they are more than welcome to come to my office.

The bill is supported so far by the Business Coalition on Cost Recovery. The coalition is made up of representatives of leading Canadian business organizations representing large, medium and small businesses in a diverse range of sectors of the Canadian economy, from agriculture and cosmetics to marine transportation.

The combined membership employs over 2.2 million Canadians and is directly responsible for over $330 billion in economic activity annually. The business coalition members include: Animal Nutrition Association of Canada; Canadian Animal Health Institute; Canadian Association of Chemical Distributors; Canadian Chemical Producers' Association; Canadian Consumer Specialty Products Association; Canadian Drug Manufacturers Association; Canadian Federation of Independent Business; Canadian Association of Importers and Exporters Inc.; Canadian Manufacturers & Exporters; Forest Products Association of Canada, which by the way represents 3% of Canada's GDP; Medical Devices Canada; Nonprescription Drug Manufacturers Association of Canada; and Rx & D, Canada's Research Based Pharmaceutical Companies.

The Canadian Federation of Independent Business, which is a member of the Business Coalition on Cost Recovery, represents over 103,000 small and medium sized businesses and it has told me that supporting Bill C-212 is at the top of its public policy agenda and priority list.

Other supporters of the bill include: CropLife Canada, Canadian Medical Device Technology Companies, the Industry Coordinating Group for the Canadian Environmental Protection Act which includes, in addition to some of the members I have previously mentioned, the following: Adhesives & Sealants Manufacturing Association of Canada, Canadian Paint & Coatings Association, Canadian Petroleum Products Institute, Canadian Plastics Industry Association, Canadian Steel Producers Association, Canadian Textiles Institute, Ecological & Toxicological Association of the Dyes & Organic Pigment Manufacturers, Industrial Biology Association, and the Soap & Detergent Association.

Other organizations include: Canadian Consumer Specialty Products Association, a $14 billion industry which employs over 11,000 Canadians. Many companies also support Bill C-212, like Bayer CropScience; BASF Canada; Provel Animal Health , a division of Eli Lilly Canada Inc.; Engage Argo Corporation; and Crompton Company.

These are serious organizations employing thousands of Canadians across Canada. These organizations support the bill because it is the right thing to do. It would encourage companies to make investments and create jobs.

I ask colleagues to support the bill. It would enhance Canada's competitiveness and advance our country's innovation agenda.

[Roy Cullen, Liberal, Etobicoke North, ON]

moved for leave to introduce Bill C-212, an act respecting user fees.

Mr. Speaker, I am pleased to bring back to the House this bill, an act respecting user fees, which will bring greater accountability and transparency to the introduction and increase in any user fees brought about by the government or its agencies and departments. It also links user fees more closely with performance and with international benchmarks.

(Motions deemed adopted, bill read the first time and printed)