Mr. Speaker, I am pleased to take part in the debate on Bill C-43.
As with any new government undertaking, the cost aspect must always be considered. In the case of the proposed Canada customs and revenue agency, start up costs are minimal. Only the direct costs associated with the board of management and its secretariat will be new. In both cases, they will be minimal.
Other costs will arise in the normal course of events for the management of human resources and other administrative skills, in order to maximize the new agency's operating flexibility.
All these costs will be offset over time by the savings resulting from streamlined and more efficient internal procedure.
The agency will benefit from the greatly reduced time and energy spent on complex and unwieldy administrative procedures. For instance, under the present system, it can take up to one year to hire the large number of auditors required every year.
The reduction in hiring time and the elimination of numerous vacant positions will substantially lower staffing costs, as well as considerably improve service and the integrity of the overall tax system.
Besides these operating savings from productivity improvements, there are other potential savings from the new agency. The Public Policy Forum, an independent organization with extensive experience in public sector management, undertook a study to examine the cost of compliance with and administration of Canada's tax systems and the savings from a single administration.
The study concluded that there could be significant savings to Canadian businesses, particularly small businesses, from a single revenue administration. Savings were expected from such activities as single registration for taxpayers, common federal-provincial databases, the combination of certain forms, greater consistency in tax rulings and greater simplification of procedures.
It was estimated that the level of compliance savings to business each year would be between $116 million and $193 million dollars at a minimum. The study also examined the administrative costs to governments of tax collection and potential savings. It found that there was a high potential for savings in the areas of personal income tax, corporate income tax and payroll tax because of the similarities at the federal and provincial levels as well as in a common collection system.
Medium levels of savings were expected in the areas of audit and enforcement, client service possibly through a single point of contact, excise taxes and the assessment of returns. Other potential savings were seen to be possible through general reductions in administrative and technical support, such as a reduced requirement for management.
In total it was estimated that administrative costs to governments could be reduced by between $37 million and $62 million annually at a minimum. The critical point is that potential savings to individual Canadians, businesses and governments far outweigh the start up and new operating costs of the proposed agency.
Having 11 directors on the board of management nominated from the private sector by the provinces and territories will ensure that the agency continues to operate in a cost effective and responsive manner as would the other accountability mechanisms built into the legislation before this House.
When we have Canadian businesses focusing on marketing, developing products and developing business rather than filling in forms and dealing with administrative matters not only once but twice, then we have efficiencies in the economy. We have businesses out there doing what we want them to do, creating jobs for Canadians.
The Canada customs and revenue agency represents a very significant opportunity for the generation of benefits to the provinces and territories and to Canadian businesses and warrants speedy passage before this House.
I urge all members of this House to support this bill when it comes to a vote.