Mr. Speaker, I am happy to rise today and speak to on behalf of our party to Bill C-212, the private member's bill which deals with criteria for user fees.
I want to remind the House that this problem has been around for a long time. To support that, I want to quote what the auditor general said in 1993 about the ability to scrutinize this. 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.
This caused our member for Medicine Hat to introduce a private member's bill on this very same topic in 1997, which was Bill C-205. I know he intended that his private member's bill would be an opportunity to fulfill those concerns which were raised by the auditor general of the day.
I know the member for Etobicoke North has raised a number of interesting areas and key points that need to be addressed. Quite frankly we agree with him when he calls for the need for more parliamentary oversight when user fees are introduced or changed. We agree with him when he calls for the need for greater stakeholder participation in the fee setting process, which is part of what I just said. We agree with him when he calls for the improved linkages between user fees, the federal department and the agency performance specification and standard.
He talks about the requirement for more comprehensive stakeholder impact and competitiveness analysis when new user fees or fee increases are contemplated. He talks about the goal of increased transparency addressing these fees where applicable. He goes on to talk about the need for independent dispute resolution process and the need for annual reports outlining all user fees. We understand what he is saying and we agree with his observations.
However in addition to having parliamentary scrutiny on user fees, we submit that the following principles should also apply. I know the member will probably agree with a lot of these as well and hopefully, in a collective fashion, we will be able to make some changes.
One, the fees must be based upon the actual cost to providing the service. Unfortunately they are not necessarily set that way now. Some fees are much higher than the actual cost of service being provided.
Two, services must be cost effective. I know the member opposite is a prudent type of thinker and will agree with that. 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 currently $4 billion was going into the federal treasury in user fees. If that cost is reflective of the program that needs to be put in place to administer it in the way which has been just outlined so that the different groups are not paying costs which are not their own or not inflated costs, then that is fine. However in many cases we believe those costs are in fact exaggerated and it is just another form of a hidden tax on the industry itself.
Three, administrative costs must be as low as possible and the documentation requirements must be there in the operation of business.
Four, there should be no cross-subsidization of services for commodities or region. This is a very important point. We have seen too much of this kind of thing in the past. We have seen too many cases where the costs are borne by one area that should be borne by another sector, another industry or another part of the country. Cross-subsidization should not and must not occur.
Five, wherever possible, fees should be directly applied to prevent fee inflation to indirect application through the service provider.
Six, there must be a system in place for tracking the overall incident of fees and the effect on industry with a process for consultation.
Simply put, we do not mind the idea of user fees or a 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 overinflated bureaucracy that does not adapt quickly to where that individual sector is itself.
It is important that these industries be allowed to function. We have a tough time already in this country. Taxes are very high. 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 has held hearings across Ontario over the last few years. We have been told that regulation is 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 administrating these cost recovery programs on them.
Regulation is a huge cost. I think in some of the studies done by the Fraser Institute it showed a total regulation cost of $100 billion annually to industry in Canada. That is an astronomical amount. It hurts industry in terms of being competitive. It hurts the economy, and the bottom lines of businesses are tremendously affected.
To sum up, we understand what the member for Etobicoke North is trying to say in his bill. We support it. We have offered some further suggestions. We believe this is the time to get the user fee regime right after so many years. This is a step in the right direction and I suggest that all members in the House should support the bill.