Madam Speaker, I am pleased to say a few words on this bill on behalf of our finance critic, the member for Kings--Hants, who supports the bill in principle and as a consequence of that, all of us in the PC caucus will be supporting it.
As we are all aware, back in 1994 the government moved massively into charging fees for mandatory regulatory services. It increased regulatory fees for businesses in general by almost 47% over a two year period. For manufacturers in Canada, fees increased by 153% over that same period. From inspecting meat to approving ingredients for anti-bacterial kitchen cleaners, if Canadians wanted a regulated product the fee had to be paid. No fee, no product.
The government insisted on more money to regulate products and services and it promised program efficiency, better service and smarter performance. Very little of that has happened. Canadians and their companies are paying much more and getting a whole lot less.
I am told by the member for Kings--Hants that the problem is the vast majority of these user fees were set by regulation, with no parliamentary input and no real consultation on their business impact or how they compared internationally.
Both the Auditor General and the parliamentary finance committee have pointed to the seriousness of this problem. Added to that, the Supreme Court has now decided that some user fees are a tax levied by governments. Individually and viewed together these judgments point to serious problems which the government will now have to be seized with.
We need a public debate about whether services delivered actually give value for money.
This legislation would make Parliament rather than government departments and agencies ultimately responsible for approving new user fees or increasing existing ones. That is why we support Bill C-212 in principle.
User fees are really hidden taxes or taxes under another name and ought to be examined with parliamentary scrutiny to see how effective they are. We have always argued that Parliament needs to play a wider role in how government raises revenues. This is a clear example of that.
While the government asserts that fees are not a tax and are primarily focused on improving resource allocation, the evidence clearly points out that they are having the effect of a tax on business, with the sole purpose of generating revenues for departments.
The Supreme Court appears to agree with that assessment. In its recent ruling in the Eurig case, the court ruled that probate fees in Ontario are a tax. In making its decision, two key points were raised by the court: first, fees must be directly related to the actual cost of providing a service, otherwise they are a tax; and second, taxes must be imposed by an act of the legislative body, not by regulation.
We need to encourage innovation in Canada. For example, we need to ensure that in line with our environmental and health related commitments, new products coming out on the pharmaceutical and chemical markets which are more effective and less toxic receive timely turnaround and can be introduced on the Canadian market to encourage people to use safer products.
Moreover, it is imperative that we take into consideration how we measure up internationally and this bill would require that the departments that wanted to charge a new fee or raise an existing one benchmark it against the country's major trading partners. If a department overshot its timeline to complete the work by more than say 10%, it would start to lose its fee on a sliding scale.
About five years ago our finance critic, the member for Kings—Hants, brought forward the same kind of issue. He argued that the government ought to implement its regulatory budget parallel to the traditional spending budget which would detail estimates of the total cost of each individual regulation. The PC finance critic supported a risk benefit analysis of each regulation to enable a cost benefit analysis of regulations for parliamentarians.
The bill we have before us today differs somewhat in substance but it retains the same important philosophy. Because of that, we support the bill in principle.