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Proceedings of the Standing Senate Committee on
National Finance

Issue 1 - Appendix

NOTES FOR A STATEMENT BY
THE HONOURABLE REG ALCOCK
PRESIDENT OF THE TREASURY BOARD OF CANADA
TO THE SENATE STANDING COMMITTEE
ON NATIONAL FINANCE
REGARDING
PRIVATE MEMBER'S BILL C-212
"An Act Respecting User Fees''
February 18, 2004

Mr. Chair, honourable senators. I want to say how pleased I am to appear before this Committee in my new capacity as President of the Treasury Board. I particularly wanted to be here today to discuss Private Member's Bill C- 212 "An Act Respecting User Fees.''

Before I comment specifically on this proposed legislation, I want to emphasize that things have changed significantly since November 2003, when senior Treasury Board Secretariat officials last appeared before this Committee to discuss this Bill.

This is a new government with a new agenda.

As the Speech from the Throne noted, the Government of Canada is determined to return Parliament to the centre of national debate and decision-making, and to restore the public's faith and trust in the integrity and good management of government.

One of the key elements of this commitment is an enhanced role for Members of Parliament to help shape laws.

Our approach to this bill reflects this change in approach and increase input from parliamentarians. I applaud the contribution to enhancing the implementation and management of user fees made by Roy Cullen, MP for Etobicoke North, in bringing this Bill forward.

Overall, the government is favourably disposed to the general direction of the bill. And I am fully supportive of its objective: to bring greater transparency and accountability to federal government departments and agencies when they attempt to recover costs through user fees.

User charging can be a challenging undertaking and the government's performance with respect to some programs requires further attention.

In view of this, the government undertook a comprehensive policy review of its user charging activities, with the aim of improving the implementation and ongoing management of all external charges.

Accordingly, the government issued a revised External Charging Policy on September 3, 2003.

User fees currently bring in approximately $4 billion annually in federal revenues — a key consideration for a government committed to fiscal responsibility. That is why I believe that Parliament needs to show greater leadership in addressing user fees.

Like the Treasury Board policy, the bill addresses three main themes that all stakeholders have long agreed are central to user charges: accountability, transparency, and service and performance commitments.

The bill offers a number of mechanisms in support of these themes. For example:

  •  greater parliamentary oversight when user fees are introduced or changed;

  •  greater stakeholder participation in the fee-setting process;

  •  improved linkages between user fees, and federal department and agency performance standards;

  •  increased transparency with respect to what fees are applicable, what fees are charged, what costs are identified as recoverable, and whether performance standards are met; and

  •  increased stakeholder representation through the establishment of an independent advisory panel.

The new government is dedicated to re-engaging citizens in Canada's political life, and to making Parliament work better. This includes an enhanced role for Parliamentary Committees, so that Members of Parliament can hold the Government to greater account. Bill C-212's provisions are in sync with this key over-arching government objective.

I hope today to assist the committee in its review by stating that I am committed to being as informative as I can on the issues raised in this bill. And I invite the members of this Committee to carefully consider the "fine-tuning'' that I believe is still necessary to make all aspects of this Bill fully meet the purpose for which they were designed.

Before this bill is submitted for further approval, its structure and terminology must better match its intent. It is crucial that departments and Parliament have greater clarity and direction to make the implementation of user fees as efficient and effective as possible.

Some of the issues still to be resolved include:

  •  the definitions of minister and regulating authority, to ensure that the bill excludes Crown Corporations and other non-governmental organizations;

  •  a new clause to ensure that the intended goal of greater Parliamentary oversight is not undermined by a wave of court challenges;

  •  a new clause detailing procedures for establishing the independent body that will provide advice and recommendations when stakeholders disagree with a fee proposal;

  •  clarification regarding the implementation of user fee reductions;

  •  clarity regarding requirements for international comparison of user charges; and

  •  amendment of the time duration for Committee reporting to the House.

In this respect, I have been working with Mr. Cullen on ways in which to improve the bill.

For example, to ensure greater accountability and transparency, some legal questions — as well as policy issues — must be resolved. This is especially important, given the sensitivity of user charges and how this issue can affect the relationship between the government and those it serves.

The Prime Minister has been very clear. One of my chief duties as a Cabinet Minister — in fact, of every Cabinet Minister — is to conduct business with the highest degree of transparency and accountability.

That is why I am here today.

As I noted earlier, the government is favourably disposed to the general direction of the Bill. And while the issues I have raised need further scrutiny and discussion, I am optimistic that they can be successfully addressed through amendments.

I look forward to your questions now, and to working with you in future on this proposed legislation.

Thank you.

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