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July 17, 2010  
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Results | Story


Ontario Liberals propose new fees
By ANTONELLA ARTUSO, QMI Agency


The Dalton McGuinty government is pushing ministries to use "new revenue streams" to stay on budget. (QMI Agency file photo)

TORONTO - Eco fees may be just the beginning.

The Dalton McGuinty government has encouraged its ministries to pursue new fees to stay on budget and to pay for additional programs, according to a 2010-11 Results-Based Planning document obtained by QMI Agency.

"Non-tax revenues (NTRs) offer an opportunity to ensure fiscal neutrality of ministry expenditure proposals," the document says. "If applicable, ministries are encouraged to propose new revenue streams to offset increased expenditures if there are no large-scale investments required, or to increase existing fees to achieve full cost recovery."

The "Other Revenue Technical Guide" reminds ministry budget crunchers that they have "an opportunity to make requests for establishing new revenue streams and/or significant redesigns to existing fees which could be considered if they assist ministries in living within their current multi-year minuted allocation."

Ministries were also told the public should be charged a "premium" for using electronic kiosks instead of traditional over-the-counter service, even though it would appear to reduce the need for costly staff.

"Particular electronic service delivery channels, such as kiosks, are considered a premium service for which an additional amount is charged to acknowledge the cost of this service above the normal delivery standard," a guide says. "This may result in the total fee charged being higher than the fee to deliver the same service over the counter."

The advice is contained in budget and revenue planning documents from the Treasury Board of Ontario that guide ministries in managing their books during a time of substantial deficits.

Finn Poschmann, of the C.D. Howe Institute, who co-authored a report arguing the Ontario Green Energy fee that took effect this spring is likely an indirect tax, said governments' post-stimulus spending will be looking at unobtrusive and uncontroversial ways to raise resources outside the traditional tax increase.

"You better believe they're looking at fees in different jurisdictions -- health fees and all kinds of things, environmental fees -- just ways to raise money to do their business," Poschmann said. "You've got to do it constitutional, legally, otherwise voters lose control over their governments."

The revenue raised through the new eco fee, added to thousands of consumer products on July 1, does not go to the provincial treasury but could offset costs that might otherwise have been spent by some level of government.

PC Leader Tim Hudak continued to push the McGuinty government to drop its eco fees Friday.

"The PC caucus has documented the marching orders that Minister (John) Gerretsen gave Stewardship Ontario to come up with this eco-tax grab on 9,000 different items," Hudak said.

The fees, which cover the cost of recycling and treating hazardous and special municipal waste, has drawn criticism from some consumers and businesses who argue some are either inappropriate or too high.

Kate Jordan, a spokesman for the ministry of environment, said Gerretsen has told Stewardship Ontario to take quick action to resolve these issues and restore consumer confidence.

antonella.artuso@sunmedia.ca






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