Cost Recovery Initiative: Consultation Document
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The Canadian Food Inspection Agency (CFIA) is proposing to streamline and update its cost recovery regime, including consolidating service categories, establishing service standards, and revising fees. When the CFIA was created in 1997, several programs from across the federal government were transferred to the Agency and the existing cost recovery regimes for each program were adopted by the CFIA. This has resulted in a fee regime that is complex and inconsistent across sectors and programs. The CFIA currently has hundreds of sector-specific fees, resulting in some regulated parties being charged more than others for similar services because the manner in which the fees are calculated differ (e.g. by weight, by number of inspected products, or by hour).
In addition, most fees have not changed since the organization was created almost twenty years ago, but the cost of delivering services has increased with inflation and other factors. This means that the portion of the costs covered by regulated parties has decreased over time. Today, the CFIA recovers less than 10% of its costs from regulated parties, with the remaining 90% of costs paid by taxpayers.
During this consultation phase, the CFIA is seeking your input on:
- a proposed streamlined list of services that allows fees to be charged consistently for similar CFIA services
- proposed service standards
- the appropriate level of cost sharing between regulated parties and taxpayers
- impacts of potential fee increases on businesses
A streamlined and updated cost recovery regime will benefit regulated parties by ensuring greater consistency in fees and greater predictability in service delivery. Striking a reasonable balance of cost sharing will also be responsive to both the interests of regulated parties and taxpayers' expectations for prudent use of public funds.
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