Today, the Canadian Grain Commission launched a consultation on proposed changes to its user fees and began a discussion about potential uses of surplus funds. Grain producers, farm groups, licensed grain companies and industry associations are invited to provide their input on proposed changes to Canadian Grain Commission user fees and service standards. The Canadian Grain Commission is proposing to reduce user fees for most of its services. The consultation closes on May 1, 2017.
The updated fees would take effect on April 1, 2018 after the current five-year user fee review cycle ends on March 31, 2018. Following the consultation period, the Canadian Grain Commission will consider stakeholder input and make a formal proposal through the Canada Gazette process.
The Canadian Grain Commission is also asking for input on potential uses for surplus funds. As a result of higher than expected grain volumes and lower than expected spending, the Canadian Grain Commission reported an accumulated surplus of $95.9 million in the 2015 to 2016 fiscal year. As of September 30, 2016, the Canadian Grain Commission has accumulated a surplus of $107.2 million.
The discussion period also ends on May 1, 2017. Comments received will be reviewed before options for use of the available surplus are presented to the Minister of Agriculture and Agri-Food.
Quick facts
- Updating user fees is a regulatory process that requires the approval of the Governor in Council
- A proposed new formula-based fee structure will better align revenues with the costs of providing Canadian Grain Commission services
- The Canadian Grain Commission must retain a surplus of approximately $36 million (representing approximately six months of operating costs) to address variabilities in revenues and employee severance obligations
- The surplus may only be spent on programs and activities that are related to services that the Canadian Grain Commission is authorized to provide under the Canada Grain Act
- The Canadian Grain Commission needs approval from the Treasury Board of Canada to spend the surplus
Source : Canadian Grain Commission