User fees: all too often they’re taxes in disguise
BEWARE OF POLITICIANS who promise no tax increases, particularly at times when government revenues are falling far short of covering expenditures.
That’s what happened in Ontario eight years ago when the Liberals took office. On discovering that the province’s financial picture wasn’t as rosy as that painted by the Progressive Conservatives in the 2003 election campaign, and saddled with promises to increase spending on health and education, Premier Dalton McGuinty opted to create a “health premium” that was essentially a tax. But that was by no means the only tactic employed to keep the budgetary deficit from soaring beyond its current level of just under $17 billion.
Granted, there have been no increases in income tax rates or even in the provincial sales tax, although harmonization with the federal GST (Goods and Services Tax) has meant applying it to many items such as electricity and both vehicular and home heating fuels that were previously exempt.
All those maneuvres have been the subject of considerable controversy, with both the Conservatives and New Democrats promising to reduce or eliminate the provincial sales tax on residential hydro bills electricity and home heating.
However, there has been little or no attention given to another tactic, regular increases in a wide variety of “user fees.”
As one small example, the fees charged for use of campsites in provincial parks have been soaring at far beyond the rate of general inflation, to the point where the current cost for a family that camps for two weeks on a site that has an electrical hookup is $46 per night, or $690 for the 15 nights usually spent on a two-week vacation. And that’s almost exactly double what the same family would have spent at Earl Rowe Park in 2001, when an ordinary campsite was $19.75 a night and one with an electrical hookup cost $23.75.
And now we hear that the federal Conservatives, who promised no tax hikes during the election campaign that gave them a majority, have decided to use the same user-fee route.
A recent article in The Globe and Mail disclosed that as many as a dozen federal departments, among them Parks Canada, plan to raise their user fees.
The department responsible for Canada’s national parks will soon release its proposed new user fees for next year, ranging from entry and camping, to the cost of fishing licences and the use of hot pools. A Parks Canada official said camping fees, which have been frozen since 2008, are too low and that the increases are likely to be in line with inflation and the cost of living.
“Asking Canadians and industry to pay more for government services appears to be one way federal departments are managing the wave of costcutting demands as the Harper government attempts to erase Canada’s $32.3- billion deficit,” the Globe story said.
Noting that the federal government takes in about $1.8-billion a year in current fees, the story said the departments recently outlined their future plans in reports to Parliament which showed that 13 government departments are preparing to raise their fees.
“All of this activity - some of which would require legislative changes to the User Fee Act – appears at odds with recent assertions from [Treasury Board President Tony] Clement, who is in charge of finding $4-billion in annual savings across government.”
But unlike the situation in Ontario, any changes to user fees must be put forward for public comment before being approved by Parliament.
Interestingly, Ontario Parks claimed the 2011 camping fees were justifiable, in a blog responding to a U.S. camper’s assertion that the rates are far above those south of the border.
In his June 3 query, camper Don Short wrote: “Wondering why the cost to camp in Ontario parks is so high? One night on an electric site for my 32’ rig is at minimum double what we are paying south of the border. The most expensive state park camp fee in Michigan is $30 with majority at $22- 24. I have not experienced your parks yet but will in a couple of weeks with stays at Arrowhead and Miliskew. The cost has kept us away in the past and only making this trip for reason other than pleasure. We would love to explore more Ontario parks as we live only 6 hours from Toronto. But with State parks from here to Florida and Missouri at the same rates as Michigan it seems less than ideal to go north.”
Ontario Parks replied that its system “is largely funded through user fees and other park revenues. ... Currently Ontario taxpayers contribute 20% of the overall costs associated with managing all 335 provincial parks and the remaining 80% comes from the Special Purpose Account. ... We feel our fees compare favourably with those charged by other organizations and private campgrounds that offer high quality camping and recreation. Other agencies/ jurisdictions are heavily subsidized by their governing bodies to operate and maintain parks, which allows them to charge lower fees.”
And this, incredibly, is their justification for doubling camping fees in the last decade!











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