|
Albertans to benefit from $60 million cut to user fees The savings start immediately for Albertans as a result |
A comprehensive review In October 1998, the Supreme Court of Canada determined that, for a compulsory government fee to be constitutionally valid, the amount charged must reflect the cost of the service provided. While other provinces decided to protect their fees in legislation instead of reducing them. Alberta viewed the Supreme Courts decision as an opportunity to conduct a one-year, full-scale review of all user fees, charges and premiums and pledged to reduce fees following the review. The Fees and Charges Review Committee, chaired by St. Albert MLA Mary ONeill, was established with a one-year mandate to review all government fees and charges to determine whether the amounts charged are appropriate. The committee was also authorized to review the governments general policy on fees and charges, and to comment on fees and charges levied by other government entities. A comprehensive final report will be provided to the Provincial Treasurer by the spring of 2000. The report will detail the committees review and outline recommendations on the government's general fees and charges policy. It will also serve as the foundation for any subsequent changes to policy on fees and charges and the recommendations will guide the governments review of any changes in future years. Reductions will mean considerable savings for Albertans Individual savings as a result of the reductions recommended by the committee will be substantial. For instance, under the old fee schedule, a homebuyer was required to pay $365 in Land Titles fees when purchasing a $150,000 house with a $140,000 mortgage. Under the new fee schedule, this charge has been reduced by 64 per cent to $133 (see table below).
Alberta businesses, small and large, will benefit from reductions in Corporate Registry fees. For instance, a Certificate of Incorporation will now cost 66 per cent less with a reduction from $300 to $100. Certificates of a Limited Partnership have been reduced from $150 to $50. Registry agents will continue to charge nominal fees to cover their own cost of delivering these services. For more details on the new registries fee schedule, visit the Alberta Government Services website at www.gov.ab.ca/gs. Go to: Next Budget 2000 News Release or Backgrounder - 30 - For further information, please contact: Bob Scott Bart Johnson Copyright © 2001 Government of Alberta. |