What is fee modernization?

    “Fee modernization” is a term for Transport Canada’s project to update existing service fees and introduce new ones. We’re doing this so we can:

    • make sure that those who benefit from the Program’s services pay a share of the costs
    • continue to support innovation and modern technologies
    • provide excellent services for business, jobs and recreation

    Why are we introducing fees for these services?

    We haven’t been charging for the Program’s services, so they’ve been paid for by taxpayers. We’d like to change things so that the people who benefit the most from the services pay a share of the costs. To do this, we need to start charging fees.  

    How much are the new fees?

    As part of the fee proposal for the program’s services, we want to introduce fees for:

    • reviewing applications for approval of works
    • reviewing applications for, and guiding through the Governor in Council process, exemptions from the prohibitions on:
      • draining navigable waters
      • throwing or depositing certain materials in navigable waterways

    We’d like to set the fees for reviewing applications for approval of works at:

    • $500 to review simple works like:
      • a swimming raft
      • projects with many of the same type of small works that are close to each other, like scientific data buoys
    • $1,400 to review other simple works like:
      • dredging;
      • aerial cables.
    • $4,300 to review of very complex works like:
      • aquaculture facilities (like a fish farm);
      • bridges.

    Minor works that are specified as part of the Minor Works Order don’t need to be approved, so they won’t have fees.  

    The fee to review an application for exemption from the prohibition on draining navigable waters, or throwing or depositing some materials in navigable waterways, will be $66,000.

    Based on the Service Fees Act, the fees will be adjusted every year on April 1st, based on the Consumer Price Index.

    How were the fees set?

    We set the fee design and pricing structure by looking at a number of things.

    First, we estimated the total cost of delivering the Navigation Protection Program’s services, including:

    • employee salaries and benefit plans;
    • other operating costs, such as for travel, equipment and supplies;
    • information technology development costs;
    • internal services costs, such as for financial and human resources management;
    • services provided by other departments, like office space.

    The total cost of providing a service is the upper limit of a service fee. This means it is the starting point for setting prices.

    We also considered other factors, like what other countries charge for similar services and how these fees would impact the people and groups that use the services.

    The fee design was developed with fairness in mind, so that prices would reflect the level of effort required by Transport Canada to provide the services.

    How can I submit feedback?

    As we start introducing these fees, we want your feedback!

    You can read our fee proposal until February 12, 2020, email your comments to NPP-Secretariat-PPN@tc.gc.ca. We’ll record your comments and consider them as we develop the regulations. 

    We’ll also publish the proposed regulations in the Canada Gazette before they come into effect.

    When will Transport Canada start charging fees?

    We expect that the fees will come into effect in late 2021 or early 2022.