External Charging*
*Effective August 12, 2003 , the External Charging Policy replaced the Cost Recovery and Charging Policy of 1997.
Introduction
The past decades have witnessed dramatic changes in public expectations about fiscal responsibility in government. The impact of the federal government's Program Reviews is well known: a fundamental rethinking about government's role in providing services has been required. Efforts to meet concerns about why some services are delivered and how performance can be measured and improved may be found in government initiatives introducing charges for services, rights and privileges.
Charging for regulatory services, rights and privileges, or, "external charging," has become an integral feature of many programs under the authority of the Minister of Health, that is, within the "Health Portfolio". Central to these initiatives is the rationale that charging fees fosters greater accountability for the use of scarce government resources.
By charging for services, rights and privileges, direct users have an opportunity to decide if they do value the services, rights and privileges they are getting. In the context of today's exponential growth in health-related knowledge, technology, techniques and therapies, these charges can act as a natural check against spiralling costs and demands on programs.
Implementing external charging is not without challenges. For instance, achieving the goal of greater accountability for scarce government resources is difficult in many situations. Whereas in a competitive market where service alternatives exist and services can be responsive, service costs can be held to efficient and competitive levels. However, with regulatory programs imposing mandatory fees, a de facto monopoly exists, and market forces cannot make an impact. In these cases, consultative processes play a vital role in ensuring accountability that might otherwise be derived from market pressures.
The extensive consultations that have been undertaken to support Health Portfolio external charging initiatives have served to support greater accountability and increase understanding between government, clients and stakeholders. Many who have participated in these consultations have seen them as a key benefit of charges being introduced.
Currently, there are external charging initiatives within the following areas:
- Health Products and Food Branch;
- Healthy Environments and Consumer Safety;
- Hazardous Materials Information Review Program;
- Pest Management Regulatory Agency.
A Departmental Centre for External Charging
The Office of Revenue and Costing has been established as part of Health Canada 's efforts to provide quality, cost effective services to Health Portfolio programs, specifically to provide corporate support to external charging initiatives within the Health Portfolio.
Background Documents
Treasury Board Secretariat External Charging Policy:
 Policy on Service Standards for External Fees
Effective August 12, 2003 , the External Charging Policy replaced the Cost Recovery and Charging Policy of 1997. The following documents were created under the 1997 Cost Recovery and Charging Policy.
Overview Paper for Cost Recovery:
Best Practices:
Internal Operational Reviews:
For further information, please contact the Office of Revenue and Costing.
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