Public Services and Procurement Canada
Changes to our fees under the Service Fees Act

Annual reporting process

Government of Canada departments and agencies that charge fees for services must now report annually to Parliament on the fees they charged to non-federal entities in the previous fiscal year (April 1 to March 31). This report provides summary information on the revenues and costs related to the external fees charged in the previous fiscal year, in addition to providing detailed information on certain applicable fees, including rates to be charged for the upcoming fiscal year. Please visit the following site to see PSPC’s fees reports.

Annual adjustment of service fees using the consumer price index

Effective April 1, 2019, certain fees charged by government departments must be adjusted annually using an inflationary factor (the consumer price index, or CPI), pursuant to subsection 17(1) of the Service Fees Act.

The consumer price index (CPI), a percentage published regularly by Statistics Canada, represents changes in prices over a period of time as experienced by Canadian consumers. For information on the CPI, please visit Statistics Canada’s Consumer price index page.

The rationale for adjusting fees annually using CPI was to ensure the Government of Canada’s fee rates were keeping pace with the costs of providing services.

This annual inflation adjustment only applies to certain types of fees, namely fees that are set by act, regulation or fees notice that are not subject to an annual or periodic adjustment via an act (besides the Service Fees Act) or another instrument made under an act. Currently, the only fees charged by PSPC for which this mandated adjustment applies are the Canada Gazette insertion fees. Please visit the Canada Gazette website for the latest rates.

The annual inflation adjustment does not apply to the fees listed in the Esquimalt Graving Dock Regulations. This is because of the annual adjustment factor set out in the regulations, which indicates that the fees are to be adjusted annually using a formula. Please visit the Esquimalt Graving Dock website for the latest rates.

Public Services and Procurement Canada’s Policy on Remissions

Per the Service Fees Act, Government of Canada departments and agencies that charge fees for services that are subject to performance standards must have a publicly available remissions policy. PSPC’s Policy on Remissions takes effect on April 1, 2021. This policy is based on requirements of the Service Fees Act and the related TB policies, and presents the conditions under which a fee payer must be reimbursed through a “remission” as a result of PSPC failing to meet its performance standards. It will be reviewed regularly by the department to ensure it remains relevant and complies with legislative and policy requirements.

Remission of fees

A “remission” is the reimbursement to a fee-payer of a fee or portion of a fee paid in respect of a service, use of facility, or right or privilege for which the department determines the service standard was not met.

PSPC has performance standards set for the services it provides. If PSPC considers that it did not deliver a service according to these standards, it must issue a refund of part of the fee, known under the Service Fees Act as a “remission”.

The amount of the remission will be determined based on the proportion to which the performance standard was not met.

Tracking results against performance standards

According to the Service Fees Act and TB Directive on Charging and Special Financial Authorities, PSPC must:

• create a performance standard for applicable service fees (see section on service fees subject to performance standards and remissions)
• compare results against the standard to make sure targets are being met

Performance standards set expectations about the services provided, keep the department accountable for the services delivered, and also help set realistic service expectations. More importantly, performance standards support the Government of Canada’s commitment to Canadians for transparency, management accountability, and citizen-focused service.

PSPC monitors its results against its performance standards for the service fees that are subject to the performance standards requirements.

To see our latest results, which are published in the annual fees report, please see PSPC’s fees reports.

Service fees subject to performance standards and remissions

Performance standards and remissions only apply to fees that meet the following criteria:

• The fee is charged to non-federal entities (for example: crown corporations, private businesses, general public, etc.)
  • fees charged to federal entities (those organizations listed in schedules I, I.1 or II of the Financial Administration Act) are not subject to remissions
• The fee is set by an act, regulation, or fees notice
• The fee is for a service, the use of a facility, or the conferral, by means of a licence, permit or other authorization, of a right or privilege

PSPC’s Policy on Remissions applies to the following service fees charged by the department:

• fees listed in the dock charges schedule to the Esquimalt Graving Dock Regulations
• Canada Gazette insertion fees, Publish a notice in the Canada Gazette

Per the Service Fees Act, remissions do not apply to fees fixed under the Access to Information Act or the Privacy Act.

PSPC will update the list of service fees subject to performance standards and remissions on an annual basis.

Principles concerning remissions

The following section covers PSPC’s principles regarding remissions, and is based on the requirements of the Service Fees Act and the TB Directive on Charging and Special Financial Authorities, the policy that governs many of the requirements related to service fees.

1. Remissions will be issued proactively
   • PSPC will assess its results against performance standards on a regular basis. If the department owes a remission, reasonable efforts will be made to issue the remission in a timely manner and in any case no later than June 30 in the following fiscal year. PSPC will process the remission amounts automatically; service recipients will not have to make a request.
2. Remissions do not include interest
   • PSPC will not pay interest on any remissions owed. However, PSPC will make reasonable efforts to issue remissions in a timely manner.
3. Remissions are proportional to the degree to which the performance standards was not met
   • PSPC will calculate a remission based on the fee (excluding taxes), and on the proportion to which the performance standard was not met.
   • For example, for services with a unit fee, PSPC will base any adjustments or corrections to the number of units billed on a review of the work done within the performance standard timeframe.
4. Remission amounts will depend on the presence of circumstances beyond the department’s control
   • If PSPC fails to meet its performance standards and must issue a remission, the department will consider if there were any delays because of circumstances beyond its control. If this happens, PSPC will not include the unforeseen delay when calculating the time it took to deliver the service.
   • Examples of circumstances beyond the department’s control include (but are not limited to):
     • unforeseen weather conditions
     • complex travel to reach the location where the service is delivered
     • emergencies
5. Remission amounts will reflect any role that the fee-payer may have played in the standard not being met
   • This principle applies to scenarios in which a service is delayed because of actions on the part of the service recipient. If a service recipient plays a part in a delay, PSPC will adjust performance results to factor in the delay. As an example, service is delayed because the service recipient needed to provide additional information. If, once such actions are taken into account PSPC still does not meet the performance standard, a remission will be issued.