Government has pocketed $1-billion since 2013 increase in passport cost

Good ATIP work by Richard Kurland. Usual bafflegab responses. Should demand decrease because of 10 year passports, presumably so should the size of Passport Canada with unit costs remaining stable.

Particularly hard to see how the fee structure, and surpluses, comply with the Service Fees Act implemented by the current government in 2017:

The federal government has made more than $1-billion in profits from its passport program since significantly increasing the cost of a Canadian passport five years ago, according to newly released documents.

Canadian adults pay anywhere from $120 to $160 for an adult passport, despite the fact that it only cost the government $69.23 to produce the 36-page travel document in the 2016-17 fiscal year, according to immigration documents provided to The Globe and Mail by Vancouver-based immigration lawyer Richard Kurland. The price increase appears to have contributed to hundreds of thousands of dollars in annual surpluses for the passport program from 2013 to 2017, totalling more than $1-billion over four years.

Mr. Kurland, who obtained the data under the Access to Information Act, said it is inappropriate for Ottawa to profit off the backs of Canadian taxpayers.

“A billion dollars made in just four years is a lot of money and the money comes directly from individual Canadians who are overpaying for their Canadian passports,” Mr. Kurland said in an interview.

“Instead of keeping the profit, they should be lowering the passport fee.”

Former prime minister Stephen Harper’s government increased the cost of passports in 2013 in an effort to cover the nearly $5 it was losing every time it issued a passport. In addition to boosting the cost of a five-year passport from $87 to $120, the government also started providing a 10-year passport at a cost of $160, increased the cost of a child’s passport by $20 to $57 and introduced a $45 replacement fee for lost or stolen documents.

Canadians ordering passports from outside of the country face the biggest fees today – $190 for a five-year passport or $260 for the 10-year document.

Immigration, Refugees and Citizenship Canada (IRCC) said in a statement that the passport program operates on a “cost-recovery basis,” meaning it finances its operations entirely from fees charged for passports and other travel documents. IRCC spokesperson Nancy Caron said the program is currently in the middle of its 10-year business cycle, which started in July, 2013, and plans to use revenues from the first half of that period to offset the anticipated drop in demand for passports as a result of the 10-year passport option.

“No changes are currently planned to the passport fee structure. The passport program closely monitors its financial status to ensure that it is in compliance with all relevant authorities governing the program,” Ms. Caron said.

However, NDP immigration critic Jenny Kwan called on the government to conduct a full review of the passport-fee structure.

“The cost of the processing fees for passports should reflect the actual cost itself,” Ms. Kwan said.

Ms. Kwan said high passport costs limit the ability of low-income Canadians to obtain the important travel document. For instance, she said, many seniors in her Vancouver-area riding have complained about the high cost of a passport on a fixed income.

The Conservatives declined to comment on the passport-program profits.

Comparatively, American adults pay US$145 for a new 10-year passport, while British citizens are required to pay the equivalent of about $115.

via Government has pocketed $1-billion since 2013 increase in passport cost – The Globe and Mail

About Andrew
Andrew blogs and tweets public policy issues, particularly the relationship between the political and bureaucratic levels, citizenship and multiculturalism. His latest book, Policy Arrogance or Innocent Bias, recounts his experience as a senior public servant in this area.

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