If you have an Ontario driver’s licence that’s coming up for renewal, you might be digging a little deeper into your wallet than you have in the past. The fee to renew an Ontario licence has sat at $75 since 2004, but starting in 2013, the price is going up to $80 a pop. This, along with several other small fees across the board for Ontario’s drivers, has led the Trillium Automobile Dealers Association to issue an open letter to Minister of Transportation Bob Chiarelli, expressing its disappointment.
“This announcement was a big surprise to the automobile industry stakeholders and the public, since the McGuinty government made it clear there would be no tax increases,” writes Frank Notte, director of government relations at the TADA.
Several other user fees will also be getting a bump in price starting next year, though many of them haven’t seen an increase in anywhere from 15 to 24 years. The cost of driver examination fees will also be going up by $5 or $10 each, depending on the test (not increased since 1994), as well as the driver’s licence replacement fee, going up this year from $10 to $15, and continuing to rise until it’s set at $25 in 2014 (this fee was last increased in 1989). Commercial vehicle, farm vehicle and bus validation fees will increase as well. Plate renewal fees will jump $8 to $82 this year for southern Ontario drivers, and $4 to $41 for northern Ontario drivers.
A full list of the fee changes can be found here. http://www.mto.gov.on.ca/english/news/backgrounder/fee-changes-2012-03-12.shtml
The Ontario government has stated that the increase in fees will be used to repair and maintain provincial roads and bridges, though the added income will go first into general revenue.
Chiarelli said of the increase: “Our government is making thoughtful choices to eliminate the deficit and keep Ontario’s economy on track, while making sure our roads and bridges remain in good repair.”
In its letter to Chiarelli, the TADA asks that the Ministry of Transportation adopt a policy of increased transparency with the additional funds, so drivers who are now paying more for services will be able to see exactly where the money is going. The TADA issued three requests of the Ministry of Transportation:
1) Every year, publicly disclose how much extra revenue these increases will generate in a separate line item in your Ministry’s budget;
2) Every year, publicly disclose where the money will be re-directed; and
3) Every year, publicly disclose which specific road and bridge projects will benefit from this extra money and include the project’s total cost.
“By acting upon the above recommendations,” writes Notte, “drivers will be able to clearly track how much money is actually being spent on roads and bridges, and how much goes towards paying down Ontario’s projected $30 billion deficit.”
A silver lining, perhaps, to strapped Ontario drivers comes with the commitment that the McGuinty government will not be going ahead with the recommendation (of the Drummond report) to charge parking fees at GO Transit parking lots.
