Date: 20100805
Docket: IMM-804-09
Citation: 2010 FC 803
Ottawa, Ontario, August 5, 2010
PRESENT: The Honourable Mr. Justice Mosley
BETWEEN:
TAO
LI
Applicant
and
THE MINISTER OF CITIZENSHIP
AND IMMIGRATION
Respondent
REASONS FOR JUDGMENT AND JUDGMENT
[1]
This
is an application for judicial review pursuant to Section 72 of the Immigration
and Refugee Protection Act, S.C. 2001, c. 27 (IRPA) of the decision to
charge the applicant the fee payable pursuant to paragraphs 295(1)(a) and
295(3)(a) of the Immigration and Refugee Protection Regulations,
SOR/2002-227 (the Regulations) on August 7, 2003.
[2]
The
applicant is challenging paragraph 295(3) (a) of the Regulations, alleging that
it conflicts with the enabling authority set out in subsection 19(2) of the Financial
Administration Act, R.S.C. 1985, c. F-11 (FAA). The applicant has indicated
that if the Court agrees that these fees are illegal, he intends to seek
conversion of the judicial review into an action, certification of a class, and
restitution or damages for members of the class who have been charged such
fees.
[3]
These
are my reasons for concluding that the fees provided for in paragraph 295(3) (a)
are not illegal and for dismissing the application.
BACKGROUND
[4]
The
applicant is a 41-year-old Canadian citizen who sponsored his parents, who are
citizens of China, to become
permanent residents of Canada. The applicant submitted his sponsorship
application to the respondent on August 7, 2003, and paid a sponsorship fee of
$75.00 and PR application fees totalling $1025.00.
[5]
The
sponsorship application was approved on October 12, 2005 and the parents
submitted applications for permanent residence on November 1, 2005. They were
issued permanent resident visas on February 15, 2007.
[6]
Family
reunification is an important objective of the Canadian immigration system. To
this end, Citizenship and Immigration Canada (CIC) allows Canadian citizens and
permanent residents to sponsor their close family members to apply for
permanent resident status. If successful, this permits the family members to
immigrate to Canada even if they
do not meet the selection criteria that would otherwise be required.
[7]
The
Regulations create a two-step process for Family Class applications. First, the
sponsor must submit a sponsorship application. Second, once it is approved, the
family members can submit “sponsored” applications for permanent residence.
[8]
Under
the former Immigration Act, the sponsor paid a single fee for the
processing of both applications. However, under the current Regulations made
pursuant to the IRPA, two separate fees are payable: one for processing the
sponsorship application under subsection 304(1) (“sponsorship fee”), and one
for processing the application for permanent residence under paragraph 295(1) (a),
(“PR application fee”).
[9]
Pursuant
to paragraph 295(3) (a), the PR application fee is payable when the sponsorship
application is submitted at the first step of the process, even though the fee
relates to the second step (processing the application for permanent
residence). In effect, this was a continuation of the practice under the former
legislative regime. A significant difference is that under the former Act, none
of the fee was refunded if the sponsorship application was denied. Under IRPA,
the PR application fee is fully refundable if the sponsorship application is
rejected or withdrawn.
[10]
At
the outset of the transition to the IRPA, the delay between processing the two
applications was minimal. However the volume since then has grown
significantly. As a matter of policy, applications for spouses and dependent
children are expedited. The sponsorship application and PR application are
submitted together and the government has undertaken to process them within six
months.
[11]
For
parents and other family members, the practice of sequentially processing the
applications is maintained. In practice then, the fee for the second step is
paid long before that step actually takes place. Indeed, the evidence before
the Court suggests that in a typical case, processing of the application for permanent
residence for a parent or grandparent, as of March 2010, will not begin until
approximately 34 months after the PR application fee is paid. At that point,
the sponsor is advised of the result of the eligibility determination. The
sponsor may elect to have the PR application considered whether the sponsorship
application is successful or not. In either event, the PR application form is
not sent out until the sponsorship application is determined.
[12]
If
the sponsorship application is refused, and the second step never occurs, the
PR application fee is fully refundable. Each year, according to the evidence, approximately
2.5% of sponsorship applications are refused. This estimate, while not accepted
by the applicant, was not seriously contested in these proceedings. In
addition, the sponsor may withdraw the sponsorship application. If the
application is withdrawn before the PR application is processed the fee paid is
refunded. It is clear, however, that the vast majority of sponsorship and PR
applications proceed, as in the instant case.
[13]
The
affidavit evidence of Michele Naughton, CIC policy analyst, is that it makes
practical sense for CIC to collect both fees at the start of the 2-step process
because once step 1 is successfully completed, the Department can move on to
step 2 in 97.5% of the cases without the time, effort and delay associated with
having to request and then wait to collect the PR processing fee. Ms. Naughton
deposed that the addition of an additional step to request and process the PR
application fee would result in a greater loss than that currently incurred by
the federal government.
[14]
The
applicant’s attempts to recover the PR application fee began with an action
commenced in this Court in Court File IMM-5065-05. The action is being
specially managed by Mr. Justice Sean Harrington. It was stayed by Order of
Justice Harrington on September 5, 2006 and remains stayed pending the outcome
of the present application for judicial review.
[15]
This
judicial review application was filed on February 19, 2009 and is also being
specially managed by Justice Harrington. In it, the applicant seeks a
declaration that s.295 (3) (a) of the Regulations is ultra vires and of
no force or effect, and that the respondent behaved illegally in charging him
the PR application fee in August 2003. The parties agree, as do I, that
according to the Federal Court of Appeal’s decision in Canada v. Grenier, 2005 FCA 348, [2006] 2
F.C.R. 287, such a declaration is a prerequisite to the action for damages that
the applicant intends to bring against the respondent to recover the PR
application fee.
ISSUES
[16]
In
written submissions, the applicant challenged the admissibility of certain
affidavit evidence filed by the respondent for, among other grounds, containing
statements based on information and belief, without specifying the sources of
the belief or explaining the failure to provide evidence from people with
personal knowledge of the facts: section 81 of the Federal Courts Rules,
SOR/98-106; Tataskweyak Cree Nation v. Sinclair, 2007 FC 1107.
[17]
In
oral argument, counsel for the applicant chose not to press that challenge and
conceded that it was not material to the main issues in the case. I agree but note
for the record that I find that the factual content of the impugned affidavits is
admissible as necessary and reliable for the determination of the application. Nor
is this a case where I would draw an adverse inference from the failure of the
respondent to provide evidence of persons having personal knowledge of material
facts. The sources of the deponents’information and belief, as representative
witnesses for a large government department, was satisfactorily explained.
[18]
I
agree with the applicant that portions of the Naughton affidavit are
argumentative and draw legal conclusions about the appropriateness and validity
of the respondent’s policy choices. As a result, I have given them little or
no weight: Canadian Tire Corp. v. Canadian Bicycle Manufacturers’ Assn.,
2006 FCA 56.
[19]
Although
the respondent had taken the position in written submissions that the
application for judicial review was moot as the applicant’s PR application had
been processed and granted, counsel for the respondent acknowledged at the
hearing that there remains a live controversy between the parties and did not
press the mootness issue. I am satisfied that this matter is not moot. The
applicant is claiming that he was charged the PR application fee illegally and
seeks to recover those funds, which remains a live issue. In any event, even if
it were moot this would be an appropriate case to exercise the Court’s
discretion in favour of determining the issue: Borowski v. Canada (Attorney
General),
[1989] 1 S.C.R. 342.
[20]
Consequently,
the remaining issue between the parties to be determined is whether paragraph
295(3) (a) of the Regulations is ultra vires in that it conflicts with
section 19 of the FAA.
POSITIONS OF THE PARTIES
[21]
Although
the applicant successfully brought his parents to Canada as permanent
residents, he asserts that he should not have had to pay the PR application fee
in August 2003, since his parents’ applications for permanent residence could
not be submitted (let alone processed) before October 2005. Indeed, the
applicant says, if the timing of the PR application fee makes the fee illegal,
he should not have had to pay it at all.
[22]
The
applicant submits that paragraph 295(3) (a) of the Regulations is illegal
because it exceeds the enabling authority found in subsection 19(2) of the FAA.
Subsection 19(2) authorizes fees on a cost recovery basis, so a fee can only be
charged for a service that is actually provided. The effect of paragraph
295(3)(a), the applicant submits, is to charge a fee for a service, processing
applications for permanent residence, that will not be provided for many months
and may never be provided at all (if the sponsorship application is refused or
withdrawn).
[23]
As
well, the applicant contends, early collection of the PR application fee is
unfair. Even if the service is ultimately provided, or if it is not provided but
the fee is refunded, the sponsor has lost the ability to use the money in the
interim. The FAA cannot have been intended by Parliament to authorize an
interest-free loan to the government.
[24]
The
applicant submits that this interpretation of the FAA is supported by
principles of statutory interpretation, as set out in Chieu v. Canada (Minister of Citizenship
and Immigration),
2002 SCC 3, [2002] 1 S.C.R. 84 at para. 27:
Today
there is only one principle or approach; namely, the words of an Act are to be
read in their entire context and in their grammatical and ordinary sense
harmoniously with the scheme of the Act, the object of the Act, and the
intention of Parliament.
[25]
The
applicant says that Parliament’s intention is not to authorize charges of fees
for future services that may never be provided. The wording of FAA subsection 19(2)
refers, in the past and present tenses, to a service “provided” and the cost of
“providing” it; there is no language suggesting it could apply to future
services. Another part of the FAA, subsection 20(1), deals with future services
by providing for the return of deposits. It would be illogical to interpret
subsection 19(2) as also applying to future services, the applicant submits.
[26]
The
primary position advanced by the respondent was that both the sponsorship fee
and the PR application fee apply to the single service of bringing the
sponsor’s family members to Canada. Processing the application for permanent
residence is merely an aspect of that overall service. Section 19 of the FAA is
broad enough to authorize two fees that are charged at the same time, for two
“services” which are both part of the same process. The respondent relies for
this proposition on Vaziri v. Canada (Minister of
Citizenship and Immigration), 2006 FC 1159, 300 F.T.R. 158.
[27]
The
respondent also made several other arguments. First, even if each step in the
Family Class application process is a separate “service,” there are several
practical benefits to charging the fees for both services at the same time. As
well, the respondent stressed, the current scheme is friendlier to sponsors
than the scheme that existed under the former Immigration Act. Under
that scheme, CIC charged a single, non-refundable fee to process both
applications. Now, CIC charges two separate fees, so if the sponsorship
application is refused, the PR application fee can be refunded.
[28]
Second,
the respondent submits that the applicant’s concern is only with the timing of
the PR application fee. He does not object in principle to paying it; he only
says it should not be payable as early as it is. However, subsection 19(2) of
the FAA only deals with the quantum of fees, not with their timing. The FAA
does not constrain the government from charging a fee in advance of providing a
service.
[29]
Third,
in Vaziri, above, the respondent argues, this Court decided that the
length of time that elapses between CIC’s collection of service fees and its
processing of Family Class applications is an acceptable result of its
legitimate policy decisions.
[30]
Fourth,
the respondent contends, regarding the applicant’s concern that the application
for permanent residence might never be processed (if the sponsorship
application is refused), the evidence indicates that only 2.5% of sponsorship
applications are refused, and if this happens, the PR application fee is fully
refundable.
[31]
Finally,
although the respondent admits that the purpose of subsection 19(2) is to authorize
cost recovery fees, cost recovery does not have to be perfect. The law only
requires that the fees be related to the costs of the service. The respondent says that
in the present context, the costs exceed the fees by approximately $735 per
Family Class application, so the fees are clearly a cost recovery measure.
[32]
In
reply, the applicant argues that it is irrelevant that the current fee
structure provides practical benefits to CIC and is more favourable to sponsors
than the scheme under the previous Immigration Act. That alone does not
make the PR application fee justifiable as a cost recovery measure.
[33]
As
well, the applicant says, Vaziri did not decide the issue at bar. Vaziri
held that CIC is entitled to give priority to certain Family Class
applications, and may thereby delay in processing others. Vaziri did not
decide whether, given that delay, CIC can charge a fee years before processing
takes place.
[34]
The
applicant also submits that it is immaterial that only 2.5% of sponsorship
applications are refused, assuming that figure is accurate. As long as some are
refused and others are withdrawn, sponsors are being charged the PR application
fee for a service that is never performed in those cases. That makes the fee illegal.
[35]
While
not directly at issue in these proceedings, the applicant challenges the
respondent’s claim that the costs of providing the service greatly exceeds the
fee charged and questions the method used to calculate the costs. Those issues
are before the Court in another matter.
STATUTORY FRAMEWORK:
[36]
Subsections
19 (1) and 19 (2) of the Financial Administration Act state:
19 (1) The
Governor in Council may, on the recommendation of the Treasury Board,
|
19.
(1) Sur recommandation du Conseil du Trésor, le gouverneur en conseil peut:
|
(a)
by regulation prescribe the fees or charges to be paid for a service or the
use of a facility provided by or on behalf of Her Majesty in right of Canada
by the users or classes of users of the service or facility; or
|
a) fixer par règlement, pour la
prestation de services ou la mise à disposition d’installations par Sa
Majesté du chef du Canada ou en son nom, le prix à payer, individuellement ou
par catégorie, par les bénéficiaires des services ou les usagers des
installations;
|
(b)
authorize the appropriate Minister to prescribe by order those fees or charges,
subject to such terms and conditions as may be specified by the Governor in
Council.
|
b) autoriser le ministre compétent à
fixer ce prix par arrêté et assortir son autorisation des conditions qu’il
juge indiquées.
|
(2) Fees and
charges for a service or the use of a facility provided by or on behalf of
Her Majesty in right of Canada that are prescribed under subsection (1) or
the amount of which is adjusted under section 19.2 may not exceed the cost to
Her Majesty in right of Canada of providing the service or the use of the
facility to the users or class of users.
|
(2)
Le prix fixé en vertu du paragraphe (1) ou rajusté conformément à l’article
19.2 ne peut excéder les coûts supportés par Sa Majesté du chef du Canada
pour la prestation des services aux bénéficiaires ou usagers, ou à une
catégorie de ceux-ci, ou la mise à leur disposition des installations.
|
[37]
Subsection
20(1) of the FAA states:
20. (1) Where
money is received by a public officer from any person as a deposit to ensure
the doing of any act or thing, the public officer shall hold or dispose of
the money in accordance with regulations of the Treasury Board.
|
20.
(1) Le fonctionnaire public qui reçoit des fonds à titre de cautionnement en
garantie d’exécution d’un acte ou d’une chose les conserve ou en dispose
conformément aux
règlements
du Conseil du Trésor.
|
[38]
Subsection
295(3)of the Immigration and Refugee Protection Regulations came into effect on June
28, 2002 pursuant to the regulation-making and fee-setting powers granted to
the Governor-in-Council under s. 5 (1) and s. 89 of the IRPA and s. 19 (1) of
the FAA. Subsection 295 (3) reads as follows:
295. (3) A fee
payable under subsection (1) in respect of a person who makes an application
as a member of the family class or their family members
|
295. (3) Les frais prévus au
paragraphe (1) à l’égard de la personne qui présente une demande au titre de
la catégorie du regroupement familial ou à l’égard des membres de sa famille
sont :
|
(a) is
payable, together with the fee payable under subsection 304(1), at the time
the sponsor files the sponsorship application; and
|
a)
exigibles au moment où le répondant dépose sa demande de parrainage, à
l’instar des frais prévus au paragraphe 304(1);
|
(b) shall be
repaid in accordance with regulations referred to in subsection 20(2) of the
Financial Administration Act if, before the processing of the application for
a permanent resident visa has begun, the sponsorship application is withdrawn
by the sponsor.
|
b) restitués conformément aux règlements visés au paragraphe
20(2) de la Loi sur la gestion des finances publiques, si la demande
de parrainage est retirée par le répondant avant que ne débute l’examen de la
demande de visa de résident permanent.
|
DISCUSSION
Standard of Review
[39]
Considerable
deference is owed to the policy choices made by the government: Thorne’s
Hardware Ltd. v. Canada, [1983] 1 S.C.R. 06; Sunshine Village Corp. v. Canada
(Parks), 2004 FCA 166 and De Guzman v. Canada (Minister of
Citizenship and Immigration), 2005 FCA 436.
[40]
These
authorities have cautioned that a regulation should only be found to be invalid
if it conflicts with the express language of the enabling statute. This application
for judicial review asks whether a regulation is ultra vires one
of its enabling statutes. This is a “true question of jurisdiction or vires”
which should be reviewed on the standard of correctness: Sunshine Village,
above at paragraph 10; Canadian Council of Refugees v. Canada, 2008 FCA
229, [2009] 3 F.C.R. 136 at paras. 53-63; Dunsmuir v. New Brunswick, 2008 SCC 9,
[2008] 1 S.C.R. 190 at para. 59.
Is paragraph 295(3) (a)
of the Regulations ultra vires?
[41]
As
stated by the Federal Court of Appeal in Jafari v. Canada (Minister of
Citizenship and Immigration), [1995] 2 F.C. 595, at pages 5-6, it is not
for a court to determine the wisdom of delegated legislation or to assess its
validity on the basis of the court’s policy preferences.
[42]
I
am mindful of the fact that the applicant has submitted evidence that the
merits of the policy decision to require payment of the PR application fee at
the same time as the sponsorship application fee has been called into question
by government officials. Moreover, on cross-examination, the respondent’s
deponents conceded that it would be administratively feasible to require
payment of the PR application fee at the same time as the application form is
completed and submitted.
[43]
I
note that there was also evidence that bifurcating the payments would increase
the costs and complexity of administering the scheme. In any event, the issue
before the Court is not whether such a policy change would be reasonable or
wise but whether the existing policy, as reflected in the regulation, falls
within the scope of the enabling authority.
[44]
The
applicant’s interpretation of s.19(2) appears at first impression to be
supported by the use in the English version of the enactment of the words
“providing” and “provided,” in the present and past tenses. “Providing” is used
in the phrase, “the cost to Her Majesty in Right of Canada of providing the
service.” This seems to refer to the cost of the service whenever it is
provided. It does not imply, however, that the service must be provided at a
particular time. The phrase “fees or charges for a service . . . provided by on
or on behalf of Her Majesty in Right of Canada” appears to refer to a service
that has been provided at a point in time prior to the imposition of the fee or
charge.
[45]
Read
as a whole, in my view, in a manner consistent with the modern approach to
statutory interpretation, the English and French versions of s. 19 (2) do not preclude
the imposition of a fee to recover the costs incurred by the government in
providing services well in advance of the delivery of those services. The
subsection requires that the fee charged may not exceed the cost (ne peut excéder les
coûts supportés par Sa Majesté) to the Crown in providing the service. Nor does
FAA 19 (2) require that the service for which the fee is charged be performed
in a reasonable time-period.
[46]
In
Vaziri a delay of 34 months was found to be acceptable in the
circumstances. However, I agree with the applicant that Vaziri is not
helpful in resolving the issue at bar. Vaziri was an application for a mandamus
order to force CIC to make a decision on a Family Class application. The Court
held that CIC was entitled to make policies prioritizing sponsorship
applications for spouses and children over applications for parents and grandparents.
In light of CIC’s valid policy decision, the delay was not excessive. This
finding has little relevance to the question of whether a cost recovery fee is authorized
under the FAA when the service may never be performed. Vaziri holds
that the applicant cannot legitimately expect to have the service provided
earlier.
[47]
The
applicant’s interpretation of the scope of s. 19 (2) is not, in my view,
assisted by the fact that deposits for future services are dealt with expressly
in s.20(1) of the FAA. Such deposits are fundamentally different from service
fees. Future services can be dealt with under a deposit-return regime while
also attracting fees. FAA
19 (2) does not impose a temporal limitation on the delivery of the services
for which the fee is charged. I think it also self-evident that where a fee is
charged in advance of delivery some proportion of the services may never be
performed.
[48]
The
respondent has relied on three cases in support of the propositions that the
only requirement for a cost recovery fee is that the quantum of the fee be
related to the cost of the service and that there is no requirement as to
timing: Thorne’s
Hardware Ltd. v. Canada, above, Eurig Estate (Re), [1998] 2 S.C.R. 565,
and 620 Connaught Ltd. v. Canada (Attorney General), 2008 SCC 7, [2008]
1 S.C.R. 131.
Two of these decisions deal with regulatory charges, not user fees. In 620 Connaught the Supreme
Court explains the difference at paras. 19-20:
A
user fee, by definition, is a fee charged by the government for the use of
government services or facilities. In the case of user fees, as stated by this
Court in Eurig, there must be a clear nexus between the quantum charged and the
cost to the government of providing such services or facilities. The fees
charged cannot exceed the cost to the government of providing the services or
facilities [. . .].
By
contrast, regulatory charges are not imposed for the provision of specific
services or facilities. They are normally imposed in relation to rights or
privileges awarded or granted by the government. The funds collected under the
regulatory scheme are used to finance the scheme or to alter individual behaviour. The fee may be set simply to defray the
costs of the regulatory scheme. Or the fee may be set at a level designed to proscribe,
prohibit or lend preference to a behaviour
[.
. .].
[49]
It
is clear that s.19 of the FAA authorizes user fees, not regulatory charges. The
issue in the case at bar is whether the impugned fee is a proper user fee at
the time at which it is imposed. 620 Connaught does not assist with this
question, because in that case there was “no suggestion” that user fees were
involved (paras. 17, 21). Consequently, the Court did not analyse the requirements for
user fees in any detail.
[50]
Similarly,
as I read Thorne’s Hardware, the Supreme Court upheld the fee in
question because the relevant legislation authorized regulatory charges. A harbour could charge a fee to a
ship that did not use any services at all, because it was entitled to charge
fees “reasonably related to the [overall] costs of operating the harbour.” I am
not persuaded that the Court would have upheld the fees had it interpreted the
legislation as only authorizing user fees for specific services.
[51]
The third case cited by
the respondent, Eurig, does deal with user fees. Eurig says, at
paragraph 21 of the reasons of Justice Major for the majority, that for a user
fee to be valid a nexus must exist between the quantum of the fee and the cost
of providing the corresponding service. Fees and costs need not correspond
exactly, as long as a reasonable connection is shown. Eurig contains no
timing-related requirements for a user fee. If the evidence does establish a
reasonable connection between the quantum of the fee and the cost of providing the
services, that should be sufficient to bring the fee within FAA s.19 (2).
[52]
In
my view, the evidence in this case, although disputed, does demonstrate that
there is at least a reasonable connection between the fee charged and the cost
of the services provided. The evidence, including that of a costing specialist,
Diane Platt, indicates that there are a number of variables to be taken into
account in assessing whether cost recovery is achieved or not. Whether the
precise amount is valid, I leave for determination on another day. But I accept
the respondent’s argument that there is a clear nexus between cost and fee.
[53]
At
first impression, I was attracted to the applicant’s argument that advance
payment of the fee could not be justified so long as any of the PR applications
would not be processed because of the sponsor’s ineligibility; whether it was
the government’s estimate of 2.5% or some other figure. On reflection, I do not
think that the vires of a fee charging regulation should be determined
on the basis that in some minor proportion of cases the service will never be
provided because of the failure of a prerequisite event, in this case the
eligibility of the sponsor. Particularly where the evidence is clear that in
the vast majority of cases, the prior determination is positive.
[54]
My view
is strengthened by the fact that in the present context, applicants may choose
to proceed with the PR application even where the sponsor is found to be
ineligible and the application is, therefore, likely to be futile. They may
choose to do so in order to appeal the resulting decision to the Immigration
Appeal Division in order to take advantage of the examination of humanitarian
and compassionate considerations in that forum. In either case, the cost of
processing the application is incurred by CIC. And where the application is not
processed, the fee is refunded.
[55]
During
the course of the hearing I asked counsel whether Canadian Shipowners Assn.
v. Canada, [1997]
F.C.J. No. 1002 (QL) (T.D.), aff’d 233 N.R. 162 (C.A.), not cited by either
party, could be of assistance to the Court in deciding the issue in this case. Counsel
were familiar with the decision as it relates to the questions before the Court
in another matter but had not considered its application in these proceedings.
I invited post-hearing submissions which the parties provided in writing. Both
contend that Canadian Shipowners supports their positions.
[56]
Canadian
Shipowners
involved fees payable for Coast Guard marine navigation aids and other services
to commercial shipping, such as buoys, beacons and lighthouses. The Court
held that the clear objective of FAA s.19 (2) is to recover, from users, the
costs incurred by the government in providing them a benefit. The
Governor-in-Council’s discretion over regulations is constrained by the need to
respect this purpose. It was alleged that the fees in question could not be “cost
recovery” fees, since foreign and domestic ships were charged different amounts
although the costs of providing services to each ship was the same. Justice
Paul Rouleau disagreed, and based on the evidence before him, held that the fee
structure reflected the realities of the shipping industry. Therefore, they
were valid cost recovery fees.
[57]
Justice
Rouleau found that it was legitimate to charge fees at different times for
domestic and foreign vessels. Foreign ships were charged, depending on the region,
either upon entering Canadian waters or upon unloading goods. Since Canadian
ships can move freely within Canadian waters, however, the Coast Guard cannot
obtain specific data on their movements and loading/unloading activities.
Instead, they were charged on an annual basis. This discrepancy in the timing
of fees was acceptable, because it was made in good faith based on the
practical realities of the shipping industry.
[58]
Based
on Canadian Shipowners, I conclude that in considering whether a
regulation lawfully imposes user fees under the enabling authority in FAA s. 19
(2) the practical realities of providing the service in question must be taken
into account. In the case at bar, the timing of imposition of the permanent
residence application fee appears to reflect the practical reality of
processing sponsorship and permanent residence applications. I agree with the
respondent that this is effectively one service and accept the evidence that
imposing the fee for both applications reflects the need for efficiency in an
already lengthy process, by processing two fees at once and by doing so early
on so that services are not delayed later.
CONCLUSION:
[59]
Charging
fees in advance of providing a service is an ordinary and uncontroversial
practice and does not render a fee imposed by a regulation ultra vires
FAA s. 19 (2) so long as there is a clear nexus between the fee and recovery of
the costs incurred by the government for services provided or to be provided.
Nor is the regulation in conflict with the enabling authority when, in some
instances, the service for which the fee is paid cannot be performed because of
the failure of an intervening act or event.
[60]
In this instance, the government has made a policy choice to require
payment of a fee in advance recognizing that in a small proportion of cases the
service will not be provided and the fee must be refunded. I am not persuaded
that this renders the regulation ultra vires, particularly in light of
the evidence that only a small percentage of sponsorship applications are
rejected. The vast majority are granted and proceed to the PR application. The
fee is fully refundable in those cases where the sponsorship applicant is found
to be ineligible and has elected not to proceed with the permanent resident
application notwithstanding that result. In my view, that brings the regulation
within FAA s.19 (2). For these reasons, I find that s.295 (3) (a) is intra
vires its enabling authority insofar as there is a clear nexus between the fee
and the costs incurred in providing the service.
CERTIFIED QUESTION:
[61]
The
parties have jointly submitted the following question for certification:
Is Immigration and Refugee Protection
Regulation 295 (3) (a), as applied to sponsored immigrant visa applications
made by parents and grandparents, ultra vires on the ground it is
inconsistent with s.19 of the Financial Administration Act?
[62]
I
am satisfied that this is a serious question that lends itself to an answer of
general application and would be dispositive of an appeal: Zazai v. Canada (Minister of
Citizenship and Immigration), 2004 FCA 89; 318 N.R. 365; Boni v. Canada (Minister of
Citizenship and Immigration), 2006 FCA 68; 357 N.R. 326. Accordingly I
am prepared to certify it pursuant to paragraph 74(d) of the IRPA and Rule
18(1) of the Federal Courts Immigration and Refugee Protection Rules/
SOR 93-22, as am.
JUDGMENT
IT IS THE JUDGMENT OF
THIS COURT that:
- the application for
judicial review is dismissed, and
- the following
question is certified as a serious question of general importance;
Is Immigration and Refugee Protection
Regulation 295 (3) (a), as applied to sponsored immigrant visa applications
made by parents and grandparents, ultra vires on the ground it is
inconsistent with s.19 of the Financial Administration Act?
“Richard
G. Mosley”