Clear As Mud

The OMVIC transaction fee increase came into effect this fall, bringing the fee to $22. This increase came after a previous increase (from$10 to $12.50) just last year. OMVIC also implemented huge increased fees for registrant applications, changes, renewals, branch fees, and even introduced late fees.

Most recently, OMVIC announced that it would be charging registrants $99 for mandatory, continuing professional development (CPD). The justification for these fee increases was to help OMVIC better meet its operational needs, including hiring more employees (from 140 in 2022 to a planned number of 180 in 2026).

Somewhere along the way, OMVIC has lost sight of the fact they are a NOT FOR PROFIT CORPORATION. Looks like the Ontario Government may finally be taking notice. Is it just because we have been crying blue murder about this for months? More likely it’s because we are not the only ones who are. As you know, Doug Ford responds when he hears opposition clearly expressed.

OMVIC’s plan made little sense to the UCDA back in May when we questioned whether dealers could afford OMVIC. This plan makes even less sense to us now that Ontario has announced a “hiring freeze” for all of its provincial agencies (which OMVIC is considered part of).

It seems that the Provincial Government has become aware of the bloat in some of our provincial agencies and has made a commitment to scrutinize and have these agencies obtain approval for hiring plans going forward. While this is great news, it is too little too late, since it comes after the fee increases which OMVIC announced in order to facilitate its expansion.

The news begs the question, will OMVIC still be proceeding with its hiring plans, in which case this hiring freeze seems to be meaningless, and if not, what does OMVIC intend to do with the money collected for this purpose? Will OMVIC give it back to dealers?

OMVIC’s hiring plans, and what it intends to do with the increased cash flow from all these fee increases, is now as clear as mud.

We welcome OMVIC, the Ministry of Public and Business Service Delivery and Procurement, and the Provincial Government to provide further clarification on what OMVIC intends to do with their treasure trove of unneeded funds.

Those interested in reading the Provincial Government’s Press Release can do so by following this link: https://tinyurl.com/2h4webbh