Commission on the Reform of Ontario's Public Services

The Delegated Administrative Authority Review found that the DAAs are working effectively
and efficiently as regulators of public safety and consumer protection. 7 Delegated
Administrative Authorities had the following benefits:
392
� Reduced costs to government, because regulatory services are funded through fees
collected from industry;
� Reduced size of government as service delivery was transferred to an external,
not-for-profit service provider;
� Improved regulatory outcomes, as existing DAAs achieved significant gains across a
number of measures, including increases in enforcement activities and decreases in
incidents, injuries and fatalities;
� Improved efficiencies. As independent operations responsible for their own risk
management and financial decisions, DAAs are well positioned to make efficient
risk-based decisions on resource allocations;
� Government oversight is retained, as the overseeing ministry uses a number of
accountability mechanisms, including administrative agreements, business plans and
regular reporting on performance; and
� Increased industry engagement through participation on boards and advisory
committees, which allow regulated industries to directly voice their views.
A DAA is funded by industry, not taxpayers. It is self-financing through fees collected from
regulated businesses and, in some instances, licensed practitioners. A DAA is responsible for
setting its fees, under a process agreed to by the minister. 8
Recommendation 16-8: Where there is an existing non-tax revenue stream or where such a
revenue stream can be created, strong consideration should be given to transferring or
establishing responsibility for direct delivery to an arm’s-length, not-for-profit corporation,
under the Delegated Administrative Authorities or similar model.
The Ontario government currently delivers a number of regulatory programs directly, covering
a broad range of sectors and serving a number of public interests, including public safety,
worker safety, environmental protection and consumer protection. In a time of fiscal constraint,
there is a risk of service erosion as regulatory ministries seek to reduce costs. It is important to
explore different forms of service delivery through arm’s-length bodies.
7 Elaine Todres and Associates, “Delegated Administrative Authority Review,” May 2009.
8 Currently, the Ministry of Consumer Services is responsible for overseeing eight authorities, boards and corporations that operate under the
DAA or similar model: Ontario Motor Vehicle Industry Council (Motor Vehicle Dealers and Salespersons); Real Estate Council of Ontario (Real
Estate Salespersons and Brokers); Travel Industry Council of Ontario (Travel Retailers and Wholesalers); Technical Standards and Safety
Authority (Technical Standards and Safety); Electrical Safety Authority (Electrical Safety); Vintners Quality Alliance of Ontario (Ontario VQA
wines); Board of Funeral Services; and TARION (New Home Warranty Program). The Ontario Seniors’ Secretariat is currently implementing a
new administrative authority, the Retirement Homes Regulatory Authority, established under the Retirement Homes Act.