FINANCIAL FRAMEWORK for BILL C-68 "An Act Respecting Firearms and Other Weapons" Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 1 Assumptions - Firearms Licences: * Number of Current Owners to be Licenced = 3.0 million owners -> 1.0 million owners with Firearms Acquisition Certificates (FACs) -> 2.0 million owners without Firearms Acquisition Certificates (FACs) * Over the next five years, approximately 1.0 million firearms owners will apply for Firearms Licences with acquisition priviledges, equivolent to the number of FACs currently being issued (averaging approximately 200,000 Firearms Licences with aquisition priviledges per year) * Over the nex five years, approximately 2.0 million firearms owners currently without FACs will appliy for Firearms Licences without acquisition priviledges as follows: 1996 - 30% 1997 - 40% 1998 to 2000 - 10% per year * Number of Firearms Licences to be issued to businesses (all types) and museums is estimated to remain at current levels of approximately 8,000 per year Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 2 Assumptions - Firearms Registration Certificates: * Number of Currently Owned Firearms to be Registered = 7.0 million firearms -> 1.2 million Restricted Firearms -> 5.8 million Non-Restricted Firearms * Firearms owners (3.0 million) will register their currently owned firearms (7.0 million) starting in 1998 at a rate of approximately 20% per year for each of the five-year compliance period (averaging approximately 1.4 million firearms per year) * Firearms owners will register newly acquired or exchanged firearms starting in 1998 at a rate of approximately 510,000 firearms per year Assumptions - Authorization Permits: * Number of Authorization Permits (Carry, Transport, Import and Export) to be issued is estimated to be 100,000 per year Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 3 (Timeline graphic ommitted) Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 4 Costs to Maintain Systems Already in Place - Over 5 Years (1995/1996 - 1999/2000) Total Annual (5 Years) Average A. Current Systems JUSTICE - Maintain the Current Firearms Acquisition Certificate System (FACS) $2.5 million $0.5 million - Current Federal-Provincial/Territorial Firearms Financial Agreements $51.3 million $10.3 million ------------- ------------- $53.8 million $10.8 million RCMP - Maintain the Current Restricted Weapons Registration System (RWRS) $6.2 million $1.2 million ------------- ------------- TOTAL $60.0 million $12.0 million B. Other Current Firearms Program Costs JUSTICE: - Firearms Control Task Group $5.0 million $1.0 million ------------- ------------- TOTAL $5.0 million $1.0 million GRAND TOTAL $65.0 million $13.0 million REVENUES (38.0)million (7.6)million NET DEFICIT $27.0 million $5.4 million Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 5 Bill C-68: Added Costs - Over 5 Years (1995/1996 - 1999/2000) Total Annual (5 Years) Average A. Canadian Firearms Registration System JUSTICE - System Development and Implementation $48.8 million $9.8 million - Federal-Provincial/Territorial Firearms Financial Agreements $17.9 million $3.6 million ------------- ------------- $66.7 million $13.4 million RCMP - Link Registration System and CPIC $4.1 million $0.8 million CUSTOMS - Firearms Registration at Borders $14.2 million $2.8 million ------------- ------------- TOTAL $85.0 million $17.0 million B. Other Bill C-68 Costs JUSTICE: - Public Education $18.3 million $3.8 million - Training (Police, judiciary, businesses) $3.3 million $0.6 million - Policy Development $4.7 million $0.9 million - Research and Assessment $1.6 million $0.3 million - Firearms Control Task Group $6.0 million $1.2 million ------------- ------------- TOTAL $33.9 million $6.8 million GRAND TOTAL $118.9 million $23.8 million REVENUES (116.7)million (23.4)million NET DEFICIT $2.2 million $0.4 million Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 6 Proposed Fees - Firearms Licences: * Firearms Licences (non-acquisition) will be introduced January 1, 1996 at a cost of between $0 and $10 in the first year and reaching full fee of $60 in year 2000 * Firearms Licences (acquisition) will be introduced January 1, 1996 at a cost of $60 effective the first year * Fees to renew the Firearms Licences will be set at $60 (for 5 years) * In cases where sustenance is applicable, there will be no fee * Fees for business and museum Firearms Licences will: -> Be consistant with the structure of existing fees (currently ranging from $25 to $1000) and renewable annually -> Respect the cost-recovery principle of the initiative -> Be based on a matrix that will match fees based on the following factors: * activity (retail vs. manufacturing) * volume (small vs. medium vs. large businesses) * product (non-restricted vs. restricted vs. prohibited) * Some fee catagories are still under review and consideration. The setting of fees will be achieved through the regulatory process, which includes the review and approval of Parliament Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 7 Proposed Fees - Registration Certificates: * Registration Certificates for firearms currently owned will be introduced January 1, 1998 at a cost of between $0 and $10 for the first ten firearms with the possiblity of increasing to a maximum $18 for the first ten firearms by the year 2002. * Registration Certificates for newly acquired firearms will cost: -> $15 per non-restricted firearm (shotguns and rifles) effective January 1, 1998 -> $60 per restricted firearm (handguns) effective January 1, 1996 but the fee is expected to be reduced to approximately $30 when the new technologies come into effect January 1, 1998. The reduction from $60 to $30 is the result of anticipated economies realized through the use of new technologies and process re-engineering Proposed Fees - Authorization Permits: * Fees for Authorization Permits: -> Authorizations to caryy, trnasport, import and export are among the catagories of fees still under review and consideration at this time, and will be subject to discussions with our federal and provincial/territorial partners Department of Justice Canada April 24, 1995 ======================================================================== Financial Framework (C-68) Page 8 COMPARATIVE COSTS OF LICENSING AND REGISTRATION Ottawa, Ontario Auto: Cost of driver's licence = $50 for 5 years Cost of registration = $66 per year Dog Licence: Cost of dog licence = $30 per year Boats: Cost of registration = $57 to register a boat in Canada Saskatoon, Saskatchewan Auto: Cost of driver's licence = $25 per year (renewable every year) Cost of registration = $58 per year (approx.) Dog Licence: Cost of dog licence = $30 per year Calgary, Alberta Auto: Cost of driver's licence = $44.28 for 5 years Cost of registration = $52.28 per year (plates incl.) Cost of dog licence = $36.50 per year Vancouver, British Columbia Auto: Cost of driver's licence = $35 for 5 years Cost of registration = $1105 (approx. including basic car insurance) Canada: Firearms: Cost of Licence = $0 or $10 in first year (1996) = $60 to renew for 5 years ($12 per year) Cost of Registration = $0 or $10 for first 10 firearms in the first year (1998) = $10 - $30 (valid for life of owner) Department of Justice Canada April 24, 1995 ========================================================================