Dear Members,

As you are probably aware by now, retail businesses in Ontario are to collect an "Eco Fee" starting July 1, 2010 on a comprehensive list of products that have been identified by Stewardship Ontario as requiring special handling or disposal.  These fees are to be collected at Point of Sale and are to be submitted to Stewardship Ontario to compensate for the costs of disposal of these identified products.  

This program has created a significant backlash at both the consumer and retailer level.  It was implemented July 1 but it would appear, based on phone surveys of several retail members, many retailers were not even aware of the program and those who were have very little information on the processes of collection and submission.  Our concern as an association is the following:

• Extremely secretive and poor communication of the program to the retail sector.
• Significant cost to retailers to update their POS systems to identify the products and fees.
• Unlike the HST, there appears to be no audit processes in place to ensure compliance and reduce fraud.
• Inconsistent methods of collection so the question is, can the eco fee be imbedded in the price or does it have to be separated and charged at POS, no one seems to know (several thousands of products are affected).
• The Stewards (manufacturers and importers) have been paying the eco fees for the past few years, so is the collection of fees at retail a duplication? 

These are just a few of the concerns about this very confusing and ill thought out program.  I don't believe any of us are opposed to the proper disposal of products that are not good for the environment but this is certainly a program that is fraught with problems and lacks accountability and oversight.  

If you agree with the issues mentioned above, I would strongly urge you to contact your local MPP to express your concerns IMMEDIATELY!

David W. Campbell, President

The Lumber and Building Materials Association of Ontario