What is the rationale for cost recovery?
Cost recovery is a federal government policy intended to promote more business-like and equitable management of government programs. The policy stipulates that specific individuals or firms, who benefit directly from or cause government activity should bear some or all of the cost of those activities. Why is the Therapeutic Products Directorate implementing cost recovery? Most Therapeutic Products Directorate (TPD) regulatory activities represent a direct benefit to or are triggered by companies selling therapeutic products on the Canadian market; therefore the activities of the TPD are considered an appropriate candidate for cost recovery. Does the TPD operate solely on a cost recovery basis? The TPD operates primarily on a cost recovery basis, with about two-thirds of its financing derived from fees, and the balance coming from tax dollars. How are cost recovery fees determined? Implementation of fees is governed by Treasury Board policy, which requires that full (both direct and ind
