Parks e-licensing system has sent $5.4M in fees out of province

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This article was published 13/02/2024 (583 days ago), so information in it may no longer be current.

Manitobans have shelled out more than $5 million in fees to a Texas-based company to visit provincial parks and buy outdoor licences in recent years, as the NDP government hints at changes to the controversial system.

Environment Minister Tracy Schmidt says the decision to outsource online sales of parks, fishing and hunting permits to Aspira in 2020 was unfortunate, as the province enters the final stretch of its contract with the company.

“It is never our government’s first choice to give millions of dollars to a company in Texas — money that could go and be reinvested into our provincial parks system,” Schmidt said in an interview.

“Our commitment to Manitobans is to ensure the continuity of services so Manitobans can access an affordable and beautiful provincial parks system.”

The then-Progressive Conservative government hired Aspira in 2019, following a competitive tendering process, and the launch of online retail sales of parks passes and fishing and hunting licences was announced in April 2020.

The new system came with new administrative fees and $4.50 was tacked on to each transaction handled by the company, driving the cost of a day pass to enter provincial parks to $9.50.

Prior to the e-licensing system, recreational outdoor licences and park permits could be bought in-person at various local retail outlets.

Between 2016-17 and 2019-20, third-party commissions for vehicle permits cost the government an average of $53,020 a year, according to documents previously released by the NDP.

Since 2020, Aspira has collected $5.4 million in administrative fees, which also covers the cost of maintaining the online platform and operating a toll-free phone number, according to figures current to Jan. 31 and provided in response to questions from the Free Press.

“It is never our government’s first choice to give millions of dollars to a company in Texas — money that could go and be reinvested into our provincial parks system.”–Environment Minister Tracy Schmidt

A provincial spokesperson said fees collected by Aspira under its contract with the government are not proactively disclosed because the service arrangement is a “user-pay model.” The contract is set to expire in April 2025, with the option to extend for two, one-year terms.

Schmidt would not speculate about how the e-licensing system may change under the NDP government once the contract is up.

The new system came with an administrative fee of $4.50 that was added to each transaction handled by the company.

The NDP previously called for a retail system that supported local jobs and kept profits in Manitoba while in opposition.

A report by the Manitoba ombudsman released in June 2023 found the e-licensing system contravened the Freedom of Information and Protection of Privacy Act and the Personal Health Information Act by collecting more information than reasonably necessary. The province has since acted on recommendations to address some of the privacy shortfalls.

“Our government is always looking at how we can best make services for Manitobans accessible, affordable reliable,” Schmidt said. “As this contract comes to a close, we are committed to reviewing all of the options for how we can better administer the parks pass system in the best way possible for Manitobans.”

The government’s priorities are continuity of service, affordability, and ensuring access to parks, she added.

“You cannot just make a privatized service in-house again overnight, that being said, all options are on the table. We haven’t ruled anything out at this point.”

The government also refused to say if the fee Aspira charges Manitobans will increase when annual park vehicle permits go on sale next month.

During an interview, Schmidt said she did not have that information available. In a statement, the minister’s office said it was “unable to confirm any details about service fees” in response to follow-up questions.

Eric Reder, a campaign director for the non-profit Wilderness Committee, said spending on provincial parks is an investment in local economies, nature, biodiversity and Manitobans’ health and well-being.

“If we don’t act on nature and if we don’t act on climate, it may be expensive now, but it will be debilitating,” Reder said. “This is our quality of life and investing in a service that people can utilize that’s here.”

Local administration is also critical to a strong, growing parks system, he argued.

“The investment in a parks pass system, ensuring that we’re putting staff in place in Manitoba, who know how to care for parks, manage parks — it’s a packaged deal doing this.”

Local businesses should also be seriously considered for new contracts as the NDP government reviews its expiring service agreements, Canadian Federation of Independent Business provincial director Brianna Solberg said.

“Every dollar earned by a local company stays within the local economy to hire local employees,” Solberg said. “Small businesses need the support now more than ever.”

PC environment critic Greg Nesbitt was not made available for an interview Monday.

Previously, the PCs said no Canadian companies were available to do the work at the time Aspira was contracted. The intent of the e-licensing system was to improve services, simplify purchases, and reduce the department’s carbon footprint.

In a statement, PC caucus spokesman Matt Preprost said the NDP appear to be walking back past criticisms of the system, which he characterized as providing the best value for Manitobans.

“It’s becoming clear now that Manitobans can’t trust anything the NDP spoke against or promised, and that should concern everyone who voted for them,” the statement said.

» Winnipeg Free Press