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Why do North Ontario drivers pay less vehicle license fees?

Posted on: September 21, 2015 By: Luke Jones

Your license has arrived in an envelope as official approval or authorization for your application for business operation, driving, hunting, or other activityAt the beginning of the month the Ministry of Transport in Ontario announced that the license price would increase in the province, with the fee for sticker validation rising. However, despite this drivers in North Ontario still pay significantly less (up to half in most cases) less than those in South Ontario, which is the most populated region in Canada.

That means that residents in North Bay can expect to pay less for their licensing fee compared to their Southern Ontarian counterparts, even if those from North are still miffed at the hiked rates. The question that keeps getting asked is, why do we pay less in the Northeaster Ontario region?

MTO spokesperson Ajay Woozageer gave an answer to The Star:

“There are several reasons that Northern Ontario residents pay reduced vehicle licensing fees. Operating costs for all types of vehicles are substantially higher in the north, as are transportation costs.

“A small population, thinly spread over a large area and a more extreme climate are further contributing factors to an economic disparity between the north and the rest of Ontario.”

So, the general consensus is that the North is still something of a wilderness that is vastly different from the South, think of the Town Mouse, Country Mouse fable and you may get the picture. Of course, this is mostly nonsense as North Ontario is as well connected these days as the South, it just has vastly less people. However, this is where the government deeming North Bay some kind of forgotten backwater pays off for motorists.

Woozageer explained at the start of September why license prices needed to rise across the province, even if they remain cheaper in the North.

“While cost of maintaining roads, bridges and highways has risen over time, fees have not, so in keeping with the recommendations of the Drummond Commission, since 2012, the government has been gradually increasing fees to help recover the costs required to deliver the service or product to customers.

“By making gradual changes to vehicle license fees we can keep costs down for families and industry, while maintaining the safe roads and bridges that Ontarian’s travel on,” said Woozageer. “Many fees, including those for driver and vehicle licenses, do not allow the government to fully recover the cost of delivering services or products. These increases will help the government recover more of these costs.”

Categories: Uncategorized Tags: Canada, License fee, North Bay, North Ontario

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