NEWS RELEASE Province Proposes Cap on Delivery Fees to Support Local Restaurants Mandatory lower fees for restaurants where indoor dining is prohibited due to COVID-19 November 26, 2020 Economic Development, Job Creation and Trade Links to an external site. Table of Contents ContentLinks to an external site. Quick FactsLinks to an external site. Additional ResourcesLinks to an external site. Related TopicsLinks to an external site. The Ontario government is helping local restaurants by introducing new legislation that would protect them from high delivery fees. The Supporting Local Restaurants Act, 2020, would cap fees charged by food delivery companies in areas where indoor dining is prohibited to help more small and independent restaurants stay in business. Currently, fees placed on restaurants by food delivery companies can reach as high as 30% in Ontario. After working with the sector, Minister Sarkaria said restaurants should expect a cap of 15% for delivery fees, similar to what has been put in place in New York City, with an overall cap of 20% inclusive of all fees. This approach aims to ensure that delivery drivers' pay would be protected and delivery apps would not reduce service areas or restaurant selection. If passed, the legislation the government intends to introduce today by Prabmeet Sarkaria, Associate Minister of Small Business and Red Tape Reduction, and the regulation under it would: Cap the rates charged by food delivery service companies and apps in areas where indoor dining is prohibited. Permit fines of up to $10 million to food delivery service companies that do not comply with the law. Provide food delivery service company employees or contractors who perform delivery services with protection that their compensation will not be affected by these changes. "Ontario's small and independent restaurants have shouldered an outsized share of COVID-19's economic burdens," said Minister Sarkaria. "But through it all, they've continued to serve our communities, our families and have lifted our spirits. With this legislation, our government is helping local businesses stay in business, and providing a solution that will help our local restaurants when every little bit helps." To provide additional relief to local restaurants and other businesses required to close or significantly restrict services in areas categorized as Control or Lockdown, Ontario has announced $600 million to help with them fixed costs, including property taxes, hydro and natural gas bills. The government is also supporting small businesses and restaurants through its Main Street Recovery PlanLinks to an external site. by: Committing to permanently allow licensed restaurants and bars to include alcohol with food as part of a takeout or delivery order before the existing regulation expires; Offering the $60-million Main Street Relief GrantLinks to an external site.that provides up to $1,000 to help eligible small businesses with the cost of PPE; Permanently allowing delivery companies to provide deliveries 24/7, providing needed flexibility; Helping nearly 23,000 small businesses grow online with $2,500 grants through Digital Main StreetLinks to an external site.; and Offering free financial advice and online trainingLinks to an external site.to help small businesses make informed decisions and navigate the unprecedented economic circumstances brought on by the pandemic. Quick Facts Restaurants would be able to file complaints online if a food delivery service has overcharged fees in excess of the cap. Food delivery company employees or contractors who perform delivery services would be able to file complaints if their compensation or payments were reduced once the act comes into effect.

 

The Premier of the Western Cape in South Africa is interested in Ontario's legislation and would like your opinion on whether Western Cape's Provincial legislature could pass a legislation similar to the one proposed in Ontario in the Western Cape Province.

 

In your advice please contain the following information.

 

Would the Western Cape legislature be authorized to pass and and implement legislature similar to the one in Ontario?

 

If this National legislation is found to in conflict with this provincial legislature, what would be the impact of that on the provincial legislature.

 

Answer rating: 100% (QA)

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