Final report on IRAC is welcome, but government’s response will be the true test, says Liberal Leader Dan Kutcher

Government should determine which responsibilities genuinely require independent regulation before creating a larger, more costly regulatory structure, says PEI Liberal Leader Dan Kutcher, following his review of the final report on the Island Regulatory and Appeals Commission (IRAC).

“The goal of IRAC reform should be better government, not more government,” Kutcher said. “We need focused expertise, clearer responsibilities and public accountability. The structure should follow from the work that needs to be done.”

Kutcher thanked Commissioner Rory Francis and his team for their substantial work, along with every Islander and organization that made a submission or shared their experience.

“Their contributions deserve careful consideration as government determines its response,” Kutcher said.

Having read the final report and made a detailed submission on the September 18 interim report, Kutcher welcomed changes consistent with several of his suggestions, particularly clearer electricity responsibilities and reconsideration of commissioners’ involvement in routine petroleum price-setting.

Significant differences remain. The final report retains the proposed two-board structure and does not recommend Legislative Assembly confirmation of future commissioners following independent, merit-based recruitment.

The report acknowledges that its proposed model will increase operating costs. Kutcher said government should first examine whether narrowing IRAC’s mandate and simplifying unnecessary processes could free up resources for specialized expertise.

“I have argued that we could use half an IRAC, not two IRACs—a more focused regulator with fewer responsibilities and deeper expertise,” Kutcher said. “Before asking taxpayers and ratepayers to fund a larger structure, government should demonstrate which functions are necessary, what can be simplified and where savings can be found.”

On electricity, the final report gives government a clearer strategic role but assigns coordination of electricity resource planning to Maritime Electric. Kutcher had recommended that a Minister and Department lead coordination and delivery.

“My position remains that elected government must lead major public-policy decisions and answer for their delivery, while an independent regulator scrutinizes costs and decides matters impartially,” Kutcher said.

With the final report published, Kutcher said the practical test will come when government decides which recommendations to implement and brings forward legislation and other measures.

“Government must explain its choices, identify the costs and make clear who will answer for the results,” Kutcher said. “The fall sitting provides an opportunity to debate those choices, especially electricity planning and delivery, the costs Islanders will bear, and how future commissioners are appointed.”