The parliamentary budget officer estimates that appointing new regulators under the Liberals' Online Harm Bill will cost around $200 million over five years.

The federal government wants to establish a Digital Safety Commission to regulate social media companies and compel them to limit harmful online content.

If the government legislation is passed in Parliament, this commission will set a series of regulations and will have the authority to impose fines on companies that violate the rules.

The Online Harm Bill also proposes the creation of a Digital Safety Ombudsman’s office where Canadians can raise their concerns, in addition to a new digital safety office.

In a report released Thursday morning, the Office of the Parliamentary Budget Officer stated that the Heritage Department estimates that these new entities will employ about 300 people when fully operational.

The report stated: "The Budget Office estimates that from 2024-2025 to 2028-2029, total operating costs will be $201 million, minus any potential administrative financial penalties or fines... or regulatory fees collected by the commission, the ombudsman, and the office."

The report indicates that the government could generate revenue by fining non-compliant companies, but the estimated cost does not include any analysis of what that might look like.

The report added, "There is a high degree of uncertainty regarding the revenue that will be generated, as it depends on the willingness of external companies to comply with the requirements set by the commission and the Online Harm Bill."

The report states that costs could also be higher if the new entities decide to hire outside consulting services or legal support.

The oversight body notes that the government’s employment estimates are based on other Canadian and international regulatory bodies.

Justice Minister Arif Virani introduced the Online Harm Bill in February, stating that social media giants must be held accountable for harmful content.

However, opposing Conservatives criticized it, saying it would create a new bureaucracy.

Conservative MP Michelle Rempel Garner requested the Office of the Parliamentary Budget Officer (PBO) to analyze the costs involved in setting up the new system.

She stated that the government could instead amend existing laws and regulatory bodies to ensure better protection for Canadians online.