Reducing Red Tape

Budget 2014

Economic Action Plan 2014 announces progress in reducing regulatory irritants to business through the Red Tape Reduction Action Plan.

Economic Action Plan 2013 confirmed the Government’s ongoing commitment to eliminating unnecessary red tape from Canada’s regulatory system, while maintaining high standards for safety and protection. The One-for-One Rule and other Red Tape Reduction Action Plan reforms are bringing a new level of discipline to how the Government regulates and creates a more predictable environment for businesses.

The 2012–2013 Scorecard Report: Implementing the Red Tape Reduction Action Plan confirms the Government has made tangible progress in cutting red tape for Canadians and businesses. For example:

  • The One-for-One Rule controls the administrative burden on business. Under the Rule, regulators must remove a regulation each time they introduce a new regulation that imposes administrative burden on business.
  • As of December 2013, under the Rule, the Government had reduced the administrative burden by almost $20 million and achieved a net reduction of 19 regulations. This represents 98,000 hours in time saved for business annually.
  • Service standards for 24 high-volume regulatory authorizations have been created, covering more than 60,000 transactions with businesses each year.
  • The Government has also made the regulatory system more predictable, with 32 forward regulatory plans now posted on the Web, containing more than 400 regulatory changes.

Over the next year, the Government will continue its ambitious approach to reducing red tape through a combination of system-wide reforms and targeted action on issues that frustrate businesses, stifle innovation and restrict investment. This includes completing the Administrative Burden Baseline Initiative to count the number of federal regulatory requirements on business. The Government is also following through on its commitment to legislate the One-for-One Rule; Canada has become the first country to introduce legislation for such a rule.

As noted in Economic Action Plan 2013, the Government of Canada remains committed to eliminating unnecessary red tape from the federal regulatory system, while maintaining Canada's high standards for safety and protection. By implementing its Red Tape Reduction Action Plan reforms, the Government is bringing a new discipline to how it regulates and is creating a more predictable environment for businesses.

About the Initiative

Launched on October 1, 2012, the Red Tape Reduction Action Plan sets out what the Government is doing to cut red tape so entrepreneurs can focus on doing business. The Action Plan addresses specific irritants to businesses to limit regulatory creep and make the system more transparent, accountable, and predictable. It responds to all 90 department-specific actions recommended by the Red Tape Reduction Commission, as well as six system-wide reforms to the way the Government regulates. These systemic reforms are grouped under three major areas of action:

  • Making it easier to do business with regulators:
    • requiring interpretation policies that clarify, up front, how regulators interpret questions about meeting regulatory requirements

Who Will Benefit

All Canadians benefit from the Action Plan’s regulatory reforms. By reforming the regulatory system, the Government is freeing Canadian businesses from unnecessary red tape so they can focus on creating jobs for Canadian workers and expanding their enterprises. In this way, the red tape reduction reforms are helping to secure Canada’s long-term economic prosperity.

Initiative Update

Since launching the Red Tape Reduction Action Plan on October 1, 2012, the Government of Canada has been working hard to implement the various Action Plan reforms that help reduce red tape.

Find Out More

For more information, visit the Red Tape Reduction Action Plan.

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