An efficient regulatory system provides effective protection of the interests of Canadians while minimizing the burden on business. It is a vital component of an attractive climate for investment and jobs. Since 2006, the Government has worked to streamline and improve regulatory processes.
Economic Action Plan 2012 is implementing the Action Plan on Regulatory Cooperation, which will facilitate trade and investment flows with the United States.
Red tape hampers economic growth and erodes trust between government and citizens. The Government is committed to removing bureaucratic obstacles to businesses’ efforts to create jobs and growth.
In January 2011, the Government created the Red Tape Reduction Commission, fulfilling a Budget 2010 commitment. After a year of extensive Canada-wide consultations, the Commission brought forward recommendations to reduce irritants to business that impede growth, competitiveness and innovation.
The Government responded earlier this year by implementing the “One-for-One” Rule. Under this rule, every time the Government adopts a new regulation, it must eliminate an existing one. When a new or amended regulation increases administrative burden on business, the Government will offset—from existing regulations—an equal amount of administrative burden costs on business.
The President of the Treasury Board developed an Action Plan to address the Commission’s Recommendations Report to deliver better regulations that reduce frustration and lower costs for Canadian business.
About the Initiative
The Government’s 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 as well as the systemic barriers that unnecessarily frustrate and burden Canadian business with additional delays, costs and bureaucracy. The Action Plan implements department-specific changes as well as six system-wide reforms to the way government regulates. These systemic reforms are grouped under three major areas of action:
- Reducing the administrative burden on business:
- The “One-for-One” Rule; and
- The Small Business Lens.
- Making it easier to do business with regulators:
- Requiring policies that clarify, up front, how regulators interpret questions about meeting regulatory requirements.
- Improving service and predictability:
- Forward Regulatory Plans;
- Service Standards; and
- Annual Scorecard Report.
Who Will Benefit
Canada has one of the world’s most mature and well‑functioning regulatory systems, and Canada is recognized as one of the best places in the world to do business. But today’s global environment is highly competitive, and in order to enhance Canada’s standing, the government is introducing a series of reforms to Canada’s regulatory system.
These reforms will reduce red tape—a significant barrier to growth—and help secure long-term prosperity by freeing up businesses to focus on growing their enterprise and on creating jobs. These reforms improve the regulatory system and ensure that it continues to be transparent, fair and responsive to the needs of Canadians.
Initiative Update
Canada’s Economic Action Plan 2010 created the Red Tape Reduction Commission to address regulatory irritants experienced by businesses. By January 2012, the Commission had made over 100 recommendations to reduce red tape.
The government’s Red Tape Reduction Action Plan was unveiled on Oct. 1, 2012. It serves as the blueprint for eliminating and permanently controlling red tape and for providing a more predictable environment for business. It addresses business irritants by reforming the regulatory system to make it more open, predictable, and transparent to businesses and to all Canadians. This is a practical approach to improving Canada’s regulatory system while ensuring that Canadians continue to enjoy the highest levels of protection.
Find Out More
For more information, visit the Red Tape Reduction Action Plan