Clearing the way for economic growth and job creation
OTTAWA, ONTARIO--(Marketwire - Jan. 18, 2012) - The Honourable Tony Clement, President of the Treasury Board and Minister responsible for FedNor, today received the Red Tape Reduction Commission's Recommendations Report. Created through Canada's Economic Action Plan, the Commission, chaired by the Honourable Maxime Bernier, Minister of State (Small Business and Tourism) examined ways to spur job creation and economic growth through the elimination of unnecessary red tape.
"The Commission believes cutting red tape is critical. And this Government agrees. Through these cutting red tape initiatives, the Government hopes to allow businesses to focus on what they do best: sustaining our economic recovery by creating jobs and generating wealth in communities across Canada," added Minister Clement.
Minister Clement announced that the Government is moving forward with the Commission's recommendation to implement a "One-for-One" Rule to control administrative burden on business. This means that regulators will be required to remove at least one regulation each time they introduce a new one that imposes administrative burden on business. In addition, regulatory changes that increase administrative burden on business need to be offset with equal administrative burden reductions. In the coming months, an action plan responding to the other recommendations will be developed.
The Recommendations Report is the result of several months of public consultation and careful assessment on the part of Commission members. It provides specific advice to departments and agencies on how to reduce unnecessary burdens on business. It also proposes that the Government make systemic changes to the way it regulates businesses while ensuring that the environment and the health and safety of Canadians are not compromised.
More detail on the Commission's recommendations and the "One-For-One" Rule is available in the attached backgrounders.
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This news release is available online at www.tbs-sct.gc.ca.
Backgrounder
RED TAPE REDUCTION COMMISSION RECOMMENDATIONS
The Prime Minister launched the Red Tape Reduction Commission in January 2011, as part of the Economic Action Plan. The Prime Minister asked the Commission to identify irritants to business that have clear detrimental effects on growth, competitiveness and innovation. The Commission was also asked to recommend ways to address those irritants and reduce the compliance burden on a lasting basis without compromising the environment or the health and safety of Canadians.
To meet this challenge, the Commission carried out an extensive set of online and in-person consultations with businesses and business groups across Canada. The Commission's What Was Heard Report, issued in September 2011, captures the feedback received through these consultations. The consultations identified approximately 2,300 specific irritants about how regulations cause unnecessary cost and frustration.
The Commission identified the root causes of red tape, and focused its analysis on the most important underlying issues, producing 90 specific recommendations involving 18 Government of Canada departments and agencies. These recommendations aim to deal with the root causes that account for the bulk of the pressing issues listed in the What Was Heard Report.
The Commission also identified 15 specific systemic reforms involving all federal regulatory departments.
Through consultation and careful assessment, the Commission organized its recommendations into the following five main categories:
The last two categories of recommendations deal with systemic reforms to bring about lasting change to the management of regulatory programs, to the assessment of the stock of existing regulatory requirements, to the design of regulations in the future, and to the governance and oversight of the regulatory regime. |
THE "ONE-FOR-ONE" RULE
Background
The Government has committed to reduce the regulatory burden to Canadian businesses and ensure they make investments in productivity and creating jobs rather then in meeting unnecessary regulatory requirements.
To achieve effective and lasting changes to the regulatory system, the Government introduced the Red Tape Reduction Commission in Budget 2010.
The Government is also implementing a "One-for-One" Rule to control administrative burdens on business.
Why is the "One-for-One" Rule important?
The "One-for-One" Rule will reduce administrative burden (i.e. the time and resources spent by business to show compliance with government regulations) in two ways:
How does it change current practices?
Businesses told the Red Tape Reduction Commission that a "One-for-One" Rule is necessary to control how often the Government turns to regulation to address issues within industry. They also indicated that the burden of existing regulation grows unchecked.
The "One-for-One" Rule will now require ministers to remove at least one regulation each time they introduce a new one that imposes administrative burden on business. In addition, regulatory changes that increase administrative burden need to be offset with equal administrative burden reductions.
How will success be measured?
Departments will use the Standard Cost Model to measure administrative burden. The Model is internationally accepted and the most widely used approach to determining the administrative burden costs of regulatory changes. The Model breaks down the regulation into the time and money business will spend on activities to show they comply with the regulation.
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