One-for-One Rule will continue cutting red tape for many businesses

The government knows that nothing irritates a business owner as much as the time it takes to comply with what seems an ever-lengthening list of federal regulations, which include payroll, labour and trade.

That’s why we’ve just introduced legislation to enshrine the One-for-One Rule, which has been in effect since April 1, 2012. We realized that one of the most important things we can do to help Canadian businesses thrive, particularly in this time of global economic uncertainty, is to make the regulatory process as smooth and pain-free as possible.

Under the One-for-One Rule, regulators must remove a regulation each time they introduce a new regulation that imposes administrative burden on business. The regulation removed must be equal in its burden to the one implemented. This has given regulators a chance to reduce the number of regulations currently on the books, while still guarding the health and safety of Canadians.
 
Introducing time-saving new measures like single windows and electronic submissions will help Canadian businesses thrive. It will also save money. In the 2012–13 fiscal year, the One-for-One Rule reduced administrative burden on business by about $3 million. That represents 98,000 hours saved for business annually, with a net of six regulations being eliminated from the government’s books.

The trend continued throughout 2013. By December 12, under the One-for-One Rule, we had reduced administrative burden by almost $20 million and achieved a net reduction of 19 regulations.

We’ve also created service standards for 24 high-volume regulatory authorizations, covering more than 60,000 transactions with businesses each year.

With these reforms, our regulatory system has become more predictable, with 32 forward regulatory plans, containing more than 400 regulatory changes, now posted on the Web.

Enshrining the One-for-One Rule in law is part of the commitment we made to Canadians when we launched the Red Tape Reduction Action Plan in October 2012. That plan, currently the most ambitious red tape-cutting initiative in the world, can increase Canadian competitiveness and free business to innovate, grow, and create jobs. It underscores Canada’s reputation as one of the best places in the world to do business and invest.

Minister Tony Clement, President of the Treasury Board, has given the direction we’re taking in this area a thumbs up. He has noted that:  “Canada is the first country in the world to give the One-for-One Rule the added muscle of legislation. The Rule has already saved Canadian businesses thousands of hours in time that businesses spend on dealing with regulatory red tape.”

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The audio version of Garry's February 17, 2014 op-ed column can be heard by clicking here