Speaking to the media from a 42-year-old cabinet making shop in Gloucester, Ontario, the Honourable Tony Clement, President of the Treasury Board and Minister for Federal Economic Development Initiative for Northern Ontario (FedNor) announced that the federal government is immediately implementing a "One-for-One" Rule to control administrative burden on business, requiring regulators to remove at least one regulation each time they create a new one that imposes administrative burden on business.
This is one of the recommendations of the Red Tape Reduction Commission, set up by the Prime Minister last year to improve the federal regulatory process and reduce red tape.
"Red tape is costly for all Canadians. It impedes economic productivity and innovation and gets in the way of voluntary compliance by undermining the trust between government and those they regulate," said the Minister in his speech.
Yep, he certainly has that part right. Time will tell how effective the "One-For-One" Rule is but I find it encouraging the the federal government is at least taking some concrete action to combat the problem rather than just setting up yet another panel or study.
More on Cutting Red Tape for Canadian Small Businesses
- Read the One-For-One Rule Announcement
- Read the Recommendations Report - Cutting Red Tape
- Read Why Cutting Red Tape for Canadian Businesses Matters (Government of Canada)
A Summary Quote
"According to a 2010 study by the Canadian Federation of Independent Businesses, red tape from all levels of government costs the business sector in Canada about $30.5 billion or 1.9 per cent of Canada's Gross Domestic Product each year."
Image (c) Chip Simons / Getty Images
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