CFIB welcomes easing of 'red tape" burden on small business

Government Regulation and Paper Burden is a major concern for small and medium-sized businesses; second only to Total Tax Burden. CFIB's 2010 study, Prosperity Restricted by Red Tape: Edition 2, pegged the annual cost of complying with regulations at $10.8 billion for Ontario businesses. Acknowledging the harm that this "hidden" form of taxation has on job creation, the Ontario Government has committed to leading Canada in measuring and reducing the burden.

As part of their Open for Business initiative, the government recently introduced Bill 68 to streamline the process. Among others things, the proposed changes would reduce the amount of paperwork and harassment that employers face when it comes to the ESA. As it currently stands, employees can haul their employer before the Ministry of Labour if they feel that their rights under the ESA have been violated, often without even taking it up with their employer or with no supporting documentation. This has resulted in a backlog of 14,000 cases. Sensibly, the government is proposing that the employee first try to work with their employer to resolve the issue before going to government. If that does not work, then have government inspectors try to mediate a resolution between the two parties, without having to resort to a costly, drawn out process.

While Bill 68 is a step in the right direction, there is still a "long" way to go in addressing the crushing regulatory burden that small businesses face in Ontario. Next, we hope the government will focus on their commitment to "measure" the regulatory problem.