The government listened and delivered on its commitment to help reduce the red tape headaches facing your business.
Issue: On January 23, 2017, the Manitoba government was the first province to accept CFIB’s red tape challenge by committing to legislate a one-for-one law.
Government red tape is a hidden tax affecting Canada’s small businesses much more than larger firms, and Manitoba’s small business owners rank red tape as one of their a top priorities. CFIB estimates the annual cost of all regulations on businesses is pegged at $37 billion per year, with one-third of that ($11 billion) considered unnecessary red tape. In Manitoba, all federal, provincial and municipal regulations cost businesses $1.2 billion per year, $360 million of which is considered red tape.
Action: On March 14th, 2017, the government delivered on its one-for-one commitment by introducing Bill 22, to establish The Regulatory Accountability Act and Amendments to The Statutes and Regulations Act. This new legislation will establish a framework for measuring, assessing and reporting regulatory requirements in Manitoba. It further contains a two-for-one commitment for the first four years that the legislation is in place for. See CFIB news release: Small business welcomes The Regulatory Accountability Act
In summary, Bill 22 will:
- annually track and publicly report on the number of regulatory requirements that exist;
- make all government forms and policies with regulatory requirements available online;
- provide the public with opportunity to review and comment on proposed regulatory requirements in order to identify potential unintended consequences;
- legislate a ‘two-for-one rule’ mandating that until March 31, 2021, for every new requirement created, two existing requirements with double the administrative burden of the new requirement must be removed. After March 31, 2021, a ‘one-for-one’ rule would be implemented; and
- review regulatory requirements three years following their introduction to ensure they are as effective and efficient as possible.
In addition to Bill 22, the Manitoba government introduced two additional pieces of legislation on March 15 and 16, 2017, that will help further reduce red tape facing entrepreneurs.
- Bill 218: The Red Tape Reduction Day Act was introduced on March 15th. This new legislation establishes an annual Red Tape reduction day, which will be held on the Third Tuesday of September.
- Bill 24: The Red Tape Reduction and Government Efficiency Act was introduced on March 16th. This legislation changes 15 different pieces of legislation to help reduce red tape in the province, including positive changes for hog farmers and camp grounds, among others.
Next Steps: CFIB is challenging all the provincial and territorial governments across Canada to follow Manitoba’s lead and jump on the red tape reduction train.
Have a red tape headache? Please contact Business Resources at 1-888-234-2232 or email [email protected].
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