Issue: The CFIB recently issued a red tape challenge to provincial and territorial governments to follow the example set federally and legislate a one-for-one law.
Every parliament brings new legislation. As a result, regulations pile up over time if there is no mechanism in place to reduce the regulations that have already been put in place. CFIB believes the one-for-one law is such a mechanism to safeguard against over-regulation.
Government red tape is a hidden tax affecting Canada’s small businesses much more than larger firms. 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.
Manitoba first out of the gate to control red tape through legislated cap:
On January 23, 2017 the Manitoba Government committed to legislate a cap on regulatory requirements, through a one-for-one rule, as part of its regulatory accountability legislation. For each new requirement implemented, one that creates an equivalent burden on stakeholders must be removed. A stricter version of the rule – a two-for-one-policy - will be implemented until 2021.
At a media event with CFIB and the Hon. Deputy Premier Heather Stefanson, the Manitoba Government announced it would introduce legislation that would require at least one regulation be repealed for every new regulation introduced.
CFIB commended Manitoba for becoming the first province to accept the challenge and commit to legislate a one-for-one law.
“We are delighted with today’s announcement out of Manitoba,” said Laura Jones, Executive Vice-President and Chief Strategic Officer at CFIB. “The Manitoba Government has shown great leadership by committing to introduce a law designed to weed out all the unnecessary red tape that accumulates in any jurisdiction over time. This law will go a long way to encouraging innovation, prosperity and entrepreneurship in Manitoba.”
“Even more impressive is the government’s bold commitment to introduce a stricter version of the rule – a two-for-one policy, which will be implemented for the next four years,” added Jones. “This will certainly put Manitoba way ahead of the pack in showing leadership on regulatory reform.”
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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