CFIB's challenge to all governments: Make this the year to implement a one-in-one-out rule to clean up regulatory excess
By Laura Jones and Jordi Morgan
Published in the Financial Post on January 23, 2019.
Nobody at city hall sets out to make ridiculous rules or unmanageable processes — but that’s the result when there are no checks in place to control the clutter. Rules pile up over time like too many old sweaters, DVDs and unread magazines spilling out of an overstuffed closet.
We at the Canadian Federation of Independent Business regularly hear about red tape clutter from small businesses dealing with their local city halls.
There’s Montreal’s borough of Plateau Mont-Royal, which stacked up costs on business owners by banning plastic chairs from outdoor patios and forced them to replace perfectly good furniture.
There’s the book store café in Winnipeg that was forced to shut down because serving a bit of mayo on sandwiches required an industrial-strength grease trap.
Then there is the Vancouver dance studio suffering scheduling headaches and parental bickering over class sizes because the city can’t meet its own permitting deadlines, delaying expansions multiple times.
Some municipal governments seem so used to the piles of red tape that they don’t recognize they have a problem. Citizens are being hurt in myriad ways, from the stress red tape creates for small business to the extra costs it lards onto housing. It’s time for municipalities to follow the lead of many senior governments in Canada and do something about it.
The most important remedy is a simple one. Those who keep their closets clutter-free know how it works: a one-in-one-out policy. For municipalities, for every new municipal rule that comes into force, one needs to be eliminated so the new rule doesn’t just get added to the pile. One, or sometimes more, out-dated or unnecessary rules are eliminated at the same time.
Various versions of this “one-in-one-out” policy are proving very successful. The longest-running example in North America is British Columbia’s regulatory cleanup. In 2001, its provincial government set out on a major decluttering exercise, putting in place a one-in-two-out rule to achieve a one-third reduction in regulatory clutter over three years.
Once the reduction target was met, one-in-one-out became the new standard. Garbage bags of dumb rules, such as the one dictating the size of televisions allowed in restaurants, were sent to the curb and the province’s citizens are better for it. B.C.’s one-in-one out policy was so successful at eliminating red tape while maintaining high levels of health, safety and environmental outcomes, it’s now an international model for reform.
Federally, Canada has become the first country in the world to legislate one-in-one-out for its regulations. It too has proved successful at reducing compliance costs although it does not apply as broadly as B.C.’s, so some old CDs, magazines and other junk still get a pass.
With the successes we’ve seen at the federal and provincial levels, in honour of our 10th annual Red Tape Awareness Week, we’re now challenging our cities to clean up their regulatory excesses by committing to their own one-in-one-out policy.
So, how about it, City Hall, are you ready to clean up your red tape? First comes a commitment to do it, next comes putting the old Christmas sweaters and DVDs to the curb, and finally a one-in-one out policy to keep the closet clean. Like the old Christmas sweaters, no one will miss your red tape.
Laura Jones is Executive Vice-President, Canadian Federation of Independent Business
Jordi Morgan is Atlantic Vice-President, Canadian Federation of Independent Business