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Commission draws blueprint for slashing red tape
A government commission looking at the cost of doing business in Canada has come up with its suggestions on how to make life easier for small and medium-sized entrepreneurs
The ubiquitous buffet of day-to-day administrative paperwork may be in for a diet in the coming months if the feds adopt recommendations submitted last week as a result of the Red Tape Commission.
Suggestions from the 16-member panel to streamline the estimated 2,600 federal regulations on the books included one that the Auditor General should take charge of reviewing how well departments reduce duplicative and unnecessary procedures. More than 1,000 stakeholders put forth comments on how to trim the paper trail during last year's hearings.
According to the official report, these stakeholders "identified approximately 2,300 specific irritants about how regulations work, in part because of how they were designed in the past and in part because of how they are managed in the present."
"Most important," the document continued, "they gave us a clear picture of where contributors feel that reform is urgently required and how they feel that this reform can be accomplished."
One of the more prominent proposals calls for the creation of a one-stop Internet portal by March 2015 that would allow businesses to submit information once — and once only. This has been a long-standing recommendation of Canadian Manufacturers & Exporters (CME).
Commission members also recommended the introduction of a one-for-one rule — an "out with the old, in with the new" approach to legislation — although many experts suggest enterprises would be better served by a campaign to eliminate needless regulations, regardless of whether they will eventually be replaced.
Under this strategy, government departments would have until the end of 2012 to outline planned improvements in red tape reduction on their respective websites.
"We were pleased the report stressed how crucial it will be for departments to work together and coordinate their efforts," said Martin Lavoie, director of manufacturing competitiveness and innovation policy with CME. "It is also imperative that these government bodies establish and publish measurable delivery standards for programs and services. There has to be some benchmarks."
While the commission didn't specifically outline it in their mandate, Lavoie said there is plenty of opportunity for federal and provincial governments to work closer together. Conflicting rules between jurisdictions can lead to both added confusion and cost for the country's job creators.
User fees are another area where the commission unanimously felt there was significant room for improvement. The primary concern for businesses, said Lavoie, is that policymakers may eventually use the cost-cutting exercise as an excuse to boost service charges.
"If it's being done to readjust revenues, we have to make sure businesses aren't negatively affected on the bottom-line, and that the quality of service isn't compromised," he explained. "Especially in today's challenging economic climate, many companies — especially smaller operations — don't have many resources, so they must maximize value to the best of their abilities."
That language was echoed by the findings of the panel.
It the report's executive summary, the commission said it "believes strongly that cutting red tape is not only achievable,
it is critical."
"Canada is in a far better fiscal position that many of its trading partners," said Lavoie. "So there is no time like to present to remove barriers to business success. We need to change the culture of regulation and provide entrepreneurs with the tools they need to thrive and grow."
