Question Period Note: Red Tape Reduction and Regulatory Reform

What is the Government of Canada doing to address concerns about red tape and how is the Government planning to modernize its regulatory system?

• The Government of Canada is committed to cutting red tape.
• To coordinate this work, we are launching a new Red Tape Reduction Office. This Office will:
o Speed-up red tape reduction;
o Track and communicate the results; and
o Improve transparency of the regulatory system.
• The creation of this new office will involve extensive collaboration with stakeholders so we can find new, practical ways to make our regulatory system more responsive, easier to navigate, and supportive of trade and innovation.
• Taking action in this area, the Government is committed to offsetting the administrative burden. In 2023-24, approximately $26 million in annual net administrative burden was eliminated.

Canada’s Regulatory Modernization Framework:
• TBS collaborates with departments/agencies to lead several modernization initiatives to
enhance Canada’s regulatory framework. Examples include:
o Helping the regulatory system leverage new technologies and promote innovation through the Centre for Regulatory Innovation, which has funded 52 regulatory innovation and competitiveness projects since it was announced in 2018;
o Coordinating targeted regulatory reviews of regulations and regulatory practices in key areas such as clean technology and transportation, that have resulted in 7 Regulatory Roadmaps, or action plans, with over 120 initiatives across the GoC;
o Facilitating common-sense legislative changes and address regulatory irritants through the Annual Regulatory Modernization Bill, which allows the government to address overly complicated, inconsistent or outdated federal regulatory requirements, as indicated by businesses and Canadians.

Red Tape Reduction Office:
• Through FES 2024, the Government of Canada committed to establish a new Red Tape Reduction Office (RTRO) to reduce unnecessary barriers to innovation, productivity, and economic growth, and lower regulatory costs for Canadians and Canadian businesses. The RTRO will be funded from existing resources of the Treasury Board Secretariat. Specifically, it will:
o accelerate the cutting of red tape from the regulatory system, including strengthened efforts to address overly burdensome or outdated requirements in existing regulations;
o establish measures to track, assess, and communicate results of regulatory action to ensure a stronger, evidence based regulatory framework; and,
o improve accountability, oversight, and transparency, including through stronger engagement with Canadians and Canadian businesses and a dedicated channel for feedback on regulatory red tape and

Regulatory Cooperation and Internal Trade/Mutual Recognition:
• The Regulatory Cooperation Council (RCC) was introduced in 2011 as a bilateral forum for regulators and stakeholders to address regulatory barriers and foster alignment between Canada and the U.S. To date, the RCC has completed 24 work plans and has 4 workplans ongoing that are aimed at addressing regulatory barriers on both sides of the border.
• In Budget 2023, the Minister of Intergovernmental Affairs, Infrastructure and Communities, was tasked with leading and advancing on federal, provincial, and territorial internal trade efforts, to explore mutual recognition of regulatory standards.
• Treasury Board of Canada Secretariat is supporting Privy Council Office's efforts, as directed at a September 2024 meeting of the Committee on Internal Trade, to develop a pilot project to mutually recognize regulatory requirements in the trucking sector.
• The Government of Canada will also undertake a series of mutual recognition agreements with provinces and territories to recognize several different types of

professional credentials nationally, with specific attention to health professionals and skilled trades
• The Government of Canada will also propose legislation to eliminate all federal barriers to interprovincial trade and labour mobility and to remove all federal exceptions under the Canadian Free Trade Agreement.
Red Tape Reduction Act:
• The RTRA focuses on controlling growth through the 1-for-1 rule and only counts certain types of burden (e.g. administrative burden).
• When introducing new regulatory administrative burden, regulators are required to repeal an existing amount of burden. If a new regulation is introduced that imposes burden on business, they must repeal an existing regulation within two years.
• $26 million in annual net administrative burden was removed in the 2023–24 fiscal year; since the 2012–13 fiscal year, annual net burden has been reduced by approximately
$82 million.
• 22 more regulatory titles were taken off the books than were added, with a total net reduction of 238 titles since the 2012–13 fiscal year.

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