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January 18, 2012
The Government has committed to reduce the regulatory burden to Canadian businesses and ensure they make investments in productivity and creating jobs rather then in meeting unnecessary regulatory requirements.
To achieve effective and lasting changes to the regulatory system, the Government introduced the Red Tape Reduction Commission in Budget 2010.
The Government is also implementing a “One-for-One” Rule to control administrative burdens on business.
The “One-for-One” Rule will reduce administrative burden (i.e. the time and resources spent by business to show compliance with government regulations) in two ways:
Businesses told the Red Tape Reduction Commission that a “One-for-One” Rule is necessary to control how often the Government turns to regulation to address issues within industry. They also indicated that the burden of existing regulation grows unchecked.
The “One-for-One” Rule will now require ministers to remove at least one regulation each time they introduce a new one that imposes administrative burden on business. In addition, regulatory changes that increase administrative burden need to be offset with equal administrative burden reductions.
Departments will use the Standard Cost Model to measure administrative burden. The Model is internationally accepted and the most widely used approach to determining the administrative burden costs of regulatory changes. The Model breaks down the regulation into the time and money business will spend on activities to show they comply with the regulation.