This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.
Tony Clement Conservative
This bill has received Royal Assent and is now law.
This is from the published bill.
This enactment enacts the Red Tape Reduction Act, which establishes controls on the amount of administrative burden that regulations impose on businesses.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
The House proceeded to the consideration of Bill C-21, An Act to control the administrative burden that regulations impose on businesses, as reported (without amendment) from the committee.
The Speaker Andrew Scheer
There being no motions at report stage, the House will now proceed without debate to the putting of the question on the motion to concur in the bill at report stage.
Red Tape Reduction ActGovernment Orders
January 26th, 2015 / 3:30 p.m.
Parry Sound—Muskoka Ontario
Conservative
The Speaker Andrew Scheer
The question is on the motion. Is it the pleasure of the House to adopt the motion?
Some hon. members
Agreed.
An hon. member
On division.
Tony Clement Conservative Parry Sound—Muskoka, ON
moved that the bill be read a third time and passed.
It is always a pleasure to rise in the chamber to not only represent my department but also the people of Parry Sound—Muskoka. Our anniversary just came up for some of us. I am currently in my 10th year of representation at this point. I want to thank the people of Parry Sound—Muskoka for their confidence in me, but I want to talk about this legislation as well.
It is one of the first of its kind in the world. It will enshrine into law a rule that has been in place since April 2012 administratively in this government and it goes to our pledge to the people of Canada to continue to find ways to create new jobs, create growth, rebuild our economy, and create new opportunity. One of the ways we do that is by supporting small businesses in our communities and promoting small business growth throughout the country.
Our plan to reduce the administrative burden will of course help us achieve these objectives.
What would the bill do? Quite simply, when a new regulation that imposes an administrative burden is introduced, the law would require that another one be repealed. I think what we do is unprecedented in these kinds of operations around the world. Specifically, we monetize the value of the administrative burden and then declare that the monetary value be offset by other regulatory changes. I believe this enhances transparency and accountability. We further do so in an annual report that reports on the implementation.
However, it is important to note what the bill would not do. It would not compromise public health, public safety, or the efficient operation of the Canadian economy.
Some may ask why reducing red tape matters. Well, red tape gets in the way of jobs and growth and improving Canadians' lives. Complying with the information obligation of twelve of the most common federal, provincial, and municipal regulations in five sectors of the economy works out to a total cost of $1.1 billion per year for our small businesses. On average, the annual time per small business establishment to comply with legislative tax requirements was 15 hours, at an annual cost of $1,724 to these small businesses. This is a hidden tax that hits the little guy or gal hardest.
It is four years now since we launched the Red Tape Reduction Commission. We asked how red tape was killing jobs and we asked for recommendations on how to fix these problems. This commission went coast to coast. We had 15 round tables in 13 cities, with over 200 participants, along with online consultations and a dedicated website. We heard that Canadians needed one for one, and they needed what became known as the red tape reduction action plan.
We introduced this regulation as a pilot project in April 2012. It has reduced the administrative burden by $24 million and achieved a net reduction of 20 regulations.
To give an example, we changed the Corporations Returns Act to collect financial and ownership information on corporations doing business in Canada. Now only corporations with revenues of more than $200 million, assets of over $600 million, or foreign debt and equity over $1 million will have to report financial and ownership information. There are 32,000 businesses that will no longer be required to file this complex government return. This one change saves our small businesses $1.2 million per year.
Here is another example: Health Canada has reduced its red tape by amending regulations in order to allow regulated pharmacy technicians to oversee the transfer of prescriptions from one pharmacy to another, a task that was previously restricted to pharmacists. This enables pharmacists to focus more of their time on direct patient care and on running their business.
This initiative has cut red tape by $15 million a year.
We also changed amendments for Northwest Territories and Nunavut Mining Regulations. We have simplified the licensing, we have encouraged holders of mineral claims towards development, and we have modernized the tenure system in this regard, which has saved over $600,000. Examples of successes like these are going to save almost 100,000 hours of wading through red tape per year.
I should mention that I am here as the President of the Treasury Board. It is the Treasury Board that in fact enforces this rule, and we have indeed ensured compliance.
What are the next steps?
It is time to take this highly successful pilot project and enshrine it in law.
We committed to this, I should add, in our Speech to the Throne, and that is why the bill is here in the House.
What is the message that we are sending by supporting this bill? What are we saying about Canada? We are saying that Canada is open for business. We are saying that we are on the side of job creators, and we are saying that government is committed to protecting Canadian businesses and employees and to growing the economy.
I will read into the record, if I might, some commentary on this bill, starting with Laura Jones, who is the vice-president of the Canadian Federation of Independent Business. She stated:
The federal government is showing tremendous leadership in implementing its ambitious red tape reforms. Wrestling with reducing red tape requires the ‘stick-to-itiveness’ and political leadership that we are seeing from Ottawa. It’s heartening that the messages that we are getting from the Prime Minister, [myself], and their colleagues that they are in this for the long haul.
Then there is Kevin Dancey, president and CEO of the Chartered Professional Accountants of Canada, who stated:
We applaud the federal government's early accomplishments in reducing red tape barriers faced by Canadian entrepreneurs and business owners. The government's reiterated commitment to a sustained approach over the long-term is encouraging. A persistent approach is the remedy required to identify and develop solutions to effectively reduce the compliance burdens and associated costs faced by Canada's business community.
Also, there is Helen Long, president of the Canadian Health Food Association, who stated:
The government’s focus on the reduction of red tape has already made an important impact on our and many other industries.... CHFA and its members stand ready to support the government in its efforts to further reduce the red tape burden on Canadian business, and to allow them to focus on innovation and job creation instead of administration.
Finally, Carole Presseault, regulatory affairs, CGA Canada, stated:
These measures should give Canada’s small and medium businesses more time to focus on growth, innovation and job creation.
That is exactly the point. We want small businesses to focus on growth, jobs, and innovation in our economy.
I want to talk very briefly about the small business lens.
Introducing a small business lens to regulatory creation is part and parcel of this bill as well. Businesses that represent over 40% of Canada's private sector GDP and almost 50% of all jobs in the private sector have requested that when we look at regulation, we take the time to look at it from the point of view of the small business. How will the proposed regulation affect them and their ability to operate, innovate, and create new jobs?
Therefore, we have this is as part of the rules in our law as well. This will happen, this small business lens, when a regulatory change imposes over $1 million in annual nationwide costs and has an impact on at least one small business. That is the test.
Now, as a result, regulators will have to ask themselves if the information we are asking these small businesses for is already being collected by another government department. As a former small business owner myself, I can say that nothing drives one crazier than filling out a form in triplicate from one level of government or one government department and then, the next day, getting another form asking the same questions. We heard that from small businesses. I remember it well when I operated my own small business.
Therefore, we are demanding that regulators at Treasury Board know what is already being collected by another government department so that we do not have to overburden our small businesses, and we want this in the law if it is passed by this House.
Here is another question. Is there another way to regulate that would be less burdensome, rather than automatically saying, “We've got a problem.” We hear this all the time in Ottawa: “Folks, we've got a problem. We've got to solve a problem. How are we going to solve the problem?” The constant advice we get is, “Well, if we just pass this regulation, we would solve the problem.”
Maybe there is another way to solve the problem. Maybe there are other ways, if we use our noggins a bit, that we can solve the problem without overregulating our small businesses.
The third question is, are we communicating in plain language? I hear time and again from small businesses that understanding what government is asking of them is sometimes very difficult, so if there is going to be a burden, we want to let the burden be on the bureaucracy, on the regulators, to actually speak in plain language so that people can understand what they say.
This is part of a 20-point small business checklist that regulators would have to fill out and publish and have signed by the minister responsible as part of their package to Treasury Board before Treasury Board would consider whether this regulation was the right thing to do. Of course, this would mean greater transparency as well.
Very briefly, here are some other changes.
Service standards for 24 high-volume regulatory authorizations have been created, covering more than 60,000 transactions with businesses each year. There would be 32 departmental forward regulatory plans to let small businesses know what is coming around the corner. They would publish these forward plans so that small business has either the time to adapt or the time to react and say to government, “You know what? We understand what you're trying to do here. We agree that something has to be done, but maybe there's a better way to deal with it that doesn't involve, always, further regulating small businesses.”
Then there is the annual scorecard.
I released the first and second annual scorecard on the red tape reduction action plan so Canadians can see just how much progress we are making. The scorecard is independently vetted by a regulatory advisory committee.
In conclusion, let me put it this way: low taxes, less red tape, more growth, more prosperity, balanced budgets, safe streets and communities, and a belief that this is the best country in the world in which to live and in which to do business. That is our aspiration and that is our record, but we want to move forward as well.
Mathieu Ravignat NDP Pontiac, QC
Mr. Speaker, I think Canadians have a right to be asking themselves some pretty profound questions about whether or not the current government actually does want to reduce red tape.
First, we if look at the infrastructure program and the bureaucracy the government has created for municipalities and for businesses that the municipalities have to deal with, we see delays of up to 18 months right now just to deliver a project.
Second, with regard to employment insurance, the amount of red tape now that small- and medium-sized businesses have to deal with just to track employment insurance is ridiculous.
Therefore, we have to question whether there is truly a motive to change the red tape for small and medium-sized business. Perhaps more importantly, the President of the Treasury Board, the minister, is giving himself significant powers in order to gut health, safety, and environmental regulations and standards in this country, putting the future of Canadians in danger.
What does he say to Canadians who are worried that he will use his own noggin, his own judgment, when it comes to their safety and security and health?
Tony Clement Conservative Parry Sound—Muskoka, ON
Mr. Speaker, it is very specific and we have operated this way over the last couple of years. Health and safety impacts are exempt from the one-for-one rule. That is to say that regulators who are fixing a problem that will then have a positive impact on the health and safety of Canadians are not required to find another regulation to offset that particular rule.
I am not standing here saying that, with a wave of a magic wand, every single regulation is going to be off the books. No, of course not. There is a need for regulation. Those hon. members would be the first ones to stand up in the House and complain if we did not have rules in place to ensure the accountability of tax dollars. Some of the rules that the member referred to are there to make sure that, when a tax dollar is spent, there is accountability for that. They would be the first ones to complain if we did not do that.
Kevin Lamoureux Liberal Winnipeg North, MB
Mr. Speaker, I have had the opportunity to meet with business people. Many of my colleagues within the Liberal caucus have spent time trying to assist businesses across Canada and get a better understanding of them. Let there be no doubt that there is a great deal of frustration with respect to the amount of administrative work necessary to deal with the red tape currently in place.
My question for the President of the Treasury Board is with respect to the lack of leadership from the government in terms of working with other levels of government and doing what they can, jointly, to reduce the red tape. Business people tell us that there is far too much paperwork, far too much regulation, and I am talking about small businesses in all regions of the country.
What is the minister doing to ensure that there is strong leadership and a sense of co-operation with all the stakeholders to reduce red tape?
Tony Clement Conservative Parry Sound—Muskoka, ON
Mr. Speaker, it is important to work together with other levels and orders of government where we can. I have done that myself. We have worked with various provinces—for instance, British Columbia comes to mind first—and have explained our red tape reduction efforts. That is part of it as well. When regulators come before Treasury Board, we do require them to have a tour d’horizon of other regulatory impacts and say whether they have had those discussions as well.
This is an important aspect. I contend that we are doing that. I thank the hon. member for raising it in this place as well.
Harold Albrecht Conservative Kitchener—Conestoga, ON
Mr. Speaker, I want to thank the minister and our government for taking the initiative on red tape reduction.
The minister mentioned that the amount of paperwork that companies are saddled with can often be very burdensome and prohibitive, and that is especially true for small and medium enterprises. A larger company can possibly afford to hire a full-time person to fill out the reams of paperwork, but a small company with 10, 12, or 15 employees has a much more difficult time getting to that task.
I wonder if the minister could highlight how this particular measure would benefit all companies, especially those small and medium enterprises that are responsible for 90% of the business in our country.
Tony Clement Conservative Parry Sound—Muskoka, ON
Mr. Speaker, the hon. member for Kitchener—Conestoga is quite right. We have tried to listen specifically to the small and medium-sized enterprises and their specific concerns when we had our round tables and our discussions. I continue those to this day when I do my pre-budget round tables across the country. This is one of the items upon which I always touch.
It is clear that small and medium-sized enterprises do not have the ability, many times, to specifically dedicate people to deal with regulation on a daily basis. We have heard that. Just through our administrative work prior to this legislation coming before the House, we have reduced about 100,000 hours of regulatory burden that small businesses face. That is a tangible number.
We also heard dozens of ideas from small businesses of specific regulations that have no impact on health or safety but perhaps had some meaning or purpose 20, 30, or 40 years ago, but those regulations now do not have that same purpose. We are working our way through their suggestions on how to make those regulations either disappear entirely or be less burdensome.
Mathieu Ravignat NDP Pontiac, QC
Mr. Speaker, since this is the first time on my feet giving a speech, I would like to wish all my constituents a happy new year.
Happy new year to all my constituents. 2015 will no doubt be a very interesting year, one that I am sure will mark a major change in Canadian politics when an NDP government takes power.
Obviously, no one can oppose virtue. However, this bill is far from virtuous. I want to be clear with Canadians. I believe—as does my party, of course—in the principle of red tape reduction, which will reduce administrative hassles for business people. However, this bill does not significantly reduce the burden on small and medium-sized businesses, since it does not address most of the regulations that are problematic for them, namely those pertaining to all of the paperwork associated with taxes. When I visit small and medium-sized businesses in my riding, most of them complain about all of the paperwork required, particularly by Revenue Canada.
It is difficult to believe that the Conservatives are sincere about wanting to eliminate red tape since they did the opposite with the Building Canada fund, for example. Instead of helping municipalities and SMEs start infrastructure projects in a timely manner, the Conservatives set up a long and cumbersome bureaucratic process for every project worth more than $100 million. That will create delays of up to 18 months that will slow down important projects in my riding and the ridings of my colleagues.
The Conservatives did the same thing with their so-called employment insurance reform, which requires employers to provide more and more information about their employees. What is more, small and medium-sized business are not really getting any help when it comes to training and information. Such assistance would help them figure out all of the paperwork and send the right forms to the right people. This government is not really supporting small and medium-sized businesses.
If we really want to help small and medium-sized businesses, we can do better than this bill. For example, the Conservatives are dragging their feet when it comes to taking serious action to regulate anti-competitive credit card fees that merchants must pay to card issuers. That is another example of bureaucracy and red tape.
If the Conservatives really wanted to help SMEs, they would have supported the NDP's idea to have an ombudsman to control the credit card fees that card issuers charge merchants. That was a simple and reasonable solution, but it was rejected by this government.
No, this bill is not good enough. The principle is good, but it is unclear whether it will achieve the expected results. What small businesses really need is for us to identify what is wrong with the system and eliminate it. It would take a simple study. The one-for-one rule is too vague, and there is no guarantee that it is going to work.
We also have to stop giving lip service to small and medium-size businesses and actually help them out, either by restoring the small business hiring tax credit for young people; reducing taxes for small businesses specifically, not the corporate tax rate for the largest and most successful businesses in this country; cracking down on hidden credit card transaction fees; and perhaps redefining what a small and medium-size business actually is for the purposes of government procurement contracts. These are major, tangible differences. These are changes that can help SMEs.
I do not know if members realize this, but the government currently defines small and medium-size businesses as businesses with 500 or fewer employees.
In my riding, SMEs have on average 12 employees. It is completely unrealistic to expect a company with 25 employees to compete with a so-called small business with 499 employees. That makes absolutely no sense. The system is not designed to consider criteria such as profit margins or staffing numbers, for example.
We could debate the service agreements that merchants sign with credit card companies, which favour small-business owners by allowing them to pass the fees on to consumers, thereby increasing all prices. Even though the Competition Tribunal recently rejected a lawsuit against Visa and MasterCard, in a rare move, it did call for the creation of a regulatory framework for anti-competitive practices.
Furthermore, to help small and medium-sized businesses, we could also create a tax credit to help businesses that hire and train young people or give grants to help SMEs expand. We could make it easier to transfer a family business to the next generation, for example, create tax credits that would offset payroll taxes, help small business innovate, and so on. In agriculture, we could do something about venture capital and the high interest rate for new land purchases.
Clearly, unlike the government's symbolic one-for-one legislation to reduce red tape, our proposals are sensible, concrete, realistic measures that would actually help Canadian SMEs create jobs. However, as the official opposition's Treasury Board critic, I have other, more serious concerns regarding this bill.
As is often the case with the Conservatives' bills, because of their almost uncontrollable zeal for defending the free market as they understand it at all costs, I see that they have hidden in this bill their intent to eliminate regulations that protect my constituents' health and safety and the environment.
After the listeriosis crisis and the Lac-Mégantic tragedy, we need to guarantee, more than the government is doing, that there will be more, not fewer, standards and regulations to protect Canadians' health and safety.
Regulations that are in the public interest should be kept. This bill puts them in jeopardy because it gives the President of the Treasury Board the power to eliminate them under the pretext of cutting red tape for businesses. This is definitely not the recipe for sound public administration.
We are not alone in thinking that. During the study of the bill, Chris Aylward of PSAC testified before the committee. He said:
If regulations are no longer deemed to be in the public interest after due consideration and consultation, the regulators have always had the ability to amend or delete them. In fact, they have done so on a regular basis... Not only is Bill C-21 unnecessary, it will not adequately protect Canadians... At worst it is a make-work project that will mean regulatory and enforcement officers will have to spend their valuable time within a context of shrinking resources aimlessly looking for regulations to cut.
Furthermore, Laura Jones, executive vice-president of the Canadian Federation of Independent Business, stated that:
It's always going to be challenging, you know, where that line is drawn, because to get a bit more safety sometimes can be very costly, and different people will draw that line in different places.
It is all still quite vague.
It is true that the NDP wants to reduce red tape for small businesses, but we cannot do that at the expense of Canadians' safety. We cannot trust the Conservatives, who are in the habit of deregulating without any regard for safety, health or the environment. Their harmful record on eroding regulations that protect the health and safety of Canadians and the environment is quite clear.
For example, in 2013, the then Minister of Transport gave WestJet an exemption from the Canadian aviation regulations. WestJet planes can now operate with just one flight attendant for every 50 passengers, rather than the standard one flight attendant for every 40 passengers, as required by the regulations. Other airlines have since asked for similar exemptions. It is only natural. Where will this end? The NDP has asked that the rule of one flight attendant for every 40 passengers be upheld.
The Lac-Mégantic tragedy also put the important issue of rail safety in Canada back on the agenda, after decades of Liberal and Conservative deregulation. In 1999, the Liberals persisted with the deregulation of rail safety by continuing to implement the safety management systems approach, which was adopted by the Mulroney Conservatives. This approach left it up to the industry to look after the safety of its own operations—in other words, self-regulation, which no longer works—instead of ensuring that the government worked with the industry to set safety standards. That would be perfectly reasonable.
In October 2013, the Conservatives used the budget implementation bill, Bill C-4, to make changes to the Canada Labour Code, and those changes will gut the powers of health and safety officers in federal workplaces. This will jeopardize the health and safety of workers.
The Liberals were no better. I would remind the House that the Lac-Mégantic tragedy called decades of Liberal regulations into question. In 1999, the Liberals continued with the deregulation begun by the Mulroney government. No, the Liberals are no more reliable when it comes to protecting the health and safety of Canadians. Does the Liberal leader really have the judgment needed to defend the regulations protecting the health and safety of Canadians? I seriously doubt it.
It is not simply a question of managing the number of regulations to please the richest companies in Canada, but rather of determining which ones are helping Canadians. Therefore it is important that we do our research and our homework as good public administrators. This is a reasonable way to address this issue.
It is ridiculous that only the bill's preamble clearly states that the regulations protecting the health and safety of Canadians will not be affected. We all know that the legislation that will govern these regulations has no preamble. No mention is made of the environment in the entire bill. If the Conservatives really care about the health and safety of Canadians, why did they not specifically protect health and safety regulations from the application of the bill?
Why did they not support our amendments in that regard when studying this bill? The NDP moved 12 amendments; that is not a lot. They were robust amendments, and nine of them would have prevented the government from eliminating regulations that protect Canadians' health and safety, food safety, transportation safety, the safety management system and the environment. One amendment would have required the government to just consult with stakeholders before eliminating regulations. Another amendment laid out the reporting requirements and eliminated the Governor in Council's power to make new regulations for the report.
If the Conservatives are serious, why did they vote against all these amendments? The amendments are reasonable and truly reflect all the evidence we heard in committee. The Conservatives said that these amendments were redundant. That is absolutely not the case. It is obvious that giving the President of the Treasury Board more powers is not what is needed for sound public administration.
The NDP believes in common sense solutions to reduce red tape and the compliance costs for small businesses when they deal with the government. The NDP is always open to ways to help small businesses by eliminating unnecessary red tape and letting them focus on what they do best: growing their businesses and creating jobs. However, the best way of doing this is not the one-for-one rule. It is rigorous research and broad consultation with the business community to identify those bureaucratic demands that are really causing problems.
This bill is a poison pill. Bill C-21 gives the President of the Treasury Board too many arbitrary powers that will make him the arbiter of eliminating regulations that he deems unnecessary. If the Conservatives are really serious about the health and safety of Canadians, I hope they will answer during this debate why they will not explicitly exclude regulations that protect health and safety from the application of this bill and why they opposed the NDP amendments that did that very thing.
Government regulations to protect Canadians' health and safety and the environment should remain a priority of any government. We need more than the government's promises of a preamble. The NDP would like to prevent the government from eliminating the regulations that protect health, safety, food security, and workplace health and safety, and this is why we are opposing this bill.
We want to make sure that future generations are not affected by the deregulation this bill would cause. Our fellow citizens deserve to be protected, as well as our children and grandchildren. Also, any bill of this kind should include clear obligations in terms of accountability for how the government uses this legislation and for the stakeholders who are consulted before regulation is eliminated. However, the Conservatives voted against this accountability in committee. Regulations that are in the public interest should clearly be consulted on with the public.
It is a matter of good public administration. It is about protecting our children, keeping them healthy and safe, and protecting the beauty of their natural environment, while finding a way to eliminate red tape. As I said before, we can do this by conducting a study in partnership with the public service and our small and medium-sized businesses and by using our heads.