Government Operations Committee on Feb. 10th, 2026

[The Chair, Conservative, Kelly McCauley]

Thank you very much.

Madame Gaudreau, please go ahead.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Thank you very much, Mr. Chair.

Minister, welcome back.

I have several questions, but unfortunately, I won't have time to get to all of them.

I'm glad to hear your remarks about libraries because I also had a great deal of concern about that issue. I hope that news will be shared with municipalities quickly, because, let's be honest, nobody listens to us, or very few people do. We'll have to share that piece of news with them. I commend all the people in municipalities who shared their concerns with me. I have one person from my riding in mind.

There have been media reports about contracts handed out Driver Inc. truckers. I know that the Canada Post president and CEO will appear before the Standing Committee on Transport, Infrastructure and Communities tomorrow, but I'd like to speak to two issues. First, there is cost reduction, but at what price? Second, do you know who the subcontractors are hiring, at a time when we are seeing many fatalities on our roads?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

That's a very good question. As you are no doubt aware, I have also seen these articles. I also know that the president of Canada Post will appear before the Standing Committee on Transport, Infrastructure and Communities tomorrow.

In my view, while I'm not responsible for Canada Post activities, I'm the minister responsible, and I expect corporation to act in a manner consistent with the highest integrity, quality and security standards, in its procurement process and selection of suppliers, just as the government expects all Crown corporations to act.

Canada Post has told us that it has not used subcontractors or trucking businesses that use the Driver Inc. model. Perhaps Canada Post's president will provide the necessary information when he appears tomorrow, but based on the information given to me, the corporation has not done any business with these types of businesses. This is consistent with what I expect from the corporation.

Since we're speaking to the Budget Implementation Act, I would point out that the budget has $67 million over four years to help the Canada Revenue Agency acquire the necessary tools to identify these businesses and to crack down on the ones that deserve to be punished.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Mr. Chair, at our last meeting, I urged vigilance on the potential privatization of Canada Post and alluded to the German model. That is one of my concerns, obviously.

I'm also concerned about the use of subcontractors who in turn hire Driver Inc. truckers.

Let us turn to Canada Post's transformation and restructuring plan. How did we get to a point where, after all this time, the president and the minister have not come up with a plan? Is there a mismatch between strategy and intention?

I expected to have some news on this issue by the time we reconvened. People are worried. They want to know whether their post office is about to shut down. Here is your opportunity to tell us when we're going to have an update.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

As I said, it's true that we received the plan in November. When I announced the changes at Canada Post, some people told me, and I don't recall whether you were one of them, that we were moving too fast. Now, I'm being criticized for taking too long. It's all about striking the right balance. That said, we received Canada Post's plan, and we have had a lot of discussions with Canada Post Corporation to get additional details and ensure that the plan is well designed.

In September, when I announced that we were going to transform Canada Post, I said—and I know we can agree on that—that there were some fundamental principles that had to be complied with, including the need to ensure services in remote, rural and indigenous communities. That's very important to me, and so I want to make sure we land on the appropriate spot with Canada Post.

That does not stop Canada Post Corporation from working on a number of things. For example, it can start consultations on community mailbox conversions with the communities that will be impacted in order to look into how the conversion can be operationalized from a practical point of view.

With regard to transformation, I'd be happy to come back to talk about it some more in due course. The fact that there has been no public announcement doesn't mean that no work has been done. A lot of work is going on with Canada Post to ensure we have all the information and land on an appropriate spot.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Okay.

I have one minute left. Let's talk about regulatory sandboxes.

Last week, we met with officials from the Red Tape Reduction Office. I have a couple of concerns, and the first one is on conflict of interest. There is no regard for structure. People may adhere to directives from the Office of the Conflict of Interest and Ethics Commissioner, but we have heard that there is no clearly defined practice to ensure that ministerial choices don't place people in a direct conflict of interest.

What are your thoughts on the current screen, which is completely inadequate, in my opinion?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

How much time do I have to answer that, Mr. Chair?

[The Chair, Conservative, Kelly McCauley]

It is only 30 seconds, but I think it's an important topic, so I'll give you the time to answer.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

That's a good question.

When it comes to regulatory sandboxes, in principle, Bill C‑15, as well as Budget 2025 more broadly, seek to establish a regulatory framework to accelerate innovation. The regulatory sandbox principle is used around the world, including in the European Union. The United Kingdom's financial sector alone has had regulatory sandboxes since 2016, which has allowed 700 firms to innovate and improve, and this has generated billions of dollars in economic spinoffs. Regulatory sandboxes will accelerate innovation in a world that sometimes needs more flexibility.

However, we are open to suggestions on effective oversight or monitoring mechanisms.

[Marie-Hélène Gaudreau, Bloc, Laurentides—Labelle, QC]

Thank you very much, Mr. Chair. You are generous.

[The Chair, Conservative, Kelly McCauley]

Thank you.

Mrs. Jansen.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Thank you so much for being here.

It's great to be able to have an opportunity to ask the minister about red tape reduction. I'm very excited, especially in the current situation we find ourselves in. We are going through the worst bankruptcy rates since the last financial crisis. In B.C., bankruptcies are up, at 10%.

When I meet small and medium-sized businesses, I hear things like this: too much paperwork, slow approvals, high compliance costs. They can't even afford the payroll or the rent.

I'm wondering if you could explain to me how giving this new sandbox exemption would make life easier for small and medium-sized businesses.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

First, you need to look at red tape reduction and reduction in bureaucracy as a whole. In this case, we're talking about paperwork. Take the example of our department, where we have—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

I hate to budge in, but I'm hoping we can hear whether this new exemption automatically simplifies forms for small and medium-sized businesses. I understand that it does for the big ones, but how about for the small and medium ones?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

That's because you're looking at one measure from the budget, even though there is a whole range of other measures. Red tape reduction is not limited to regulatory sandboxes.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Again, this is a big one. This one is a discretionary one. We see this tragedy happening with bankruptcies. Would it automatically shorten approval times for small and medium-sized businesses? I get that it does it for some of the big guys, but what about for small and medium-sized ones?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

It's not just for big companies. This measure will accelerate innovation where the regulatory framework stifles innovation. One example is the sector—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Would that work for a small business?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

It might, depending on the sector. I don't know whether it will help my barber, but it might help a small fintech company that wants to speed up payment systems using digital assets like stablecoin, among others.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Is this power easier for a larger organization with a legal team to use than it would be for a small start-up? Would they require a legal team?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

My understanding is no. It might help innovative small businesses and that is certainly what we've seen in countries that have this type of instrument, namely regulatory sandboxes.

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

This exemption will actually apply to them.

[Joël Lightbound, Liberal, Louis-Hébert, QC]

It's—

[Tamara Jansen, Conservative, Cloverdale—Langley City, BC]

Will it apply to small and medium-sized businesses, the kind that are 10% of the bankruptcies in British Columbia?

[Joël Lightbound, Liberal, Louis-Hébert, QC]

Countries that have introduced the principle of regulatory sandboxes, including Germany, France, the United Kingdom, Brazil and European Union member states have not necessarily targeted one sector more broadly. It's a matter of specifically looking at the sectors where the regulatory framework stifles innovation, and how to ease rules to foster innovation.