Mr. Speaker, it is with pleasure that I rise today to speak to the motion introduced by the hon. member concerning the important matter of regulations.
The motion actually touches on two key issues. The first issue concerns the role of parliamentarians in assessing regulations and making sound judgements as to their value and benefit. The second issue is equally significant. It involves the appropriateness and effectiveness of the existing regulatory governance regime within the Government of Canada.
In his motion the hon. member calls for the establishment of a regulatory budget. In essence this would involve the tabling of detailed cost estimates identifying the total cost of each proposed regulation. Such costs would encompass the government's enforcement costs in addition to those incurred by individual citizens and businesses.
The motion further calls for the submission of a cost benefit analysis pertaining to each regulation. The intent of this information would be to enable parliamentarians to assess the benefits in light of a realistic understanding of the costs. However, it is unclear what purpose the proposals would serve or at what stage in the regulatory process such a budget would be considered.
In a system of government based on the rule of law, the laws and regulations created pursuant to its authority to give structure to society have a far reaching and profound impact on the daily lives of citizens. A well governed society must have both laws and regulations in order to provide the essential framework within which individuals, companies, organizations and governments can function both fairly and efficiently.
Parliament's legislative power is exercised through passing statutes which explicitly set out the authority to make decisions by regulation delegated to the government. Regulations can be made only to the extent authorized by parliament in the enabling legislation. They represent the specifics, the details through which the spirit of the law can be applied in practice.
In approving laws parliament also makes provisions in them for making regulations where they are needed to carry out the purposes of the laws and how such regulation making power should be delegated. However, once a law is passed with delegated authority it is the responsibility of the government of the day to make every effort to ensure that supporting regulations are not unduly burdensome or costly, that Canadians as individuals and as a society are better not worse off as a result, and that Canadians have a say in these issues.
It must be recognized that not every individual, every group or other interest in society can be expected to agree as to the definition of what better or worse off may mean. In seeking to protect Canadians health, safety or the environment, regulations may be developed that some groups or businesses may find burdensome. Such are the trade-offs with which governments must deal.
In the case of the motion before the House today the first issue to which I referred a few minutes ago was that of parliamentary review and oversight. In the motion the hon. member appears to be seeking the establishment of a mechanism to ensure that regulations do not deviate in practice from the intent of the laws they were created to support.
The hon. member's motion seeks to create a new mechanism where an effective alternative already exists. Regulations flow from the laws passed by parliament and cannot be inconsistent with those laws. Regulations are by definition limited by parliamentary role that grants or denies approval for the legal foundation upon which they rest.
What then of the issue of the cost benefit analysis called for in the motion? Without question regulations impose costs. To the greatest degree possible it is important that such costs be known and minimized at the time regulations are first enacted. However we must also keep in mind the benefits of a specific regulation before it is actually applied.
For example, instruments such as those made under the Canada Business Corporations Act help companies to create wealth and jobs and to take risks by establishing the concept of limited liability. We have bankruptcy regulations which are essential in enabling companies, both large and small, to obtain credit on reasonable terms and exercise the right to repossess goods. Such instruments make it possible for a measure of order and control to be applied to the bankruptcy process as well as to the entire process of credit granting and business financing.
Let me use other examples. Regulating that there must be seatbelts or adequate anchors for baby seats in motor vehicles, regulating some emergency or safety features in our airports, or regulating to protect the health of Canadians through careful drug approval imposes costs which can generally be well documented and quantified.
Who would deny that these regulations also bring significant benefits to our society and our citizens? The fact is that it is often much easier to identify anticipated costs associated with regulations than the benefits they may eventually provide. This suggests that the remedy being proposed by the hon. member to allow for a cost benefit assessment would be very difficult to achieve or have experts agree on. The point is that the benefits are undeniable.
The regulatory budget idea proposed by the hon. member represents a very rigid approach which would do more harm than good. It could result in a cap being placed on a number of new regulations passed, thus depriving Canadians of significant additional benefits in such areas as health, safety and environmental protection.
This brings me to the second key issue relating to the hon. member's motion. I am referring to the capacity of existing federal regulatory law and procedures to serve the best interest of Canadians. All regulations approved by the federal government must meet the federal regulatory policy requirement calling for consultations involving all relevant stakeholders. An example of this consultation process would be active participation by industry in the 1996 regulatory review. This review resulted in almost 1,000 modifications to or revocations of regulatory requirements.
Interestingly enough this comprehensive review of our stock of regulations, undertaken with the active participation of industry, still left some 2,000 regulations in the books, another evidence of industry agreeing that regulations do bring benefits to industry as well.
The regulatory approval process is rigorous. In developing regulations the government considers what burdens may be created by a proposed regulatory change as well as the corresponding social and other potential benefits. The government also examines the results of consultations by officials, noting who was consulted, what views were expressed and what reasons have been presented as to why dissenting views could not be accommodated by the sponsoring department.
The government analyses alternative regulatory solutions to ensure that the most effective and efficient is chosen, and it assesses compliance and enforcement issues. All this information is presented to the public for comment in the regulatory impact analysis statement.
The regulatory policy also helps ensure that proposed regulations or changes do not result in adverse impact on the economy's capacity to generate wealth and employment. Final decisions on regulations are made by a committee of cabinet ministers. Cabinet as a whole is responsible to parliament and therefore to the public for the application of regulations.
The Government of Canada is committed to a regulatory government that demonstrates balance, fairness, transparency and accountability. While the government does not accept the proposition that the action proposed by the hon. member is necessary, it does recognize the need to remain vigilant in ensuring that our regulatory regime is the best we can make it.
We will continue to work toward this goal. We will continue to devote our energies to ensuring that the best possible regulatory decisions are being made in serving the interest of the people of Canada and in conformity with the legislative authority conferred by parliament.