Mr. Speaker, I am pleased to speak today on this important piece of legislation for businesses and all Canadians. I would like to start with a bit of context to help us better understand the thinking that led to the introduction of this bill.
Briefly, this bill is a direct result of the feedback we received from small businesses that are so vital to the long-term success of our country. We are debating it today because back in budget 2010, we made a commitment to review federal regulations in areas where reform is most needed to reduce the compliance burden on businesses, especially small businesses, while safeguarding the health and safety of Canadians.
At the time the Canadian Federation of Independent Business estimated that businesses in Canada spend over $30 billion each year complying with regulations, so the government took action. In 2011, we created a Red Tape Reduction Commission, which was made up of both parliamentarians and private sector representatives. Its mandate was twofold. First, it was to identify irritants to businesses that stem from federal regulatory requirements that have a detrimental effect on growth, competitiveness, and innovation. Second, it was to recommend options that address these irritants and control and reduce the regulatory burden over the long term while ensuring that the environment and the health and safety of Canadians were not compromised in the process.
The commission held consultations across Canada to hear directly from the people who are most affected by red tape. This included in particular small business owners. There was also an online consultation to allow an even wider range of business people to provide their views. Overall, people expressed concern with the unchecked growth of regulation and the costs they impose on businesses, especially small businesses. Specifically, business owners also told the commission that a one-for-one rule was necessary to control how often the government turns to regulation to address issues within industry. Then, in January 2012, the commission released its report, complete with recommendations for reducing red tape and its effects on the business community.
It did not take long for the government to take action. A few months later, on April 1, 2012, the government put the one-for-one rule in place. This rule requires regulators to remove a regulation each time they introduce a new regulation that imposes an administrative burden on business. It has worked so well that we moved to enshrine this rule into law last January by introducing the red tape reduction act, which we are considering today.
There is no better time than the present to give the one-for-one rule the force of law. Canada has weathered the economic downturn relatively well and is well positioned for sustained economic growth. We have gone from having one of the highest marginal effective tax rates on business to having one of the lowest. In fact, we are one of the few countries in the world that can boast of having both low debt and declining taxes. As a result, Canada is internationally recognized as one of the best places in the world to do business.
In December 2012, Canada cracked the global top 10 with respect to corporate tax competitiveness, according to a report by PricewaterhouseCoopers. This past January, in Bloomberg's rankings of the best countries in the world for doing business in 2014, Canada placed second, just behind Hong Kong and ahead of the United States. All of this points to an economy that continues to perform well in the global economic environment.
However, now is not the time to rest on our laurels. If we are to continue to rank among the world's most successful nations, we have to keep that international confidence in Canada up. We are taking the right steps to do that. We are on track to balancing the budget, and we have continued to take measures to create a business climate that supports growth and job creation. At the same time, federal transfers to individuals, such as old age security and employment insurance, as well as major transfers to other levels of government, including those for social programs and health care, will continue to grow. We have also taken steps to improve the fairness and integrity of the tax system to ensure that everyone pays his or her fair share.
We are also finding savings and efficiencies in the government's operations. At the same time, we are working to create an environment that is supportive of business. From 2008-09 through 2013-14, we delivered tax reductions totalling more than $60 billion to job-creating businesses. Among those measures is the reduction of the federal general corporate income tax rate to 15% in 2012, from more than 22% in 2007.
We have already taken steps to significantly improve Canada's tax competitiveness and business environment. Now, the steps that we are taking to reform the federal regulatory system are in line with these actions.
Canada needs a regulatory system that works, one that is not overly burdensome, one that does not hinder the ability of businesses to innovate and grow, and one that protects Canadians' health and welfare. The bill being considered today is part of a package of regulatory reforms designed to modernize our regulatory system. By giving the one-for-one rule the added muscle of legislation, Canada would have one of the most aggressive red tape reduction measures in the world. It would increase Canadian competitiveness; free businesses to innovate, grow and create jobs; and underscore Canada's reputation as one of the best places in the world in which to invest and do business.
Let me close by saying that the red tape reduction act is about bringing new discipline to how regulation works. It is about creating a more predictable environment for businesses, and it is about freeing Canadians and their companies to succeed.
Small businesses are the foundation of this country's economy. By removing unnecessary barriers to their success, we would be helping them focus their time and energy on seizing new opportunities for growth and job creation. This would contribute to building the prosperous future we want for Canada and our children.
I ask my hon. colleagues to support the bill.