Mr. Speaker, it is a pleasure to rise today and discuss the bill at hand. I want to touch on a point that the member from the NDP brought up in his last question. It is not a criticism at all, but rather a different way of looking at it.
The member asked a question with respect to the size of the regulations not decreasing but staying the same. I would argue the opposite, because the whole premise is that every time someone within the public service has a new idea about a regulation, there is a regulation that has to be eliminated within a certain period of time. What I think we are all asking the public service to do is work with business and ask what else it can do or ask where in the stacks of outdated regulations it could either thin out regulations or get rid of them altogether.
The most important principle behind the whole idea of rationalizing regulations is the protection of the public, the environment, and the economy. When we look at that, it should put all Canadians at ease—taxpayers and the people who are concerned about the environment, as well as businesses that are concerned not only with the environment but with their business at hand.
I grew up in a small business. I worked in a large business and then a small to medium-size business during my working career. Anyone who has spent any time working in business understands that there is quite a substantial regulatory burden, whether with respect to the tax code or any of the other federal regulations. I say federal because these are federal regulations at hand. They are quite significant, to say the least.
To bring one point forward where we can see huge benefits, I will draw a parallel to the Veterans Affairs VIP program, albeit not a regulation, which provides services to veterans in and around their home and property. Most parliamentarians would know that, prior to April 3, 2012, veterans had to submit invoices for all of that work. That involved 100,000-plus veterans and equalled millions of dollars of transactions per year. If we calculate the costs of completing those transactions, in some cases I am sure it was close to the costs of writing the cheques to the veterans to compensate them for their expenses. Accordingly, in April 2012, the then minister of veterans affairs brought forth a policy that was well received by veterans and all parliamentarians because it recognized that this outdated rule, which was very expensive to administer, no longer served the purpose of its original intention.
Therefore, while we were looking at ideas for savings during that period of fiscal constraint, it cut costs as well as reducing labour and burden on the department so that those civil servants could spend more time serving veterans, and the veterans received their money more quickly than before. It was a win-win situation. The people inside the department who work hard on behalf of veterans were able to look at new ways to provide better services to veterans. That is a great and simple example.
When the public service is tasked with finding improvements and savings, in some cases it is also working with business, so both parties are working together to find a good solution that would cut costs. There are people out there who say that they have heard what we are saying about principles but that there has to be something here.
In fact, I go back to my days when I worked for an automotive parts manufacturer, in the finance department, and it was looking at all the different processes. We were going through the same kind of fiscal constraint that the federal government has, and the finance department was tasked to go through each and every step in the financial process, with consultants, and to find waste, to find areas that were not key to delivering the financial reports, the payments, the receivables every month, year-end or whatever it would be. I can remember, as clear as day, and I will remember this to my last breath, that in the accounts payable department the consultant came out and said he thought we could go from four people to two people if we cut out all the wasteful steps. Years before that, I had worked in that area and wondered if that was possible.
It had been happening that people came to work each and every day and did the job they were assigned to do, but then times were tighter and they looked at what they were doing. No one had been looking at the reports they were generating in this example, and if they did look at them they were not reacting to them, so they were of no value to the company. Within a matter of a few months, the company went from four people to two people in the accounts payable department, and it was actually able to produce virtually the same result, which was to be able to complete the month-end in a timely manner, ensure that people who were owed money got paid, and reconcile everything at the end of the month. It went from four people to two people and covered four factories in doing so.
That is the kind of example of wasting money by doing things that do not add value, although it is a business example, and all Canadians who have been involved in businesses can appreciate it. That is what we are trying to do with these regulations.
We are trying to protect the environment, there is no doubt. We are trying to protect the economy. We are trying to protect people's safety in the workplace. However, we are also saying that, if they have an idea or concept that is going to save regulatory burden, they should please help us out.
This is one example that they have listed here. Aboriginal Affairs and Northern Development Canada has modernized the Northwest Territories mining regulations and the Nunavut mining regulations. This is estimated to result in annual savings for businesses of almost $620,000. It is not $620 million, but we would all agree that in business $620,000 is a lot of money. It can allow them to do more R and D, buy new machinery, invest in a plant and equipment, and so on. It is vitally important.
The Prime Minister is quoted and is on record, as I am sure many others are, as saying that regulations, when they do not make sense and when they do not help, are “...a hidden tax and a silent killer of jobs”.
This has been in effect since April 1, 2012. It has been a rule. Now we are putting it in through legislation to make it a law. It would be great if all the provinces, territories, and municipalities took a long, hard look at having similar rules first and then enacting legislation. As many mazes as there are through federal regulations, there are almost equal numbers of regulations in provinces, counties, municipalities, and cities that for some reason made sense at one time but no longer make sense today.
Looking at the ease of paying tax, there was a study called “Paying Taxes 2014” that found that a business in Canada takes 25% less time than a business in the United States to prepare, file, and pay its taxes each year. That is important because, when business owners are looking at filing their business taxes, it is a huge cost. There are businesses involved in each province and businesses coast to coast and businesses that conduct themselves in various different jurisdictions around the world. If business is growing, those costs are pretty amazing and it is difficult to put a financial team together to help cover the costs. The easier we can make it to file and prepare taxes and also be audited at the other end, the more attractive it is for businesses to invest in Canada and remain in Canada.