Mr. Speaker, as our economy pivots and modernizes, it is important to appreciate the fact that existing regulations may not fit the needs of new and emerging technologies. This can cause significant delays or even stop new products or services from entering the Canadian marketplace. Doing so can hamper Canadian entrepreneurship and innovation, reduce competition and make life less affordable for Canadians.
That is why, in order to help regulation keep pace with innovation, our government committed in budget 2025 to expanding the use of regulatory sandboxes through amendments to the Red Tape Reduction Act. As members know, regulatory sandboxes are commonly used devices that permit a new product or service to be tested in the marketplace under a temporary set of rules and controlled by regulatory supervision. This can help regulators safely decide whether to make any permanent regulatory changes to how that product or service should be regulated.
Our government is of the view that regulatory sandboxes would help support economic growth, reduce red tape, and improve Canada's investment environment by permitting new products and new technologies to get to market in a safe and efficient manner.
However, the concerns raised by the member opposite are valid. I would like to reassure my hon. colleague that it would not be the wild west; there would be guardrails in place. Indeed, the government has included safeguards in both the legislation and supporting policy to ensure that regulatory sandboxes would be used responsibly and consistently across the government. Our goal is to protect the economy, the environment and the welfare of Canadians in the use of regulatory sandboxes.
Bill C-15 would not allow ministers to exempt any person or business from any federal law for broad policy purposes. For example, the legislation includes several safeguards, including providing clear time limits for exemption; requiring exemptions be in the public interest; requiring that public health, public safety and the environment be protected; and limiting exemption to individual entities. Exempting entire sectors of an industry or fast-tracking an entire major project is not within the scope.
The legislation also includes explicit transparency and accountability requirements that would allow for continued oversight and prevent executive overreach. The minister would have to publish exception orders and an explanation of the decision-making process, while protecting confidential business information as required by law.
Furthermore, the President of the Treasury Board would have to table an annual report in Parliament listing all exemption orders issued in the previous fiscal year, the rationale for each, and the ministers responsible. This oversight mechanism would ensure that Parliament is informed and able to scrutinize the use of these authorities.