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The 2013–2014 Scorecard Report: Implementing the Red Tape Reduction Action Plan (view source)
Revision as of 14:29, 16 November 2021
, 14:29, 16 November 2021→Message From the President of the Treasury Board
==Message From the President of the Treasury Board==
==Message From the President of the Treasury Board==
I am pleased to present the second Annual Scorecard Report on the progress made in implementing the 2012 Red Tape Reduction Action Plan.
This year's scorecard report demonstrates that the growth of regulatory red tape is being monitored, measured, and controlled like never before. We are seeing real progress in eliminating unnecessary rules and costs that have been a source of frustration for Canadian businesses and entrepreneurs across the country, while maintaining high standards for the protection of the health and safety of our citizens.
The Government of Canada is committed to giving Canadians the open and transparent government they expect and deserve. Canadians also have high standards for the services they receive from their government which is why we are focused on delivering results that make a positive difference in their everyday lives. This Scorecard Report profiles the considerable efforts of federal regulators to make progress on all these fronts.
The implementation of the one-for-one rule, in particular, has saved Canadian businesses over $22 million in administrative burden, as of June 2014, as well as 290,000 hours in time spent dealing with red tape. These savings are highly encouraging. They provide a clear signal that systematic and sustained control of red tape is now a reality of the federal regulatory system. As one of the cornerstones of the Red Tape Reduction Action Plan, the rule has been so successful that I introduced legislation to give it the force of law—making Canada the first country in the world to take such bold action.
The 2013–14 scorecard report also underlines the ongoing progress the Government has made in creating a regulatory system that is more predictable and transparent. For example:
* Federal regulators stepped up efforts to ensure new and existing service standards are publicly posted, making the approval process for complying with regulations more transparent for businesses.
* Departments posted 40 forward regulatory plans on their websites, providing early notice of upcoming regulations so that stakeholders can provide input and prepare for their implementation.
* In the fall of 2014, the Government published the Administrative Burden Baseline—a key commitment of the Action Plan that clearly tracks the total number of requirements that impose administrative burden on businesses.
* We have also saved small businesses in Canada $75 million annually through the application of the small business lens.
The reforms discussed in the scorecard have been in place for only a short time, but I am confident that they will leave a lasting legacy. More than ever, regulators are doing what it takes to ensure that each new regulation and administrative requirement is necessary, easy to understand, and that it is tracked and reported on. Navigating the large and complex regulatory system is a challenge, and I am pleased that reducing red tape is increasingly becoming part of the culture of the public service.
I would also like to thank the external Regulatory Advisory Committee for its review of the progress made in 2013–14. The Government continues to benefit from the thoughtful advice and recommendations of its members, based on close consultations with industry and consumer representatives.
The Government of Canada is committed to promoting job creation and fostering an environment in which businesses can grow and succeed in the global economy. To that end, we have increased Canada's openness to trade and investment, kept taxes low for businesses, and paid down debt. As highlighted in the scorecard report, we have also made the regulatory system more conducive to economic growth, particularly for small and medium-sized businesses.
I invite all Canadians to read this report, which provides government-wide results for all the systemic reforms we have been implementing to bolster Canada's strong reputation as one of the most attractive countries in the world in which to do business.
Original signed by:<blockquote>The Honourable Tony Clement, President of the Treasury Board</blockquote>
The [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/regulatory-evaluation-results/annual-scorecard-reports.html Annual Scorecard Report] summarizes implementation progress for the above initiatives. As in previous years, the Scorecard Report has benefited from the review and advice of the [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/modernizing-regulations/regulatory-advisory-committee.html Regulatory Advisory Committee], which reports to the President of the Treasury Board. Comprising external experts from consumer and business groups, the committee provides the President of the Treasury Board with an independent perspective on the fairness and reliability of progress being reported by the federal government.
== The Regulatory Advisory Committee's Advice to the President of the Treasury Board on the ''2013–14 Scorecard Report'' ==
=== Deliberations of the Regulatory Advisory Committee ===
The Regulatory Advisory Committee was established in September 2013. Committee members serving this past year are Victor Young, Corporate Director and Committee Chair; Bruce Cran, President of the Consumers' Association of Canada; David Fung, Chairman and CEO of ACDEG Group; and Laura Jones, Executive Vice-President of the Canadian Federation of Independent Business.
The first Annual Scorecard Report for 2012‒13 was published on January 28, 2014, and included the Committee's advice to the President of the Treasury Board, the Honourable Tony Clement. Since that time, the Committee has remained engaged in monitoring the progress related to the implementation of reforms. To that end, in 2014 the Committee held two meetings by teleconference on June 30 and December 9, and held three in-person meetings on October 1 and 2 and December 18, respectively. All of the in-person meetings included in camera sessions of Committee members only, in the absence of government officials. The Chair of the Committee also had a telephone conversation with the President of the Treasury Board to discuss the Committee's progress.
The Committee's October 2 meeting represented an important milestone in the Committee's deliberations. Pursuant to the 2012‒13 commitment and advice to the President, the Committee held an important stakeholder consultation with industry and consumer groups to seek their views on the impact of reform implementation. Similarly, the Committee engaged senior officials from several federal regulatory departments in order to better understand departmental efforts to implement the systemic reforms within the public service. The Committee is sincerely grateful for the contributions made to its efforts this past year by all of the above-noted parties.
The Chair has been in continuous communication, on behalf of the Committee, with senior Treasury Board of Canada Secretariat (TBS) officials on matters related to the Committee's operations and the planning for upcoming meetings. The Committee continues to be impressed with the presentations that it has received and has no doubt about the personal commitment of TBS officials to the success of the program. Discussions between the Committee and TBS officials have been very open, frank and transparent.
=== Role of Committee ===
The Committee did not perform, nor was it mandated to perform, an audit-like review of the scorecard. Rather, the Committee has drawn on the expertise of government officials as well as the members' business backgrounds and experience to arrive at a general opinion on the overall fairness and reliability of the scorecard. The Committee's role is limited to providing advice on red tape arising from regulation, and has been advised by TBS officials that regulatory red tape makes up a very important part of the total red tape universe. Other potential sources of burden that business may experience in their interaction with government may include, for example, (i) applying for grants and contributions programs; (ii) meeting government requirements to do business with government through contracts; (iii) requirements from government policy; and (iv) lacklustre government customer service. These kinds of sources of red tape burden are not covered by our mandate.
As the mandate of the Committee, when commenting on the scorecard itself, is limited to regulatory red tape, we continue to recommend that the government explore expanding its definition of red tape. To this point we also recommend that, while it is a complex undertaking, government work to get a better understanding of how much of the burden of red tape felt by the private sector is covered by the definition of "regulatory red tape."
Over the past two years, the Committee has come to the conclusion that the Red Tape Reduction Action Plan is a significant initiative that is being undertaken with real commitment. Nevertheless, the plan must be viewed in a longer-term context, and the first two scorecard reports should be viewed as very important steps in the roll-out of the action plan reforms. That action plan is aimed at changing the regulatory system and halting the growth of regulatory red tape. As we stated in our report last year, "We believe that government is on a very significant journey that will require many more years of hard work. Therefore the key message is that the program is off to a good start and there is much work to be done and that red tape reduction remains a priority for government going forward. At this stage, we should not confuse significant early action with longer term results." We can confirm, however, that in our view, 2013‒14 represents a period of good progress. This year (2015) will be critical to achieving the objective of embedding the understanding of the importance of red tape reduction into the culture of government departments and agencies.
=== Stakeholder Consultations ===
In last year's report, the Committee indicated that a priority in 2014 would be the need to undertake stakeholder consultations with a view to assessing the on-the-ground impact of red tape reform as reflected in an early response from stakeholders. On October 2, 2014, the Regulatory Advisory Committee hosted a stakeholder dialogue session with some 20 industry and consumer association representatives who were likely to have been directly impacted or highly interested in the implementation of the Action Plan reforms. The dialogue with industry and consumer representatives provided the Regulatory Advisory Committee with a rich source of valuable insights on reform implementation to date. Overall, the dialogue revealed stakeholder support for the red tape reduction reforms, coupled with the view that expanding the Action Plan's scope beyond regulation (e.g., to legislation and policy) would maximize business and economic impacts. Stakeholders noted encouraging signs of culture change in some regulatory departments and agencies, and with senior public servants in particular.
Stakeholders also highlighted improved transparency among regulators, but clearly noted that more needed to be done. Although the reforms are still early in their implementation, many believe more outreach by TBS is required to continue to build industry awareness of and involvement in Action Plan implementation. This is particularly the case for forward regulatory plans. Although stakeholders view the introduction of forward plans as an important achievement that can make a difference for business, greater awareness of these plans would enable industry to make better use of the information that is now available.
The Committee came away from the industry and consumer consultations with a clear sense that reforms cannot work in a vacuum. Red tape reduction is not simply a mechanical process, and future success must involve ongoing consultations with stakeholder groups to take advantage of opportunities to interact, learn, solve mutual problems and move forward together. Targeted engagement on key issues, between TBS officials, departments and appropriate stakeholder groups, will help inform ongoing efforts to implement the Action Plan reforms. In addition, TBS should continue to engage with public sector employees as part of ongoing stakeholder consultations.
For the Committee, the two main conclusions that emerged from the consultations are that (i) what counts ultimately is the positive impact on the ground in lightening the load on businesses and individuals; and (ii) culture change is central to long-term success, as hard as it may be to embed in the process and then to measure. Importantly, the process of ongoing consultations also can be used to test whether success on these two fronts is being achieved.
The Committee's engagement of stakeholders included separate discussions with senior federal officials on their regulatory departments' efforts to implement the reforms and associated culture change. Discussions with these officials revealed that the spirit and intent of the reforms are being embraced by senior public service management. Several indicated that having regulatory reform as a clear government priority was helpful to making progress. In addition, they also underscored the need for ongoing vigilance in order to sustain the current momentum to assure lasting results. The Committee came away from the consultation with federal officials with a positive feeling that there was a full understanding of the need to reduce regulatory red tape but that success will require (i) a commitment to continuous improvement; and (ii) empowerment of front-line officials to ensure that the reforms are making a difference to those impacted.
=== Advice to the President of Treasury Board ===
As is required by its mandate, the Regulatory Advisory Committee to the President of the Treasury Board has reviewed the second Annual Scorecard Report related to the government's Red Tape Reduction Action Plan. Based on the information provided, the nature of the review undertaken and, in the overall context of the related and pertinent issues described above, the Committee is of the view that the scorecard and the statements made therein are reliable and fairly (i) represent progress to date; and (ii) reflect the ongoing commitment of the government to set in place a solid foundation for a comprehensive process of regulatory red tape reduction for the long term.
=== Looking to the Future ===
As stated above, the embedding of ongoing stakeholder consultations into a culture of broad-based red tape reduction is a crucial element to ensuring that the program is successful and ultimately makes a positive difference in the lives of all Canadians. The Committee intends to monitor progress on all issues addressed in this scorecard report, including ongoing stakeholder consultations. In next year's report, the Committee also fully anticipates being able to confirm that the implementation of all of the reforms related to (i) the one-for-one rule; (ii) the small business lens; (iii) forward regulatory plans; (iv) service standards for high-volume regulatory authorizations; (v) interpretation policies; and (vi) the Administrative Burden Baseline is firmly in place.
Some will see this as a successful conclusion to the implementation of the regulatory Red Tape Reduction Action Plan, as measured by the scorecard. The Committee, on the other hand, will see it as just the beginning of a strategy that will need to prove itself over time, with meaningful metrics that measure success and with meaningful stakeholder consultations that provide on-the-ground evidence that the strategy is making a difference and is lightening the load on businesses and individuals.
The red tape reduction program is all about reducing waste, improving productivity, and improving the economy while ensuring public safety and protecting the environment. It is also about working together to make regulatory red tape reduction a normal part of doing business in government. The ultimate success of this program, therefore, will be when the burden is lightened, and regulatory red tape reduction loses its status as a special program requiring special attention and simply becomes an accepted part of doing business as usual. This will take time and continued focus.
Original signed by:<blockquote>Vic Young, Corporate Director and Committee Chair
David Fung, Chairman and CEO, ACDEG Group
Bruce Cran, President, Consumers’ Association of Canada
Laura Jones, Executive Vice President, Canadian Federation of Independent Business</blockquote>
== Introduction ==
=== The Red Tape Reduction Action Plan is central to the Government of Canada's efforts to reform the regulatory system for enhanced economic growth. ===
Regulation is a form of law, made by the Governor in Council or by a minister within the delegated authority set out by Parliament. It is a key policy instrument used by the Government of Canada to achieve various and wide-ranging policy objectives that affect most facets of the lives of businesses and Canadians. Regulation is an important tool for protecting the health and safety of Canadians, and for creating the conditions for an innovative and prosperous economy.
An effective and predictable regulatory system contributes to a competitive and resilient economy, whereas unnecessary regulatory red tape, negative service experience, and an unpredictable regulatory environment can be a source of business frustration and unnecessary costs as entrepreneurs endeavour to compete, create jobs and grow their businesses. In 2012, the Government of Canada released the [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations.html Red Tape Reduction Action Plan], a suite of system-wide reforms aimed directly at measuring, controlling and reducing the burden felt by businesses through requirements imposed by regulation. Specifically, the Action Plan aims to:
* Reduce burden on business through a one-for-one rule and by applying a small business lens when developing regulations;
* Make it easier for business to do business with regulators by introducing interpretation policies; and
* Improve service performance and overall predictability of the regulatory environment through new service standards and forward regulatory plans.
Red tape felt by business can also be created by instruments rather than by regulations, such as legislation passed by Parliament or policies developed within federal departments. The scope of the Action Plan is on the reduction of unnecessary red tape generated through regulations:
* The one-for-one rule and a new Administrative Burden Baseline address administrative costs created by regulations;
* The small business lens drives a regulatory design that seeks to minimize burden on small business to the extent possible; and
* Forward regulatory plans, service standards and interpretation policies are all about providing more predictability and better service in the regulatory system.
The Canada Revenue Agency (CRA) is tackling red tape across its operations. Some of its most notable achievements in support of making it easier to do business with the CRA are highlighted in this document and provide additional context for federal efforts to control red tape.
The Action Plan's reforms, coupled with those being advanced through the work of the Canada-US Regulatory Cooperation Council, the Major Projects Management Office and other initiatives, demonstrate the government's commitment to make the regulatory system more conducive to economic growth. With respect to all these initiatives, the government has made clear its resolve to ensure that Canada's current health and safety standards are preserved and not compromised as regulatory reforms are implemented.
=== The Annual Scorecard Report delivers on the government's commitment to transparency and accountability in its implementation of the Action Plan. ===
The Action Plan commits the government to transparency and accountability in implementing red tape reduction reforms. A new Administrative Burden Baseline has been set and will be updated each year. Each department's count of regulatory requirements that impose administrative burden on business, along with departments' service standards, forward regulatory plans and interpretation policies, must be posted on their new Acts and Regulations web pages. These web pages have a common look and feel and use everyday language so that information that is important to business is easy to find and navigate.
But it is particularly through the Annual Scorecard Report, and the work of the external [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/modernizing-regulations/regulatory-advisory-committee.html Regulatory Advisory Committee], that the government demonstrates its continued commitment to transparent, credible public reporting on implementation. The role of the Regulatory Advisory Committee is threefold:
* To review the government's Annual Scorecard Report;
* To consider and comment on reported progress on the implementation of the Red Tape Reduction Action Plan's systemic regulatory reforms; and
* To provide its views to the President of the Treasury Board and the Auditor General on the government's performance as reported in the scorecard.
The ''2013‒14 Scorecard Report'' outlines progress on reforms during the period from April 1, 2013, to March 31, 2014, and has been reviewed by the Regulatory Advisory Committee, according to its mandate, for overall fairness and reliability.
In addition, the committee held consultations with industry and consumer representatives. These consultations provided the committee with valuable insight on reform implementation. They revealed stakeholder support for the direction of the reforms and to expand the scope of the reforms to maximize their impact for business. These consultations also determined that there is an opportunity to enhance the utility of forward regulatory plans for business, and increase overall awareness of the Action Plan's systemic reforms, through strengthened stakeholder outreach. The importance of continued progress on culture change within regulatory organizations was also highlighted.
== Summary of Reform Progress: 2012‒13 Through 2013‒14 ==
=== Two successive years of implementation demonstrate that progress is on track. ===
The results for 2013‒14, particularly when combined with those from last year, indicate that the reforms are being well integrated into the day-to-day operations of the federal regulatory system. Year 1 of Action Plan implementation, 2012‒13, showed a promising start, with a solid foundation established. Although lasting change in a complex regulatory system as large as Canada’s needs time to take root, Year 2 results show that progress remains on track.
Growth of regulatory red tape is being monitored and controlled. In 2013‒14, the one-for-one rule has achieved a net reduction of 14 unnecessary regulations and has delivered an $18-million annual reduction in administrative burden costs on business. Bill C-21, the ''Red Tape Reduction Act'', is now before Parliament, and will, if it receives Royal Assent, give the one-for-one rule the force of law.
Similarly, last year’s scorecard detected early signs of sensitivity to small business but did not directly attribute it to the small business lens. With more regulatory proposals applying the small business lens now coming forward for approval, early indications are that the lens is having its intended impact on regulatory design. In 2013‒14, the small business lens saved small business $75 million in compliance and administrative costs.
[[File:Fig1-eng.jpg|alt=For the Action Plan theme of reducing burden on business, progress in the systemic regulatory reforms has been as follows: Almost $21 million less in net administrative burden annually; 263,000 fewer hours annually dealing with red tape; 19 fewer net regulations overall; and Estimated regulatory cost savings of $75 million annually for over 5,000 small businesses as a result of the small business lens. For the Action Plan theme of making it easier to do business with regulators, progress in the systemic regulatory reforms has been as follows: Interpretation policies are to be published in winter 2014‒15; and The Administrative Burden Baseline was published in late 2014. For the Action Plan theme of improving service and predictability, progress in the systemic regulatory reforms has been as follows: 40 forward regulatory plans have been posted, containing over 400 anticipated regulatory initiatives, with all major regulators covered; and 34 new service standards and over 100 pre-existing service standards have been posted in compliance with Action Plan requirements. For the Action Plan theme of enhancing transparency and accountability, progress in the systemic regulatory reforms has been as follows: The second Annual Scorecard Report was published in winter 2014‒15; Service standards performance reporting began on June 1, 2014; and Departmental Acts and Regulations web pages have continued to expand.|thumb|Figure 1: Total Reform Progress at a Glance, 2012 Through 2014]]
This past year also saw new service standards continuing to come on stream; more forward regulatory plans were added to those published last year, and the first required mid-year updates to these plans were also completed. The mid-year update was a key test for the new forward planning infrastructure, given its importance in ensuring that these plans remain up to date and useful to businesses and all Canadians. And, although outside the reporting period for this year’s scorecard, the promised new Administrative Burden Baseline was recently published. Furthermore, interpretation policies, including FAQs to support implementation, will be published in winter 2014‒15.
Figure 1 outlines the government-wide results for all systemic reforms, from their introduction in 2012 to March 31, 2014, organized by Action Plan key themes. It also summarizes progress made in 2014.
Results for 2013‒14 support the government’s commitment to strengthen transparency and accountability, and demonstrate that the reforms have traction and that momentum continues to build.
Reducing Burden on Canadian Business
==The Small Business Lens==
==The Small Business Lens==
The purpose of the [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/requirements-developing-managing-reviewing-regulations/small-business-lens.html small business lens] is to require sensitivity to small business impacts in the regulatory development process. Consultation and robust analysis help develop a clear understanding of business realities at the earliest stages of regulatory design.
The purpose of the [https://www.canada.ca/en/government/system/laws/developing-improving-federal-regulations/requirements-developing-managing-reviewing-regulations/small-business-lens.html small business lens] is to require sensitivity to small business impacts in the regulatory development process. Consultation and robust analysis help develop a clear understanding of business realities at the earliest stages of regulatory design.