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Annual Report to Parliament for the 2017 to 2018 Fiscal Year: Federal Regulatory Management Initiatives (view source)
Revision as of 13:20, 28 July 2022
, 13:20, 28 July 2022no edit summary
== Message from the President ==
== Message from the President ==
[[File:Scott-brison-2018.png|thumb|'''The Honourable Scott Brison,''' President of the Treasury Board and Minister of Digital Government]]
This second annual report to Parliament on federal regulatory management initiatives marks an important milestone in the government’s march to regulatory modernization.
This second annual report to Parliament on federal regulatory management initiatives marks an important milestone in the government’s march to regulatory modernization.
President of the Treasury Board and Minister of Digital Government
President of the Treasury Board and Minister of Digital Government
== Types of federal regulations ==
Regulations are a type of law intended to change behaviours and achieve public policy objectives. They have legal binding effect and support a broad range of objectives, such as:
* health and safety
* security
* culture and heritage
* a strong and equitable economy
* the environment
Regulations are made by every order of government in Canada in accordance with responsibilities set out in the ''Constitution Act''. Federal regulations deal with areas of federal jurisdiction, such as patent rules, vehicle emissions standards and drug licensing.
There are three principal categories of federal regulations. Each is based on where the authority to make regulations lies:
# '''GIC regulations''' are reviewed by a group of ministers who recommend approval to the Governor General. This role is performed by the Treasury Board.
# '''Ministerial regulations''' are made by a minister who is given the authority to do so by law.
#* '''Example''': The ''Canadian Environmental Protection Act, 1999'' gives the Minister of the Environment the authority to amend the Domestic Substances List to include substances introduced to the Canadian marketplace that have been risk-assessed and for which control measures have been taken.
# '''Regulations made by an agency, tribunal or other entity''' that has been given the authority by law to do so in a given area, and that do not require the approval of the GIC or a minister.
#* '''Example''': The ''Farm Products Agencies Act'' authorizes Turkey Farmers of Canada to make regulations that set production quotas and levies on the Canadian turkey sector as part of the supply management system.
== Section 1: benefits and costs of regulations ==
=== What is cost-benefit analysis? ===
In the regulatory context, cost-benefit analysis (CBA) is a structured approach to identifying and considering the economic, environmental and social effects of a regulatory proposal. CBA identifies and measures the positive and negative impacts of a regulatory proposal and any feasible alternative options so that decision-makers can determine the best course of action. CBA monetizes, quantifies and qualitatively analyzes the direct and indirect costs and benefits of the regulatory proposal to determine the proposal’s overall benefit.
Since 1986, the Government of Canada has required that a CBA be done for most regulatory proposals in order to assess their potential impact on areas such as:
* the environment
* workers
* businesses
* consumers
* other sectors of society
The results of the CBA are summarized in a Regulatory Impact Analysis Statement (RIAS), which is published with proposed regulations in the ''Canada Gazette'', Part I. The RIAS enables the public to:
* review the analysis
* provide comments to regulators before final consideration by the GIC and subsequent publication of approved final regulations in the ''Canada Gazette'', Part II
=== Analytical requirements ===
Regulatory proposals are categorized according to their expected level of impact. The level of impact is determined by the anticipated cost of the proposal.
==== Table 1: the three levels of impact ====
{| class="wikitable"
!Impact level
!Present value of costs (over 10 years)
!Annual cost
|-
!Low-impact
|Less than $10 million
|Less than $1 million
|-
!Medium-impact
|$10 million to $100 million
|$1 million to $10 million
|-
!High-impact
|More than $100 million
|More than $10 million
|}
The level of impact determines the degree of analysis and assessment required for a given regulatory proposal. This proportionate approach is consistent with regulatory best practices set out by the Organisation for Economic Co-operation and Development (OECD).
==== Table 2: analysis required by level of impact ====
{| class="wikitable"
!Impact level
!Description of costs
!Description of benefits
|-
!Low-impact
|Qualitative or quantitative
|Qualitative
|-
!Medium-impact
|Quantified and monetized
|Quantified and monetized
(if data are readily available)
|-
!High-impact
|Quantified and monetized
|Quantified and monetized
|}
This report covers GIC regulations only and is limited to regulations that are considered significant, that is, those that have a medium impact or a high impact. Figures are taken from the RIAS for regulations published in the ''Canada Gazette'', Part II, in the 2017 to 2018 fiscal year.<ref>The Government of Canada's fiscal year runs from April 1 to March 31.</ref> To remove the effect of inflation, figures are expressed in 2012 dollars and, as such, will vary from those published in the RIASs. This approach permits meaningful and consistent comparison of figures, regardless of the year in which regulatory impacts were originally measured.
=== Overview of benefits and costs of regulations ===
In the 2017 to 2018 fiscal year, a total of 292 regulations were published in the ''Canada Gazette'', Part II, compared with 326 in the 2016 to 2017 fiscal year. Of these 292 regulations:
* 184 were GIC regulations (63.0% of all regulations)
* 108 were non-GIC regulations (37.0% of all regulations)
Of the 184 GIC regulations (compared with 189 in the previous fiscal year):
* 166 were low-impact (90.2% of GIC regulations and 56.8% of all regulations)
* 18 were significant (9.8% of GIC regulations and 6.2% of all regulations)