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Annual Report to Parliament for the 2016 to 2017 Fiscal Year: Benefits and Costs of Significant Federal Regulations, and the Implementation of the One-to-One Rule (view source)
Revision as of 10:28, 26 July 2022
, 10:28, 26 July 2022no edit summary
== Section 1: benefits and costs of regulations ==
== Section 1: benefits and costs of regulations ==
=== The process for making regulations in Canada ===
There are three main aspects to the process of making federal regulations in Canada:
# '''Regulatory development''': Departments and agencies develop proposals for regulations based on the authorities established in legislation and on expectations set out in the [[Cabinet Directive on Regulatory Management]]. The Treasury Board of Canada Secretariat works with departments and agencies to:
#* develop appropriate evidence, such as a cost-benefit analysis
#* challenge the analysis in regulatory proposals for consistency with the Cabinet directive
# '''Central oversight''': In general, proposed regulations are submitted by sponsoring ministers for consideration by the Governor in Council, which is defined in the Constitution Act as the “Governor General acting by and with the Advice of the Queen’s Privy Council for Canada.” Since 2003, the Treasury Board has been designated as the Cabinet committee responsible for considering GIC matters, that is, the approval of regulations and most Orders in Council.
# '''Public transparency''': Proposed GIC regulations are, with Treasury Board approval, published for public comment in the Canada Gazette, Part I (pre-publication).
#* Pre-publication of regulatory proposals provides interested stakeholders and all Canadians with a description of the intent of proposed regulations and of the justification for them, with proposed regulatory text.
#* Comments received following pre-publication can inform the final design of a regulation and the impact analysis for that regulation.
#* Final regulations are, with GIC approval, published in Canada Gazette, Part II.
=== What is cost-benefit analysis (CBA)? ===
CBA is a decision-making methodology to determine the best approach to achieve a goal. CBA identifies and measures the positive and negative impacts of proposals so that decision-makers can determine the best course of action.
In the regulatory context, CBA is a structured approach to identify and consider the economic, environmental and social effects of a regulatory proposal. 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
Regulators must make a convincing case to decision-makers, stakeholders and Canadians that the regulatory approach recommended is superior to non-regulatory alternatives. Regulators must demonstrate that:
* the benefits to Canadians outweigh the costs
* the regulation has been structured so that the benefits outweigh costs as much as possible
The Cabinet Directive on Regulatory Management requires that departments and agencies assess the benefits and costs of regulatory and non-regulatory measures, including scenarios where the government does not intervene.
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 Governor in Council and subsequent publication of approved final regulations in the Canada Gazette, Part II.
=== Types of CBA ===
<blockquote></blockquote>For federal regulatory proposals, benefits and costs can be described in one of three ways:
# Qualitative: a cost or benefit that is only described and not measured physically
#* Example: a qualitative benefit could be expressed as “this proposal will improve air quality”
# Quantitative: a cost or benefit that is expressed physically or as a quantity
#* Example: a quantified benefit could be expressed as “this proposal is expected to reduce the incidences of respiratory illnesses in Canadian children by 90,000”
# Monetized: a cost or benefit for which the quantity is converted into a currency amount (for example, dollars) using an approach that considers both the value of an impact and when it occurs.Footnote1
#* Example: a monetized benefit could be expressed as “this proposal is expected to save the Canadian health care system $10 million per year over the next 10 years through reduced hospital admissions”
Regulatory proposals are assessed through triage and are categorized according to their expected level of impact. The level of impact is determined primarily by the anticipated cost of the proposal.
<blockquote style="background-color: white; border: solid thin grey;">[[File:Thmb-pdf.png|border|left|frameless|50x50px]][https://www.canada.ca/content/dam/tbs-sct/documents/reports/one-for-one/parl2017-one-for-one-eng.pdf Annual Report to Parliament for the 2016 to 2017 Fiscal Year: Benefits and Costs of Significant Federal Regulations, and the Implementation of the One-for-One Rule (PDF, 590 KB)]</blockquote>