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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 10:41, 26 July 2022
, 10:41, 26 July 2022no edit summary
=== Types of CBA ===
=== Types of CBA ===
<blockquote></blockquote>For federal regulatory proposals, benefits and costs can be described in one of three ways:
<blockquote><blockquote style="background-color: white; border: solid thin grey;">The scope and depth of analysis required for regulatory proposals depends on the cost component of each proposal. In general, the greater the estimated cost of the proposal, the more comprehensive the analysis of benefits and costs must be, and the greater the effort required to undertake this analysis.</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
# '''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”
#* '''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
# '''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”
#* '''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
# '''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.<ref>The Secretariat recommends that present values be estimated using a 7% discount rate. This rate is based on a weighted average of foreign and domestic sources of capital funding for private sector projects. In some cases, benefits and costs may occur in areas that do not crowd out or create private investment. In such cases, a lower discount rate, the social discount rate, of 3% may be appropriate.</ref>
#* 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”
#* '''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.
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.
==== Table 1: the 3 levels of impact ====
{| class="wikitable"
|+
!
!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 indicated in the preliminary assessment of the proposal determines the type of CBA required. The degree of analysis and assessment required for a given regulatory proposal should be proportional to the anticipated level of the regulation’s impact. 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"
!Description of costs
!Description of benefits
!Annual cost
|-
|'''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
|}
Regulatory proposals may include types of analysis beyond the requirements set out above. For example:
* a proposal that has a high or medium impact may include qualitative benefits and costs to support the monetized and quantified benefits and costs
* a low-impact proposal may include quantified or monetized analysis
This report covers only GIC regulations and is limited to those that are considered significant (those that have a medium impact or high impact).<ref>Throughout this report, when describing a proposal or regulations, the term “significant” denotes a proposal or regulations that have a medium to high impact.</ref> Figures are taken from RIASs for regulations published in the Canada Gazette, Part II, in the 2016 to 2017 fiscal year. To remove the effect of inflation, figures are expressed in 2012 dollars and vary from those published in the RIASs. This approach permits meaningful and consistent comparison, regardless of the year in which outcomes were originally measured.
=== Overview of benefits and costs of regulations ===
Of the 190 GIC regulations finalized in the 2016 to 2017 fiscal year:
* 170 were low-impact (89% of GIC regulations and 52% of all regulations)
* 20 were significant (11% of GIC regulations and 6% of all regulations)
[[File:20171211-8370-fig01-eng.jpg|center|thumb|1077x1077px|Figure 1 provides an overview of the categories of regulations published between April 1, 2016, and March 31, 2017.
During this period, 134 non-Governor in Council regulations were published, and 190 Governor in Council regulations were published.
Of the 190 Governor in Council regulations, 170 were low-impact regulations, and 20 were medium- or high-impact regulations, also known as significant regulations.