Clearing barriers to build Canada’s future
Letter to The Honourable Mélanie Joly, P.C., M.P., Minister of Industry and Minister Responsible for Canada Economic Development for Quebec Regions regarding her new appointment to the post of Minister of Industry.
Dear Minister Joly,
Congratulations on your recent appointment to the post of Minister of Industry.
The Business Council of Canada and its members appreciate that in taking your new role you noted that the position carries enormous potential to drive productivity and prosperity in Canada, in collaboration with the private sector. We look forward to working with you, as we share your determination to empower the Canadian economy to thrive — even in difficult times.
We especially welcome the news that Prime Minister Carney has urged you to substantially reduce red tape within the next two months, and we believe the upcoming meeting of First Ministers can be an excellent starting point.
Regulations, of course, are not inherently negative for the Canadian economy. Designed well, they ensure safety, security, respect for the environment and compliance with community standards. Good regulation can give Canadians the confidence they need to support business development.
However, Canada’s regulatory burden is oppressive and deters business investment. Businesses large and small consistently report that convoluted red tape frequently stands in their way of improving productivity and competing globally.
The Business Council of Canada regularly surveys its members – CEOs of Canada’s largest companies, from every sector of the economy and every region of the country. Our members consistently tell us that the regulatory burden is at the very top of the list of factors that influence future investment decisions.
Indeed, concerns about regulation surpass even concerns about the trade relationship with the United States.
Furthermore, when CEOs are asked what one thing they would change to improve the business environment, reducing the regulatory burden is by far the most common answer.
Whether it be cumbersome tax rules, excessive paperwork, federal-provincial overlap, vague wording, or outdated forms meant to deal with risks of the past, the small things slow down companies in a big way.
When it comes to timeliness, the delays many sectors experience in seeking regulatory approvals are well documented, especially in the natural resource sector. They discourage investment and hurt Canada’s reputation internationally.
A recent Statistics Canada analysis of the regulatory burden found that requirements in Canada have been rising 2.1 per cent a year, according to one measure. Their tally suggests that total regulatory requirements rose 37 per cent between 2006 and 2021. The negative effects on economic growth and employment follow.
This week’s meeting of premiers with the prime minister is an excellent place to start addressing the regulatory burden in a serious way.
Prime Minister Carney has committed to a dramatic overhaul of the Canadian economy. In our view, working with the provinces to make sure they don’t replicate, overlap or contradict each other should be Job One.
In addition, we note, and applaud, your intention to incentivize Canada’s defence industrial base. We also heard Mr. Carney clearly when he committed repeatedly to “catalyzing” billions in private sector investment for the public good.
We stand ready to collaborate with you in both these initiatives. But collaboration will be far more efficient and fruitful if the air is cleared of convoluted and counterproductive regulations.
Sincerely,
Goldy Hyder
