Ottawa announces new rules to reduce federal regulatory costs
The Treasury Board of Canada Secretariat has offices at 90 Elgin Street in Ottawa. File photo.
Photo credit: Jeangagnon
OTTAWA — Federal regulators will be required to offset $2 in new regulatory costs to businesses for every $1 added under a new federal directive scheduled to take effect December 31.
The Treasury Board of Canada Secretariat announced the Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction on October 21, outlining changes to how federal departments develop, assess and review regulations.
The new requirement applies to regulatory costs over a three-year period. It is intended to reduce the financial burden of complying with federal regulations, although the directive allows exemptions in specified circumstances.
Federal regulators will also be required to assess the potential effects of proposed rules on economic competitiveness and consider whether existing national or international standards can be used instead of creating separate Canadian requirements.
The directive introduces new review expectations for existing regulations. Measures with significant impacts must be reviewed within five years of taking effect, while other regulations must be reviewed at least once every 10 years.
The government says the changes are intended to make regulatory processes more predictable while maintaining protections for public health, safety and the environment.
The directive applies primarily to regulations made by or with the approval of the federal cabinet, Treasury Board or a federal minister. Other federal regulation-making authorities are encouraged to follow the same approach.
It replaces the 2018 Cabinet Directive on Regulation.
The announcement follows the federal government's October 7 introduction of Bill S-7, the Cutting Red Tape for All Canadians Act, which proposes amendments to 31 federal laws. The legislation and the new Cabinet directive are separate measures.
The federal government is renewing $30 million in funding for a national loan program that helps women start or expand businesses, with loans of up to $50,000 available through participating nonprofit organizations.