Regulation ensures, among other things, public health and safety. However, the duplication and lack of harmonization of regulations across and among jurisdictions can create a significant burden and generate important costs for Canadian businesses. There are hundreds of federal laws and regulatory requirements, in addition to an unknown number of regulatory requirements imposed by provincial, territorial and municipal governments. This burden can be greater for small businesses, given their fewer resources. The lack of harmonization can hinder market access for Canadian companies by slowing down some approval processes, increasing costs and creating barriers to trade within Canada and internationally. Ultimately, the regulatory burden can hinder competitiveness and innovation opportunities.

The federal government has already implemented various initiatives in recent years to reduce regulatory burden. For example, it implemented the Red Tape Reduction Act in 2015 and introduced in the Fall 2018 Economic Statement several initiatives to support business innovation and competitiveness, such as the new Cabinet Directive on Regulation. However, these initiatives will only have a substantial impact if they are accompanied by a change in culture among regulatory bodies.

In this report, the House of Commons Standing Committee on Industry, Science and Technology proposes eleven recommendations to reduce the regulatory burden in Canada and support a culture change within regulatory bodies.