Cutting red tape to spur recovery a no-brainer

Reducing regulations costs nothing and helps economy, John Liston says.

Job creators, not government, will lay the foundation stones for Canada’s economic recovery. The government can help, however, by cutting the tangled web of red tape that Albertan entrepreneurs are forced to wade through. At the federal level, it’s time for the politicians leading and vying to lead our country to show Albertans their bold vision for red-tape reduction.

Alberta prides itself on our goal of being the best province in the federation to come to work and raise a family. Albertans work hard and contribute generously to the well-being of all Canadians and are proud and happy to do so. But we can’t expect to prosper while burdensome regulations are dulling our competitive edge.

It’s no secret that businesses are struggling. The pandemic-spurred shutdown hit hard. A survey by the Canadian Federation of Independent Business showed nearly one-in-five Alberta small businesses are seriously considering shutting down for good or going bankrupt.

But governments will struggle, too, with enormous debt loads they are rightly tasked with reducing or eliminating.

At the federal level, debt is barrelling toward $1 trillion.

Prime Minister Justin Trudeau — and those vying for his job, including NDP Leader Jagmeet Singh and the winner of the Conservative Party’s leadership race later this month — should recognize that cutting red tape reduces costs for businesses without drawing money from government coffers. In fact, reducing enforcement of needless regulations should save the government money.

In other words, it’s a no-brainer for governments and those seeking support from Albertans in the Conservative leadership race and Canada’s next election.

This could be a real opportunity for the Trudeau Liberals as they reopen the economy. Reducing red tape crosses partisan lines and paves the way for success stories. In 2001, the B.C. Liberal government cut one-third of the province’s regulations, opening the province to investment for the generation to come.

If Erin O’toole, Peter Mackay, Leslyn Lewis and Derek Sloan are listening, our message is clear.

Reduce red tape, reduce bureaucratic headaches, and let business create jobs.

Of course, the logical rules that protect citizens are important for workers and employers alike. Conversely, red-tape policies are poorly designed, hurt some more than others, or exist for no clear reason anymore and are just plain clumsy.

Governments’ goal should not be an ever-expanding regulatory regime. Rather, the goal should be a smart, efficient regulatory environment that allows businesses to safely grow.

Several Conservative Party leadership candidates have identified excessive red tape as an issue and proposed solutions. That’s good. But how about some bold vision intent on truly sparking the growth of businesses in Alberta and across Canada?

Many in Alberta were delighted to see Premier Jason Kenney’s government commit to cutting red tape in Alberta by one-third, mirroring the policy that was successful in B.C.

We, the job creators in this province, will hold our premier to that commitment.

Alberta is on the right track but has a way to go, receiving a B- grade on the Canadian Federation of Independent Business’s 2020 Red Tape Report Card, and a nod for “most improved,” following a string of “F” and “D” grades.

The provincial government prioritizing red-tape reduction was welcome.

But while there is only one taxpayer and one entrepreneur — she has three levels of government to contend with.

As of 2019, at the federal level (not including provincial restrictions), there are 159,992 regulated and legislated restrictions in Canada.

To put that into perspective, if each restriction could be written down on one piece of paper (a very conservative estimate), Canada’s federal restrictions, as a stack of paper, would stand almost 16 metres tall. That’s longer than a school bus or a semi-trailer.

In 2015, our southern neighbours introduced a policy to eliminate two regulations for every new one introduced. In practice, according to the U.S. government, for every new regulation introduced, nearly eight have been repealed.

There are many regulations just for regulation’s sake. The time for clearing the bureaucratic clutter and accelerating our recovery is now.

To help Albertans, a bold policy is needed from our federal leaders to cut red tape and let Albertan entrepreneurs create well-paying jobs and help our communities survive and thrive. When business does well, Canada does well.