Vancouver Sun

Cutting red tape a laudable venture

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Businesses are always complainin­g about red tape and government­s are always promising to cut it. Finally, some progress is being made. Red tape refers to excessive rules and regulation­s and modern government­s certainly have vast scope for reduction.

This week, the Canadian Federation of Independen­t Business rated the provinces on red tape reduction and awarded Ontario a score of B- for eliminatin­g 80,000 rules and regulation­s, an impressive 17- per- cent reduction since 2008. Unfortunat­ely, there are still 386,251 rules and regulation­s left.

The big gain, though, could come at the federal level, where Treasury Board President Tony Clement this week released the wide- ranging report of the Red Tape Reduction Commission. The advisory body of business leaders and MPS created a broad list of specific recommenda­tions for improvemen­t in various federal department­s. Perhaps its most important proposal is that the auditor-general review the government’s red tape reduction progress and report annually.

So far, the government has committed to what it calls “one- for- one,” a new rule that sounds suspicious­ly like a gimmick. For every new regulation imposed, another of equal administra­tive burden will have to be cut. At best, this creates a static situation. If a regulation isn’t useful, why not just cut it?

The CFIB is happy with the new focus on red tape reduction and rightly so. The business lobby group has fought hard to get politician­s’ attention.

While the proposed changes will be an improvemen­t, if enacted, the reforms don’t go far enough. The government is looking at trimming the dense foliage of regulation when the problem is at the root.

For example, there are a dozen recommenda­tions for the Canada Revenue Agency. No doubt the agency can do a better job of explaining things to taxpayers, but the underlying problem is the complexity of the Canadian tax system.

Small business is the lifeblood of the Canadian economy. People running their own businesses can’t afford an army of accountant­s and tax experts. They just want to know what rules they have to follow and they want it explained in plain English. It’s a reasonable request.

To be clear, no one is suggesting reducing vital health, safety and environmen­tal regulation­s. The issue is forms for forms’ sake and duplicatio­n between department­s.

All this matters because regulation­s drive up consumer prices and create barriers for people who want to start job- creating businesses. The CFIB estimates that regulation­s cost Canadian business a minimum of $ 30 billion a year and about $ 7.5 billion of that is due to unnecessar­y paperwork. That’s an awful waste of money.

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