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This independent blog collects news about projects or achievements in regulatory reform / better regulation. It is edited by Charles H. Montin. All opinions expressed are given on a personal basis.
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20 January 2012

Canada: two exemplary assaults on red tape

On Thursday, the Canadian Red Tape Reduction Commission, created in January 2011, as part of the Economic Action Plan, released new findings concerning irritants to business, identified thanks to an extensive survey (published in the What Was Heard Report, in September 2011). Having found 2,300 specific irritants about how regulations cause unnecessary cost and frustration, the Commission set out to identify causes of red tape, and recommending solutions. It has now produced 90 specific recommendations involving 18 Government of Canada departments and agencies. The Commission, which is composed of six MPs, an an equal  number of business representative,  inter alia recommends introducing the "one-in, one-out" system for new legislation. See press release and the appended dossier for more. The Government has reacted favourably to the report. The communication is also available in French.
At the same time, The Canadian Federation of Independent Business (CFIB) recently released its annual Red Tape Report Card, which ranks Canadian public authorities according to the friendliness of the business environment. In an approach similar to that of the Doing Business subnational indicators of the World Bank (see also 2012 report page 18), the report evaluates federal and provincial governments’ progress to date on regulatory reform. It looks at measurement, political leadership, constraints on regulators and a permanent commitment to report. Not unexpectedly, the scorings are widely reported and commented, for instance Nova Scotia got a "D" score, for having slackened its effort, after several years of good rankings, while Manitoba was ranked "F" (the lowest grade). British Columbia earns top marks for its leadership. In addition to measuring the red tape burden for a decade, it recently passed first-of-its-kind legislation requiring an annual report on regulation. For a summary of the report, go to the CFIB site or consult Canada Newswire.
These two initiatives are, by international standards, cutting-edge ventures and may inspire other countries wishing to improve their business environment.

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