Red tape still ties up many Canadian businesses

Some levels of government made strides forward in red tape reform in the last year, but the Canadian Federation of Independent Business (CFIB) says that there is still a lot of room to improve.

In its recently released annual Red Tape Report Card, released as a part of Red Tape Awareness Week, the CFIB examines 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. “Without a commitment in these areas, red tape initiatives are doomed to fail,” said Laura Jones, senior vice president of Research, Economics and Western Canada.

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.

“We’ve seen red tape initiatives come and go in other provinces as governments change or new priorities come along,” said Jones. “Making reforms permanent is the key to long-term success.”

Several provinces and the federal government improved their grades over last year. Nova Scotia’s grade took the biggest tumble, while Manitoba, Prince Edward Island and the Northwest Territories all received failing grades for making little or no progress.

“In a time of economic uncertainty, one of the best, low-cost stimulus measures governments can undertake is cutting red tape,” said Jones, “it’s also a way to help boost productivity – an area where Canada currently lags.”

The following report card compares 2011 grades with 2012 grades

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