Driven by a self-declared mandate to spend less and invest smarter, the Canadian government is launching a sweeping review to eliminate inefficient red tape. These outdated and overly complex regulations stifle growth, increase costs, and hinder productivity.
Prime Minister Mark Carney said: “Canada’s new government has a mandate to spend less and invest more. To that end, we will remove red tape by eliminating outdated regulation. It’s time to make government more efficient, make its processes more effective, and to catalyze more private capital so we can build the strongest economy in the G7.”
Treasury Board President Shafqat Ali announced the formation of a Red Tape Reduction Office. This office will oversee ministers' efforts to streamline rules across federal departments and agencies.
Within 60 days, Ministers will report their progress to Treasury Board President, including plans to:
- Axe outdated regulations.
- Eliminate duplication with provincial rules.
- Simplify access to government services.
Shafqat Ali, president of the Treasury Board, said: “Regulations play a key role in protecting the health and safety of Canadians—but to stay effective, they must be regularly reviewed. Cutting unnecessary red tape is essential to unlocking Canada’s full economic potential.”
Independent analysts have found Canada's regulatory burden is escalating. The Canadian Federation of Independent Business estimates businesses spent 735 hours on compliance in 2024, costing $51.5 billion annually - a jump from $45.4 billion in 2020. This red tape creates uncertainty, hurts productivity, and deters investment. Consequently, Canadian business investment per worker has plunged 33% since 2014. Economist Jack Mintz estimates $225 billion in capital fled Canada between 2016 and 2022. Even before Trump's deregulation, the OECD ranked Canada as the most restrictive G7/North American nation for foreign investment due to barriers in key sectors.
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