Article in the Blacklock's Reporter - Says Red Tape No Job Creator

Says Red Tape No Job Creator

One of Canada’s largest public unions is dismissing claims of self-interest in opposing a cabinet bill to repeal federal regulations. The 170,000-member Public Service Alliance of Canada told the Senate national finance committee the bill appears pointless and unenforceable.

“Do you think the effect of this bill will be for your members to lose jobs?” said Senator Doug Black (Conservative-Alta.); “Is it the deletion that you’re worried about for your members? That’s what I want to understand.”

Chris Aylward, PSAC national executive vice-president, said there was a possibility regulatory cuts could result in fewer government employees, but noted: “This is not about jobs or saving jobs, this is all about protecting Canadians.”

Bill C-21 An Act To Control The Administrative Burden proposes any new federal regulation or “administrative burden” be offset with the repeal of some obsolete rule under a so-called “one-to-one” standard. Burdens are defined as “anything that is necessary to demonstrate compliance with a regulation, including the collection, processing, reporting of information and the completion of forms.”

Testifying at Senate hearings, Aylward said cabinet already has the power to repeal needless regulations – “Everything that it claims to do can already be done”, he said – and questioned the point of the bill. “Not only are the regulations on the chopping block, so are the people who enforce them,” Aylward said.

“It is more important to the Canadian people that regulators spend time to actually inspect and enforce non-compliance,” said Aylward. “We certainly don’t agree it is in anyone’s best interests to have public service regulators spending time looking for regulations to cut, just to meet the terms of this unnecessary bill.”

Critics have noted the bill exempts all regulations under the Income Tax Act; provides no penalty for breaching the law; and allows cabinet to exempt any regulations. “It seems to be arbitrary,” said Senator Paul Massicotte (Liberal-Que.); “It’s really redundant.”

“The bureaucrats and the Minister already have full authority, full discretion, to make those efficiencies and those gains, so why is this necessary?” Massicotte said; “This Act basically implements into law a practice that has been in place at the federal government level for the last two-and-a-half years.”

Cabinet has claimed almost $22 million in savings from red-tape reduction since 2012. The Canadian Federation of Independent Business described the savings as modest, estimating compliance with all regulations is costing employers some $37 billion annually.

“$22 million is not a big number,” said Laura Jones, federation executive vice president; “We all agree there is some level of regulation that’s necessary and important. However, there needs to be some checks on that because it is continuing to grow.”

The federation’s estimate of compliance costs included time and expense of tax filings; compliance with anti-spam laws, recycling requirements, and other regulations.

By Paul Delahanty 

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