Red Tape Reduction Act Receives Royal Assent

OTTAWA, ONTARIO--(Marketwired - April 24, 2015) - Treasury Board of Canada Secretariat

Today, Treasury Board President Tony Clement, together with the Honourable Maxime Bernier, Minister of State (Small Business and Tourism, and Agriculture), announced that the Red Tape Reduction Act received Royal Assent in Parliament, enshrining the one-for-one rule in law. This fulfills a commitment made in the Government of Canada's Red Tape Reduction Action Plan and reaffirmed in the 2013 Speech from the Throne.

Making the one-for-one rule law will help permanently control the growth of federal regulatory red tape. Under the rule, federal government regulators must offset the cost increases of administrative burden on business, and for every new regulation added that imposes an administrative burden, one must be removed.

This, along with other initiatives under the Red Tape Reduction Action Plan, will increase Canadian competitiveness and free businesses to innovate, grow, and create jobs. It underscores Canada's reputation as one of the best places in the world to do business and invest.

Quick Facts

During its first two years of implementation, the one-for-one rule provided a successful, system-wide control on regulatory red tape impacting business.
Since 2012, under the one-for-one rule, the Government has reduced the net annual administrative burden on business by over $22 million, resulting in an estimated annual savings of 290,000 hours in time spent dealing with regulatory red tape, and has achieved a net reduction of 19 regulations taken off the books.
Canada is now the first country in the world to legislate the one-for-one rule to control regulatory red tape.

The Government recognizes the vital role that small businesses play in creating jobs and generating economic growth. Since 2006, the Government has taken significant action to support job-creating businesses by lowering taxes, cutting red tape, and encouraging entrepreneurship. Economic Action Plan 2015 builds on this foundation by:

Helping Small Businesses Grow and Fostering Entrepreneurship

Reducing the small business tax rate from 11 per cent to 9 per cent by 2019.
Increasing the Lifetime Capital Gains Exemption to $1 million for owners of farm and fishing businesses.
Increasing access to venture capital financing to help innovative, high-growth companies grow and create jobs.
Providing $14 million over two years to Futurpreneur Canada in support of young entrepreneurs.
Supporting the Action Plan for Women Entrepreneurs to help women business owners succeed.

Reducing Red Tape for Businesses and Enhancing Corporate Governance

Reducing the frequency of remittances for the smallest new employers.
Launching the planning and preparation required for federal adoption of the Business Number as a Common Business Identifier.

Quotes

"The adoption of the one-for-one rule into law is further proof of the Government of Canada's commitment to helping Canadian businesses succeed in the global economy. In addition to the measures announced by the Prime Minister in Economic Action Plan 2015, the one-for-one rule will ensure that red tape will remain in check, while maintaining high standards for safety and protection."

Tony Clement, President of the Treasury Board

"With the one-for-one law now in place, businesses will see positive changes in their day-to-day activities by focusing on doing what they do best: creating jobs and strengthening economic growth in Canada."

Maxime Bernier, Minister of State (Small Business and Tourism, and Agriculture)

"The effort to control red tape got a big boost today when C-21 became law. The stick-to-itiveness from the Prime Minister, Minister Clement and his colleagues with respect to implementing the Red Tape Action Plan on behalf of small business deserves applause from all Canadians as it is critical to our economic well-being going forward."

Laura Jones, Executive Vice-President, Canadian Federation of Independent Business

"We support the Government for championing the one-for-one rule. Unnecessary red tape places an undue burden on business and it stifles growth, competitiveness and innovation. We encourage the Government to keep the momentum going in its efforts to reduce the compliance burden for businesses and Canadians."

Gabe Hayos, Vice President, Taxation, Chartered Professional Accountants of Canada

Red Tape Reduction Act Receives Royal Assent

One-for-One Rule becomes the first of its kind in law