BC – The Canadian Federation of Independent Business (CFIB) today welcomed the announcement by the B.C. government that new legislation will enshrine in law an annual Red Tape Reduction Day on the first Wednesday of every March. The honorary day is intended to reinforce the government’s commitment to reducing red tape for business owners and other citizens.
“It makes sense to have a specific day for the people of British Columbia to reflect on progress being made by their government on clearing out unnecessary rules, sweeping away old and cumbersome regulations, and ensuring red tape doesn’t clutter the environment for small business. It really does give whole new meaning to the idea of spring cleaning”, says Laura Jones, executive vice-president for CFIB.
In survey after survey, small business owners across Canada continue to say red tape is a top concern and express frustration that too many governments are not taking the problem seriously enough. CFIB has conducted Red Tape Awareness Week in January for the past six years to highlight the impact of excessive rules and regulations on entrepreneurs, and explore ways for government to help fight the problem.
The BC government appears to have listened and is taking action by also announcing a public engagement strategy to hear directly from business owners and other citizens on the areas that need improvement. In addition, they committed that all suggestions will be considered with the goal of service improvement and may lead to changes in government policies, programs, and regulations.
“Small business owners are on the front lines of dealing with everything from dumb rules to lackluster government service. The simple fact the provincial government is open to hearing some of these issues first hand through their new public engagement strategy on red tape is a great way to kick-off Small Business Month in B.C.”, states Jones.
Over the past decade, the B.C. government has consistently been a leader red tape reduction and received the only “A” grade on the annual CFIB Red Tape Report Card for the last four years. B.C. has cut red tape by more than 40 per cent since 2001, and has committed to no net increase in overall regulatory requirements through to 2019.
“We would like to see the government take red tape reform one step further and enshrine its one-for-one rule in legislation. At the federal level, one-for-one legislation received near unanimous support in parliament earlier this year. This would create even more confidence that B.C. will continue to keep its eye on the ball and control the overall burden of red tape”, concludes Jones.
Quick facts about red tape:
- Complying with rules and regulation cost Canadian businesses of all sizes $37 billion in 2014, including $5.2 billion in B.C.
- Small business owners believe the regulatory burden could be reduced by about 30 per cent, for an annual savings to the economy of $11 billion
- 42 per cent of entrepreneurs would not advise their children to start a business given the burden of regulation
- A small business employee in Canada can spend more than a month each year (185 hours) dealing with regulations
- 78 per cent of business owners say excessive regulations add significant stress to their life
