This page has been archived.
Information identified as archived on the Web is for reference, research or recordkeeping purposes. It has not been altered or updated after the date of archiving. Web pages that are archived on the Web are not subject to the Government of Canada Web Standards. As per the Communications Policy of the Government of Canada, you can request alternate formats on the "Contact Us" page.
The term "red tape" is associated with the time and resources spent by business to demonstrate compliance with Government regulatory requirements. It is also a major irritant for Canadian business owners- with more than 70 per cent of them reporting that red tape adds significant stress to their lives and two thirds saying that it significantly reduces their productivity.
Reducing red tape is good for everyone. It helps our businesses compete and creates jobs for Canadians. It represents a low-cost way to stimulate the economy and boost productivity as Canada emerges from the global recession.
That's why the Government has made this commitment- to ensure that regulatory compliance ceases to burden Canadian businesses by tying them up in red tape.
Red tape is tangling up small businesses and restricting our nation's prosperity. While regulatory compliance costs are difficult to assess, :
According to a 2010 study by the Canadian Federation of Independent Businesses, red tape from all levels of government costs the business sector in Canada about $30.5 billion or 1.9 per cent of Canada's Gross Domestic Product each year.
Studies by Industry Canada show that the smaller the business, the greater the impact of red tape. It costs:
These numbers are especially important in a country like Canada, where 98 per cent of firms have less than 100 employees.
Canadian business has told us that red tape is a big problem. Red tape restricts innovation, productivity and competitiveness.
By reducing the compliance burden, the Government is streamlining regulatory requirements and reducing costs for Canadian business. By reducing red tape, we are enabling better regulations to:
The Discussion Paper, Cutting Red Tape… Freeing Business to Grow, provides background on the key areas where red tape is impeding business.
On October 1, 2012 the Government of Canada released the Red Tape Reduction Action Plan report. This action plan details the systemic regulatory reforms the government is putting in place to address the Commission's report.