[ad_1]
There is no doubt that Ontario faces a number of competitiveness challenges that hinder the economy, including high and uncompetitive tax rates, unstable public finances, costly labor laws and high prices. electricity. But among these is an area of public policy that is not given enough attention: the heavy burden of government regulation.
Of course, not all regulations are bad. Some can really support economic activity and advance important environmental, health, safety and consumer protection goals. However, a poorly designed, administratively complex or, ultimately, unjustified regulatory policy can stifle the entrepreneurial spirit, innovation and investment, with minimal public benefits, even void. Reducing the hidden tax of excessive government regulation must therefore be at the heart of improving the province's competitiveness.
Fortunately, the current Ontario government is committed to "cutting red tape and stifling regulations that hinder job creation and growth." This finding is positive, as there is ample evidence of the need to modernize regulatory policy in the province.
According to a recent report from the Ontario Chamber of Commerce, business confidence in the province's economy has fallen sharply in recent years, and the regulatory burden is one of the main reasons. More than half of those surveyed in the business community said that excessive regulation of the economy was a concern. And while many factors contribute to the competitiveness of the member firm, the ability to navigate between regulations and red tape was identified as the second most important factor among survey respondents.
Most Ontarians would be surprised at the size, scope and costs of the province's regulatory burden. The government's 2012 account estimates that more than 386,000 regulatory requirements apply to businesses and individuals. According to one badyst, this number is twice the nearest province.
The absolute number of regulations is one thing. But Ontario's regulatory burden on costs is disproportionate (relative to other provinces), suggesting that this is an area that requires immediate government attention.
Free businesses and citizens of the province from the paperwork that stifles entrepreneurship, innovation and the economy
The Canadian Federation of Independent Business (CFIB) has sought to quantify the cost of government regulation in Canada through a survey of its members. According to the latest CFIB calculations, the cost of regulatory burden in Ontario is estimated at $ 15 billion in 2017. It is important to note that it is only the estimated burden of business. It does not take into account the costs to individuals or administrative costs to governments and their regulators, agencies and other agencies.
After adjusting for the number of active businesses with employees in each province, it becomes clear that Ontario stands out badly. As illustrated in the attached chart, Ontario has the heaviest regulatory burden of any province, or nearly $ 33,000 per business. The cost of government regulation per business in Manitoba ranks second with just under $ 29,000.
These statistics confirm that the Ontario government should continue the reforms to further harmonize its regulatory burden with other provinces, especially since the results of other jurisdictions are not significantly worse with respect to environmental objectives, health and safety and consumer protection. Regulatory reform is also crucial as growth policy reforms in the United States and competing manufacturing states, in particular, create competitive pressures.
To free businesses and citizens of the province from the red tape that hinders entrepreneurship, innovation and the economy in general, Ontario should build on the efforts to date, including the Administrative Challenge created by the previous government.
The way forward must include stopping the proliferation of new regulations, streamlining existing regulations and seeking greater overall efficiency. Wherever possible, it is important to eliminate duplicative, overlapping and incompatible regulations.
BC's successful experience with regulatory reform in the 2000s offers important lessons for Ontario today, as it seeks to modernize and improve its regulatory policy. For reforms to be effective and sustainable, it is essential that the government establish and regularly publish publicly available baseline data to measure the number of regulatory requirements and their estimated costs. This type of responsibility, which is lacking in Ontario, is critical to whether progress has been made.
Finally, it is essential to ensure that regulators have the appropriate incentives to effectively manage the regulatory process. The implementation of regulatory "ceilings" and the use of a risk management approach – as opposed to zero risk – in the development of regulatory policies should be part of the program to reduce red tape and restore business confidence in Ontario.
Charles Lammam is a researcher at Ontario 360 at the Munk School of Global Affairs and Public Policy and co-author of the report "The Case for Regulatory Reform in Ontario".
[ad_2]
Source link
