April 24, 2015 – Ottawa – 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.
- 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.
Heather Domereckyj
Press Secretary
Office of the President of the Treasury Board
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