N.L. falling behind on cutting red tape: business federation

Daniel MacEachern
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The Canadian Federation of Independent Business says Newfoundland and Labrador is falling behind other provinces in reducing red tape.

The federation released its annual Red Tape Report Card on Tuesday, dropping the province from a B last year to a C-plus this year. Vaughn Hammond, the Newfoundland and Labrador director of provincial affairs for the federation, said the lower grade is more about what the provincial government hasn’t done in the past year than what it has.

“Fundamentally it’s about what they’ve done in terms of accountability, what the regulatory burden is for small businesses,” said Hammond. “What we’ve noted is that Newfoundland and Labrador, especially in recent years, hasn’t really made that much progress in terms of what’s necessary to ensure that whatever progress or momentum has been gained through efforts from 2005 to 2010, we (have) kept that.”

The government needs better measurement and public reporting of its red tape, and to enshrine that accountability in legislation, said Hammond, as Saskatchewan and British Columbia have done.

The measurement can include several bureaucratic figures, said Hammond. “It could be qualitative or quantitative,” he said. “It could be the number of regulations that are in place. It could be the amount of time that it takes for someone to get an answer from government. It could be anything that’s related to the number of inspections that a business has to go through, any of those kinds of things.”

Service NL Minister Dan Crummell defended the government’s record on reducing red tape. He said it has been a priority for the government for nearly a decade.

“We’re very confident we’re taking the right steps,” he said, adding that the federation’s call for new legislation on red tape reduction would add to the bureaucracy instead of reducing it. “We’re all for reducing regulation and legislating regulatory reform, but we think we’d be adding to our regulations, not reducing. We’re not really there with regards to that.”

Saskatchewan and B.C. are the only provinces that have such legislation, said Crummell, adding the provincial government has had zero net growth in regulation since 2006, and has removed about 80,000 regulatory requirements.

“We’ve been achieving exactly what we set out to do,” he said. “So our regulatory reform initiative has had tangible improvements for business and citizens, and we stand by that.”

The government has also recently put in an accountability framework for regulatory reform, said Crummell. “That ensures government departments not only recognize the importance of regulatory reform, but it gives them the tools to modernize regulations and to report progress.”



Twitter: @TelegramDaniel

Geographic location: Newfoundland and Labrador, Saskatchewan, British Columbia B.C.

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Recent comments

  • Herry
    January 30, 2014 - 09:14

    So, what's it like to live in the middle ages ?

  • david
    January 29, 2014 - 15:10

    Business boo, government yay. What a bunch of blind fools.

  • Jack
    January 29, 2014 - 13:10

    If there's one Newfoundland and Labrador town or city the Canadian Federation of Independent Business should focus on with respect to too much red tape, its definitely Corner Brook. The Western Newfoundland city is very well known for using every government regulation and excuse to show aspiring entrepreneurs and major chain outlets the doors, especially the modular home plant, teen dance hall, mobile home park, mineral exploration at Corner Brook Lake, Costco Wholesale, just to name a few. Corner Brook City Council's reputation for regulatory abuse is so well known that if someone wanted to start a Hooters in that city, there's a 90% chance that they will find an excuse to reject it. This excessive well tape is already having disastrous consequences for Corner Brook as more and more aspiring entrepreneurs choose to do business in nearby Humber Valley towns like Pasadena and Deer Lake. If Charles Pender doesn't find a way to reduce Corner Brook's poor business climate as well as diversify their economy away from volatile industries like pulp and paper, Corner Brook will become the "Detroit of Newfoundland and Labrador".

  • Angus
    January 29, 2014 - 08:16

    cutting red tape for businesses usually means less labour laws so they can pay what "they" want (ie. Richard Alexander's constant moaning about the Min. wage), less environmental laws so "they" can dump what they like(take a look at the Duck Pond mine and see where red tape has allowed Tech Resources dumps it's tailings) and more direct access to government departments when "they" want access to government funding and reduced taxes.

  • Joe
    January 29, 2014 - 07:05

    First try getting their name right. We don't need these businesses(?) here when we have Walmart and Canadian Tire. If they don't like our legislation, let them go to the mainland.

    • Brett
      January 29, 2014 - 08:49

      They have Joe. They've gone to where they can make money and there are customers. That's why you pay 30% more minimum to buy things here than on the mainland, never mind that you pay even more if you're trying to acquire something "nice" rather than a low end castoff.