On June 28, 2019 the Alberta government passed Bill 4: The Red Tape Reduction Act. The bill’s focus is to cut unnecessary regulations by one-third and ensure new regulations are free of red tape. The government’s goal is to make lives of Albertans better by removing duplicated processes, rules and to “achieve the fastest approval process in North America.” The government believes this bill will save money, time and resources while still protecting Albertans and the environment.
The Canadian Federation of Independent Business (CFIB) conducts yearly red tape report cards for all the provinces and territories in Canada. The report card’s goal is to show Canadians how hard their provincial government is working to make their lives easier by reducing existing red tape and preventing new red tape from occurring. The CFIB has not given Alberta higher than a D rating in the past six years, with the past three years receiving F’s.
Alberta’s CIFB Red Tape Report Card for the Past Six Years:
Sourced from CFIB
Provinces with Laws to Reduce Red Tape with Respective 2019 CFIB Report Card Grade:
British Columbia: A-
Saskatchewan: A
Manitoba: A
Ontario: A-
Nova Scotia: A
After the 2019 report card, the CFIB recommended that Alberta should comprehensively measure all regulatory requirements business owners face. The CFIB also recommended that the Alberta government make this information public and to be reported on a regular basis so legislators could have a better understanding of the size of the problem leading to realistic reduction targets. Since the United Conservative Government was elected, it has been working on the CIFB recommendations and introduced Bill 4 to help accomplish the recommendations and lower red tape in Alberta.
As of July 31, 2019, the United Conservative Government has approved over 40 red tape reductions and has said it plans to cut many more; a public report is to be published in 2020 on the red tape reduction progress. The Red Tape Reduction Division is headed by the Associate Minister of Red Tape Reduction to ensure that red tape is continued to be cut and that the government can act quickly.
Industries the Government is Focused on Cutting Red Tape Include:
Construction
Oil and Gas
Tourism and Hospitality
Agriculture, Agri-food and Bio-industrial
Forestry
Non-profit
Government Programs and Services
The government is set to hold industry panels in order to bring industry experts throughout Alberta together to help identify where there is unnecessary red tape to cut. The first two industry panels that have been announced are for Oil & Gas and Tourism & Hospitality.
An example of red tape in the oil and gas industry is how long it takes for a well to get licensed. Alberta has one of the longest waits to get a well approved, which many believe has played a part in oil and gas jobs being lost to other provinces and the United States.
Well Licensing Times Comparison
Sourced from CAPP, a competitive policy and regulatory framework for Alberta’s upstream oil and natural gas industry.
Bill 4: The Red Tape Reduction Act will help reduce the regulatory burden on businesses and speed up approvals to grow businesses, with the goal of encouraging investment, boosting Alberta’s competitiveness and freeing up job creators to get more Albertans back to work.
“We’re going to take Alberta from being the most over-regulated to the freest economy in Canada. We aren’t just saying we’re reducing red tape; we are making it the law. We are committed to cutting red tape by one-third – and once we cut it, we will prevent new red tape from creeping back”
- Jason Kenney
Let us know about any red tape reduction ideas that would help your business and we will forward your concerns to the Red Tape Reduction Division. In addition, we will be seeking an opportunity to meet with the division to discuss opportunities directly. Please let us know if you are interested in joining us.
