QUESTION PERIOD — Finance
Regulatory Process
December 7, 2022
Actually, another former Bank of Canada governor, Stephen Poloz, last month pointed to the fact that Canada was second to last for productivity performance among the OECD — the Organisation for Economic Co-operation and Development — countries. He said that government red tape and overregulation are impairing Canada’s economic productivity and have created too much uncertainty for businesses.
He said:
I do think that there is a stronger incentive to clean up some of the regulatory issues, the red tapey type of issues that are slowing us down.
Senator Gold, do you agree that we must reduce the government’s red tape? What is the Trudeau government’s plan to reduce red tape and regulatory burden?
I think this government and all governments, provincial and territorial, recognize the importance of modernizing our regulatory framework and making it more efficient and effective for businesses to do their business, to grow and emerge while at the same time making sure that the measures in place to save Canadians, whether it is in the areas of fraud or consumer products, remain vigorous and in place. This government, in its areas of jurisdiction, has embarked upon — and we had an example of it in this chamber not that long ago — measures to modernize regulatory frameworks within many areas of legislation.
Of course, the regulation of businesses is a matter of provincial jurisdiction, and each province has its responsibility as well to ease the regulatory burden where appropriate on individuals and businesses.
Last summer it was the C.D. Howe Institute that issued a report which found that Canada was lagging behind other OECD countries for attracting investment. Researchers wrote:
Business investment is so weak that capital per member of the labour force is falling, and the implications for incomes and competitiveness are ominous.
William B.P. Robson writes:
Investment per available worker lower in Canada than abroad tells us that businesses see less opportunity in Canada, and prefigures weaker growth in Canadian earnings and living standards than in other OECD countries.
Senator Gold, do you agree with all the experts who say that Canada, under Justin Trudeau, is no longer attractive to foreign investors? And what is your government’s plan to correct this?
Thank you for your question.
The C.D. Howe Institute plays an important role. It is one of many think tanks in this country with a range of different ideological stripes.
The fact is that Canada remains an attractive place. It is a stable, democratic country with a healthy economy and an educated workforce, and Canada will continue to be a place where businesses can flourish.
