QUESTION PERIOD — Innovation, Science and Economic Development
Regulatory Reform
March 12, 2026
Senator Moreau, the Canadian Federation of Independent Business’s latest Red Tape Report highlights that regulatory compliance now costs Canadian businesses $51.5 billion a year, with nearly $18 billion of that attributed to red tape. To put that in perspective, businesses spend 768 million hours annually navigating compliance requirements, with small businesses shouldering the majority of the costs.
Senator Moreau, small businesses are still bearing a disproportionate share of this burden, which raises this question: What concrete steps is your government taking to streamline regulations and demonstrate that improving Canada’s economic competitiveness is a genuine priority?
The Government of Canada takes very seriously the situation of small businesses, Senator Smith, and I thank you for raising that question. The government recognizes the challenges that many small- and medium-sized enterprises face; that’s why the government is helping small businesses by reducing red tape. The effects will probably not be immediate, but we are trying. We are working on it by improving access to financing, notably by expanding Business Development Bank of Canada, or BDC, loans to small- and medium-sized businesses to $5 million. We are providing $500 million to BDC for small- and medium-sized businesses to access resources and insight that will lead to their success as well as promoting the productivity super-deduction to small businesses to write off new equipment costs. We are helping small businesses because we think they are the backbone of the Canadian economy.
