Poll

Dalton McGuinty’s Ontario Wrapped in Red Tape

The phrase “red tape” dates back to 17th century England when bundles of legal papers were traditionally tied together with red ribbon. Nowadays, red tape is a term often used to describe excessive or redundant regulations that slow down the decision making process, typically in dealing with government agencies.

We all have encountered red tape in our interactions with government or big companies and its effect on the Ontario economy is incredible.

A Canadian Federation of Independent Business (CFIB) study estimates the total red tape burden costs Ontario some $13 billion annually. That’s about equal to amount money the Province will spend on public education this year.

Business people are spending increasing amounts of their time filling out paperwork instead of growing their businesses or hiring more employees. Unnecessary or outdated regulations from a bygone era are frustrating the creativity of entrepreneurs and innovators to create new products and jobs.

In 1995, former Premier Mike Harris introduced a Legislative committee called the Red Tape Comission, chaired by former Lincoln MPP Frank Sheehan, which sought out and eliminated such unnecessary and outdated regulations. It turned out to be a very successful enterprise, helping various government ministries revoke over 2,100 unnecessary regulations and it oversaw the development and passage of 15 different red tape reduction bills between 1997 and 2003. In the process, the commission eliminated some bizarre regulations that had been on the books for years.

Prior to the commission, a projectionist at a movie theatre was required to go through 800 hours of training. It only takes 600 hours of training to become a helicopter pilot.

Bus drivers, who are required to carry an axe on board in case of emergencies, were forbidden to carry it with them across the U.S. border because it was deemed a dangerous weapon. As a result, bus drivers were hiding their axes somewhere along the road near the border and picking them up when they came back into Canada.

Also prior to 1995, it was technically illegal to make or sell yellow coloured margarine in Ontario because it looked too much like real butter. While I don’t believe anyone’s business was ever disrupted for trafficking in yellow margarine, countless businesses are getting spread pretty thin by unnecessary regulations.

Unfortunately, the McGuinty government has gone in the opposite direction. Despite campaign promises to hold the line on red tape, the McGuinty government has created 437 new regulations since 2003 and revoked only 81. That translates to an average of 5.4 new regulations for every one regulation they revoked.

That is why I supported the private member’s bill of my colleague Randy Hillier, MPP for Lanark-Frontenac-Lennox-Addington, which proposed to create an all-party committee to review new legislation in an effort to eliminate any undue regulatory burden and duplication, much like the former Red Tape Commission. I strongly supported this Bill, and advocated for it during debate in the Legislature.

If the government rejects Mr. Hillier's Bill, perhaps they will come up with one of their own soon. Problem is that increased red tape burden in Ontario has already chased many well paying jobs into other states and provinces.