Federal government launches regulatory review to cut red tape

CBC

09-07-2025

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Prime Minister Mark Carney is enacting a cross-departmental review of all regulations starting Wednesday, a measure he promised during the federal election campaign.
"Regulations play a key role in protecting the health and safety of Canadians—but to stay effective, they must be regularly reviewed," said Shafqat Ali, president of the Treasury Board, in a statement by his department accompanying the announcement.
"Cutting unnecessary red tape is essential to unlocking Canada's full economic potential."
Carney said in the statement his government has a mandate to "spend less and invest more," adding "it's time to make government more efficient, make its processes more effective, and to catalyze more private capital so we can build the strongest economy in the G7."
Wednesday's announcement said Ali has asked each minister to review regulations and "propose actions and measures to eliminate red tape."
It said organizations would have 60 days to undertake their reviews and report on progress to Ali, and the process would be overseen by a newly created Red Tape Reduction Office.
The Liberal Party's platform said it would "require all relevant federal departments — such as Transport Canada, Natural Resources Canada and Innovation, Science and Economic Development Canada — to undertake review and report on progress, within 60 days, on steps to eliminate outdated or unnecessary rules, reduce duplication or overlap with provincial rules and streamline the administration of rules and the delivery of regulatory decisions."
Both during his run for Liberal leader and during the election campaign, Carney said the federal government needs to rein in spending.
Carney said he would separate "operational spending," the day-to-day running of government programs and departments, from "capital spending" — anything that builds government-held assets.
The platform also pledged to cut the growth of government spending from nine per cent to two per cent by eliminating waste and duplication, and using technology to balance operational spending within three years.
On Monday, Finance Minister François-Philippe Champagne sent letters to his fellow cabinet members asking them to come up with "ambitious savings proposals." Champagne will lead what's being called a "comprehensive expenditure review," with the goal of getting a handle on public sector spending.
During the campaign, Carney came under criticism by the NDP, which accused him of planning cuts to the public service, specifically to health care, in order to balance the books. The Liberals pushed back on that allegation.
The Treasury Board's announcement did not include any financial targets, but said each federal regulator must publicly report on its progress and priorities at the end of the 60-day term.
The board also cited the Canadian Federation of Independent Business, which found businesses collectively paid an estimated $51.5 billion last year due to regulations from all three levels of government, with "approximately $17.9 billion attributed to red tape."