Recently, both the Carney government in Ottawa and the Eby government in British Columbia have proposed legislation to give their respective cabinets more power to expedite infrastructure and energy projects they deem worthy. But rather than pick winners and losers, governments should reduce the regulatory burden across the board and create an environment for all businesses to succeed.
In Ottawa, Bill C-5 will prioritize projects in the “national interest” giving the federal cabinet authority to expedite approvals and funds for select projects. While Canada should streamline the approval process for projects, Bill C-5 essentially gives cabinet the power to pick winners and losers based on vague criteria and priorities rather than reducing the regulatory burden all businesses face.
Similarly, Bill 15 gives the Eby government authority to override regulatory and permit approval processes to expedite projects deemed to be in the “public interest” in B.C. Again, rather than eliminate or reform regulations, the Eby government wants to give discretionary authority to cabinet members to override existing laws, rules and regulations to favour certain projects and industries.
And again, Canada clearly needs comprehensive regulatory reform that addresses our underlying economic problems. Undue red tape imposes costs on businesses and deters badly needed investment. According to the Canadian Federation of Independent Business, regulations imposed by all three levels of government cost businesses a total of $51.5 billion in 2024. Meanwhile, business investment (on a per-worker basis) has plummeted 33 per cent from $18,600 in 2014 to about $14,000 in 2024 (inflation-adjusted), according to a September 2024 study from the C.D. Howe Institute. Unsurprisingly, higher levels of regulation are consistently associated with lower levels of economic growth, which means less job creation and opportunity for workers.
Bill C-5 and Bill 15 do not fix these problems. For real impact, governments must focus on broadly reducing and reforming regulations. At the federal level, Bill C-69, continues to impose uncertain, complex and onerous review requirements for major infrastructure and energy projects. And Bill C-48 (which bans most oil tankers loading or unloading on B.C.’s north coast), the arbitrary emissions cap for the oil and gas sector, and numerous “net-zero” regulations (i.e. fuel and electricity standards) further deter business investment and burden businesses with undo compliance and administration costs.
By removing these regulatory hurdles and reducing Canada’s regulatory burden, the federal government could help improve the business environment for all entrepreneurs and businesses to succeed. We need less government rather than more decisions being laid in the hands of a few policymakers.
Canada badly needs regulatory reform. That doesn’t mean empowering our governments with more authority to favour certain businesses and projects over others. It means cutting red tape for all businesses.
Tegan Hill and Jake Fuss are economists at the Fraser Institute.
