SMART REGULATION
A Regulatory Strategy for Canada
ANNEX III: A PROPOSAL FOR A NEW REGULATORY POLICY FOR CANADA
Our Pledge to Canadians
The Government of Canada will work with citizens, businesses
and other governments to enhance our national regulatory system
in order to maximize the benefits of regulation for all
Canadians, enable Canadians to take advantage of new knowledge
and support Canada’s participation in a dynamic global
economy.
The Government of Canada is committed to:
- instilling trust, confidence and credibility at home and
abroad in Canada’s regulatory system and in Canadian
products and services, markets and government institutions;
- ensuring that our national regulatory system encourages
innovation, market performance, competitiveness, entrepreneurship
and investment in the Canadian economy; and
- demonstrating to citizens that the regulatory system will
safeguard the Canadian public interest, which includes such
issues as human health and safety and environmental protection,
within dynamic global markets.
Scope of Policy
This policy recognizes that regulation is a form of
intervention that is not limited to primary and secondary
legislation but also includes a variety of instruments which are
more effective when used as part of a mix. This policy sets out
the commitments that will guide the Government of Canada when
making decisions on whether to use regulatory intervention, what
form of regulation to use and how to ensure that regulatory
action accomplishes its objectives. The policy applies to all
aspects of the regulatory process, including the development,
administration, implementation and enforcement of regulation and
regulatory programs.
Context
Regulation is an essential and valuable tool for achieving
public policy objectives, advancing national priorities and
furthering the public interest. With this policy, the government
commits to employing regulatory intervention, in conjunction with
other instruments, where necessary and appropriate to protect and
enhance the welfare of present and future generation of
Canadians. The concept supporting this policy is that the
relationship between economic performance, environmental quality
and social/human welfare is interlinked and that regulation
should advance these objectives concurrently wherever
possible.
The government recognizes that Canadians are currently
experiencing a time of rapid scientific and technological change,
heightened expectations of government for individual, economic
and national security, and the accelerated flow of trade and
movement of people throughout the world. Regulatory intervention,
whether it is at the development, administration, implementation
or enforcement stage, must adapt constantly to these changes in
order to ensure the protection of the health and safety of
Canadian citizens, the promotion of sustainable development, the
efficiency and fairness of the marketplace as well as the
creation of a business environment supportive of innovation and
investment.
This rapidly changing environment brings both opportunities
and risks that can be effectively addressed only through the
collective action of individual Canadians, the governments that
serve them, businesses, voluntary sector organizations, foreign
governments and international organizations. Increased
cooperation between these players will contribute to solutions to
regulatory issues that will be in the public interest and that
will maintain and increase trust in the regulatory system.
Business people, representatives of non-governmental
organizations and individual Canadians are therefore expected to
play a role, not only in the process of devising regulatory
policy, but also in seeing that the promise of the policy is
translated into concrete results.
Statement of Commitments
The policy is based on the following principles:
effectiveness, timeliness, cost-efficiency, transparency, and
accountability and performance.
Effectiveness
The government is committed to ensuring that regulation is
aligned in a coherent and integrated manner within the federal
government to advance government policies and priorities.
The efficient coordination of various regulatory
authorities is central to a well-functioning regulatory system.
Federal departments and agencies will coordinate their actions in
the development of new regulatory intervention and in the
administration and implementation of existing regulation. This
policy commits the government to ensuring that relevant federal
organizations coordinate their regulatory interventions to
maximize the effectiveness and achievement of policy objectives.
Regulators must understand the cumulative impact of regulation
and seek to avoid overlap, duplication and
inconsistency.
The government is committed to working cooperatively wherever
possible with other jurisdictions, both within Canada and
internationally, when studying regulatory issues and designing
regulatory interventions.
The government is committed to cooperating with the
provincial and territorial governments to create a seamless
regulatory environment in Canada. It will also adopt international
approaches wherever possible. Regulatory differences between
Canada and its major international partners will be minimized.
Specific Canadian requirements may be appropriate when there is
no commonly agreed upon international or North American standard,
when the federal government is pursuing important national
priorities, or when there are unique Canadian circumstances or
constitutional values requiring different approaches. When
specific Canadian requirements are adopted, the government will
seek to reduce or minimize the cumulative impact of regulatory
differences. When developing or modifying regulation, federal
regulatory authorities must make sure that international and
intergovernmental agreements are respected.
The government is committed, before taking regulatory action,
to ensuring that it has a sound and scientific understanding of
those risks requiring regulatory action, the forces that will
cause those risks to change in the future and the consequences of
any action the government may take to manage those risks.
Regulation will reflect the latest and best knowledge. An
analysis of risks and how they change over time is the foundation
for regulatory impact analysis. The government must demonstrate
that a problem or risk exists and that federal government
intervention is justified. The government is committed to
developing a thorough understanding of the problem that is
prompting regulatory intervention, with a focus on the set of
factors that are influencing the risks and how those risks may
evolve in the future. The government will seek the knowledge of
Canadian and international experts, particularly in regard to the
nature and significance of the risks being addressed and to
the design of regulatory measures. It is recognized that
the government does not make public policy decisions solely on
the basis of advice provided by scientists, economists,
mathematicians, statisticians, lawyers or any other type of
expert, but that it will consider this kind of evidence when
making a regulatory decision.
Cost-Efficiency
The government is committed to establishing priorities for
regulatory intervention, risk reduction and the administration of
regulatory programs and is committed to being prudent in applying
the resources provided by Canadian taxpayers.
The government will adopt a principled and predictable approach to
risk management and, in particular, to priority setting for new regulatory
interventions. The government will exercise prudence in allocating
regulatory resources consistent with its stewardship role. It will also
ensure that it has the necessary resources to discharge its enforcement
responsibilities and ensure compliance with regulation.
The government is committed to designing and implementing
regulatory intervention in a way that maximizes the benefits and
minimizes the costs for all Canadians.
Regulatory intervention must generate “net
benefits” for society, which will include social,
environmental and economic factors. Regulatory action will be
commensurate with the scope of the risk or problem. A variety of
regulatory and policy approaches will be evaluated to determine
the optimal mix of policy interventions to produce the greatest
net benefit. The government will recognize and take into account
the circumstances under which small and medium-sized enterprises
operate when it regulates.
Timeliness
The government is committed to ensuring that regulatory
development and decision making reflect the latest knowledge and
that regulatory programs are regularly reviewed to maintain their
relevance and effectiveness in achieving the intended
results.
Regulation should be based primarily on standards and
performance targets. Regulatory measures must be regularly and
systematically reviewed and, when necessary, eliminated or
modified to ensure responsiveness. New measures should be created
to take into account progress towards the policy objective,
consumer needs, citizens’ expectations, scientific and
technological advances and the changing business
environment.
The government is committed to making decisions and
implementing regulatory requirements in a timely manner.
The government is committed to ensuring timely and
predictable action for the design of regulation, decision making
and implementation. When appropriate, service standards and
timelines will guide the development of regulation and decision
making. In circumstances where an issue is particularly complex
or when available evidence is not conclusive, it may be in the
public interest to delay a decision. In those circumstances,
relevant stakeholders will be informed and advised of the
rationale for the delay.
Transparency
The government is committed to developing, approving and
implementing regulatory policies and decisions in an open,
transparent and inclusive manner.
A regulatory culture that emphasizes and encourages
openness, transparency and inclusiveness is a prerequisite for
building public trust in Canadian regulation and the integrity of
the process. Transparency is central to meaningful accountability
and continuous improvement of regulatory performance. Government
decision making will be transparent and timely in providing the
rationale for decisions. The government is committed to providing
stakeholders with opportunities to meaningfully challenge both
the performance and decisions of regulators. Stakeholders who
cannot resolve an issue directly with a regulator will have
access to effective recourse mechanisms, allowing for complaint
resolution and the provision of whole-of-government
positions.
The government is committed to consulting broadly with
Canadians, businesses and citizens’ groups when developing
new regulatory requirements and revising existing ones.
A new cooperative relationship between governments at all
levels, citizens and business is the basis of smart regulatory
governance. They need to participate in all aspects of regulatory
governance through active consultation and engagement. The
government will put in place the conditions that will facilitate
the participation of all interested parties and citizens. The
government is committed to communicating and sharing information
with Canadians about regulatory issues and the consequences of
various regulatory and policy options in a clear, open and timely
manner. This commitment points to a relationship that is based on
trust and an understanding that regulatory solutions require
input and advice from a broad cross-section of society.
Regulatory and policy development will be most effective if it is
implemented as a process of collective learning.
Accountability and Performance
The government is committed to explaining to Canadians how a
new regulatory intervention is in the public interest and
specifying the results expected from regulatory intervention. The
government is committed to monitoring its regulatory performance,
providing meaningful reports to Canadians and ensuring
accountability for the results generated through regulatory
action.
Performance monitoring and management practices as well as
effective accountability are essential to an effective regulatory
regime. Proposals for new regulatory intervention must
incorporate and communicate explicit performance expectations
with respect to regulation. The government will establish and
operate an effective accountability regime that is focused on
results. The government will sustain its capacity and strive for
continuous improvement in its ability to develop regulatory
policy and to administer and enforce regulatory programs.
Note: This policy should be supported by a series of
documents (e.g. a public interest accountability framework) providing
detailed guidance for government officials on the regulatory
process and analytical requirements. The documents should be
available to the public via the Privy Council Web site
(www.pco-bcp.gc.ca). They should also spell out the roles and
responsibilities of all the actors in the regulatory system,
including the different federal authorities, interested
stakeholders and citizens.
|