Frequently Asked Questions

This section provides answers to questions regarding the Paperwork Burden Reduction Initiative (PBRI), the Advisory Committee on Paperwork Burden Reduction (ACPBR) and PBRI's measurement approaches.

Q1. What is the PBRI?

A. The PBRI is an important initiative that responds to the Government of Canada's 2004 Budget commitment to work with small business groups to make measurable reductions in the paperwork burden. Reducing paperwork burden or "red tape" means reducing the time and resources spent by small business owners, managers, staff or hired experts to understand and comply with government rules and regulations imposed by all three levels of government.

The PBRI involves measuring the costs and impact of regulatory compliance on small business and pursuing opportunities to reduce, rationalize and simplify regulatory requirements across federal departments and agencies. It consists of three key components:

1. An Advisory Committee on Paperwork Burden Reduction (ACPBR);
   
   
2. A Statistics Canada Survey of Regulatory Compliance Costs; and
   
   
3. Annual progress reports to the Minister of Industry.

The Paperwork Burden Reduction Initiative builds on the recommendations of the External Advisory Committee on Smart Regulation (EACSR) presented in Smart Regulation: A Regulatory Strategy for Canada, released in September 2004. Specifically, the EACSR advocated that further work be done on issues relating to compliance and enforcement, including harnessing the potential of e-government as a vehicle for single-window access to government regulatory programs.

Q2. Who is the PBRI targeted at?

A. Small (fewer than 100 employees) and medium-sized businesses (fewer than 500 employees). Small businesses play a vital role in Canada's economic well-being as they are a key source of economic growth and job creation in Canada. More than 98 percent of Canadian businesses employ less than 100 employees.

Although all businesses face the "red-tape burden," the burden falls disproportionately on smaller businesses as they lack the resources to deal with regulations. That said, reductions in the paperwork burden will likely benefit larger businesses as well.

For more information on the PBRI and expected outcomes click here.

Q3. Who's on the Advisory Committee on Paperwork Burden Reduction (ACPBR)?

A. The ACPBR is a private/public sector committee comprised of 14 senior executives representing key federal departments, selected provincial governments, business associations with large memberships from small businesses (Canadian Federation of Independent Business, Canadian Payroll Association, Canadian Manufacturers and Exporters) and entrepreneurs. This mixture of private and public sector members helps to integrate varying perspectives.

The ACPBR is co-chaired by Ms. Mary Carman, Assistant Deputy Minister, Science and Innovation Sector, Industry Canada, and Mr. Garth Whyte, Executive Vice-President, Canadian Federation of Independent Business. For more information on the ACPBR and member biographies click here.

Q4. What does the ACPBR do?

A. The ACPBR supports the Government of Canada in reducing paperwork burden by

• Identifying practical and actionable ideas for early, medium and long-term implementation;
  
  
• Developing a measurement of the paperwork burden experienced by small and medium-sized enterprises (SMEs);
  
  
• Measuring, and setting targets and regularly tracking progress on burden reduction; and
  
  
• Reporting results to the Minister of Industry.
  
  

Q5. Who supports the work of the ACPBR?

A. The work of the ACPBR is supported by a Secretariat from within Industry Canada's Small Business Policy Branch that provides the central direction and coordination for comprehensive efforts across government. An Interdepartmental Working Group of Directors General (DGWG) was also established to exchange ideas on the development of measurement tools, identify early deliverables, conduct research and policy analysis, and provide other support activities for the PBRI.

The DGWG is critical in helping to ensure that the PBRI is recognized across government. The DGWG also helps ensure that departments and agencies overseeing cumbersome regulations work collaboratively to reduce burden, particularly due to the cross-cutting and cumulative nature of paperwork burden.

Q6. How is the ACPBR different from the External Advisory Committee on Smart Regulation (EACSR)?

A. The EACSR and the ACPBR differ in a variety of ways:

• The EACSR was composed only of private sector representatives, whereas the ACPBR is composed of small business representatives and government officials;
  
  
• The EACSR advised government on improving the regulatory process, whereas the ACPBR is focussed on finding actionable solutions for paperwork burden reduction specifically, and developing a measure for the cost of paperwork burden in order to track progress;
  
  
• The EACSR aimed to ensure that regulation achieves social, environmental and economic objectives, whereas the ACPBR is particularly interested in improving the business environment for small business and supporting its growth, prosperity and ability to innovate; and
  
  
• The EACSR existed for a fixed period of time whereas the ACPBR is committed to championing paperwork burden reduction on an ongoing basis.

Q7. What is the Survey of Regulatory Compliance Costs about?

A. The survey is a triennial voluntary survey conducted by Statistics Canada. The survey measures, by size of business, the cost of complying with 11  common categories of federal, provincial/territorial and municipal regulations relating to employees, taxation, corporation registration, mandatory Statistics Canada surveys, municipal taxes and business licences. The survey also includes questions about a firm's overall experience with government regulations, as well as business demographics.

The first survey will establish a baseline measure of the cost of compliance from which government can track its progress in reducing the burden. It will also identify the amount of resources businesses must allocate away from income-generating activities (e.g. innovation). For more information on the survey click here.

Q8. Why should businesses participate in the Survey of Regulatory Compliance Costs?

A. There is a lack of quantitative data to assess the burden. Although it is ironic to ask businesses to complete a survey about paperwork, the survey is a short-term effort to be used for long-term savings in time and resources. The data collected through the survey will allow government to measure the burden, identify priorities for reduction and track the results of efforts to reduce the cost of compliance.

Respondents are strongly encouraged to complete the survey to ensure reliability of the data.

Q9. How many small and medium-sized businesses are asked to participate in the Survey of Regulatory Compliance Costs?

A. Statistics Canada will distribute a mail questionnaire to approximately 30 000 small (less than 100 employees) and medium-sized (less than 500  employees) businesses.

The more responses received, the more reliable and accurate the data from which government can assess the burden and make informed decisions for reduction. The large sample size will also help ensure that sufficient data are collected to represent five size classes of businesses, at least five industry sectors, and various geographic regions or provinces (i.e. Atlantic, Quebec, Ontario, Prairies and British Columbia).

Q10. When are the results of the survey expected?

A. Results for the first survey, which will be distributed to approximately 30 000 small businesses in September/October 2005, will be available in summer 2006.

The survey will be conducted every three years. Data collection for the repeat survey would be expected in 2009–2010.

Q11. Will provincial governments be involved in the PBRI?

A. The provinces have done some excellent work on reducing red tape, at the provincial level and the federal government is working with the provinces on a number of initiatives. The federal government recognizes the benefits of working with the provinces to further reduce overall paperwork burden.