Community of Federal Regulators (CFR)
Annual National Workshop
Ottawa, ON
November 5, 2012
Introduction
Hello everyone, thank you for your kind invitation this morning!
I am delighted to be here today to speak for the first time to this community of federal regulators.
As Clerk of the Privy Council, I am a firm supporter, and some would even say “tireless cheerleader”, of federal experts.
In our Westminster system of government – which is not without its advantages – our structure is based largely on silos which make this type of collaboration all the more essential.
Although you work in a wide variety of departments and agencies, and despite the fact that you cover off a myriad of different jobs, you are all part of something larger.
Whether you write policy, draft regulations, assess products, promote regulatory awareness or enforce regulations, you are part of a community of Canadian regulators.
I commend you for your efforts. I commend you for your ongoing collaboration. I commend you for your ability to adapt to a constantly shifting landscape.
Whether it is the safety and quality of our food, the banks we entrust with our savings, the vehicles we drive, the consumer products we use – your work touches the daily lives of Canadians.
Canada’s International Reputation In Regulation
The global economic crisis, for example, highlighted the strength of our financial regulations on the world stage.
It demonstrated why prudent and responsible regulation and oversight are so vitally important.
Canada’s financial system performed extraordinarily well during the financial crisis, due in large part to strong regulation.
Our financial regulations positioned us very well – both at home and abroad – to weather the economic crisis compared to other countries.
In fact, for the fifth year running, Canada’s banks have been rated the strongest in the world by the World Economic Forum.
And our regulatory framework gives Canadians comfort that the food they eat, the drugs they use and the cars they drive are safe for them and their families.
I have had world-class regulators work for me. As Deputy Minister at DFO, we enforced regulations for fish and fish habitat, navigable waters and marine mammals.
You know, one could question the structure of these regulations as being too complicated or burdensome – and some of them were.
But what I saw was the commitment and dedication of my regulators.
In spite of the regulatory challenges, and who knows more than those who must enforce them each and every day?
These folks came into work daily, sometimes a bit battered or bruised, to loyally implement these regulatory regimes.
Despite the regulatory deficiencies, they knew that with non-compliance, critical fisheries would be lost and certain marine mammals would be at risk.
They truly have made a difference in the quality of life of Canadians – and for that I thank them.
Economic Reality
As regulators, your “raison d’être” is to regulate.
The Government of Canada is responsible for about 2,600 regulations and many of these regulations are vital to the smooth functioning of our country.
According to the Canadian Federation of Independent Business and business owners themselves, they cost Canadian businesses billions of dollars.
We’ve received clear direction from our elected officials that Canada’s regulations must be “enabling” and not “constraining” for Canadian businesses.
For example, we must ease the regulatory burden on businesses to help them do what they do best – innovate, create jobs, and invest in our country. The government has recently launched two key and far-reaching regulatory initiatives: the Red Tape Reduction Action Plan; and the Canada-United States Regulatory Cooperation Council.
I look at this as an exciting time – you have been encouraged as regulators to challenge the “status quo” and to look for new and innovative ways to regulate.
We want you to be rigorous in everything you do, and to continually ask yourselves tough questions such as:
- Is regulating the most appropriate course of action?
- Where can we safely take a risk-based approach?
- How can we reduce duplication and overlap with provincial and territorial governments, with other federal departments, and with other countries?
- And, is each dollar spent on administrative burden a dollar well spent? Sometimes absolutely – but I’m sure you’ll agree – other times, it’s not.
But in this time of global economic uncertainty, these questions have an added urgency as you will be increasingly accountable for modernizing how you regulate.
And, economically, we really have no choice but to do so.
The complex role of regulators
For the record, I am not saying your jobs are easy ones – interesting definitely – but not easy as you face complexities and pressures on a daily basis.
We need to streamline systems and reduce rules without compromising regulatory standards – and this is exactly what we are doing.
This means being “risk aware” but not “risk averse”. You need to prioritize, to use your limited resources wisely, and to continue to incorporate good risk management into everything you do.
You also need to keep pace with technology, embracing it as a huge enabler for streamlining and improving how you deliver regulatory services to your clients.
Embracing Web 2.0
As many of you know, I’ve long been a proponent of Web 2.0.
The use of Web 2.0 and online tools couldn’t be more important than in Canada’s regulatory system and the frontline delivery of services to clients.
We’ve already seen how Canadian regulators are using technology to facilitate the delivery of large online submissions.
Web enabled tools are allowing businesses to make their proposals through single-window web portals, using secure electronic channels to provide confidential information, and more.
And let’s not forget – using new and innovative online ways of doing business will ease the burden not just on businesses but on you as regulators.
Partnering with other countries
The economic crisis has been a driver, pushing many countries to examine the right level of government intervention and how to best regulate to ensure the safety, security and prosperity of their economies.
The regulatory environment has been changing and you’ve been talking to other countries about their approach.
You’ve also been speaking with businesses and Canadians about what they expect from you as regulators.
In meetings with my fellow Clerks of other Commonwealth countries, it has been remarkable that so many of us have come to the same conclusions at the same time.
We must partner and we must harmonize our regulations.
We must share the workload and expertise and push for more sensible regulatory systems.
In a way, it’s like taking a macro version of what you are doing within Canada as you harmonize regulations across departments and agencies and with provinces and territories.
Canada now needs to harmonize regulations with other countries.
The Canada-U.S. Regulatory Cooperation Council
A good example of international harmonization is the Canada-U.S. Regulatory Cooperation Council.
And while our regulatory systems are similar in many respects, they could be better aligned.
In some cases we are duplicating efforts, placing extra burden on businesses with different standards and regulatory requirements, and ultimately hindering cross-border trade.
This means that we are unnecessarily duplicating the testing of the cars and the paperwork at extra cost to the car industry.
By creating one common set of safety standards for both countries, this duplication can be eliminated.
As many of you know, Prime Minister Stephen Harper and President Barack Obama launched a joint action plan for Canada-U.S. regulatory cooperation last December at the White House.
Just think! It was Canada’s federal regulators who got me into the White House!!!!
We now have a great opportunity for our two countries to learn more from each other, better align our standards and practices.
We will do this while making it easier for Canadian businesses to access that all-important U.S. marketplace.
Reducing Red Tape
The government has also launched an ambitious and far-reaching action plan to reduce red tape for Canadian businesses – something that benefits us all by enhancing economic prosperity.
You have been working for years to reduce red tape and many of the 90 initiatives in the action plan were put forward by you and your departments and agencies, with many already well underway.
Bringing efficiencies to how you work will not just benefit Canadian businesses but you as well.
Moving to electronic submissions, single-window access and other new ways of doing business, will ease the burden not just on businesses but on you as regulators.
Conclusion
When I summarize my vision for the public service, I often use these adjectives – collaborative, innovative, streamlined, high-performing, adaptable and diverse.
Many of you here today embody these essential qualities.
And as I mentioned earlier, I am a booster of this type of community that unites federal experts from across government.
I would like to thank you for your tremendous input and ongoing efforts to modernize our regulations, and cut red tape.
Both of these measures will go a long way in supporting Canadian businesses, not only at home, but also abroad.
The political will is clearly there to make changes in how Canada regulates.
We have the tools and the support from the top, now the rest is up to you. We need your ideas, your creativity and your commitment to finding new and better ways to regulate.
I remain highly optimistic about the future as Canada has one of the strongest regulatory systems in the world. With your concerted efforts, it will only get stronger.
Stay modern, stay relevant. Don’t be afraid to innovate and try new ideas.
Thank you.