B.C.’s government is doing its bit to cut the red tape that binds business initiative, but much more remains to be done.
As part of its annual Red Tape Awareness Week observations, the Canadian Federation of Independent Business (CFIB) awarded B.C. the country’s only “A” grade when it issued its red-tape report card.
The rating recognized the BC Liberals’ commitment to reducing redundant regulatory requirements by establishing the first Wednesday of every March as Red Tape Reduction Day and, more importantly, ensuring that red tape removed in one area is not replaced by red tape in another.
However, in the wider Canadian and North American landscape, bureaucracy continues to roll out red tape to the detriment of businesses large and small.
That limits opportunities, especially those that would otherwise offer short-term windfalls.
Consider the current drop in the value of the Canadian dollar versus its American counterpart.
While it presents numerous challenges for companies importing goods from the United States or paying inputs in American dollars and generating revenue in Canadian dollars, the exchange rate imbalance also presents a unique opportunity for exporters and manufacturers to increase their U.S. market share or establish a business beachhead south of the border.
Unfortunately, red tape threatens to close what will be a temporary window of opportunity.
According to CFIB’s updated report on Canadian and American border and customs services, one-third of respondents to a survey of small-business owners said they wouldn’t have started cross-border trading had they known about the costs involved; 36% singled out border administrative complications and lack of fee transparency as reasons for reducing cross-border trading frequency.
On the upside: the report showed some improvement in border services over findings in its 2010 predecessor. On the downside: government red tape and business regulations still cost Canadian businesses an estimated $37 billion per year.
That’s a bill no one in this country can afford.
