Red Tape Challenge: Chemical Manufacturing Report

Introduction

The Ontario government reaffirmed its commitment to reducing red tape in the 2017 Fall Economic Statement. The Red Tape Challenge is an important part of Ontario’s Business Growth Initiative. The feedback we receive will help us modernize business regulations to be outcome-focused and evidence-based while continuing to protect the public interest. Challenges have been completed for the auto parts manufacturing, food processing, financial services and mining sectors.

The chemical manufacturing report is based on a review of all the comments and ideas submitted during the chemical manufacturing round of the Red Tape Challenge. The government worked with technical experts to analyze the feedback, research best practices in other locations, and prioritize the changes that have the most opportunity to save businesses time and money.

The chemical manufacturing consultation ran from August 1 to September 30, 2017. The government received a wide range of public comments.

Through the consultation, 59 potential opportunities were identified to improve regulations or reduce regulatory burdens for Ontario businesses and other partners.

As a result of the consultation, we are:

• Creating a plan that acts on 41 opportunities to modernize regulations – 16 of which will be addressed in the next three years.
• Continuing to monitor 25 opportunities and explore how best to take action.
• Not taking action on the remaining 18 opportunities because they could increase burdens.

The government set a goal of achieving $100 million in savings for businesses by the end of 2017. To date, as reported in the 2017 Burden Reduction Report, we have surpassed that goal by more than 50 per cent. The province’s burden reduction initiatives have reduced business costs by $152 million since 2011.

New legislation to cut unnecessary red tape

The province passed new legislation to help save Ontario businesses time and money, while protecting the public interest. The new measures include:

1. Reducing regulatory costs: requiring all ministries to offset every dollar of new administrative costs to business, by removing $1.25 of old and unnecessary costs.
2. Streamlining compliance for small business: ensuring that undue burdens aren’t placed on small businesses when new or amended regulations are introduced, while maintaining robust environmental, health and safety requirements and other public interest protections.
3. International or national standards alignment: increasing harmonization with other jurisdictions and adopting international or national standards, where appropriate, when developing or reviewing regulations.
4. Rewarding good actors: recognizing businesses that have a good compliance record and lowering their costs by reducing the requirements without compromising the environment, health and safety, and other protections.
5. Electronic transmission guarantee: providing businesses the option to electronically submit any documents required by regulation to the Government of Ontario instead of more costly paper submissions.

Regulatory modernization principles

The province’s Regulatory Modernization Committee formulated seven principles that will serve as a lens through which to view burden reduction activities:

1. Use industry standards or best international standards (e.g., ISO).
2. Apply a small business lens.
3. Go digital.
4. Strengthen risk-based inspections to recognize strong records.
5. Create a “tell us once” culture with ministries that interact with business.
6. Focus on the user by writing in plain language and creating a single point of contact for businesses to access government information and services.
7. Facilitate equivalent means of regulatory compliance where a business can demonstrate an alternative approach that meets or exceeds the requirement of the regulation, where appropriate.

These proposed changes support Ontario's five-year, $650-million Business Growth Initiative that is helping to grow the innovation-based economy, assisting small companies to scale up and modernizing regulations for businesses.

Participation