Ottawa initiates streamlining of its administrative structures
The Canadian federal government, under the leadership of Prime Minister Mark Carney and Treasury Board President Shafqat Ali, has embarked on a comprehensive review of red tape across all federal departments and agencies with regulatory responsibilities. The aim is to reduce paperwork, streamline regulatory decision-making, and foster economic growth by eliminating outdated, duplicative, and overly complicated regulations.
The review, initiated in July 2025, is part of the government's mandate to "spend less and invest more," making government processes more efficient and catalysing private sector growth. Ministers have been tasked with reviewing regulations within their portfolios and proposing concrete actions to eliminate red tape, including removing obsolete regulations, reducing duplication with provincial rules, and making regulatory processes and service delivery easier and more efficient.
The review process has a strict 60-day timeline for departments to report back on their progress and next steps to the President of the Treasury Board. Oversight is provided by a newly established Red Tape Reduction Office, ensuring accountability and coordination across government. The government emphasises maintaining regulations that protect health and safety while ensuring they are regularly reviewed and effective.
The broader goal is to create a leaner, more focused government that delivers more efficient regulations and services, which will help unlock private capital and strengthen Canada’s economy at a competitive level within the G7. The federal government has adopted Bill C-5, the Canadian Economy Act, to accelerate major national infrastructure project approvals and reduce interprovincial trade barriers.
Immigration through family reunification in Quebec is practically blocked until June 2026. However, the review is aimed at reducing bureaucracy within federal ministries and agencies, and not specific immigration policies.
The Red Tape Reduction Commission was established by the previous Stephen Harper government in January 2011 to identify problems businesses associate with federal regulatory requirements. Maxime Bernier, then Minister of Small Business, unveiled 15 recommendations in a final report from the Red Tape Reduction Commission in January 2012.
Canadian business owners spent an average of 735 hours on regulation in 2024, with 256 hours considered paperwork. Since 2006, the number of regulatory requirements imposed on Canadian business owners has increased by 2.1% per year, totaling 37% between 2006 and 2021.
At the end of the 60-day review, federal ministries will publish a detailed report outlining plans, targets, and progress in reducing paperwork. The review process will be supervised by the Office of Administrative Burden Reduction within the Secretariat of the Treasury Board of Canada. The initiative is part of a series of new measures aimed at fighting bureaucracy, led by Prime Minister Carney.
[1] Government of Canada. (2025). Red Tape Reduction Initiative. Retrieved from https://www.tbs-sct.gc.ca/rtd-dgc/index-eng.aspx [2] Government of Canada. (2025). Red Tape Reduction Office. Retrieved from https://www.tbs-sct.gc.ca/rtd-dgc/rto-bdc/index-eng.aspx [3] Government of Canada. (2025). One Project, One Review. Retrieved from https://www.tbs-sct.gc.ca/rtd-dgc/opor-poa/index-eng.aspx [4] Government of Canada. (2025). Bill C-5, An Act respecting the Canadian economy. Retrieved from https://www.parl.ca/LegisInfo/BillDetails.aspx?Language=E&billId=11710410&Mode=1&Session=43
- The government's mandate to "spend less and invest more" involves reviewing regulations within various portfolios, such as finance and business, as part of the comprehensive reduction of red tape across federal departments, aimed at fostering economic growth.
- The Red Tape Reduction Office, established by the government, provides oversight to ensure accountability and coordination across government in the elimination of outdated, duplicative, and overly complicated regulations that could impact business and finance sectors.
