Introduction
The red tape report of Canada is a study on how small businesses are affected by regulation. The regulation is from the government that requires them to have multiple compliances. It was first issued in the year 2005. The Canadian Federation of Independent Business commonly referred to as the C.F.I.B issued three editions. This report clearly indicated how small enterprises are affected by the imposition of multiple compliances. It precisely indicates that owners and managers of small businesses directly feel the impact of government regulation. The burden, effects, and the response of the government according to the report will be discussed in this paper.
Effect on Business
As stated earlier in the paper, the owners of businesses are adversely affected by regulation that is excessive because of cost.Every new compliance requirement means extra cost for every business premises (Colleman, 2014). Besides,. A perfect example is the public transport sector. Drivers were once required to have new generation licenses to be allowed to operate. However, most drivers applied but it took long for the licenses to be processed. Owners of the public service vehicles felt the impact because they were forced out of business until the new licenses were processed. Poor customer service by governments affected public service vehicles negatively.
Almost one-third of business owners in Canada as per the report stated disappointment with the regulation in the country. They said that had they known the burden associated with regulation prior investment, they would have never ventured into business. All Canadians are affected by the loss of business activity despite the fact that it cannot be viewed directly. As more regulation is imposed in a country, more businesses are lost. Therefore, excessive regulation in Canada has led to the loss of business that in turn affected the people in many ways. Availability of goods and services becomes hard when businesses start to close (Colleman, 2014).
Effect on Government
Excessive regulation through compliance has also negatively affected governments. The explanation for this is because governments gain when businesses are set up. Governments at all levels gain through the money collected as fees for licenses. Governments also highly profit from the proceeds that come in the form of taxes from the same businesses. Therefore, when a business closes and is lost due to excessive regulation, even the government loses revenue (Colleman, 2014). Governments are supposed to provide a reasonable regulation for businesses. It is unfortunate from the report that the government of Canada oversaw the closure of many businesses due to excessive regulation as stipulated in the report.
Public Opinion
The report also carries a detailed feedback collected from respondents representing the opinion of the public regarding the red tape. It was found out that most Canadians are not negative about regulation. However, the report is fast to mention that there is a regulation limit beyond which citizens felt uncomfortable. This was mostly financial limit. Most citizens feel that governments should first consider the financial capabilities of citizens before coming up with a regulation. Respondents to the survey indicated that there are times they feel the government is not fair by forcing regulation or compliance that is expensive.
The respondents also presented their frustrations with the kind of service attendants give them at offices belonging to governments. Most respondents rated the services below average. They complained that the application of new passports and identification cards was made complicated by the government. Most preferred having a full online application. This would be easier compliance that would be convenient and time saving.
They also lamented the lack of professionalism by government staff. They recommended fresh training of the staff to ensure that they can serve citizens with minimum complain. This confirms that the government only needs to make regulation affordable, convenient, and professional. This will make the government have public backing on the policy of regulation (Colleman, 2014).
Recommendations
The report pointed out several recommendations for Canadian governments at all levels. These recommendations would ensure that the public is satisfied, and owners of businesses do not carry a very heavy burden of regulation and compliance. First, the governments should do a survey on the regulatory burden that both business owners and citizens are bearing. This will lead to decision making that is informative and relevant to Canadians. The governments should also always communicate in advance any plans to introduce new requirements (Colleman, 2014). This will prepare the people to avoid shock due to change.
Conclusion
Conclusively, no country can operate without regulation and compliance requirements. However, the governments at all levels in Canada need to take the recommendations from the report. They also need to consider the public interest before rolling out requirements. This will ensure that neither the common citizens nor business owners will bear a regulation burden that is beyond their capability to handle. The government will also not lose revenue due to loss of businesses. They will also have an easy implementation of policies because they will have the support of the public.
Reference
Colleman, D. (2014). Business and Politics: A Study of Collective Action. Chicago, IL: McGill-Queen’s Press.