Regulatory Policy The Potential for Common Federal- Provincial-Territorial Policies on Regulation Robert Johnson Presentation for “Rules, Rules, Rules, Rules: Multi-level Regulatory Governance in Canada 27 October, 2004

Why look at policies on regulation? Preoccupation internationally with creating ‘quality’ regulation (OECD), ‘better’ regulation (EU), ‘smart’ regulation (Canada) Preoccupation internationally with creating ‘quality’ regulation (OECD), ‘better’ regulation (EU), ‘smart’ regulation (Canada) Dissemination of “best practices” via the OECD Dissemination of “best practices” via the OECD Combine economic growth, public interest, and ‘good’ governance objectives Combine economic growth, public interest, and ‘good’ governance objectives

Why look at policies on regulation? Canadian regulatory reform context: Canadian regulatory reform context: Long-standing concerns about competitiveness and innovation due to (lack of) federal-provincial cooperation and coordination Long-standing concerns about competitiveness and innovation due to (lack of) federal-provincial cooperation and coordination Concerns about trust and regulatory choices being made in the public interest Concerns about trust and regulatory choices being made in the public interest Efforts at harmonization and FPT cooperation over the last decade Efforts at harmonization and FPT cooperation over the last decade

Method Open-ended survey to FPT Working Group on Regulatory Governance Open-ended survey to FPT Working Group on Regulatory Governance Policies/guidelines on regulation and Regulatory Impact Statements Policies/guidelines on regulation and Regulatory Impact Statements Consider related policies/rules/guidelines with direct and indirect effects on conduct of regulation (illustrative) Consider related policies/rules/guidelines with direct and indirect effects on conduct of regulation (illustrative)

Approach Historical reference point Historical reference point Compare federal regulatory policy and RIA with PT policies and RIA requirements Compare federal regulatory policy and RIA with PT policies and RIA requirements Consider convergence/divergence of key elements of regulation “life cycle” Consider convergence/divergence of key elements of regulation “life cycle”

General findings PT level, five jurisdictions have formal policies/guidelines on regulation PT level, five jurisdictions have formal policies/guidelines on regulation Almost all PT jurisdictions have Impact Assessment criteria in place Almost all PT jurisdictions have Impact Assessment criteria in place New institutions for regulatory management New institutions for regulatory management

Findings: RIA criteria Basic convergence in process development criteria: Basic convergence in process development criteria: Identification of problem or risk Identification of problem or risk Consider alternative instruments Consider alternative instruments Consultation with affected parties Consultation with affected parties Consider impacts of regulation (cost-benefit analysis) Consider impacts of regulation (cost-benefit analysis) Attention to regulations in other jurisdictions in some fashion Attention to regulations in other jurisdictions in some fashion But divergence in terms of criteria for implementation phase, compliance & enforcement, review But divergence in terms of criteria for implementation phase, compliance & enforcement, review No requirement for ex post analysis of RIA No requirement for ex post analysis of RIA

Findings: Economic criteria Business impact tests and “red tape” reduction criteria are becoming commonplace Business impact tests and “red tape” reduction criteria are becoming commonplace Therefore, attention to duplication and overlap with other levels of government increasingly formal consideration in RIA Therefore, attention to duplication and overlap with other levels of government increasingly formal consideration in RIA Competitiveness considerations in large(r) provinces Competitiveness considerations in large(r) provinces

Findings: Democratic criteria Weight accorded to economic criteria not matched with transparency and public accountability Weight accorded to economic criteria not matched with transparency and public accountability Lack of accessibility of policies on regulation Lack of accessibility of policies on regulation Limited use of RIA as a communication tool Limited use of RIA as a communication tool Limited formal requirements for annual public reporting and communication of forward planning on regulation Limited formal requirements for annual public reporting and communication of forward planning on regulation In most provinces/territories, focus is internal regulatory management In most provinces/territories, focus is internal regulatory management

Summary: Policies on Regulation and RIA Some institutionalization of OECD “best practices” Some institutionalization of OECD “best practices” Some explicit policy transfer between jurisdictions Some explicit policy transfer between jurisdictions Principle of competitive benchmarking and tacit cooperation Principle of competitive benchmarking and tacit cooperation Reduction of “red tape” on business and citizens key common element Reduction of “red tape” on business and citizens key common element

Conclusion: Policies on Regulation and RIA Convergence in ideas among FPT governments about cumulative impacts of regulatory burdens Convergence in ideas among FPT governments about cumulative impacts of regulatory burdens

Pursuing collaborative multi-level regulatory governance FPT responses to questionnaire regarding areas for further collaboration between FPT governments: FPT responses to questionnaire regarding areas for further collaboration between FPT governments: Political commitment at the highest level Political commitment at the highest level Sectoral Sectoral Joint capacity-building Joint capacity-building

Recommendations Federal government to use “opt-in” approach Federal government to use “opt-in” approach Supplement “top down” approach with “bottom up” research and other capacity- building initiatives Supplement “top down” approach with “bottom up” research and other capacity- building initiatives Institutional locus key for policy learning, building trust, exchanging lessons and best practices Institutional locus key for policy learning, building trust, exchanging lessons and best practices