1. Predictable and Efficient Regulation
Certificate Program on Regulatory Leadership
Cohort V, Team 3
June 12, 2018

2. Predictable and Efficient Regulation Issue
Modernization of the Canadian regulatory system would enhance the capacity for regulatory reform to respond to an evolving economy.
Areas of focus are:
Agility
Transparency
Responsiveness
Current system does not easily respond to emerging technologies and business models
Regulation that is predictable and efficient would allow Canadian business to manage costs and administrative burden, encouraging growth
A system that balances the priorities of predictability, efficiency, and facilitating innovation is needed; a principles-based approach can achieve this balance

3. Predictable and Efficient Regulation Balanced Approach
Facilitating Innovation
Target (which can vary by domain)
Predictability
Efficiency

4. Predictable and Efficient Regulation Predictability
Organization for Economic Co-operation and Development (OECD) Guiding Principles for Regulatory Quality and Performance
Adopt, at the political level, broad programs of regulatory reform that establish clear objectives and frameworks for implementation
Ensure that regulations, regulatory institutions charged with implementation, and regulatory processes are transparent and non-discriminatory
Identify important linkages with other policy objectives and develop policies to achieve those objectives in ways that support reform
Predictable regulations applied in a consistent manner enables business to account for costs of compliance.

5. Predictable and Efficient Regulation Efficiency
Regulatory performance measures need to demonstrate the following characteristics:
Relevant – a close connection to what is being done or considered, appropriate to the time, period, or circumstances of applicability
Reliable – consistently good in quality or performance; able to be trusted
Realistic – having or showing a sensible and practical idea of what can be achieved or expected (informed by publicly-communicated cost/benefit analysis)
Efficient regulations achieve outcomes without burdening business with unnecessary costs or delays.

6. Predictable and Efficient Regulation Facilitating Innovation
Innovation is often accredited to small and medium-sized enterprises, and new entrants in search of a niche, looking for a tailored approach to regulatory requirements. Large incumbent enterprises may favour standardization for operational purposes.
Innovation can be driven by several factors including:
Competitiveness
Crisis / Problem
New legislation and policy

7. Predictable and Efficient Regulation Guiding Principles
Regulation can be complex, and can vary in design depending on several factors, including the subject, maturity of the sector, and complexity of the area under consideration.
Some key principles that should be built into any regulatory reform initiative to achieve Predictability, Efficiency, and to facilitate innovation:
Close and active collaboration with industry on regulatory development
Transparency and openness to discussion and change
Considerations related to social licence
Consideration of organizational cultures of the regulator

8. Predictable and Efficient Regulation The OODA Loop
Boyd’s concept of the OODA Loop can be applied to regulatory reform, when tied to established review timelines with ongoing industry engagement.
Orient
Decide
Act
Observe

9. Predictable and Efficient Regulation Case Study – Sustainable Aquaculture Program (SAP)
Purpose: Evaluation of the SAP to provide information to support decision making, and to assess the impacts of the Aquaculture Activities Regulations on the Program’s operations
Findings:
The program must address a limited number of minor regulatory incongruences that are negatively affecting the industry; however, other barriers have acted as greater impediments to the growth of the sector
When one regulator streamlines regulations, the overall regulatory complexity can actually increase – this was found to be the case in the past four years of the Sustainable Aquaculture Program. Unintended consequences included regulatory overlap with provincial programs, increased reporting burden on industry, and persisting uncertainties
Metrics to assess impact of regulation on industry are extremely difficult to develop, as industry can be impacted by multiple factors at once. Status quo of the regulated industry/production has been used as a proxy.
Access to space for new sites
Moratorium in British Columbia (BC represents 62% of the finfish production volume in 2015).[25]
Availability of suitable space in NB and Gulf region for finfish activities.
Prohibition of net-pen aquaculture in Québec.
Moratorium on new shellfish leases across PEI.
Negative public perception of the finfish industry
Uncertainties around the environmental risks associated with aquaculture and distortions of these risks by interested parties.
Violations of the Fisheries Act confirmed in two provinces, including the use of illegal pesticide and the unapproved introduction of fish.
Perceived lack of publicly available information around the use of pesticides and other environmental impacts.
Perception that Canada’s regulatory framework is not as stringent as other jurisdictions.
Litigation in BC and NL.
Complexity of the federal regulatory framework
Overlapping responsibilities at the federal level regarding the release of pesticides, combined with polarized views on how different laws, regulations and international agreements are interpreted across federal departments.
Shared responsibilities across federal departments for increasingly complex issues (e.g., Fish Health and Food Safety) that fall under the mandate of more than one federal department (i.e., NAAHP and CSSP).
Uncertainties around the development of an Aquaculture Act delayed the approval of new leases in one Atlantic province.
CSSP
Budget constraints at ECCC and inefficient coordination among the partners are resulting in slow progress on the reclassification of water for aquaculture leases.
Closing of areas by ECCC based on inadequate weather information (location of weather station).

10. Questions?