Smart Regulation at Work in the Federal Government

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Smart Regulation at Work in the Federal Government
Presentation to the Conference on Smart
Regulation at Work in British Columbia Jody
Aylard Director of Operations Regulatory Affairs
Division, Privy Council Office
March 16, 2005
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What is regulation?

• Regulation is a key instrument used by the
  government to achieve its policy agenda and
  advance our quality of life.
• Weve defined regulation as
• A diverse set of instruments with which the
  government intervenes in the economy or society
  and sets requirements or influences the behaviour
  of enterprises, organizations and citizens.
• It encompasses a range of instruments
• formal rules, such as legislation, subordinate
  legislation and ministerial orders
• standards, guidelines and codes.

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The government has studied the regulatory system

• 2000
• OAG Report on Federal Health and Safety
  Regulatory Programs
• 2002
• OECD invited to review Canadian Regulatory system
• 2003-04
• External Advisory Committee on Smart Regulation
• Issued report in September 2004

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and has committed to action.

• Making the regulatory system a strategic asset
  and competitive advantage for Canada
• October 2004 Speech from the Throne
• A transparent and predictable regulatory system
  that accomplishes public policy objectives
  efficiently while eliminating unintended impacts
• 2005 Budget
• Build continuous improvement into the regulatory
  system, making it more transparent, accountable
  and adaptable to new technologies and changing
  public priorities.

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Smart Regulation is

• the objectives, principles and practices
• used by government
• to sustain high levels of regulatory performance
  and facilitate continuous improvement.

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a strategic asset...
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based on principles

• Protecting the Public Interest
• Optimal mix of instruments to achieve the
  greatest net benefit
• Social, environmental and economic objectives are
  mutually supporting
• Extending the values of Canadian democracy
• Decision making conducted in an open and
  transparent manner
• Government announces intended results and
  accounts for performance
• Leveraging the best knowledge in Canada and world
  wide
• Knowledge and evidence form the basis of
  regulation
• Diversity of knowledge sources and perspectives
• Cooperation within Canada and internationally to
  share knowledge
• Promoting effective, cooperation, partnerships
  and processes
• Cooperation with all levels of government to
  improve policy coherence, timeliness, efficiency
  and effectiveness
• Stakeholder engagement to improve policy and
  compliance outcomes
• International cooperation to improve regulatory
  effectiveness and economic competitiveness

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and a strategy.
Areas for Improvement
How?
Need to modernize the federal Regulatory
Policy, priority setting and performance
measurement

• A Smart Regulation
• Strategy
• Strengthened regulatory management
• Improving coordination and cooperation
• Achieving results in thematic areas

Need to reduce duplication and overlap and
improve policy coherence within the
federal government and across jurisdictions
Need to apply Smart Regulation principles and
techniques to thematic areas and sectors
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Element 1 Strengthening Regulatory Management

• Improving regulatory quality
• Design a lifecycle approach to the management of
  regulation through a proposed Government
  Directive on Regulating
• Smart Regulation principles and strategic
  objectives
• Integrate modern management principles into
  regulation
• Risk management, performance measurement, public
  reporting, instrument choice
• Framework for selecting compliance measures
• Review of regulatory and statutory stock
• Assess and develop a plan for the role of
  parliamentarians
• Enhancing strategic planning, priority setting
  and performance reporting
• Develop and publish biannually a Report on Plans
  and Actions
• Bolstering regulatory capacity
• Assessment and strategy for regulatory capacity
  enhancement
• Consolidated web site on regulation
• Enhance PCO challenge function

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Element 2 Improving Coordination and Cooperation

• Strengthening coordination within the federal
  government
• Establish five Theme Tables
• Improving cooperation among federal, provincial,
  territorial and aboriginal governments
• FPT Working Group on Regulatory Governance
• Greater focus on international regulatory
  cooperation
• Framework for International Regulatory
  Cooperation
• OECD Working Party on Regulatory Management
• Outreach and public engagement
• Guide for effective regulatory consultations
• Creation of a Regulatory Advisory Board

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Element 3 Achieving Results in Thematic Areas

• Departments and Ministers are the primary lead
• Five thematic areas and sectors
• Healthy Canada - e.g., Therapeutic Access
  Strategy
• Environmental Sustainability - e.g., Consolidated
  environmental assessment
• Safety and Security - e.g., MOU on in-vehicle
  telematics devices (cellular phones, navigation
  and internet access) with automotive
  manufacturers
• Innovation, Productivity and Business Environment
  - e.g., BizPal
• Aboriginal Prosperity and Northern Development -
  e.g., First Nations Oil and Gas and Moneys
  Management Act

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The government has set an agenda

• The SFT and Budget point to a forward agenda, for
  example
• Use regulation as part of a full range of
  instruments to meet climate change objectives
• Renew the regulatory framework governing the
  approval and monitoring of therapeutic products
• Consolidate the environmental assessment process
• Respond efficiently and effectively to regulatory
  applications for oil and gas development in the
  North
• Develop and implement regulations to enhance food
  safety
• Develop proposals to enhance Canada-US-Mexico
  regulatory cooperation
• The Report on Action and Plans will identify
  regulatory priorities and report on progress to
  date

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The Way Forward

• Spring 2005
• Meeting of the FPT Working Group on Regulatory
  Reform
• First publication of the Report on Action and
  Plans
• Launch of the development of the Government
  Directive on Regulating
• Ongoing meetings of the Theme Tables
• First biannual plenary of all Theme Table members
  
• Fall 2005
• Stakeholder consultations on the Government
  Directive
• Second publication of the Report on Action and
  Plans
• Meeting of the FPT Working Group on Regulatory
  Reform
• Complete regulatory capacity needs assessment
• Develop a learning and capacity enhancement
  strategy
• Winter 2005-06
• Establish a permanent external Regulation
  Advisory Board
• Seek government approval of the Government
  Directive

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Contacts

• Jody Aylard
• Director of Operations
• Regulatory Affairs Division
• Privy Council Office
• [phone]
• jaylard_at_pco-bcp.gc.ca

Julia Hill Executive Director Smart Regulation
Initiative Privy Council Office [phone]
jhill_at_pco-bcp.gc.ca
www.pco-bcp.gc.ca/raoics-srdc
http//www.regulation.gc.ca (available on March
24, 2005)