Delete, delete, delete

In mid March, the FCC launched a deregulatory initiative In re: Delete, Delete, Delete (GN Docket No. 25-133).

The public notice says: “Specifically, we are seeking public input on identifying FCC rules for the purpose of alleviating unnecessary regulatory burdens. We seek comment on deregulatory initiatives that would facilitate and encourage American firms’ investment in modernizing their networks, developing infrastructure, and offering innovative and advanced capabilities.”

I’m old enough to remember Prime Minister Harper launching a Red Tape Reduction Commission in 2011, promising to “identify options for lasting solutions to fix the regulatory system to prevent red tape “creep” over time.” How do you think that worked out for us in Canada?

On one hand, we have heard Conservative Leader Pierre Poilievre promise when elected to cut two regulations for every new one, but he has also promised to add all sorts of new regulations for banks and phone companies to go after scammers who target seniors.

Don’t get me wrong. I fully endorse Canada looking to cut red tape. I agree that our regulatory burden is stifling investment, increasing costs that get passed through to consumers, and limiting degrees of freedom for innovative solutions. It goes far beyond regulations created by the CRTC. We have a lot of silly laws on the books – like the requirement for paper bills – enshrined in legislation enacted by Parliament. In 2014, the same Harper government that promised to cut red tape insisted that legislation was needed to provide paper bills, even as that same government was having difficulties creating a national digital strategy. No wonder!

As former TELUS CFO Robert McFarlane wrote, performative politics gets in the way of substantive value-added public policy. It is just too easy to target big corporations like telecom carriers.

It might be inspirational to look at some of the submissions to the FCC notice. An article in Light Reading has a look at what various carriers – large and small – suggested.

As readers may have noticed, I frequently cite submissions from the International Center for Law and Economics. ICLE’s submission urges “the Commission to take the “Delete, Delete, Delete” concept as far as possible, effectuating a streamlined FCC that retains only those functions undeniably critical to national interests that cannot be handled effectively by market forces or other government entities.” Its press release summarizes the submission with 5 “Significant Initiatives”, 13 “Straightforward Regulations to Eliminate or Streamline”, and 3 “Other Agency Actions to Terminate”. The complete 23-page submission covers broadcasting and telecom red-tape reduction.

ICLE says that its proposals will “increase competition, foster innovation, and improve consumer welfare.”

A recent article by Jack Mintz names smarter regulation as one of four “big bangs” to get Canada growing again. “Oppressive regulation has been the major stumbling block to investment in Canada.”

The Conservative promise to cut 25% of all federal government red tape within two years is a good one. It is somewhat of a déjà vu experience to read the promise to pass a law requiring two regulations be cut for every new one added and ensure $2 in administrative cost savings for every $1 added.

Federal regulatory requirements on businesses have ballooned to over 149,000—nearly 20,000 more since the Liberals took office. The burden is staggering: in total, government red tape costs businesses at least $51 billion annually, and that doesn’t even account for the damage caused by regulations that block major projects like pipelines, mines, and other critical projects. The result? Canada has bled $460 billion in investment—money that has fled south to the United States that should be creating jobs and powerful paycheques here in Canada.

They are right. Government red tape costs businesses billions and therefore costs consumers billions, as well. And, red tape blocks investment, including investment in digital infrastructure.

The initiative needs to start with a program like the US. Delete, delete, delete.