‘Regulatory burden in Canada was the biggest barrier’: Why quantity over quality is killing Canadian competitiveness

You can listen to this episode on Amazon, Apple, and Spotify. Episode Description Mike Holden, VP of policy and chief economist, and Alicia Planincic, director of policy and economics, both at the Business Council of Alberta, discuss why Canada has become one of the most difficult places in the developed world to get things built. They explore how our regulatory system has evolved into a maze of overlapping jurisdictions, endless consultations, and political uncertainty that’s driving investment abroad. They also offer solutions—from reforming the Impact Assessment Act to creating clear accountability measures for regulations. Learn more about their new report “From Barriers to Breakthroughs” here. Episode Summary Canada’s business investment landscape has emerged as a critical concern for economic policymakers, with mounting evidence suggesting the country is falling behind international competitors in attracting and retaining capital. The gap between Canadian and American business investment has widened substantially over the past decade, raising questions about the nation’s long-term economic competitiveness and prosperity. The decline in business investment carries significant implications for Canadian workers and households. Business capital spending directly influences productivity levels, which in turn affect wage growth and living standards. When companies invest less in equipment, technology, and infrastructure, workers have fewer tools to perform their jobs efficiently, ultimately constraining income growth. This dynamic has contributed to ongoing affordability challenges, as stagnant wages struggle to keep pace with rising costs. Recent international assessments have highlighted Canada’s regulatory environment as a particular weakness. Global rankings place Canada well below peer nations in ease of doing business, with the country earning notably poor marks for the time required to obtain environmental permits. The regulatory burden has emerged as the primary barrier to investment, surpassing concerns about taxation or global economic uncertainty. The federal government’s current approach to major project reviews has come under scrutiny for creating lengthy, costly, and unpredictable approval processes. Projects can face years of assessment involving multiple jurisdictions and overlapping requirements before receiving final political approval. This uncertainty makes it difficult for companies to commit capital when outcomes remain unclear even after substantial investment in the review process. Proposed reforms focus on systemic changes rather than incremental adjustments. Key recommendations include moving political decisions earlier in the approval timeline, establishing clearer jurisdictional boundaries between federal and provincial authorities, and implementing firm timelines with fewer opportunities for delays. The goal is to maintain environmental and social protections while creating more predictable and efficient processes. The overlap between federal and provincial regulatory authority has created particular challenges. Current legislation allows federal designation of projects that might otherwise fall under provincial jurisdiction, leading to duplicative reviews and conflicting requirements. Proposed solutions would establish automatic jurisdictional assignments based on the nature of each project, with one level of government taking clear leadership while others participate within that framework. Beyond major projects, the broader regulatory system faces criticism for lacking accountability and systematic review mechanisms. Regulations accumulate without regular assessment of their effectiveness or cumulative impact. The absence of comprehensive data on the total regulatory burden makes it difficult to measure progress or hold policymakers accountable for reform efforts. Indigenous consultation represents a crucial component of project approvals, though current processes often involve repetitive engagement at multiple stages. Reform proposals emphasize consolidating consultation efforts while maintaining adequate time and meaningful participation, recognizing that insufficient consultation creates legal risks that can halt projects entirely. The path forward requires sustained commitment to fundamental reform rather than superficial adjustments. Success will ultimately be measured not by government announcements but by tangible changes in business investment patterns and improved perceptions among companies operating in Canada. Without addressing these structural challenges, the country risks continued erosion of its competitive position and the economic consequences that follow. This summary was prepared by NewsBox AI. Please check against delivery.