Doug Ford’s ‘Red-Tape’ Cuts Save Ontario Developers $400M Annually
Toronto, July 2, 2024 — Ontario developers are experiencing substantial financial benefits from the Ford government’s red-tape reduction measures, with savings amounting to $400 million annually, according to a breakdown provided by government officials to CBC News.
Legislative Actions:
Since Premier Doug Ford’s election in 2018, the Ontario Progressive Conservatives (PCs) have introduced 12 bills aimed at reducing regulatory burdens. The most recent, the Cutting Red Tape to Build More Homes Act, received royal assent in June. These measures, according to the government, are saving approximately $1.2 billion annually in regulatory compliance costs and eliminating 1.5 million hours of administrative work.
Key Savings Breakdown:
- Municipal Planning Legislation:
- Developers save over $250 million annually due to a ban on minimum parking requirements for new housing projects near transit hubs, introduced in Bill 185.
- This measure is said to save an average of $50,000 per new home constructed near transit stations.
- Education Development Charges:
- Legislation capping the fees that school boards can levy on new housing developments saves developers $160 million annually.
- These fees, used to buy land for future schools, have been criticized for reducing revenue for school boards and pushing them towards unsupported debts.
- Environmental Regulation Compliance:
- Companies save $209 million annually from changes to dozens of environmental protection regulations.
- The Ministry of Environment, Conservation and Parks has seen 48 measures targeting environmental regulations, the most of any ministry.
- Employment Standards and Occupational Health and Safety:
- Employers save $194 million annually from changes to employment standards and occupational health and safety laws.
- Notably, mining companies save $104 million annually due to changes in ventilation requirements under the Occupational Health and Safety Act.
Opposition and Criticism:
NDP Leader Marit Stiles questioned the legitimacy of the government’s savings claims, particularly in areas where changes were previously enacted by local governments, such as Toronto’s elimination of parking minimums in 2021. Stiles expressed concerns that the savings for developers come at the cost of essential public services, including education and environmental protection.
Phil Pothen of Environmental Defence criticized the reduction in environmental regulations, arguing that these measures prioritize business profits over public interest, equating them to a transfer of wealth from the public to private entities.
Government Response:
Mike Harris Jr., newly appointed Minister of Red-Tape Reduction, emphasized that the measures are fostering economic growth, innovation, and housing development. Harris stated that these initiatives are delivering tangible benefits while maintaining commitments to environmental protection and educational infrastructure.
Additional Measures:
Other notable red-tape reduction measures include:
- Allowing pension plans to use email as the default communication method, saving nearly $24 million annually.
- Major industrial emitters saving $107 million this year through the province’s industrial emissions program.
- Employers saving $91 million annually from the 2018 Making Ontario Open for Business Act.
Despite these measures, the current pace of home construction in Ontario remains slow, raising questions about the actual impact of the red-tape cuts on housing development.