North

Small business group slams N.W.T. government red tape in new report card

The Canadian Federation of Independent Business bases grades on four criteria - political leadership, publicly available measure of regulations, whether there is a cap on rules and momentum of change.

Territorial government has received more failing grades than any other jurisdiction in Canada

Amber Ruddy is a representative of the Canadian Federation of Independent Business. She says dealing with the N.W.T. Government about cutting red tape is frustrating. (CBC )

The Government of the Northwest Territories has received a failing grade for not cutting red tape for small-business owners — again.

The Canadian Federation of Independent Business — also known as CFIB — issued its annual report card on Jan. 23.

The N.W.T. government has received more failing grades than anywhere else in Canada. Since 2011, it's received five F's and one D-minus.

This year's failing grade comes with an assessment of the territory's leadership and priorities around economic regulations. It found the N.W.T. has "some" strong political leadership around economic issues that affect small business, but does not track the effects of regulations and make the findings public, nor does it make cutting red tape a priority.

"It's been frustrating dealing with the GNWT," said Amber Ruddy, a CFIB representative.

"They often think … they don't have a role to play in reducing the regulatory burden."

Ruddy says 250 business people in the Northwest Territories are members of CFIB, and one of their main concerns is cutting red tape.

In an email, a spokesperson for the Department of Finance replied to the report's findings.

"The report provides little detail on their analytical approach outside of the letter grades the authors apply to each jurisdiction," stated Todd Sasaki.

"This apparently subjective approach to determining their grades lacks methodological rigor and appears to be part of a lobbying effort."

He further added reducing the regulatory burden for small businesses is "reflected in the mandate of the 18th Legislative Assembly."

"Regardless of the CFIB's views, the GNWT will continue to work hard to provide the best possible service for N.W.T residents, businesses and industry," he stated.

The Yukon Government received a D on the same report card.