Media Statement: CELA warns federal red tape directive could put health and environmental protections at risk

Monday, October 26, 2026, Toronto – In response to the federal government’s proposed new directive on red tape reduction, the Canadian Environmental Law Association (CELA) is urging the federal Cabinet to remove an arbitrary provision to eliminate $2 in regulatory burden on businesses for every $1 in new regulatory burden, warning it could undermine protections for human health and the environment.

“We have seen the tragic consequences of treating health and environmental protections as red tape. Seven people died and thousands became ill from contaminated drinking water in Walkerton. The subsequent public inquiry found that government efforts to cut red tape contributed to the tragedy. Protecting people from contaminated water, pollution and other environmental hazards should never depend on finding twice as many regulatory costs to cut elsewhere,” said Theresa McClenaghan, CELA’s Executive Director.

The new Cabinet Directive on Regulatory Competitiveness and Red Tape Reduction was published on October 21st and is scheduled to take effect December 31, 2026.

The directive would require government regulators to: “Offset $2 for every $1 increase in regulatory burden on business over a three-year period, as defined by the Treasury Board of Canada Secretariat.”

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For more information, or to arrange an interview, please contact: Theresa McClenaghan, Executive Director, 416-662-8341 or theresa@cela.ca