Ontario’s Red Tape Reduction Would Benefit Real Estate Developers Most

Real estate developers are among the biggest beneficiaries of the Ford government’s red tape-cutting measures, which could save them hundreds of millions of dollars a year, according to information obtained by CBC.

Since coming to power in 2018, the Progressive Conservatives have introduced 12 bills attacking the proverbial red tapeTheir most recent measure, the Red Tape Reduction Act to Build More Housing, received royal assent in June.

The Ontario government estimates that its initiatives will save residents and businesses $1.2 billion each year and save 1.5 million hours of administrative work.

According to data broken down by the province, developers would save $410 million annually through changes to planning laws and caps on fees school boards can charge on new housing to fund new schools.

Businesses would save $209 million each year in costs to comply with dozens of environmental regulations, while changes to employment standards and the Occupational Health and Safety Act would save employers $194 million.

In a written statement, Mike Harris, who was appointed Minister for Red Tape Reduction last month, said his government’s initiatives have helped to simplify regulation, stimulate economic growth, foster innovation and accelerate housing construction.

$250 million in savings from parking

According to the Ontario government, the measure that would generate the biggest savings is the ban on municipalities imposing a minimum number of parking spaces on new residential construction located near major public transit infrastructure.

Removing this requirement for developers would reduce construction costs by an average of $50,000 per new unit, argues Justine Teplycky, spokesperson for the Minister of Municipal Affairs and Housing, in an email sent to CBC.

NDP Leader Marit Stiles doubts the province can take credit for all the savings, given that the City of Toronto had already lifted minimum parking requirements in its jurisdiction in 2021.

I have never really trusted this government’s claims about saving time and money, and I certainly don’t trust its calculations.Ms. Stiles argues.

Savings in doubt

The opposition leader also questions the amount of money saved by capping fees imposed by school boards on new housing.

Ms Stiles argues that limiting these school development charges is not a measure that reduces red tape.

[Le gouvernement] may have saved developers money, she said. But it came at the expense of school boards losing revenue.

The Ontario Public School Boards Association believes the cap imposed by the province is arbitrary and that it harms the ability of school boards to purchase land to build new schools.

This is forcing some school boards to hold unfunded debt indefinitely and subsidize residential and commercial development.criticizes the association in a written statement.

Targeted environmental regulations

The main target of the Ford government’s red tape reduction efforts has been the Department of Environment, Conservation and Parks.

Of the 215 initiatives put forward, 48 concern environmental regulations.

Allowing corporations to make more money by letting them harm the public interest is not cutting red tape.argues Phil Pothen, a lawyer with the organization Environmental Defence.

It is simply a form of wealth transfer out of the hands of the public.he adds.

The government, for example, claims that large industrial emitters of greenhouse gases will save $107 million this year and $1.1 billion by 2030 because the costs of complying with the provincial emissions program are lower than its federal equivalent.

These initiatives produce concrete results for both businesses and individuals, while maintaining the commitments of the [gouvernement de l’Ontario] to protect the environment and support school infrastructureassures Minister Harris.

Of the government’s 215 measures to reduce red tape, 150 would generate annual savings of less than $1 million, according to the province’s calculations.

With reporting from CBC’s Mike Crawley