An Act to amend the Department of Industry Act (small businesses)

Summary#

This bill changes the Department of Industry Act to make small business impacts a required part of law‑making by the federal government. It directs the Minister of Industry to check every government bill and certain regulations for significant effects on small businesses, and to provide an impact assessment when needed. The broad goal is to protect and promote small businesses and make sure new laws and rules have a net positive impact on their sustainability.

Key changes:

• Adds a new duty for the Minister of Industry to examine every government bill and every regulation that must be tabled in Parliament to see if it could significantly affect small businesses.
• Requires a small business impact assessment to be tabled in the House (for bills) or published with the proposed regulation in the Canada Gazette (the official federal publication for regulations), if significant effects are found.
• Sets guiding factors for assessments: access to financing, conditions for investment in and by small businesses, participation in a competitive marketplace, and a “net positive impact” on small business sustainability.
• Lets Cabinet (the Governor in Council) make rules that define what counts as a “significant effect,” how assessments are prepared, what they must include (costs and benefits for businesses with fewer than 50 employees), and how “net positive impact” is applied.
• Expands the Department of Industry’s mandate to “protect and promote the role of small businesses” in Canada’s economy.

What it means for you#

• Small business owners (fewer than 50 employees)

  • Government bills and proposed regulations that could significantly affect you would likely come with an impact assessment you can read.
  • These assessments should outline expected costs and benefits for small firms and consider financing, investment conditions, and market participation.
  • The “net positive impact” principle could lead to changes in proposals to avoid net harm to small business sustainability.

• Larger businesses (50+ employees)

  • No direct new requirement on you. Assessment content focuses on effects on firms with fewer than 50 employees.

• General public and Parliament

  • More transparency: assessments would be tabled in the House for bills and published with proposed regulations in the Canada Gazette, offering evidence about how proposals affect small businesses.

• Federal departments and agencies

  • A new analysis step is added for government bills and tabled regulations. Processes and thresholds will be set in future rules made by Cabinet on the Minister’s recommendation.

• What is unclear

  • Timing and detailed methods depend on future Cabinet rules. The bill does not spell out how “significant effect” or “net positive impact” will be measured.

Expenses#

The bill may increase administrative costs, but no estimate is available.

• Government may need staff time, data, and analysis tools to screen proposals and prepare assessments.
• Costs to develop and maintain the required rules (process, thresholds, and content standards) are likely, but not quantified.
• No direct fees, fines, or compliance costs are placed on businesses by this bill itself.

Proponents' View#

• The bill appears intended to ensure new laws and regulations do not unintentionally harm small businesses, which employ many Canadians and drive local economies.
• Requiring impact assessments could improve transparency and accountability in law‑making that affects small firms.
• Focusing on access to financing and investment conditions could help small businesses grow and stay competitive.
• Considering whether proposals inhibit small firms’ participation in the marketplace could support fair competition.
• Applying a “net positive impact” principle could be seen as a safeguard for the sustainability of small businesses.

Opponents' View#

• One concern is that adding a required assessment step could slow the development of some government bills and regulations.
• The bill leaves key points to future rules, including what counts as a “significant effect” and how to apply “net positive impact,” creating uncertainty until those rules are set.
• The focus on firms with fewer than 50 employees may overlook effects on slightly larger “medium‑sized” businesses.
• The requirement applies only to bills introduced by ministers and to regulations tabled in Parliament; it may not cover other types of bills, which could create gaps in coverage.
• This may add administrative burden within government. It is unclear whether any existing analysis processes would be streamlined or duplicated.