National Bank CEO: Regulations Stifle Growth
The CEO of the National Bank, Laurent Ferreira, recently addressed the challenges faced by businesses due to excessive regulations. Speaking to the Metropolitan Montreal Chamber of Commerce, Ferreira highlighted how these rules, while often intended to ensure safety and equity, can hinder entrepreneurial growth.
Regulations and Their Impact on Business Growth
Ferreira pointed out that in Quebec, regulations often stifle businesses. He emphasized that they can create significant obstacles for entrepreneurs. “Regulations are suffocating our businesses and slowly killing the desire to invest,” he stated. This sentiment resonates particularly in the current economic climate, where innovation and swift action are vital for survival.
Real-World Examples from Entrepreneurs
One poignant example comes from Sébastien Daoust, a vineyard owner from Hemmingford. In a letter published earlier this year, Daoust described how each new regulation feels like an additional weight on the shoulders of entrepreneurs. He cited new housing standards for temporary foreign workers as an instance where regulations seem straightforward on paper but become complex in practice.
- Daoust explained the challenges of adding necessary facilities, such as bathrooms, which involve extensive administrative red tape.
- He noted that apparent minor adjustments can escalate costs into the tens of thousands of dollars and stretch timelines over many months or even years.
Administrative Burdens and Ongoing Costs
Moreover, the repetitive nature of certain regulatory requirements, such as monthly potable water testing, adds to the financial burdens on businesses. Daoust questioned the necessity of such frequent testing and whether it genuinely enhances safety or simply increases costs for entrepreneurs. He remarked that each individual regulation may seem reasonable, but collectively, they divert valuable resources away from productivity and innovation.
Call for Regulatory Reform and Immigration Support
During his address, Ferreira not only advocated for reducing the regulatory and fiscal burden on small and medium-sized enterprises (SMEs) but also stressed the importance of immigration. He noted that automation cannot replace the 70,000 workers retiring annually in Quebec. To address the labor shortage, he urged provincial and federal governments to collaborate on solutions and to listen to entrepreneurs.
Ferreira’s views align with those of Benoît Robert, CEO of Communauto. In a recent letter to Premier François Legault, Robert expressed his concerns about the abrupt cancellation of the Quebec Experience Program (PEQ), which has enabled certain immigrants to obtain permanent residency quickly. This decision could jeopardize the status of trained employees crucial for maintaining the profitability of Robert’s business.
The Business Climate in Quebec
With an already heavy regulatory and tax environment, the current situation poses an even greater challenge for businesses. While transitioning towards a more supportive framework is complicated due to public financial constraints, it is essential to consider the relief that entrepreneurs are demanding. Achieving a balance between necessary regulations and fostering a thriving business environment is crucial for economic growth in Quebec.
