Mr. Speaker, today, I would like to talk about an important aspect of Bill S-2, the incorporation by reference in regulations act. In particular, I would like to address how incorporation by reference in regulations can assist regulators in designing regulatory schemes that ensure access to the expertise of the leading standards development bodies in Canada and throughout the world.

As we know, Bill S-2 would amend the Statutory Instruments Act to make it clear in law when the technique of incorporation by reference can be used in federal regulation. Incorporation by reference allows material to be referenced and then incorporated into the regulation without being reproduced word for word. There are two types of incorporation by reference: ambulatory and static.

When incorporation by reference is ambulatory, the reference material forms part of the regulation as it is amended from time to time. When this material is incorporated on a static basis, then only the version as it exists on that particular day is incorporated, unless the regulation is amended.

There are many advantages to incorporation by reference. For example, it reduces needless duplication or repetition of material such as provincial legislation when the federal and provincial legislative regimes need to be harmonized. It can be an effective way of working with other jurisdictions.

Lastly, incorporation by reference is an effective tool that gives the government access to a broad range of expertise developed in Canada and around the world in a variety of fields that have an impact on our economy and our daily lives. This last advantage is something I want to talk about in the House today.

When the legislator grants the power to make regulations, parliamentarians expect the regulator to be able to respond to a variety of complex, evolving issues associated with the areas in which the regulations are developed.

The fields now requiring regulation are complex: electric vehicles, cloud computing, leading edge medical devices and nanotechnology are just a few examples.

Federal regulators must be in a position to effectively and efficiently respond to requests for regulation in complex sectors. To that end, incorporation by reference makes it possible to quickly and effectively meet demand in these constantly evolving sectors.

By enacting this law, the legislator will give regulators the explicit legal authority to incorporate by reference any national and international standards developed by expert bodies. Although standards are not the only type of document for which incorporation by reference would be authorized under this bill, they merit special attention.

There are many kinds of standards that are already incorporated by reference in the federal regulations, including standards written by the International Organization for Standardization and other recognized international standards organizations. A recent review of existing references in federal regulations revealed almost 400 references to these standards established by expert bodies.

Canada is one of the countries at the forefront of standards development. There are hundreds of standards developed in Canada as part of the national standards system in Canada and then incorporated into federal and provincial regulations, such as standards developed by organizations such as the Canadian General Standards Board, and that which is most likely the most recognized name, the Canadian Standards Association.

Standards developed by these organizations have already become key to the way that sectors are regulated in Canada. There are over 275 different standards produced by the Canadian Standards Association alone that are referenced in federal regulations. Added together, there are already more than 400 references in federal regulations to various types of standards, both internationally developed and developed as part of our national standards system. These are important components of our current regulatory programs.

This legislation seeks to confirm that regulators can continue to rely on these standards in implementing their regulatory initiatives in an effective manner by allowing ambulatory incorporation by reference of such documents. The incorporation of standards by reference allows the government to draw on national and international expertise. It allows government to effectively rely on the work being done by external expert bodies, to which it has often contributed based on its own expertise.

In many cases, effective, responsive regulation demands that when changes are made to these standards, regulators must respond immediately. Ambulatory incorporation by reference is the most effective way to achieve this.

When a standard is incorporated in the regulation on an ambulatory basis, it means that when a standard body updates a standard to respond to a new technology, new approaches or new innovations in the area, the changes are automatically incorporated into the regulation. The regulatory text does not have to be amended.

Why is it essential to incorporate by reference standards as they are amended from time to time? There are three good reasons: expertise, responsiveness and efficiency.

First, the ability to adopt standards as part of federal regulations when it is appropriate allows the government to access technical expertise right across Canada and right around the world.

Second, the ambulatory incorporation of these standards ensures that when changes are made by these expert bodies, federal regulators are immediately responsive, which is a significant advantage of modern regulation.

Third, reliance on standards development organizations of this nature allows for the efficient use of government resources. It would neither be expected nor efficient for the government to attempt to develop and house the wide range of expertise already found in these committees that develop these standards.

To conclude, enactment of this legislation is a necessary step to securing access to valuable technical expertise developed here in Canada and around the world. I therefore invite all members to support this important bill.

Robert Goguen

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