CFIB Calls For Exemption From MMBC

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CFIB calls on Premier Clark to exempt small business from new costly, confusing and ineffective waste regulations

Vancouver, January 31, 2014 – As it wraps up its fifth annual Red Tape Awareness Week, the Canadian Federation of Independent Business (CFIB) is calling on Premier Christy Clark to prevent an onslaught of costly red tape from hitting B.C’s small businesses, and increasing costs for consumers.

The B.C. government passed legislation in 2012 forcing businesses to account for packaging waste, and have appointed an arms-length organization called Multi Material BC (MMBC) to enforce new regulations.

Today, MMBC was recognized by CFIB as an “award” winner for Canada’s worst new red tape, earning the first-ever “Paperweight” Award. The government’s waste program goes into effect May 19th, and will impact thousands of small businesses and consumers with new fees and hidden taxes.

MMBC’s website instructs businesses to consult their lawyers and regulatory affairs departments in order to comply with the new rules. Eighty per cent of B.C. businesses have fewer than five employees, and do not have regulatory affairs departments.

“Getting small businesses off the hook for these ridiculous regulations is the first real test of this government’s commitment to small business,” says Laura Jones, CFIB Executive Vice President. “If B.C. is serious about maintaining its red tape leadership, it can’t give the power to a group like MMBC to impose rules that contradict the government’s own regulatory reform policy.”

MMBC is governed by an Ontario-based board of multinational corporations such as Proctor and Gamble, Wal-Mart and Coca-Cola.

Small businesses from across B.C. will be required to sort, weigh and track packaging material, and remit payments up to thousands of dollars annually to MMBC. Those costs will be passed on to B.C. consumers in the form of price increases.

“Small businesses are already taking action to get greener and cleaner, and there is no evidence these rules will further environmental goals,” says Mike Klassen, B.C. Director of Provincial Affairs. “Last summer, MMBC promised changes to mitigate the impact on B.C.’s small and medium-sized enterprises, and asked for time to consult with small business. That time has run out and small businesses are still in the dark.”

“It is the worst public policy in memory and small business needs to be exempted from it,” adds Klassen.

Canadians are encouraged to show their support for CFIB’s Red Tape Revolution by signing the on-line petition (www.cfib.ca/rtaw) that will be delivered to governments.