With over 145,000 regulatory requirements, Quebec leads all Canadian provinces
- Regulatory compliance cost Quebec businesses $10.9 billion in 2024
Montreal, August 6, 2026 – Quebec is the most heavily regulated province in Canada, and its businesses, workers and economy as a whole are paying the price. An Economic Brief published this morning by the MEI quantifies the scale of the problem and proposes solutions for reducing regulation.
“Despite the growing number of bills aimed at tackling over-regulation, Quebec remains the undisputed champion of regulation,” says Charles Lammam, a senior fellow at the MEI and author of the report. “One of the issues is that the government seems to be avoiding targeting the regulations that are most costly and damaging to the province’s economy.”
Canada’s regulatory leader
Quebec has 145,958 regulatory requirements, more than any other Canadian province, according to data compiled by the Canadian Federation of Independent Business. This surpasses Ontario’s count of 139,907 by over 6,000.
Of course, above and beyond all these provincial rules are the myriad regulatory requirements at the federal and municipal levels.
The primary consequences of this sprawling regulatory rulebook are financial. Quebec businesses spent $10.9 billion on regulatory compliance in 2024, which amounts to $38,971 per business. The total cost represents an increase of 28.1 per cent (adjusted for inflation) since 2017.
These costs are often passed on to consumers.
One example of this is Bill 29, which concerns performance guarantees for household appliances. Last May, retailers estimated that it could push the prices of household appliances up by between 10 and 30 per cent. South Korean manufacturer LG has already announced that it will raise the price of certain models by 10 per cent for the Quebec market.
Despite the National Assembly having tabled five different bills since 2021 designed to tackle the regulatory burden, the MEI researcher says the figures show that there is still a long way to go.
Though many of Quebec’s regulations may be justified, it is estimated that as much as 35 per cent of the regulatory burden consists of unnecessary red tape, that is, excessive or outdated requirements that serve no clear purpose.
More focused effort is necessary
Reducing the regulatory burden does not just mean doing away with the rules that seem easiest to get rid of.
Other jurisdictions have demonstrated that more efficiency is indeed possible. Between 2001 and 2004, the government of British Columbia eliminated 37 per cent of its regulatory obligations.
In order to achieve this, each department was assigned a binding reduction target, and progress was reviewed on a quarterly basis. Cutting red tape, along with other economic policy reforms, helped the province post economic growth that outpaced the national average every year from 2002 to 2008.
In the Netherlands, a 25 per cent reduction in the regulatory burden over four years has freed up €4 billion.
The Dutch government systematically measured the compliance costs of its regulations using a standardized methodology, publishing the results ministry by ministry, giving policymakers the hard numbers needed to target the worst offenders for reduction.
“What has worked in British Columbia and the Netherlands is an approach that is both methodical and binding,” concludes Mr. Lammam. “We need clear targets and a systematic review of existing regulations. It’s a way to help the Quebec economy without spending a single dollar.”
You can read the MEI’s Economic Note here.
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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.
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