Protecting Ontario’s Competitive Advantage: Bill 56 and Related Initiatives

On November 3, 2025, Bill 56, the Building a More Competitive Economy Act, 2025, received royal assent following its introduction in the Ontario legislature on October 20, 2025. As part of the Ontario government’s plan to protect and strengthen the province’s economy, Bill 56 and its related initiatives aim to improve labour mobility, streamline regulatory processes, support local businesses and increase competitiveness.

Improving Labour Mobility

The Ontario government aims to improve labour mobility through a combination of legislative amendments and targeted reforms, including:

• Reducing bureaucratic delays. Bill 56 will enable more healthcare professionals to start working in the province sooner through amendments to the Ontario Labour Mobility Act, 2009 and the Regulated Health Professions Act, 1991. These amendments aim to reduce labour mobility barriers and make it easier for out-of-province applicants to join the province’s healthcare system.
• Expanding “as of right” provisions. The Ontario government will expand “as of right” provisions for Canadian workers licensed and credentialed in other provinces and territories. The province is particularly focused on healthcare workers and will move forward with automatic recognition of credentials for doctors and nurses from across Canada.

Streamlining Government Processes

The Ontario government is proposing a number of targeted reforms to streamline permitting and approval processes in Ontario, including:

• Eliminating or transforming economic development-focused permits. The province aims to support economic growth and improve investment while maintaining robust health, safety and environmental protections by eliminating or transforming 35% or more of Ontario government economic development-focused permits by 2028.
• Creating a centralized digital permitting system. The province aims to reduce approval times, enhance transparency and provide certainty to investors by using a centralized digital permitting system to streamline how businesses apply for and monitor permits as well as move projects forward.
• Updating legislation and regulations. Bill 56 amends legislation, including the Crown Forest Sustainability Act, 1994 and the Clean Water Act, 2006, to streamline forest management and municipal drinking water approval processes and to clarify ministerial inspection powers.

Made-in-Ontario Vehicle Policy

Along with Bill 56, the Ontario government announced that it is engaging in consultations on a Made-in-Ontario vehicle policy to strengthen supply chains and support the Ontario automotive industry. The policy being explored will examine how government, broader public sector and municipal fleet purchases could help drive economic growth and create jobs in Ontario and Canada.

Other Amendments

Bill 56 amends the Highway Traffic Act to end the use of municipal speed cameras. Additionally, Bill 56 allows the Minister of Transportation to direct a municipality to install signs in school zones on highways under its jurisdiction and carry out sign installation themselves if a municipality fails to comply.

Bill 56 also introduces amendments to the Drug and Pharmacies Regulation Act, Healing Arts Radiation Protection Act, Ontario Heritage Act and Species Conservation Act, 2025, and makes consequential amendments to other legislation in respect of the Species Conservation Act, 2025. Bill 56 further introduces amendments to a number of acts that regulate health professions.

Key Takeaways

• The changes made by Bill 56 and its related initiatives will result in new opportunities for skilled workers from other provinces and territories and investment in Ontario by streamlining government approval and permitting processes.
• Bill 56 allows the province to move forward on selected priorities, including increasing the number of healthcare workers in Ontario and advancing red tape reduction efforts.
• The introduction of a Made-in-Ontario vehicle policy will allow for the procurement of Ontario-made vehicles in government, broader public sector and municipal fleet purchases to be prioritized.

For further information, please contact the authors or any other member of our Infrastructure group.