The Yukon continues to vie for the red tape capital of Canada according to a report released this week by the Canadian Federation of Independent Business (CFIB), an organization representing the country's small business owners.

"When we're talking about red tape, we're not talking about essential regulations that protect workers, the public or the environment,” explains Janine Carmichael, a CFIB senior policy analyst, whose focus is on the Yukon and Northwest Territories.

"It's about excessive forms, huge amounts of paperwork, poor customer service from government.”

The Yukon joins the N.W.T., Alberta and Manitoba; the worst jurisdictions in the country when it comes to burdening small businesses with onerous amounts of forms, paperwork and regulations, said Carmichael.

"There's stories about (Yukon) members who call the government twice and get two different answers, or get caught in an answering machine black hole,” she added.

According to the CFIB's report, released to kick off the federation-inspired, "first ever” Red Tape Awareness Week, the smaller the firm, the harder they are being hit by their annual regulatory costs.

"Whereas businesses with more than 100 employees spend a yearly average of $1,117 per employee to comply with regulations, the cost-per-employee rises sharply as the number of employees decreases,” the report reads.

Companies with four or fewer staff pay an average of $5,825 per employee on compliance with regulations.

Opposition Liberals wasted little time in jumping on the CFIB regulations to criticize the government.

"In seven-plus years, the Yukon Party government hasn't lived up to its commitment to diminish red tape and be open and accountable despite repeated promises to the contrary,” a Liberal news release quotes Gary McRobb, the party's Economic Development critic.

Purchasing agreements between business and government – both federal and territorial – have long been an issue here and the Yukon's Highways and Public Works department undertook a review of its procurement process.

The Department of Energy, Mines and Resources (EMR) is also working with the Department of Environment to streamline the application process for placer mining operations.

"There is work underway to reduce the red tape,” said Robert Thomson, director of client services and inspections for EMR

"Now this does not mean reducing environmental standards, but deciding if there's two identical forms and permits ... we need to reduce this onus on the applicant and ultimately we'll see if similar changes can be made to the regulations to assist with this.

"Ultimately, the objective is these operators have to be in compliance and environmental protection must be maintained at an appropriate level,” Thomson added.

And attempting to mitigate red tape across all departments has been a challenge for the Yukon government, particularly with devolution and first nations self-government agreements coming on line over the past decade.

In 2006, the CFIB levelled the same criticisms against the Yukon government

Then, 71 per cent of small businesses in the Yukon said they had concerns over the level of red tape faced when doing business in the territory.

Today, 26 per cent of small businesses in the territory report they would never have set up shop here if they knew how bad the red tape burden would be.

The CFIB report estimated that the annual cost to small businesses of navigating through red tape nationwide is $30.5 billion.