In the Canadian Way, there is an important role for government in road safety. Our relationship with the CTEA is an excellent example of this. Setting high standards Government plays a key role in competitiveness by setting high standards. Some people may argue that having high safety standards is a competitive disadvantage that it raises the cost of doing business in this country. While non-compliance with regulatory standards may reduce the initial cost of production, in the end costs can be considerably higher.
Companies pay whenever their products are recalled.
They pay in increased warranty costs. And sometimes they pay in litigation costs. At Transport Canada safety is our top priority and that priority pays off for the industry in many ways, including customer satisfaction and lower warranty costs. Initial costs may seem high, but if you amortize compliance costs over the life of a well-crafted, certified Canadian vehicle, those costs compare well to the benefits. The cost of compliance is a fraction of the cost of recall.