A competitive tax and efficient regulatory environment are key to helping businesses from Bay Street to Main Street compete in today’s global economy and to ensure the long-term prosperity of Canadians. That is the message that Nancy Hughes Anthony, president and CEO of the Canadian Bankers Association (CBA), delivered this morning in a speech to the Economic Club of Toronto.

In her speech, Hughes Anthony said that Canadian businesses would be better equipped to compete with increased regulatory efficiency. She highlighted securities regulation as a prime example, noting that a move to a common regulator would benefit businesses both large and small.

She pointed to CBA research that found this move would lower the cost of capital for small- and medium-sized firms, reduce their fees and improve their access to investors throughout the country.

“It is quite unfortunate that some provinces are not willing to give up their local fiefdoms for the benefit of Canadian entrepreneurs and for the economy of Canada as a whole,” Hughes Anthony said.

Hughes Anthongy acknowledged federal finance minister Jim Flaherty for his decision to form an expert panel to advise on possible approaches. “All good steps, but the time may be coming when more concerted action is necessary, and we would fully support him if he took the steps necessary to put in place a single securities regulator,” she said.

Hughes Anthone argued that changing Canada’s corporate tax policy is the single most effective step the country can take to heighten its competitive advantage.

The CBA is recommending that the scheduled reductions in the federal corporate income tax rate should be accelerated and then reduced even further to 16.5% by 2012.