Thank you very much, Mr. Chair, and thank you to the committee for allowing us to appear today. I'm with my colleague, Darren Hannah.
We are pleased to note that, despite the recent economic instability, our banks have remained robust and are continuing their considerable contribution to the Canadian economy.
Canada was one of the few countries whose banking system saw no bankruptcies and had no need for bailouts.
In fact, last month, for the third consecutive year, the World Economic Forum said that Canada has the most robust banking system in the world.
Mr. Chair, I think for the benefit of time and efficiency, I will not go through some of the great benefits of our banking system. I'm sure this committee is well aware of the impact on the economy. I would say, though, that our submission today focuses on three things: enhancing the climate for business investment and job creation, improving the international competitiveness of business in Canada, and reviewing and updating measures in our retirement system.
First, a short note on regulation, Mr. Chair. The strength of our banking system makes it very clear that our regulatory system here in Canada is sound. Nonetheless, our banks will be subject to new international rules being decided by the G-20 and the Basel Committee, rules that will certainly impose higher capital and liquidity levels on all banks. While these rules are very important to the stability of the global banking system, there will be an impact on banks in Canada. Our banks have already been at a higher standard than most banks around the world, and yet they will certainly have to adjust to these new requirements.
Mr. Chair, we also believe the benefits of our sound national regulatory system should be applied to our securities sector as well. For many years, I think you know, the CBA has advocated for efficient securities regulation that would offer improved investor protection and reduce the costs of raising capital for businesses across the country. So we are encouraged by the work of the Canadian Securities Transition Office, and we will continue to support the need for Parliament to pass the necessary legislation.
I will move to tax. When it comes to creating a more competitive tax system, we believe the government is on the right track. You clearly know about the federal government's announced commitment to reduce the corporate income tax rate to 15% by 2012. We certainly feel that making Canada's tax system more competitive will contribute to our economy in the form of new jobs and increased investment. It has in fact been estimated that the 3% decline in the federal corporate income tax rate for businesses of all sizes will generate $47 billion in additional capital investment and some 223,000 jobs over time. These are substantial benefits, and we very much support these reductions for the benefit of all Canadians.
We were also pleased, Mr. Chair, to note that among this committee's 2009 pre-budget recommendations, there was one to explore the feasibility of implementing a consolidated tax reporting framework for all business in Canada, and that was referenced as well in the last federal budget. This initiative is absolutely required to stop wasteful administrative and transaction costs and also to put Canada's businesses on an equal footing with the other G-7 countries, since we are the only G-7 country without a consolidated reporting framework.
Mr. Chair, I just want to mention the importance of personal saving and investment. There is a section in our brief with respect to that issue. Saving for retirement is certainly on the minds of all Canadians, but many do not have access to employer pension plans, and particularly small business owners. So we feel it's important to delink pension plans from the employment relationship and allow third parties, like financial institutions, to offer such plans so that all Canadians will be provided with the same tools to save for their retirement.
Finally, Mr. Chair, there is, as you know,
the Financial Literacy Working Group, which was established by government.
We intend to continue our discussion on financial literacy with the federal government, as well as with all parliamentarians. In our opinion, this issue is a priority.
Thank you, Mr. Chair.
On that note, I will conclude and be happy to answer your questions.