House of Commons Hansard #98 of the 39th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was prices.

Topics

Income Tax ActPrivate Members' Business

7:50 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

All those in favour of the motion will please say yea.

Income Tax ActPrivate Members' Business

7:50 p.m.

Some hon. members

Yea.

Income Tax ActPrivate Members' Business

7:50 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

All those opposed will please say nay.

Income Tax ActPrivate Members' Business

7:50 p.m.

Some hon. members

Nay.

Income Tax ActPrivate Members' Business

7:50 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

In my opinion the nays have it.

And five or more members having risen:

Income Tax ActPrivate Members' Business

7:50 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Pursuant to Standing Order 93 the division stands deferred until Wednesday, May 28, immediately before the time provided for private members' business.

Price of Petroleum ProductsEmergency Debate

7:55 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The House will now proceed to the consideration of a motion to adjourn the House for the purpose of discussing a specific and important matter requiring urgent consideration, namely the price of petroleum products.

Price of Petroleum ProductsEmergency Debate

7:55 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

moved:

That this House do now adjourn.

Mr. Speaker, the price of gasoline has reached record highs. A litre of gasoline has never been this expensive: in 2002, it cost 61.3¢; in April 2005, it cost $1, a psychological barrier we never thought we would reach; and yet, in May 2008, it has reached $1.40 in Trois-Rivières.

This situation threatens the financial stability of households. Citizens are calling on us to take action. That is why the Bloc Québécois has asked for this emergency debate. It is time to act as quickly as possible and before the situation deteriorates and leads to a serious economic crisis. The economic outlook is increasingly grim and every analyst is talking about a slowdown or even a recession, but Quebeckers must not also bear the brunt of the oil industry's greed. Every dollar a Quebecker spends on fuel impoverishes all of Quebec.

Let us remember that the government does not get richer as the price of gasoline climbs. Quebec imports all the oil it consumes. Every time the price of fuel increases, more money leaves Quebec and that impoverishes our nation.

The Bloc Québécois is proposing concrete actions. We are proposing a three-part response to this problem.

First, we need to keep the industry in check with Bill C-454, which was introduced by my colleague from Montcalm, and which strengthens the Competition Act with respect to oil companies.

Second, we need to make the oil industry contribute. We have to put a stop to the flow of wealth from Quebeckers and Canadians to big oil companies. Ottawa must include oil revenues in equalization formulas. The federal government must put an end to tax breaks for oil companies. The government must also cap greenhouse gas emissions and support the creation of a true carbon exchange.

Third, we must reduce our dependency on oil. Oil is making Quebec poorer, and we have to put an end to the blood-letting. The Bloc Québécois wants Quebec to become a leader in clean and renewable energy. Now I would like to elaborate on each of these points.

I began by saying that we need to keep the sector in check. Our first response to the problem is based on simple logic: a competitive industry is more efficient economically. The Conservatives, staunch defenders of the free market and the virtues of competition, should agree. The oil industry, both in Canada and around the world, is anything but competitive.

The Competition Bureau has to be able to use the Competition Act to protect citizens from being taken advantage of by an industry that is reaping the benefits of a non-competitive situation. Every time the price of gas skyrockets, the government says it cannot do anything because, according to the Competition Bureau, oil companies are not involved in price-fixing.

The problem is that the Competition Bureau has never conducted a full investigation of the oil industry. The bureau cannot conduct an investigation of its own accord. The minister must call an inquiry, or citizens must complain. And it is very difficult to find evidence.

Our competition bill sought to force disclosure of documents and to protect citizens during a review of this matter. The bureau has these powers when conducting an investigation. However, investigations must be ordered by the minister—which is highly unlikely when the minister is on the payroll of an oil company friendly party—or following complaints.

That is why the Bloc Québécois introduced Bill C-454, An Act to amend the Competition Act and to make consequential amendments to other Acts. This bill was adopted in the House, at second reading stage, on April 28. It gives the Competition Bureau the authority to conduct its own inquiries into the industry. As I was saying earlier, it can summon and protect witnesses during these inquiries. It can increase fines significantly, henceforth making them a deterrent. If there are agreements among oil companies, they will have to prove to the commissioner that they are not detrimental to consumers.

However, despite the Bloc's and my own efforts to speed up adoption of the competition bill at the Standing Committee on Industry, Science and Technology, no other party in this House wanted, in committee, to support our motion that the bill be passed as is by the committee and be submitted again to the House for adoption before it broke for the summer.

We know that, oddly enough, the price of gasoline always increases at the pump with the onset of summer vacation. I would remind my colleagues that the price of crude oil has increased by more than 30% since January and that it has doubled since last year. The Bloc Québécois does not understand why the other parties are refusing to add teeth to the Competition Act before the summer, thus giving our citizens some breathing room. When we return to our ridings, all we hear from our constituents are complaints.

Bill C-454 is a first step in the right direction and we must take this step as quickly as possible given that, traditionally, oil companies have no qualms about increasing prices when summertime rolls around.

The second part of our solution consists of having the industry make a contribution. We know that the oil industries are making record profits and that the higher gas prices only benefit the industry. Since the beginning of this year our economy has been suffering while the oil companies are profiting. This is a direct transfer of the public's wealth to an industry that is shamelessly taking advantage of the situation.

How do we believe we should limit this transfer of wealth? By adopting a tax system that stops being so generous to the oil companies. We have to put an end to the tax giveaways. The industry has to pay its fair share of taxes. That is what a responsible government must do, but the federal government is doing precisely the opposite.

Both the Liberals and the Conservatives are responsible for the current situation. From 1970 to 1999, Ottawa paid the equivalent of $79 billion in direct subsidies to the fossil fuels industry; and even though those direct subsidies have been decreasing since the late 1990s, the oil industry is benefiting from a more generous tax system. This situation makes the industry exempt from paying hundreds of millions of dollars in tax—hundreds of millions of dollars. I wonder how consumers and our economy can keep carrying this burden.

Whether we are talking about the Liberal government of 2003 with Bill C-48, which favoured the oil companies, or the current Conservative government with its accelerated capital cost allowance for the tar sands, this industry has always had a formidable ally in the federal government. And even though the accelerated capital cost allowance will gradually come to an end by 2015, the oil companies will have saved hundreds of millions of dollars in tax by then.

How do we justify this to our fellow citizens? How can I justify this to the people of Trois-Rivières to whom working far from downtown without public transit is an incredible burden? This takes a bite out of their paycheque and their family budget.

When the price of oil per barrel is closing in on $140 U.S. and the price per litre is around $1.40 in Trois-Rivières, how can we justify having a tax system that is so generous to the major oil companies? What message is the government sending to the people of Quebec?

The federal government is doing very little about the crisis in the forestry and manufacturing industries, but it is using our taxes to subsidize an industry that has been padding its pockets for years. Need I remind hon. members that every litre of gasoline consumed in Quebec is imported; that every increase in the price of fuel is a collective impoverishment for Quebec; that the federal tax system benefits the oil regions and the oil industry and does nothing for Quebec? This is a ludicrous situation.

While Quebec gets poorer because of gas prices, the Conservative government is giving tax breaks to oil companies out west. From 2008 to 2013, oil companies will line their pockets with approximately $8 billion in government giveaways.

The Conservatives even have the audacity to finance the cleanup of these major polluters of the planet—$250 million for a carbon storage pilot project. It is beyond belief. Quebeckers and Canadians endure the oil companies' greed, endure the pollution of these major contributors to greenhouse gas emissions, and on top of that they have to finance the oil industry's cleanup.

The Bloc Québécois is saying that it is time to put a stop to this travesty. We are proposing that there be no more giveaways to oil companies; that there be no subsidies to help with pollution they create themselves; that the Liberal bill which unduly benefited oil companies be repealed and that the accelerated cost allowance benefit in the oil sands, which is supposed to last until 2015, be cancelled.

In addition, we are proposing a reform of equalization payments. Rising gas costs do not affect everyone equally. Quebeckers are getting poorer while oil-rich regions are getting richer. It is a true transfer of wealth—devastation in Quebec is benefiting other regions. Equalization can correct this situation.

Currently, Quebec is being penalized in four different ways by the government's policies. First, rising prices for petroleum products are costing Quebeckers a great deal of money and making them poorer while at the same time benefiting oil-rich regions. Second, the rise in value of the petrodollar is making Quebec companies less competitive, which is making Quebec poorer. Third, the tax breaks the government is giving the oil companies are being paid for by taxes on all Canadians, which is making Quebeckers poorer. Fourth, oil revenues are half-excluded from the equalization formula, but hydroelectricity is not, which is making Quebeckers poorer.

We also propose to create a carbon exchange. It is another way to offset the impoverishment of Quebec, which has opted for clean energy and chosen to comply with the Kyoto protocol. Quebec companies have made a valiant effort to reduce their greenhouse gas emissions, and Quebec has also opted for hydroelectricity, which is clean energy. A carbon exchange would enable Quebec to reap the benefits of its energy choices.

We are holding an emergency debate because the current situation demands that we take action. I would like to quote some figures. The price of a barrel of crude oil was $26 in 2002; in 2006, it was $65; in 2007, $71. Between January and April 2008, it rose to $111, and on May 14, 2008, it was $120. This is a major problem.

As for oil companies' refining profit margins, we know that refining costs from 3¢ to 5¢ a litre. We were told that when it cost 4¢ to 7¢, the companies were doing good business. In May 2007, the refining profit margin rose to 28¢ a litre. Today it is 9¢. We must therefore pay attention and monitor companies to make sure profit margins remain reasonable.

The combined net profits of six major integrated oil companies in Canada—Imperial Oil, Shell Canada, Husky Energy, Petro-Canada, Suncor, etc.—were $12 billion in 2006, up $5 billion or 70% from 2004. This is a huge increase.

What are the answers? There are many answers, some of which were mentioned earlier. We also need to think about energy conservation. Certainly, we need to increase public transit use. We need to increase home energy efficiency. We need to reduce the number of homes and industries that heat with oil. We need to reduce the size of transport vehicles.

We definitely have a problem , but as parliamentarians, we can find solutions, make a start, show that we are concerned and that it is important to really do something about the price at the pump. Our constituents demand it.

In conclusion, I want to say that our economy is starting to falter. Some people are even fearing a recession. It is not acceptable for some companies to get richer at the expense of Quebeckers and Canadians.

We all lose when gas prices are high. If this government believes it is more important to protect the interests of the big oil companies than to take care of the concerns of the people, my colleagues and I will pass the message along to our constituents. We will tell them that we have had enough with oil companies making huge profits. We think we need to discipline this industry and take the necessary action to rectify the situation.

The Bloc Québécois is proposing a number of solutions. I can answer questions and speak more about what we have in mind. The Bloc Québécois wants all of our colleagues from all the parties to remember that we are here to represent the people in our ridings and that we should in no way be enabling a small group of oil companies to get rich off our constituents. People have had enough, and they are right. It is up to us to act; it is up to us to react.

Price of Petroleum ProductsEmergency Debate

8:10 p.m.

Liberal

Paul Szabo Liberal Mississauga South, ON

Mr. Speaker, first, I congratulate the member for raising the issue and asking for an emergency debate on it.

Canadians are outraged. The member has listed some numbers, but the situation is worse than gas hovering somewhere around $1.30 a litre. All of the goods and services we get as citizens have to be provided by companies, which have to transport it, and there is a cost for that. They have to operate the factories. All these incremental costs will also be passed on to us, through the increased costs of goods and services, so we have an amplified effect. I think Canadians understand that what they see at the pumps will come at them in a second wave of hurt for them in terms of their ability to continue on with the responsibilities of day to day life.

I do not believe the member suggests that we should somehow regulate, or control or in fact take charge of the petroleum industry. In fact, in the United States, executives of a number of the large oil companies were called. They basically admitted that the price of gas was much higher than need be.

This seems to be not a matter of regulation, but rather a matter of dealing with the energy industry, whether it be a monitoring agency through either the Competition Bureau or through some sort of prices review board, just as we do with the drug industry. Where there is usurious pricing, we need to have a mechanism to deal with it. Is the member moving in that direction in terms of possible solutions?

Price of Petroleum ProductsEmergency Debate

8:10 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I thank my hon. colleague for his question.

Indeed, as far as the Competition Act is concerned, we introduced Bill C-454. The purpose of the bill is to be able to investigate to ensure that competition is healthy and that businesses do not make unfair profits. We therefore hope that this bill is quickly returned to the House and that, when it is, it has everything needed to help us resolve this complicated issue of the price of gas, to help us parliamentarians take appropriate action and ensure that oil companies do not rake in unfair profits.

Furthermore, it is a fact that the price of gas has an impact on all goods. Today's news reported that even boarding schools, cafeterias and other schools are being forced to increase their menu prices because of the rising cost of food. Of course, all the transportation costs involved drive up the cost of all consumer goods.

The people of Trois-Rivières are wondering what they will do when they are forced to choose between filling up their car and feeding their children. We must consider the fact that as costs rise so quickly and dramatically, with family budgets so tight already, it is becoming even more difficult for families to make ends meet. Of course, as parliamentarians, we must send a clear message to show that we do not want to let this situation continue.

Last year, we had the same debate just before the summer holidays were about to begin and still nothing has been resolved. We must really tackle this issue in various ways to try to find some solutions. We must really look at where the problems lie and discipline the industry, but also force the population to consume less energy.

Price of Petroleum ProductsEmergency Debate

8:15 p.m.

Bloc

Jean-Yves Laforest Bloc Saint-Maurice—Champlain, QC

Mr. Speaker, I would first like to congratulate my colleague on her excellent presentation. She has brought us back to a debate that is extremely important right now, the rising cost of fuel at the pump, which is having a horrible effect on the entire Quebec economy.

In answering a question just now, my colleague said that citizens in Trois-Rivières are wondering whether they should fill up their car or feed their family. They no longer know which takes priority.

Many citizens have spoken to me about the problem. We know that in the riding of Saint-Maurice—Champlain, there are long distances between the cities and towns. To feed their families, people must go to work, and to do that they must fill up their car, which is extremely expensive right now. It is at the point where they are beginning to dip into their grocery budget. Every day we are seeing incredible suffering, and the situation is only getting worse.

Earlier, the member for Trois-Rivières said that at the Standing Committee on Industry, Science and Technology, the Bloc Québécois moved an amendment to strengthen the Competition Act so that the Competition Bureau could be truly effective and conduct real investigations. But, after this amendment was put forward, the Bloc Québécois did not receive support from any of the other three parties—not the NDP, the Liberals nor the Conservatives. None of them were in favour of strengthening the legislation.

I would like the member to explain to us a bit more of what happened at that point.

Price of Petroleum ProductsEmergency Debate

8:15 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I thank my colleague for his question. All regions of Quebec are definitely experiencing similar situations: people do not live close to their work and so they have to consume gasoline. Furthermore, in some areas, companies have been forced to lay off large numbers of workers. Energy costs do not help a company's profitability and that is a very difficult problem.

The competition bill was a starting point, an impetus. I would like to remind members that the bill was adopted by this House at second reading stage. In committee, the Bloc Québécois would have liked to have sped up work on the competition bill in order to have the House adopt it before the summer, before vacation time, before gasoline prices increase again. We know that, year after year, gasoline prices increase with the approach of summer vacations. This will be a major problem this year. Some people are cancelling their vacation plans, causing difficulties for the tourism and recreation industry. Problems are being compounded.

We belive that it is vital to at least adopt the bill quickly so that the power of inquiry is conferred upon the commissioner of competition. Thus, she could summon witnesses, ensure the confidentiality of the testimony and, naturally, fine uncooperative companies. In fact, the bill increased fines. In short, the commissioner could take action and begin to resolve the situation.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Saanich—Gulf Islands B.C.

Conservative

Gary Lunn ConservativeMinister of Natural Resources

Mr. Speaker, it is my pleasure to rise in the House. I would ask to split my time with the member for Lambton—Kent—Middlesex.

I understand the burden that high gas prices place on Canadian families and seniors and on the cost of living for everyone. I understand the impact of high energy costs on Canadian businesses and all sectors of the economy. Higher gas prices and a higher cost of living affect us all, especially those who are just getting by.

Unfortunately, the opposition does not get it. Not only has the Liberal leader called for a carbon tax that would hurt seniors, farmers, families and everyone else who uses gas, but he has actually called for an increase in the GST. In fact, he has promised to raise the GST some seven different times. He has said he wants to raise it to 7%, but even then that would not cover all of his promises. How can Liberal members stand in this House and tell seniors in their ridings that not only will they increase gas prices by 60%, but on top of it they actually want to raise the GST by at least 2%?

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

An hon. member

No, we don't.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

They are hollering that no, they do not, but let me say this in a bit of fun. As I walked into the House tonight, the member for Mississauga—Erindale said, “Minister, are you going to raise gas prices or are you going to leave that to us?” In fairness, he is the natural resources critic and he was being kind of funny, but my father once said to me that in everything we say there is a little bit of truth. I would argue that it is not the member for Mississauga—Erindale who wants to raise the price of gasoline, but it definitely is his leader.

Bill C-288, the Liberals' own plan on the environment, wants to put a 60% tax on the price of gasoline. That would raise the price of gasoline today up to $2.25. Those are the facts.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Rubbish.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

They are calling out “rubbish”. The leader of the Liberal Party today is calling for a massive carbon tax.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Liberal

Omar Alghabra Liberal Mississauga—Erindale, ON

Keep exaggerating. It's good for us.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

They are saying to keep exaggerating. I hope I am wrong--

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

You are wrong.

Price of Petroleum ProductsEmergency Debate

8:20 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

I hope I am wrong and that is not their policy, but that is not what the Liberal leader has been saying for the last two weeks in the media. That is not what he is saying as he is running across Canada trying to sell his carbon tax plan. He cannot sell his carbon tax plan in his own caucus. His own caucus members came out of their Wednesday meeting fuming, let alone selling it to all Canadians. Those are the facts.

Again, we all know that it would have a significant impact on the economy, including manufacturing jobs and forestry jobs. This carbon tax would only compound the problem.

Everyone in this House knows the reality is that the price of gasoline is set by market forces. Members across know that, but there are creative solutions that we can look at. I will get to a few of them.

In fact, the Bloc member who spoke talked about this: conserving energy, using public transit and becoming more energy efficient. I agree with all of those. As well, there can be more renewable energy put on the grid. Those are things that our government is doing. I will get into some of the specifics.

However, as far as the price of oil per barrel, it has doubled since I have been the minister in the last two years. Members are right when they say it has doubled, but that is not because of anything I have done. We all know there are a number of factors beyond the control of anyone in this House.

However, other things we are doing, I would submit, will actually have a significant impact in helping Canadians cope with these higher fuel prices.

We have lowered taxes on families, seniors, farmers and small businesses by over $60 billion.

We passed the toughest anti-corruption legislation in the history of Canada.

We have lowered the GST from 7% to 6% to 5%.

We have introduced the largest tax reduction in Canadian history at $200 billion, with $140 billion of that tax relief directed at individuals.

I went throughout my riding after Canadians had just filed their tax returns. For the first time in 10 years, I had Canadians coming up to me on the street and saying that they appreciated what our government is doing. They said they could actually see the tax reductions on their income tax forms.

I had seniors come up to me who were able to split their pension income with their spouse. Members opposite can laugh, but in some cases that provides as much as $3,000 or $4,000 in additional income tax returns to these members. That is significant. Those are the types of tangible things we can do.

We took 85,000 seniors right off the federal tax rolls.

These are things we are doing. Again, there is $2 billion in gas tax money going directly to municipalities so that they can support initiatives. In my riding, Frank Leonard is the mayor of Saanich. He and I went out and saw how that gas tax money was used. Saanich is putting in dedicated transit lanes. It is putting in dedicated transit facilities to help people get into transit.

There are things that our government is doing.

Let me respond to a few other areas that are specific to my department. Our government recognizes that we cannot sustain ourselves with regard to our current consumption of oil. On the planet, we consume 86 million barrels of oil every day. We should think about that. That is a thousand barrels of oil every second. It is not sustainable.

That is why our government is investing in such things as renewable energy. We have announced $1.5 billion for 4,000 megawatts of clean energy. As for wind, we have the first tidal turbines now being installed on both coasts, which are producing clean energy. We have a significant biofuels strategy in which our government invested over $2 billion, half a billion of which will be going into next generation biofuels. These are tangible things that can make a difference.

We are investing heavily in energy efficiency. I have said many times that the largest untapped source of energy in this country is the energy we waste. Through Sustainable Development Technology Canada, we are investing hundreds of millions of dollars on energy saving technologies to help them move from the research side to the development side. These are tangible things. Our government is investing in clean technologies to clean up conventional technology. These are all very important. They can make a difference, and they are.

As for the Liberal plan, the Liberals do not get it. They are laughing and chuckling across the way, but it is their leader who wants to impose a massive carbon tax. That is unprecedented. We have seen this in the press for the last two weeks. We know that is where the Liberals' minds are. We should look at Bill C-288, a Liberal private member's bill that wants to put a 60% tax on gasoline.

At 60% we can do the math pretty quickly at today's prices. That will get us up to $2.25 a litre. The Liberals go on. We know that is their approach.

We understand that high gas prices are a concern for Canadians. That is why we are investing in energy efficiency. That is why we are lowering taxes for everyday Canadians by an amount they can actually realize and feel. We know we can deliver on that.

However, the Liberals are not being honest. They want to impose a massive carbon tax. And now they are saying they do not?

I ask members to just look at the statements the Liberal leader is making. I admit they change from one day to the next, but let us make no mistake about this. Under its current leader, the Liberal Party will impose taxes on Canadians that would dramatically raise the price of energy and put us into a deficit situation.

Price of Petroleum ProductsEmergency Debate

May 26th, 2008 / 8:30 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Mr. Speaker, maybe it is because I am an economist that I am particularly sensitive to false numbers. With all the hundreds of billions of dollars of tax cuts, one reason why the Conservatives cannot possibly be right is that they began by increasing the income tax rate from 15% to 15.5% and labelled that a tax cut. Then they brought it back down to where it was: a double tax cut. By that example alone, they are at least $15 billion too high in their claimed tax cuts over five years.

I have a question for the minister. Speaking in my capacity as the member's predecessor as minister of natural resources, I note he would remember that as part of our own bill in 2005, Bill C-66, we Liberals committed $13 million to give Canada's Competition Bureau more powers and to strengthen the Competition Act in response to high energy prices. What did the Conservative government do when it came to power and that member became Minister of Natural Resources? They scrapped that strengthening of the Competition Bureau.

Another thing Liberals did in that bill was commit $15 million to establish an office of energy price information, whose job it would be to monitor energy price fluctuations. What did the Conservative government do? It scrapped that office of energy price information.

Therefore, if the minister claims to be so much on the side of consumers and cares so much about gas prices, why was the first act of his government and of his time as minister to scrap the office that would have monitored prices and the provision that would have given additional powers to the Competition Bureau to deal with non-competitive behaviour by oil companies?

Price of Petroleum ProductsEmergency Debate

8:30 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

Mr. Speaker, the hon. member will know that the Competition Bureau has investigated six different times. During most of those, the previous government was in power. Each and every time it found there was no collusion.

There is a very specific formula on how the price of gasoline is set, but one thing we know for sure, one thing that is a given, is that the Liberal Party of Canada will raise the price of gasoline to historic highs, to $2.25 a litre. The Liberal leader has already announced it. He has floated the idea of a carbon tax. The Liberals are now denying it even though their own members have been walking in the hallways of Parliament grumbling about it for weeks. They need to get a reality check.

Price of Petroleum ProductsEmergency Debate

8:30 p.m.

Bloc

Paule Brunelle Bloc Trois-Rivières, QC

Mr. Speaker, I have a few questions for the minister. He spoke about lowering taxes for businesses. But since the oil companies are saving hundreds of millions of dollars in taxes, should they not be excluded from this tax break?

He then told us that they lowered the GST. Yes, it was lowered, but how come the price of gas keeps going up? Who is benefiting from that profit margin? There are a number of questions here.

He told us that the Competition Bureau investigated six times, but does that not mean that the Competition Act should be amended, as we are suggesting, to enable the Bureau to call witnesses and ensure confidentiality? The Competition Act is clearly not rigorous, since the Bureau is not able to conduct investigations and prove things. Someone, somewhere is getting rich.

I will add one thing very quickly. What does the minister suggest that we do? What will his government do to fix the problem of ever-increasing gas prices? We cannot continue like this. Our economy is in danger. The people want us to do something. What are the solutions?

Price of Petroleum ProductsEmergency Debate

8:35 p.m.

Conservative

Gary Lunn Conservative Saanich—Gulf Islands, BC

Mr. Speaker, first, the member pointed out the tax issues with respect to oil companies. Our government is in the process of eliminating the subsidies that were given to companies operating the oil sands that were brought in by the Liberals, where the oil companies were allowed to take hundreds of millions of dollars in capital cost allowances and accelerate those deductions. It is our government that is facing those issues. We are eliminating those tax subsidies for large oil companies only after they were brought in by the Liberals.

The member asked about the Competition Bureau. The Competition Bureau has the resources to do the job. It does the investigations in a very transparent manner. It is an arm's-length agency of government and it does these investigations. It has found every single time that there is no collusion. Nobody in this House can say we want new rules because obviously they are getting the wrong answer. The reality is that is where it is at.

In some provinces, including Quebec and some of the maritime provinces, they actually have price controls for gas because of the very issues the member raises. However, what that has shown is that the price of gasoline has gone up in fact--