This bill is from the 39th Parliament, 2nd session, which ended in September 2008.
Roger Gaudet Bloc
Introduced as a private member’s bill. (These don’t often become law.)
In committee (House), as of April 28, 2008
(This bill did not become law.)
This is from the published bill.
This enactment amends the Competition Act to authorize the Commissioner of Competition to inquire into an entire industry sector. It also provides for the imposition of an administrative monetary penalty in respect of cases of abuse of dominant position, and for an increase in the amount of administrative monetary penalties in respect of deceptive marketing cases. It repeals all provisions dealing specifically with the airline industry and criminal provisions dealing with price discrimination, predatory pricing, discriminatory promotional allowances and geographic price discrimination. The enactment also provides that the court may make an order requiring a person who made a false or misleading representation to compensate persons affected by that conduct and may issue an interim injunction to freeze assets where the Commissioner of Competition intends to ask for such an order. It also makes consequential amendments to other Acts.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-454s:
Jim Prentice ConservativeMinister of Industry
Mr. Speaker, the hon. member should have risen earlier last Monday to prepare and move his motion. Now it is too late. Bill C-454 is before the Standing Committee on Industry, Natural Resources, Science and Technology, where it will be examined. Once that is complete, there will be discussions. But now, today, it is too late.
Roger Gaudet Bloc Montcalm, QC
Mr. Speaker, the House of Commons unanimously passed, at second reading, Bill C-454, which strengthens the Competition Act and gives greater powers to its commissioner, which would make it possible to keep oil companies in line.
Does the government agree to pass this bill through all the stages so that it can be implemented before the summer?
André Bellavance Bloc Richmond—Arthabaska, QC
Thank you, Mr. Speaker. I understand. Things like that can happen in the House; it is called democracy. I was waiting patiently.
I am pleased to participate once again in the debate on Bill C-33, An Act to amend the Canadian Environmental Protection Act, 1999. I have already made two or three speeches on this subject. To avoid repeating what I have said, I will focus in this speech on the need to reduce our dependency on oil, which obviously also has to do with the use of biofuels.
The bill itself does not contain any standards. It authorizes the government to adopt regulations, which is basically how biofuels would be monitored, with respect to standards and their impact. In the medium term, this bill can help us reduce our dependency on oil and significantly decrease greenhouse gas emissions from automobiles, depending on the type of biofuel used and, of course, the type of transportation used with these biofuels.
The vast majority of greenhouse gas emissions are produced when petroleum products are burned. To reduce these emissions and fight climate change, naturally, we also have to reduce our oil consumption.
Of course, Bill C-33 is not a binding instrument for reducing greenhouse gas emissions; it is a measure to promote the development of alternative fuels. The best instrument for reducing greenhouse gas emissions, and the only binding one, is the Kyoto protocol, which the Conservative government unfortunately rejected out of hand. Instead, this government is helping the oil companies, which have responded with a price at the pump that is close to $1.40 in the Montreal area. The other day, I saw $1.37. A litre of regular gasoline is selling for nearly $1.50.
In Canada, the oil companies, which recently again announced profits in the billions of dollars, pay less tax than in Texas. When we see that, we wonder what this government's real intentions and real priorities are.
Between 1970 and 2000, the hydrocarbon industry received $66 billion in direct subsidies from the federal government. For your information, Quebec developed hydroelectricity all on its own, without the federal government's help.
The Bloc Québécois suggests that the government stop giving special treatment to the oil industry, which has no need of government tax breaks. It is not a matter of shutting down the oil industry. We all understand that we need oil, but the idea behind this sort of policy or concern is to stop giving tax breaks to companies that do not need them in the least.
I have a few figures that prove this. Petro-Canada's net profit for the first quarter of this year was $1.1 billion, an 82% increase over the same period last year. This is no laughing matter. In 2007, Shell, the second-largest oil company in the world, had a net profit of over $30 billion. A net profit of more than $30 billion for a single oil company, even one that operates all over the world, is quite something.
Instead of helping the oil industry, the federal government needs to levy a surtax on oil extraction and production industry profits. The revenues from this surtax should go toward measures to promote reduced consumption of petroleum products. This would be a smart policy if we really want to reduce our oil use.
One of the ways we could be less dependent on oil is by improving energy efficiency and using cleaner modes of transportation to move goods. Take trains and ships for example—these two types of transportation account for 8% of oil consumption, compared to trucks, which account for 92%. This is an absolutely incredible difference.
The benefits of increasing our use of trains and ships include reducing our consumption of oil products and reducing greenhouse gas emissions, which we will come back to. What is more, when we take greater advantage of our seaways and rail system, we scale down traffic by reducing the number of trucks. We have all been stuck in traffic. I am not saying that the problem will be fixed immediately, but cutting down on the use of trucks will certainly improve the situation.
We must also move away from fuel oil and favour cleaner energy sources, for individuals as well as businesses. We have been looking at all kinds of alternative fuels and alternative energy sources. Now we must promote the use of these products in order to keep reducing our use of fuel oil, a serious pollutant.
In Parliament, the Bloc Québécois is actively trying to minimize the impact of the rising price of gasoline. This is not the first time we have done so. We are once again on the attack. For instance, this week, we moved forward with deliberations at second reading of Bill C-454, introduced by my colleague from Montcalm. The bill made its way to second reading this week and was the topic of debate. The bill aims to give greater powers to the Competition Bureau.
I would also like to touch briefly on the objective of Bill C-454. It is absolutely crucial that the government strengthen the Competition Act in order to better combat the exorbitant increases in gas prices that average Canadians must face every time they fill up. To achieve this, the government must give greater powers to the Competition Bureau so that it may conduct a real investigation, particularly of the refining sector.
At present, the Competition Bureau does not have the power to launch an investigation on its own initiative. The legislation must therefore be changed. When it does conduct a review, its mandate does not allow it to discipline the industry, but simply to determine how it generally operates. Furthermore, it cannot force the disclosure of documents or protect witnesses during such a review. Thus, clearly, it is very broad and above all very fluid. This does not impose many restrictions.
In short, the Competition Bureau has its hands tied and is in no position to fight the oil companies, which are unscrupulously fleecing consumers. I have more examples. Profit margins in refining can reach 20¢ per litre of gas, which represents $10 for an average fill-up of 50 litres. And 50 litres is exactly the capacity of my car's gas tank. That is definitely excessive—not my gas tank, but the profit margins in refining as high as 20¢ per litre of gas. I would like to reiterate that this means as much as $10 for the average fill-up.
Generally, it is businesses, taxi drivers, farmers—since we are talking about the bill studied by the Standing Committee on Agriculture and Agri-Food—and consumers who pay the price. Oil companies already benefit from preferential tax treatment.
Obviously, in light of all this, oil company executives are laughing merrily. In fact, the Competition Bureau does not have the tools to ensure that prices are not artificially inflated. When a very few companies almost completely control a market as large as the gasoline market, someone has to keep an eye on them. You see the same signs when travelling through cities, villages, or almost anywhere. There are only so many oil companies. We are referring primarily to the major oil companies that control the market.
Oil refining comes under the jurisdiction of the federal government. Thus, it is up to the House of Commons to ensure that the Bloc Québécois' Bill C-454 is passed as quickly as possible in order for the Commissioner of Competition to take the necessary steps to prevent excessive gas price increases and oil company practices that are contrary to the public interest.
With the approach of summer it is possible that consumers will once again suffer because of the inordinate price of gas. Our bill must proceed quickly and unimpeded if we want it to be in force before the summer holidays. Not that we are in a hurry for them to arrive—but they are coming. We know that gas prices escalate suddenly and mysteriously in the summer.
Our dependence on oil is also a contributing factor to Quebec's trade deficit. Between 2003 and 2007, Quebec exports rose from $64 billion to $70 billion compared to imports, which rose from $64 billion to $81 billion. We therefore have a trade deficit of $11 billion.
What is Quebec's largest import? Of course, it is oil. In 1998, Quebec imported $2.5 billion worth of oil and last year it imported $14 billion worth, which is an increase of 457%. The price per barrel of oil explains the astronomical increase. Last year, in 2007, not long ago, the price per barrel was roughly $70 and now it is over $100. It was $119 last time I checked. Unfortunately the price goes up more often than it goes down.
Quebec has a policy goal that all fuel sold will include 5% ethanol by 2012. It has already invested $6.5 million in building two cellulosic ethanol production plants in the Eastern Townships, one in Westbury and the other in Sherbrooke. That is not so far from my riding. Cellulosic ethanol is the way of the future. I have already talked about this, as have a number of my colleagues in this House. The process promotes the use of agricultural residues, such as straw, and forestry residues, such as wood chips, along with trees and fast growing grasses, such as switchgrass. Bill C-33 will allow the emergence of this new generation of biofuels.
Biodiesel is another type of preferred biofuels. There is a biodiesel plant in Sainte-Catherine, Quebec.
Beef producers currently have to dispose of their specified risk materials. That is a Canadian standard beef producers have to comply with. We are not against it, but we would like to see reciprocity with U.S. standards. But that is for another debate. One thing is certain for now, producers have to get rid of these materials, which end up in the landfill. Often, unfortunately, producers have to pay out of their own pockets to get rid of these animal materials that can no longer be used, not even to make feed for other animals.
If we gave these materials added value by turning them into biodiesel, we could kill two birds with one stone. We could turn these materials into fuel. That is what sustainable development is all about. Instead of throwing out the material, burying it or paying to have it removed, we could pay for it once it has value and turn it into biodiesel. The technology already exists and this is already being done. Biodiesel is currently being made out of animal fats.
The Fédération des producteurs de bovins du Québec has studied the feasibility of setting up a plant to process animal carcasses and slaughterhouse byproducts into biofuel. Strategic partnerships and help from the government are needed to get that kind of project of the ground.
We have Bill C-33, but we will have to go much farther than that in developing a policy to promote biofuels that have few negative environmental impacts, or at least far fewer than petroleum and fewer than the foods we could use to make biofuels.
According to the Fédération des producteurs de bovins du Québec, we have to ensure that the life cycle of renewable fuels offers true environmental and energy benefits compared to oil products. That is why we should support the federation's project.
I have also talked about the training and recycling centre, CFER, in Victoriaville in my riding. In cooperation with 10 restaurants, this organization recycles used oil, the kind used for french fries, among other things. They are recycling it to make fuel. A pharmacy in Victoriaville even uses this kind of fuel in its delivery vehicle. Here in the House, I joked about how when one is driving behind the delivery vehicle, one does not necessarily get a smell of french fries.
Obviously, that is an important way to use it, a way that will not necessarily consume more energy in transportation. If the vehicle that collects this used oil goes to each of the restaurants and runs on used oil, itself, and if they manage to sell that oil at the pumps one day, that will be a huge energy gain. They are not yet at that point. It is still experimental, but the vehicle works very well.
Let us take this one step further. For example, sludge from sewage treatment plants can also be transformed into ethanol. Quebec's national scientific research institute came—once again—to Victoriaville.
I do not know if they did a very exhaustive study, but one thing is sure: the institute said that sludge from the Victoriaville sewage treatment plant could be transformed into ethanol. This is the kind of project we should be encouraging if we really want to reduce our oil dependency.
Jim Prentice ConservativeMinister of Industry
Mr. Speaker, Bill C-454 is at committee and will be dealt with at committee in accordance with the industry committee procedure. It will be studied and analyzed. A number of interesting provisions are in the bill and it will, in due course, form part of the discussions.
Paule Brunelle Bloc Trois-Rivières, QC
Mr. Speaker, curiously, the price of gas starts going up every year as soon as vacation time approaches. Yet we could have an instrument in place this summer to better monitor the petroleum industry, if the government would only cooperate with Parliament for once, as it expressed its unanimous support on Monday for our bill, Bill C-454, which strengthens the Competition Act and gives greater powers to its commissioner.
Will the government agree to pass our bill at all stages, so it may be in full force by this summer?
Roger Gaudet Bloc Montcalm, QC
moved for leave to introduce Bill C-454, An Act to amend the Competition Act and to make consequential amendments to other Acts.
Mr. Speaker, today I am very pleased to introduce, in this House, a bill to amend the Competition Act, to authorize the Commissioner of Competition to inquire into an entire industry sector.
The current situation with gas prices is becoming alarming, and the fluctuating prices have motivated us to take action. This is why I am tabling this bill today, seconded by my colleague, the member for Trois-Rivières and industry critic. I am tabling this bill today for our constituents, who must deal with constantly increasing prices.
(Motions deemed adopted, bill read the first time and printed)