Bill C-454 (Historical)

An Act to amend the Competition Act and to make consequential amendments to other Acts

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.

Competition Act

[France Bonsant, Bloc, Compton—Stanstead, QC]

Mr. Speaker, I am pleased to speak today in the House on Bill C-452, An Act to amend the Competition Act (inquiry into industry sector) introduced by my colleague from Shefford.

Bill C-452 proposes to amend the Competition Act to give more power to the Competition Bureau. I would like to start by congratulating my colleague for this fine and very important private member’s bill. I think this is a subject that is dear to his heart and I want to salute the quality of the work he has done.

The amendment proposed by my colleague from Shefford will allow the Commissioner of Competition to initiate inquiries of his own accord into fluctuations in the price of gasoline, if there are reasonable grounds for doing so. It will therefore no longer be necessary to wait for complaints to be filed before making an inquiry. If this bill is enacted, the Competition Bureau will be better equipped to combat companies that might profit from their dominant market position to pick consumers’ pockets.

Every time gas prices rise, the governments hands us the same answer: nothing can be done, the Competition Bureau has concluded there was no agreement among the oil companies to fix prices. The truth is that there are a number of flaws in the present act. It does not allow the Competition Bureau to initiate inquiries. And when there is an inquiry, the Competition Bureau cannot really do anything with them because at present it cannot compel the production of documents or protect witnesses. Bill C-452 would eliminate these flaws by allowing the Bureau to initiate inquiries and allowing the federal Trade Tribunal to protect witnesses and seize relevant documents.

If the act is not amended, gas prices will continue to fluctuate with no justification, as is the case at present. And it will again, and still, be consumers who will continue to pay for the more dubious practices on the part of the oil companies.

Gas prices fluctuating is one thing. It is another thing when they rise stealthily and without justification. Recently, prices at the pump rose because of the political instability in north Africa. In just a few hours, prices rose spectacularly. That is completely bizarre, when we know that the events that occurred in north Africa had at that point not yet had any impact on the cost of refined gasoline that was already in Quebec. That practice is nothing more nor less than a way of making even more money on the backs of consumers, and there is a lot. It is estimated that because of collusion, retailers have overcharged Quebec consumers by as much as $100 million.

The Bloc Québécois recently supported Bill C-14, An Act to amend the Electricity and Gas Inspection Act and the Weights and Measures Act, to fix price errors at the pump. But that bill does not solve the problems of collusion like the ones recently disclosed in Quebec and does not prevent sudden increases in the price of gas. The Conservative government claims that its initiative will save the public a lot of money. Gas consumption in Canada, calculated over a full year, is so high that it is completely foolish to think that bill can have any impact on consumers’ wallets. That is why we in the Bloc Québécois believe that in order to respond effectively to gas price increases, Bill C-452 must be enacted. This bill is the only thing that will have a real impact on prices at the pump.

For years, the Bloc Québécois has been pressuring the federal government to finally take action to address the rising cost of petroleum products. It has dogged the Liberal government of the day so that it would follow up on the recommendations made in 2003 by the Standing Committee on Industry, Science and Technology. In October 2005, just before the election, the federal government finally listened to the Bloc Québécois' arguments and decided to amend the Competition Act through Bill C-19. That legislation broadened the Competition Bureau's authority to investigate and increased the maximum penalty for conspiracy. However, Bill C-19 did not follow up on all the committee's recommendations. As we know, that legislation, which was only an election ploy, died on the order paper with the election call, and we certainly could not count on the Conservative government to bring it back.

In 2007, the Bloc Québécois introduced Bill C-454, which also died on the order paper, when the election of 2008 was called.

In 2009, the Conservatives took part of the bill and included it in the budget implementation act. However, they did not see fit to allow the Competition Bureau to initiate investigations. That is why the hon. member for Shefford came back again with Bill C-452. The recent years clearly show that neither the Conservatives, nor the Liberals acted to protect consumers. By contrast, the Bloc Québécois is taking action.

For the Bloc Québécois, the only effective way to deal with the rising cost of gas is to use a global strategy. That strategy is three-pronged: to bring the industry into line, to make it contribute, and to reduce our dependency on oil.

First, we must bring the oil industry into line. The initiative of my colleague for Shefford supports that approach. It is also necessary to set up a true monitoring agency for the oil sector.

Second, the oil industry must make a contribution. With the increase of costs and oil company profits, it is important that the latter pay their fair share of taxes. How can we accept that consumers are getting poorer, while oil companies are getting richer?

Despite the recent recession and despite the rise in the price of gas, oil companies are posting record sales. In 1995, the Canadian oil and gas sector posted combined sales of $25 billion. By 2008, this figure had climbed to $148 billion. That is an increase of nearly 600%.

Now let us talk about profits. In 2003, Canada's oil sector made $17.6 billion in profits. In 2008, it made $79 billion. In other words, the net profits of Canada's oil sector more than quadrupled in just five years. The Bloc members feel that the party must end for the oil companies.

But obviously the Conservatives do not feel that way. In 2003, they supported the Liberal government's move to reduce the overall tax rate for oil companies from 28% to 21%. With the changes brought in by the Liberals, supported by the Conservatives, taxes for Canada's oil sector became more advantageous than in Texas.

But that is not enough. In 2007, in their economic statement, the Conservatives introduced tax cuts for oil companies that would see their tax rates drop to 15% in 2012. These tax cuts will enable the oil companies to pocket approximately $3.6 billion in 2012. These figures make it clear that the federal government chooses to give priority to the interests of the oil companies, at the expense of consumers.

I do not know how the Conservative members justify this to their constituents, but I know that when I meet my constituents from Compton—Stanstead, not a single one tells me that the gifts to the oil companies are justified. On the contrary, the people I meet feel cheated by this Conservative government, a government that is in league with an industry that exploits consumers' dependence on oil.

The third component of the approach proposed by the Bloc Québécois has to do with reducing consumers' dependence on oil. This makes sense and it is perfectly in line with Quebec's efforts to fight global warming. The less gas that we consume, the less money the industry will pocket and the better off our planet will be.

Fairness at the Pumps Act

[Meili Faille, Bloc, Vaudreuil—Soulanges, QC]

How can investigative powers be given to an institution when it must bow to the will of the minister or when this institution is only able to take action after receiving a complaint?

The Bloc Québécois wonders why it takes a complaint and a request by the minister to set the wheels in motion. If the Competition Bureau has information pointing to collusion, it should be able to initiate an inquiry immediately.

Still in 2003, the Standing Committee on Industry, Science and Technology concluded its study on fluctuating gasoline prices with some recommendations. The first was to create a petroleum monitoring agency. The second was to toughen up the Competition Act.

According to the committee, this agency would have been able to clear up confusion among the general public regarding the price of gas by providing existing data to the public. The agency would have overseen all aspects of this activity.

That same year, the Standing Committee on Industry, Science and Technology spelled out the changes it wanted to see made to the Competition Act.

Obviously the Bloc Québécois agrees with this recommendation and it pushed for the government to respect the work of the committee and agree to implement this monitoring body, something it did not do. In response to the committee, the government of the day said it did not feel it was necessary to create this monitoring agency and it argued for the status quo.

In 2005, the Liberal Party of Canada had proposed, through Bill C-19, amendments to the Competition Act allowing for measures to mitigate rising gas prices. Note that, once again, the government did not incorporate the recommendations of the Standing Committee on Industry, Natural Resources, Science and Technology into its Bill C-19. The committee had recommended reversing the burden of proof to address agreements between competitors and to make it possible for the Competition Tribunal to award damages to parties affected by restrictive trade practices, where applicable.

The purpose of the first recommendation was to make it the responsibility of the parties wishing to enter into an agreement between competitors to prove the ultimate social value of that agreement. The second recommendation of the Standing Committee on Industry, Natural Resources, Science and Technology would have made the pendulum swing back the other way since measures restricting the business practices of the guilty parties could have been imposed.

You can guess what happened. Bill C-19 died on the order paper since it was introduced just before the election. That is why, in 2007, the Bloc Québécois introduced Bill C-454. That bill made it to second reading stage, but another election saw the Bloc Québécois bill scrapped. In 2009, a little more recently, the Bloc Québécois noted that the Conservative government had adopted part of Bill C-454. Nonetheless, the government does not think it is necessary for the Competition Bureau to initiate its own investigations.

It is clear that in 2010 nothing much has changed. The flow of information has not improved much and there is no agency governing the attitude of the oil companies, quite the contrary.

The government must deal with problems of fairness swiftly and I want to know what it is waiting for to take action. Consumers are sick of bearing the cost of fluctuating prices at the pump.

Opposition Motion--Finance

[Robert Carrier, Bloc, Alfred-Pellan, QC]

Madam Speaker, first off, I would like to point out that I will be sharing my time with the member for Jeanne-Le Ber.

I am pleased to speak today to the motion by the New Democratic Party to introduce comprehensive legislation relating to the problem of credit cards.

Bearing in mind consumer vulnerability in the current crisis, the Bloc supports the motion. However, when the government introduces this legislation, it will have to make sure it respects the areas of jurisdiction of Quebec and the provinces. In Quebec, consumer protection legislation has been in force since 1971. It sets out strict requirements regarding contracts for credit cards of all sorts. It will be important therefore to respect Quebec's expertise and jurisdiction. Once again, the Quebec nation has taken the lead over the Canadian federation in protecting its merchants and its consumers. In addition, the organization known as Option consommateurs sees that the rules are followed.

In order to understand the development of credit cards, we have to understand the principle of habit, almost obligation, created by the major credit card companies.

And what of Quebeckers' and Canadians' financial situation? It is true that debt is a major problem in the country. According to a survey done by the Certified General Accountants Association of Canada in the spring of 2007, 84% of Canadians reported being in debt, 14% of all Canadians reported a significant increase in their debt and, most notably, 40% of Quebeckers and Canadians in debt believe that their debt hurts their chances of being financially secure in the event of unforeseen circumstances. In the spring of 2007, the current recession was just starting. The current government did not even realize that there was a recession. Let us not forget the remarks by the Prime Minister during the 2008 election campaign.

The level of Canadians' and Quebeckers' personal savings has decreased hugely since the 1980s, dropping from a high of 20.2% in 1982 to a low of 1.2% in 2005.

It is true that the spread between the Bank of Canada's key lending rate and credit card interest rates is growing. To help Canadians and Quebeckers, the Bank of Canada lowered its key lending rate several times to today's level of 0.25%, the lowest in Canadian history. Recession oblige, you might say.

In the case of the major credit card companies, a credit card should be a matter of choice for individual consumers, but is that really the case? Just try to book a hotel room without a credit card. This is just one example.

Because of cuts by the federal government to transfers to the provinces, Quebec has had to cut funding to home economics organizations, many providing information on credit.

However, business oblige, and the major credit card companies, MasterCard and Visa, not to mention any names, are working miracles to make access to supposedly easy credit all the easier, but in tandem with a rate of interest to consumers often over 20%. Consumers increasingly use credit cards as a method of payment. We should therefore expect credit card charges to drop.

Despite increased volumes of sales, reduced fraud, lower interest rates and improved technology, credit card rates continue to rise. It seems that the main problem involves information and awareness about the benefits and the risks of credit.

A survey by Nanos Research has revealed that 55% of Canadians have a poor understanding of the costs of credit cards—63% think that the charges increase without a corresponding increase in terms of value and 67% think that the credit card companies do not explain their charges clearly.

Another survey ordered by the Canadian Federation of Independent Business shows that 82% of Quebec card holders support having the credit card industry more strictly regulated.

And what about merchants? The credit card companies charge those who accept a credit card from customers doing business with them. Approximately 10¢ is currently charged merchants on average for each debit transaction, regardless of the amount of the purchase. Credit card transactions average $45 per transaction. The credit card companies are preparing to increase transaction fees charged retailers. The consumer does not see these fees. They currently represent about 2% regardless of the amount of the transaction. Applying a hypothetical charge of 1% would represent, then, 45¢, an increase of over 400%. Who, but the consumer, do you think, is going to pay this dizzying increase?

On top of that, Canadian retailers have higher hidden costs than do retailers in other industrialized countries. True, the major banks and financial institutions reap a significant profit from this. In 2007, alone, the fees amounted to $4.5 billion in Canada.

Most credit cards are issued by a limited number of companies. Visa and Mastercard control close to 85% of the credit card market, and this gives them total freedom to impose charges and conditions on retailers. One might therefore wonder whether the hikes in hidden fees might not be a sign of abuse of a dominant position. In order to ensure that there is no abuse by issuing companies, the Bloc Québécois contacted the Competition Bureau this past January in order to have the commissioner examine the issue. The Bureau's powers are limited, however.

This is why the Bloc Québécois introduced a bill to reinforce the Competition Act during the last parliament, Bill C-454. That bill would have given the Competition Bureau the power to carry out its own real investigations into the industry. At the present time it cannot, on its own, do more than general studies that have no clout. With its own investigations, it will be able to summon witnesses and protect them. If the companies conspire together on price-fixing, they will leave no proof of having done so.If witnesses cannot be summoned and protected, it is very likely that no anti-competitive practice will ever be proven. When businesses want to enter into agreements with their competition, they will have to prove that such agreements are in the public interest. At present, these agreements with competitors are allowed, unless it can be successfully proven that they are contrary to the public interest.

This is not all the Bloc Québécois has done. Following on representations by the Quebec coalition of merchants opposed to the increase in transaction fees on credit and debit cards, my colleague from Saint-Maurice—Champlain and I got the following motion passed by the Standing Committee on Finance.

That the Finance Committee conduct a study of the various debit and credit card transaction fees imposed on merchants as well as the standard and transactional practices that justify them and report its observations and recommendations to the House.

This study will be undertaken shortly, in the next few weeks. It will make it possible to hear from a number of witnesses as well as various stakeholders. This will enable the committee to formulate its recommendations to the government. These could then serve as the basis for the legislative measure called for in the motion presented today by the NDP.

As I said, the Bloc Québécois is therefore in favour of the motion, because consumers need legislation to ensure they are protected. The Bloc will, however, ensure that this legislative measure introduced by the government fully respects the jurisdiction of Quebec and the provinces.

Gasoline Prices

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

Mr. Speaker, the citizens in my riding are exasperated by the rising price of gas. The people of Haut-Saint-Maurice have taken action to make the government aware of this.

Jacques Bouchard from La Tuque is circulating a petition. More than 1,900 names have been collected, and I salute this initiative.

People in the so-called remote regions do not all have access to public transit. They sometimes use more than 30% of their net income to buy gas to get to work. People who are planning their summer vacations are worried. The tourist season may be jeopardized in a number of regions, such as Haut-Saint-Maurice.

In order to support this civic action, I also launched a petition in my riding, calling on the government, among other things, to quickly adopt Bill C-454 introduced by the Bloc Québécois. I will be presenting this petition shortly.

Competition Bureau

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Industry]

Mr. Speaker, first of all, the Bloc member does not understand his own bill. Bill C-454 would do nothing to lower the price of gas.

The government is taking action because we will not tolerate high gas prices. If we look at what the Bloc proposes in its platform, it is a $500 million increase in taxes for petroleum companies. As always, the Bloc members say one thing, but their platform says the other.

We will not tolerate high gas prices.

[Mario Laframboise, Bloc, Argenteuil—Papineau—Mirabel, QC]

Mr. Speaker, if these are the first charges since 1955, that is proof that the law is not working. The Bloc Québécois wants to give the Competition Bureau some teeth through Bill C-454. Having the ability to shed some light on an entire industrial sector will reduce the risk of price fixing. The Prime Minister knows all too well that this situation is not unique or limited to service stations. He must pick a side: consumers or oil cartels.

Will the Prime Minister finally commit to supporting Bloc Québécois Bill C-454?

Price of Petroleum Products

[Diane Bourgeois, Bloc, Terrebonne—Blainville, QC]

Mr. Speaker, I am taking part in tonight's debate primarily because everything the Conservative members had to say has really made me shudder. They have tried to take the debate down another path. This debate was and is something that the people of my riding wanted. My riding, which is just north of Montreal, might seem rich, since there are many new construction projects, but there are also areas in the riding where the people are older and the houses date back to 1945, 1950 and 1960, and many people there would benefit from subsidies or assistance to heat those older houses.

My own house was built in 1950 and I have renovated it. I was not rich; I did not have an MP's salary at the time. Still, even though my house is empty most of the time—I live alone now—this year it cost me $600 more to heat it. The price of heating oil—I will refrain from naming the company I use—has risen to 94¢ a litre. I have a son who last year bought a small house that was built around 1965 and it cost him $1,200 more to heat it. He also lives alone. This is not because our houses are poorly insulated; on the contrary. Since we are knowledgeable about these things, we were able to upgrade the insulation in our houses. But our oil suppliers increased their prices. Since we have oil furnaces and oil fired hot water heaters, we are forced to pay more.

I could also describe my riding as a bedroom community. People live there but work outside the riding, mainly in Montreal. On the weekend, I again talked with people who told me that they were spending $1,000 more on gasoline. Because our roads are in such poor condition, road work is required, creating traffic congestion that means we spend more on gas.

So when I hear my Conservative friends say that the debate should be restricted to the carbon exchange or past Liberal programs, I feel that they are getting away from the real problem that people want to talk to us about.

I feel it is important that the Bloc Québécois requested this emergency debate this evening. I do not mind speaking at a quarter to midnight when I am speaking on behalf of my constituents who need dual energy programs to reduce their heating costs, who need assistance programs, if only to improve public transit, and who, because they pay taxes, also should be able to receive grants and support so that they can continue to have a certain quality of life.

My colleague, the Bloc Québécois member for Montcalm, introduced Bill C-454. I feel it is an extremely important bill. When we talk to people, they ask us to reduce gasoline taxes. It is important to understand that the current situation is hurting the public not necessarily because of the taxes, but perhaps because of the fact that no study has been done of the extent of competition in the oil industry, because of the game played by the oil companies, which claim rights for themselves, enjoy huge shameless subsidies from this government and the previous government, make exorbitant profits and pay no attention to what the public really needs.

The Bloc Québécois wants the Competition Bureau to have real investigative powers in order to see exactly what goes on, explain how the industry operates, get to the bottom of things and, especially, try to discipline this industry. Businesses make agreements with their competitors; we know that many oil companies make arrangements with one another. It is not rare to see one oil company suddenly raise its prices and on the next corner, where another oil company has a gas station, see that the price has soared again. These companies stick together. The Bloc Québécois wants the oil companies to prove that the agreements between them are not detrimental to consumers.

In the Bloc Québécois, we think that many measures could be put in place. We could focus on energy efficiency to rapidly give some leeway to Hydro-Québec, on one hand, and help consumers, on the other hand. I previously talked about dual energy. Before my present house, I had a house that we converted to dual energy. This change actually was helpful. I live in the old part of Terrebonne and I had houses that needed this type of heating system.

We also believe that the government should promote programs to encourage alternative energy so that people can take advantage of programs for wind, geothermal and solar, among others. It should also do something to help people struggling with heating costs. Proposing such programs, even on a pilot basis, could reduce the cost of fuel and heating for some families.

Our industries are also suffering because of rising fuel costs. We must not forget that to be unable to predict how much heating will cost means uncertainty for businesses that are left wondering what will happen to them. We could curb increasing fuel consumption for intercity transportation. We could also reduce the use of trucks for intercity transport. We could curb increasing fuel consumption for local freight transportation by increasing the load that trucks can transport.

I see that I do not have much time left. I know I talked about my own personal perspective, a perspective I share with many families in Blainville, Sainte-Anne-des-Plaines and Terrebonne. I am one of them. I pay for gas and heating oil, and I buy it from the same company that everyone else on my street buys it from. I am doing well because, as a member of Parliament, I get paid well, but the same cannot be said for my neighbours, who earn $35,000 or $40,000 a year, who have to commute, who have to pay for gas, and who have to listen to the nonsense we have heard tonight from the current government, nonsense that does not even offer a glimmer of hope for a way out of this. That is just terrible.

Last weekend, people knew there might be an emergency debate. This evening, I called some people and told them to watch their members and to keep an eye on the ones who rose tonight. I hope they will not forget this government's indifference.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I would first like to mention that I will be sharing my time with the member from Terrebonne—Blainville.

During these 10 minutes, I would like to speak in this House about this emergency debate that was obtained by the Bloc Québécois thanks to the efforts of the member for Trois-Rivières. It is very important to tackle the issue of the price of gasoline and to find solutions. In our society, every problem has a solution. We need only make the effort and, in this case, have the political will to correct the situation. That is what we are hoping to do.

The Bloc Québécois proposed this debate because people from all segments of society have told us that we must deal with the issue, that it is important and that it is affecting consumers' lives, businesses' finances and the most disadvantaged in our society, such as seniors who, in rural and urban areas, are experiencing difficulties. Today, our public transit systems in urban and rural areas are inadequate and we have to find solutions to these problems.

I have found it very discouraging this evening that the government has no proposals and no plan. Its sole intervention is to state that market forces prevail. It says that we must live with very high prices and that we cannot solve the problem. Yet, the Bloc made some very constructive suggestions.

Barely two weeks ago, Bill C-454 was adopted in this House at second reading in order to send the bill to committee as quickly as possible and to give the Commissioner of Competition the authority to conduct an inquiry without having to prove that there is collusion. The current legislation has serious limitations that require proof of collusion in order to proceed with an inquiry. We believe that if the Commissioner of Competition were given the right to inquire in this area, we could make recommendations or suggestions to change the market organization and to find ways of dealing with the matter before us. This bill would give us a chance. This evening's debate will also give us an opportunity to talk about difficulties experienced and to encourage the government to propose solutions.

Last week I invited Frédéric Quintal, a specialist on gasoline issues, to come and give a talk in my riding. I invited the public, and about 50 people came. We had an excellent discussion. The title of his talk was “Faire le plein ou dormir au gaz”. In other words, do we stay deluded, decide to do nothing and believe that there is no way to change anything, or do we take the steps to bring about change? During this talk, I also invited a representative from ACEF, an organization that helps people with financial troubles. They run the Éconologis program, which gives residents concrete ways to reduce their heating costs in apartments and private homes.

They provide concrete measures and actions that can be implemented. They also dispel myths. It is often said that we should lower taxes in order to solve the problem of gasoline prices. In the past seven years, taxes have risen by about 55%, while gasoline itself, without taxes, has risen by 550%. There is a problem. Either we find a way to control how the market works so that there is healthy competition with useful results, or we find another way to tax oil companies who are making record profits. We have helped them out in recent years. In the last budget, their taxation rate was lowered again. This year is the ultimate year for oil companies. They are selling gasoline at record prices and, at the same time, their taxes are being reduced. Once again we are left out in the cold, and are expected to accept and tolerate the situation, without taking any action.

In my opinion, the Bloc is making a heartfelt appeal today. It is saying that the petroleum monitoring agency that was recommended by the Standing Committee on Industry, Science and Technology, and the bill the Liberal government introduced before the Conservatives took office, have to be implemented. There also needs to be the will to decrease our dependence on oil. The profits made by oil companies have to result in the development of new renewable energies in order to decrease this dependence on oil. We have the means, we just need the will. The government needs to get the message and take appropriate action.

I hope that in the coming days many people in Quebec and Canada will call their MPs and say that they listened to part of the emergency debate the Bloc Québécois requested and that they will ask their MPs to take appropriate action.

I put out this call to create a broad coalition to resolve this issue last week and I have already received some responses. I will read one quickly: “In the local papers on the weekend I read of your intention to create a coalition against the rising price of gasoline. As a representative of the Parti Démocratie Chrétienne du Québec, riding of Kamouraska-Témiscouata, at the provincial level, I would like to join your cause. Are you taking action against the government or the oil companies? In any case, we have to look for solutions. Thank you for your cooperation.”

That is the kind of spirit I would like to see in this House. We saw it in the opposition parties today. Not everyone had the same solutions necessarily, but at least they had ideas. We did not see this in the Conservatives, not even those from Quebec who know all about this dependence on oil. They instead tried to tell us that nothing could be done about this.

We must end this inaction and start implementing concrete projects that can produce results. This evening, I am also appealing to all those who are watching us. Join our coalition and express your desire to see the government establish a concerted action plan to deal with the rising cost of gasoline.

Solutions have been sought for many years. Work has been done on this issue and many options have been put forward but a comprehensive solution has yet to be found.

I was spurred into action a few months ago when I met some people at my two constituency offices, in Montmagny and Rivière-du-Loup. It was the end of winter, and the price of heating oil was very high. These people told me that something should be done, that I had to set out on a mission and go ahead and put solutions forward.

That is what is behind tonight's emergency debate requested by the Bloc Québécois. It pervades the entire debate that will go on all through the evening until midnight. But come tomorrow, we will have to carry on the fight, and find ways to move forward and pull away from that dependency.

We have one more reason to act today. It is not just a matter of paying less for gas, but organizing tomorrow's society so as to foster sustainable development. We have to ensure that our children will be dealing with an acceptable energy situation, where there is room for sustainable development and renewable energy sources. We have to put an end to the polluting that is going on right now.

In the past, things like that were accomplished. At the end of the 19th century, London, England, was probably the most polluted city in the world. That pollution was due to the use of coal. Today, the air in London is cleaner than it was 100 years ago. Why? Because actions were taken. There are means to remedy the present situation and we must take them.

It may be possible to do what we want at a reasonable cost. I am all for paying taxes on gasoline if, in the end, we get services. I am in favour of oil companies making reasonable profits but today they are unreasonable. We have not yet devised the tax tools that would return that money to good use for the benefit of society as a whole. We must succeed in doing that.

We could give a lot of scientific explanations, but tonight, the message we must all understand is that we must convince the government to act. It must adopt a carefully planned strategy to get control of the gas price issue. That is necessary for our society. We must do our part for the future. It is also a better way to distribute wealth.

I call on my colleagues to continue the work. Building on the initiative of my colleague from Trois-Rivières, the government must put forward concrete solutions in the days and weeks ahead.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I simply want to know whether the hon. member is going to make representations to his party to ensure that Bill C-454 gives the Commissioner of Competition the ability to launch inquiries, without necessarily having to supply proof of collusion.

Will he support us so that this bill is passed at the earliest opportunity, thus providing us at least with a tool to deal with price increases and obtain recommendations on the measures that should be taken?

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, I was a bit surprised to hear my Conservative colleague criticize the Bloc's Bill C-454, since his own party voted in favour of it. It asked to have the bill referred to committee to be examined.

The Bloc's intention is not to say that this is a cure-all, but it is a tool. The Bloc is taking action to try to solve this problem with gas prices. One possibility is to give the commissioner of competition the right to conduct investigations without having to prove collusion among companies, in order to analyze the market, make recommendations and come to the House to propose changes. The member and I are from ridings where the manufacturing sector is currently experiencing economic difficulties, and where the price of gas and delivery costs to the United States are making businesses less competitive.

Could he not participate in this debate today and say that we need to move forward with measures that will help us take control of the situation? It is not about controlling the prices. It is about making sure that we take control of the situation so that once and for all we are no longer dependent on oil, and so that we can move forward, help our industry, help the people who are struggling, and find ways to show our citizens that we are there to solve the problems they are facing and not just to look at them in the mirror.

[Daniel Petit, Conservative, Charlesbourg—Haute-Saint-Charles, QC]

Mr. Speaker, I am pleased to speak today during this emergency debate on the price of gas. I will be sharing my time with the member for Tobique—Mactaquac.

Obviously the high price of gas is of concern to all Canadians and all members of this House. We all know that rising gas prices are having an effect on the economy and on Canadians, both individuals and businesses. Motorists, truck drivers, taxi drivers—everyone is affected by gas prices. No one wants to pay more for gas, or anything else, for that matter. But as parliamentarians, we need to be clear about what we can and cannot do about this.

First, I would like to note that the federal government does not directly regulate retail gas prices, except in the case of a national emergency. The provinces have the power to regulate gas prices. As I am sure everyone knows, four provinces, Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, have decided to limit retail gas prices. At the same time, Quebec has chosen to set a minimum gas price.

In addition to not wanting to interfere in a provincial jurisdiction, our government believes in competition and the market forces that have allowed our economy to prosper. Competition leads to innovation and economic growth. Canada has achieved sustained economic success thanks to privatization, free trade and deregulation. By relying on competition and market forces, our economy has grown.

Our government is determined to create the type of competitive environment that will make Canadians more prosperous. Nonetheless, we know full well that governments are not the source of prosperity. In our opinion, it is our government's job to create the conditions that will allow for innovation and entrepreneurship. Within such a framework, it is the private sector that will innovate, take risks and create wealth for the good of all Canadians.

Our government is fully committed to ensuring economic leadership for a prosperous future. To achieve that, we have developed our long-term economic plan, Advantage Canada, and other initiatives such as our science and technology strategy.

As we indicated in our recent economic statement, we will build on this by introducing important new measures that will help Canadian companies remain competitive, attract new investment to Canada, increase productivity and create more and better paying jobs for Canadians.

I also wish to point out that in July 2007 our government announced the creation of the Competition Policy Review Panel. This group's mandate is to examine two Canadian laws, the Competition Act and the Investment Canada Act. The panel must submit its report by the end of June 2008. We look forward to receiving their recommendations, which I am sure will help us ensure the effectiveness of Canada's policies on competition and investment and allow us to promote even more foreign investment and create more and better paying jobs for Canadians.

I just mentioned the Competition Act. Every time we talk about the price of gas in Canada, the Competition Act and the role of the Competition Bureau inevitably are mentioned. Since their roles continue to be misunderstood, I think it would help to take a moment to explain what the Competition Bureau is.

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting market competition, and allowing consumers to make informed choices. Led by the Commissioner of Competition, the bureau investigates anti-competitive practices and ensures compliance with the laws under its jurisdiction. The commissioner is responsible for the administration and enforcement of the Competition Act. The act contains criminal and civil provisions that deal with mergers and abusive behaviour by those in a dominant position, for example.

With regard to gas, the Competition Bureau examines wholesale and retail gasoline prices to determine whether those prices are the result of market forces, especially during times of major fluctuations in prices. With respect to the petroleum industry, or any other industry for that matter, the bureau tries to determine whether the Competition Act has been violated. If there is sufficient evidence to show that the act has been violated, the bureau investigates and takes the appropriate action.

Over the years, the Competition Bureau has undertaken six major studies on the gasoline industry. The Bureau's investigations resulted in 13 criminal trials linked to gasoline and heating oil prices. Eight of these trials led to convictions.

In other words, the Competition Bureau intervenes when a factor other than market forces influences the price of a product such as gasoline. In general, by allowing supply and demand to determine prices, we obtain optimal resource distribution, which sends the right messages to producers and consumers. Higher prices indicate supply restrictions, encouraging producers to produce more and consumers to consume less.

Regulating prices or setting other restrictions would cloud these indicators and thus lead to poor resource allocation, which ends up hurting all consumers.

I would like to speak briefly about a Bloc Québécois private member's bill that is currently being studied by the Standing Committee on Industry, Science and Technology. Bill C-454 proposes a number of amendments to the Competition Act.

The Bloc has made a clear link between Bill C-454 and the issue of high gasoline prices. In addition, the Bloc has stated that adopting Bill C-454 would solve the issue of high gasoline prices. That is not the case. None of the current amendments contained in Bill C-454 would impact gasoline prices as the Bloc has said.

Allow me to quickly give an example. At this time, with prices rising, the Competition Bureau often receives complaints from consumers who feel exploited by prices they feel are too high. Businesses are usually free to set their prices based on what the market will bear. Just because prices are rising does not mean that there has been an offence under the Competition Act or that someone must intervene to regulate prices.

High prices concern the bureau when they result from anti-competitive conduct contrary to the Competition Act, such as a conspiracy to increase prices. As I indicated earlier, when the Competition Bureau finds evidence of violations of the Competition Act, it takes the appropriate action. The Bloc included a provision in Bill C-454 to deal with price gouging. The Bloc indicated that this was needed to deal with gasoline prices that are considered too high, regardless of the reason for their increase. As we all know, there are various domestic and international factors that affect the price of gasoline.

Despite everything, the Bloc decided that there should be regulation of the gasoline sector with respect to prices and profit margins. The provision put forward in Bill C-454 would effectively mean that the federal government would be responsible for the regulation of gasoline prices.

As I said at the outset, the federal government has no jurisdiction over the direct regulation of retail gasoline prices except in the event of a national emergency. The provision in Bill C-454 would mean that the Competition Bureau would have to determine every day whether the price of gasoline was fair or too high.

As well, under Bill C-454, the Competition Bureau would have to make the same determination for practically every other product on a daily basis. Mr. Speaker, does that sound like a really effective solution to you?

As for the Liberals' suggestion to bring in a carbon tax, all that would do is drive up the price at the pump.

Although I believe that some members of the House would like the price of gasoline to be lower, we must be very careful that the proposals put forward do not have unforeseen consequences by opening huge sectors of the economy to price regulation by the federal government.

In conclusion, in contrast to the Bloc, I would like to make a helpful suggestion to Canadians. The Competition Bureau website contains information to help consumers understand the gasoline market. For additional information, I recommend Natural Resources Canada's website, Fuel Focus. This site provides clear, timely information about fuel prices and markets and ways to manage energy costs. Current, factual information on changing prices will help Canadians understand how world oil markets affect their lives.

[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.

[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.

Gasoline Prices

[Jim Prentice, Conservative, Minister of Industry]

Mr. Speaker, Bill C-454 is in front of committee. That is what the hon. member, who had proposed the bill, had requested. It is being studied by committee.

We will take the measures that we took yesterday with respect to Measurement Canada to ensure there is honesty at the gas pump.

In addition, one thing we will never do is succumb to the sort of Liberal leader's gasoline tax being proposed by the party opposite.

[Paule Brunelle, Bloc, Trois-Rivières, QC]

Mr. Speaker, in order for it to go into effect by summer vacation, the Bloc's Bill C-454, which seeks to strengthen the Competition Act and expand the powers of the Commissioner in order to keep oil companies in line, must be adopted quickly.

Does the Minister of Industry agree that Bill C-454 should go into effect before the summer?

Competition Act

[Jim Prentice, Conservative, Minister 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?

Canadian Environmental Protection Act, 1999

[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.

Gasoline Prices

[Jim Prentice, Conservative, Minister 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?

Competition Act

[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)