Bill C-452 (Historical)

An Act to amend the Competition Act (inquiry into industry sector)

This enactment amends the Competition Act to authorize the Commissioner of Competition to inquire into an entire industry sector.

The House resumed from May 12 consideration of the motion that Bill C-452, An Act to amend the Competition Act (inquiry into industry sector), be read the second time and referred to a committee.

Competition Act

[The Speaker, Liberal, Peter Milliken]

When this matter was last before the House, the hon. member for Niagara West—Glanbrook had the floor. There are five minutes remaining in the time allotted for his remarks. I therefore call upon the hon. member for Niagara West—Glanbrook.

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, from where I left off a couple of weeks ago, a concern that I find with this legislation is the relatively broad scope of powers that it would afford with such a simple change of Canada's Competition Act.

The bill would give Canada's Commissioner of Competition unlimited powers to call an inquiry into an entire industry sector, with no evidence of any wrongdoing, and place entire sectors under scrutiny, through no fault of their own.

Not only would this investigative process cause problems by shifting the focus of a company away from its day-to-day operations to co-operating with the commissioner's investigation, it would also place a great deal of pressure upon the office of the commissioner. As I said previously, the office of the commissioner is one that exercises its authority with the utmost care and responsibility. However, with what this bill is proposing, a great deal of pressure would be placed upon the office to investigate virtually any rumour of wrongdoing by the industry sector, regardless of the grounds upon which these suspicions were made known.

I had begun to talk about our government's budget implement act in the first hour of debate on Bill C-452 and would like to finish my thoughts on that.

In March 2009 this government introduced the most substantial amendments to Canada's anti-cartel laws in over 100 years. These changes introduced an outright prohibition on agreements between competitors regarding prices, output levels or market sharing. They also significantly increased the penalties for these offences to $25 million and/or 14 years in prison. To allow business to adjust, the government also allocated a one-year period for them to review their practices and bring about compliance with these measures.

With the coming into force of these provisions on March 12, the Commissioner of Competition finally has the types of improved tools she needs to aggressively pursue and convict those engaged in the most harmful types of cartel behaviour which distort competition and undermine confidence in the marketplace.

Our government has made great strides in legislation to strengthen competition and punish non-compliance of the fundamental principle of a free market system. Broadening the Commissioner of Competition's powers from simply being investigative to the much more comprehensive level of launching inquiries may quickly prove to be ill-thought, both in terms of time and resources.

One thing our government seems to recognize more than the opposition parties is that just as anti-competitive behaviour drives up prices, so too does costly bureaucratic red tape.

In conclusion, the question that we must ask as we consider this measure is whether we as members of Parliament are willing to impose the types of burdens on businesses that would flow from this bill. Do we want to subject businesses to costly and time-consuming investigations where there is no evidence of wrongdoing? Is it appropriate to distract the commissioner's focus for enforcing the Competition Act?

We are very wary of imposing any new regulatory burdens on business, especially in light of today's harsh economic realities.

[Martha Hall Findlay, Liberal, Willowdale, ON]

Madam Speaker, I would like to commend my colleague for introducing Bill C-452 with regard to the Competition Act. I would like to commend all of my colleagues for participating in the debate on this particular topic. We all, I believe, understand the value of competition.

Certainly, we in the Liberal Party value and understand the importance of competition in the market and understand that a competitive economy is a more prosperous economy. We also understand the need for protecting consumers and to ensure that the market itself is not so much protected but operated in a manner that prevents distortions in the market that may result from concentration or inappropriate behaviour.

Although the Competition Act and the Commissioner of Competition have important rights, which we value in terms of investigating particular businesses and their activities, the commissioner can only do that as a result of a specific complaint from an entity, individual or some other enterprise. In the market there are times when an individual or entity may, in fact, be hesitant for competitive, market or other reasons that we may not be aware of to raise a specific complaint with the Competition Bureau. In that sense, where those situations exist, it is important to give the Commissioner of Competition the opportunity to look at an entire industry sector.

I have no intention today of raising specific industries. My view is that this is an opportunity for the Commissioner of Competition, when it is appropriate, regardless of the industry, if there are issues that have been raised that suggest that an investigation is warranted into the industry as a whole. This is indeed an improvement to the Competition Act that would allow the commissioner to do just that.

I would like to thank my colleague for introducing this bill, which would enhance the Competition Act. Liberal members understand how important it is to have marketplace competition, but we also recognize the importance of protecting consumers by ensuring that prices and products on the Canadian market comply with the law.

There have been a number of arguments put forward in debate in this House that perhaps this gives too much discretion to the Commissioner of Competition. I would argue that this is not a situation where the commissioner would undertake an investigation willy-nilly. The history of the Competition Bureau has been one of operating with significant understanding of the Canadian market in all the different industries that have been looked at.

I would also argue that the Commissioner of Competition has had the opportunity to review certain industries as a result of investigations into particular business activities, particular activities engaged in by particular enterprises. That particular study ends up being done appropriately but too often through the back door. The addition of this provision would allow the competition authorities to engage in that larger investigation of an entire industry where warranted.

To address a concern that somehow this would provide an opportunity to go looking for problems, I completely disagree with that. The history of the Competition Bureau has been one of real understanding of the need of when to be involved and when not to be involved. I will repeat my earlier comment that up until now the opportunity has only arisen when a specific complaint has been laid.

The addition of this clause would allow the Competition Bureau to investigate an entire industry sector. That would not happen out of the blue. The entire history of the Competition Bureau would suggest that any such investigation would only happen when there was sufficient information available, whether through the market or through other indications that such an investigation would in fact be warranted.

In that regard, I have considerable faith in the Competition Bureau as an entity and in the people involved not to be engaging in witch hunts but, in fact, to take advantage the addition of a clause like this one to enhance their ability to balance the needs in the Canadian market of encouraging competition and competitive activity in this country in order to ensure the most prosperous domestic economy that we can achieve. We must also ensure the greatest level of global competitiveness that we can, all the while understanding the need to ensure that consumers in Canada are able to obtain the best products at the best prices without any undue influence in the market or any distortions in the market that may be seen in any particular industry.

I want to again thank my colleague for introducing this amendment to the Competition Act. I want to thank all of my colleagues who have participated in this debate. I have heard some of the arguments against it, but I would suggest that we should have a greater level of confidence in the Competition Bureau and the people who work in the Competition Bureau to use this to enhance their ability to encourage competition, and to ensure the best market and economic opportunities, and the protections that consumers need in Canada.

I look forward to hearing continued debate.

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Madam Speaker, I am pleased to speak today to Bill C-452. I am happy the member introduced it as it is a long overdue measure in Canada. It would amend the Competition Act to authorize the Commissioner of Competition to inquire into an entire industry sector.

For the past 100 years, we have had a situation that is not necessarily peculiar to the gasoline industry but it is an industry that the average consumer can relate to. For many years consumers have been phoning their politicians and telling us that there is something wrong in the gasoline retailing industry. When one gas station raises the price, the one across the street raises it a couple of minutes later, and then when one lowers it, the other lowers it as well. They work in concert.

Over the last number of years numerous studies have been done on price-fixing in the gasoline retailing industry. After about 150 studies, many feet thick sitting on the desk of the minister, the conclusion is always the same. We know something is going on, we know someone is doing something but we do not know how they are doing it and we cannot prove that they are doing it. That is why we have not made progress.

From 1988 to 1999, I was the consumer critic in the opposition in Manitoba and among the many issues that I dealt with as the consumer critic, one of them was the area of prices increases. We looked at the regulation of gas prices in the Maritimes and concluded that was not the way to go because the regulations seemed to be always going up to the highest price. The minister of the day, Jim Ernst, had a very open mind on this issue. He was not taking the side of the industry but he was prepared to let things go as far as they could. He commissioned a study at the time and once again the same conclusion was that the law had to be changed, that we were not catching the industry because the law was not broad enough.

That is a federal responsibility. The member is a federal member and he is doing what has to be done in this situation.

The government said that it brought in new changes in its omnibus budget bill last year, and I applaud it for the changes, but the member who just spoke for the government said that we should stop there because we do not want to give the Competition Bureau unlimited powers. It could go on a wild goose chase and tie up the companies in red tape and cost the economy a tremendous amount of money on some sort of whim.

I do not know where the member got his notes on this subject but the fact is that having tough laws are what prevent businesses from doing exactly what we are trying to prevent, which is price fix and collude.

In terms of price-fixing, we always think of large industries. We think of the gasoline industry, the credit card industry and other major industries but price-fixing and collusion can happen with small entities as well.

Price-fixing can appear in very small businesses. In a small town, two real estate firms could get together and decide that commission rates will all be 5%, 6% or 7%. Travel agencies in a small market could get together and collude. Until the Competition Bureau laid down the law a number of years ago and sent out promotional videos that indicated to the industry that this would not be tolerated, many businesses were unaware that it was even against the law. In other words, there was a law but the businesses were not aware of it.

However, once the Competition Bureau became proactive and started to chase the travel industry and the real estate industry, little businesses became aware that it was against the law and if they were doing it, and some were, they stopped doing it. We need very stringent laws, strict fines and we need promotion so that businesses do not get involved in it.

A year or two ago, no lesser a company than Sotheby's, the big worldwide auction firm, we saw two major auction houses in England come together and set prices for auctioning off items at Sotheby's. This practice went on for two or three years until one of the customers who was auctioning his store of art decided to investigate and started to make complaints. Eventually, one of the employees of Sotheby's or the other firm went to the authorities and gave all the information. Can anyone guess what happened? As a result, one of the firm's owners went to jail for a few months and, if he did not go to jail, he certainly paid very big fines, but the company is back to competing again. There was an end to the price-fixing.

However, that only happened because a customer was motivated to investigate, make the complaints and the charges to get things done.

In this House, we had the Liberals in power for 13 years. I have read the speeches in Hansard on this bill and others, and the Liberals have absolutely no credibility on this issue. They were the government all those years and there is only one member of the entire Liberal caucus who has any credibility on this issue at all and that is the member for Pickering—Scarborough East because, while the Liberals were the government, he was the lone member who actually attacked his own government and said that it should take off the blinders, that price-fixing was going on in the retail gasoline business and that something needed to be done about it. What did the Liberals do to him? They simply moved him back a couple of rows and ignored him.

The Conservative government has made some tentative steps, and I applaud it for that, but it is important for the member's bill go to committee where we can call in witnesses and discuss at length the matter of adding on extra powers for the Commissioner of Competition to inquire into the entire industry sector, which is what we want to do.

There is an another reason we want to do this. In case there are some industries that want to continue to flaunt the laws because they do not think that even the new penalties and laws are strong enough, then we want to give the commissioner the power to initiate her own investigations and not have to take direction from the minister, which is what happened during those 13 years of inaction under the Liberals and the previous 100 years of inaction in this country.

Let us pass this bill on to committee, let us study it and let us give more power to the commissioner.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, I would like to congratulate my colleague from Shefford for introducing Bill C-452. The Competition Act is a very relevant topic, particularly with all of the news lately about oil. A huge quantity of oil is spilling into a natural environment and causing terrible pollution. I do not believe that such a major catastrophe has ever happened in our oceans. Those who authorize the construction of drilling platforms should make sure that they will be problem-free before construction begins.

The introduction of Bill C-452 virtually coincides with the study of Bill C-14. The Conservatives call this bill the Fairness at the Pumps Act, but that is just for show and yet another con on their part.

It is a little like the bill whose title referred to trafficking in children, but that contained nothing on the subject at all. That is how the Conservative Party operates. Calling it the Fairness at the Pumps Act is just a marketing strategy. Nothing could be further from the truth. The Electricity and Gas Inspection Act and the Weights and Measures Act cover all measuring instruments, from scales used at the grocery store to weigh fruits and vegetables to those that weigh gold extracted from a mine. The acts cover all weights and measures. The Conservatives are calling this bill the Fairness at the Pumps Act because they want to look good in the public eye by positioning this as an issue that has a financial impact on Canadian and Quebec families.

The summer will soon be here. Some companies will get together to fix prices, because they know that gas use goes up in the summer. So they make the price fluctuate. Obviously, when we point a finger at the oil companies and say that there must certainly be collusion, proponents of economic theory and of the oil sector say that it is a result of the law of the market and the price of crude oil on the stock exchange, and even the price of gas on the stock exchange. I think it is a combination of faulty basic economic principles and people who speculate on the important issue of gas.

There is no doubt that we missed our chance, and that we have a problem with our dependency on oil. We must not be afraid to admit that society has failed. It is too easy to extract oil, but it is becoming a little more difficult. People are starting to think of alternatives. In Quebec, the Bloc Québécois has been saying for a number of years that we need to reduce our dependency on oil.

Right now, on the island of Montreal, the Shell refinery will perhaps force us to reduce that dependency more quickly. However, we must not forget that, as I was saying earlier, there has been a failure in terms of alternative and renewable energy.

The Competition Bureau still does not have the ability to launch its own inquiries. There must be a complaint from the private sector. Then, the Bureau can launch inquiries regarding potential collusion among oil companies, and even gas stations themselves, as we saw in the Eastern Townships two years ago. Time certainly flies.

We really have to change our attitude toward the oil industry and competition.

We need to develop a comprehensive strategy for dealing with oil price hikes. For some time now, the Bloc Québécois has been pressuring the government to take action to address the rising cost of petroleum products. We recommend a three-pronged approach.

First, we must bring the industry into line. That is the goal of Bill C-452, which gives teeth to the Competition Act. We should also set up a true monitoring agency for the oil sector.

Second, the industry must make a contribution. With soaring energy prices and oil company profits, the economy as a whole is suffering while the oil companies are profiting. The least we can do to limit their negative impact is to ensure that they pay their fair share of taxes. The Bloc Québécois is therefore asking that the government put an end to the juicy tax breaks enjoyed by the oil companies.

Third, we must decrease our dependency on oil. Quebec does not produce oil, and every drop of this viscous liquid consumed by Quebeckers impoverishes Quebec and also contributes to global warming.

Oil is making Quebec poorer, and we have to put an end to the bloodletting. All the oil Quebec consumes is imported. Every litre consumed means money leaving the province, thus making Quebec poorer and the oil industry richer.

In 2009, Quebec imported $9 billion worth of oil, a reduction because of the recession. In 2008, oil imports totalled $17 billion, an increase of $11 billion in the five years between 2003 and 2008. At the same time, Quebec went from a trade surplus to a trade deficit of almost $12 billion in 2009, not to mention that the increase in Alberta's oil exports made the dollar soar, which hit our manufacturing companies and aggravated our trade deficit. The increase in the price of oil alone plunged Quebec into a trade deficit.

Meanwhile, the oil companies are shamelessly taking advantage of this situation. They are posting record profits. In 1995, the entire Canadian oil and gas sector posted combined sales of $25 billion. By 2004, this figure had climbed to $84 billion.

Using and importing oil has a very significant impact on Quebec. Consequently, oil prices must be competitive and allow for alternative solutions to reduce our dependency on oil.

The best way to do that in the short term is to vote for Bill C-452, which would take fairness at the pumps beyond weights and measures and extend it to the oil industry as a whole.

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

Madam Speaker, I am pleased to take part in the second reading debate on Bill C-452, An Act to amend the Competition Act (inquiry into industry sector).

As I understand it, the underlying objective of this bill is to address potential problems associated with investigating the petroleum sector. We are all concerned with high gas prices and as many in the House are aware, gasoline prices have long been a focus of the Competition Bureau.

High prices in and of themselves are not illegal under the Competition Act as long as long as they result from free market forces and are not the result of anti-competitive behaviour. The bureau does not hesitate to take action to protect both competition and consumers when there is concrete evidence that the high prices are the result of anti-competitive conduct.

In this regard, since 1972 the bureau's investigations in the gasoline and heating oil markets have led to thirteen trials involving charges of local price maintenance, eight of which have resulted in convictions. The bureau has also conducted six major investigations into allegations of collusion and other anti-competitive behaviour in the petroleum sector since 1990.

Those investigations did not find any evidence to suggest that periodic price increases resulted from a national conspiracy to limit competition in the supply of gasoline or from abusive behaviour by firms holding a dominant position in the market. Instead, they found that market forces such as supply and demand and rising crude oil prices caused the price spikes.

That has not stopped the bureau from remaining vigilant regarding the activities of this industry. In 2008, the bureau's investigation into certain cartel activities led to criminal charges against 13 individuals and 11 companies accused of fixing gasoline prices at the pumps in Victoriaville, Thetford Mines, Magog and Sherbrooke, Quebec. As of December 2009, ten individuals and six companies have pleaded guilty in this case, with fines totalling over $2.7 million. Of the ten individuals who pleaded guilty, six have been sentenced to terms of imprisonment totalling 54 months.

The same vigilance is evident in the bureau's work in reviewing mergers in the petroleum sector. In July 2009, the bureau announced that it had reached a consent agreement with Suncor Energy and Petro-Canada regarding their proposed merger. If this transaction had proceeded without the bureau's intervention, Suncor and Petro-Canada would have been in a position to restrict supply at the wholesale level, as well as to reduce competition in the retail sector in southern Ontario.

The consent agreement in this case required the merged company to sell terminal space and distribution capacity at its gasoline terminals in the GTA to an unrelated third party to ensure continued competition in the market for wholesale distribution of gasoline in southern Ontario and the GTA. This agreement also required the merged company to supply 98 million litres of gasoline to independent gasoline retailers each year during the 10-year period.

To address competition concerns in the retail sector, the consent agreement also required the merging parties to sell 104 corporate-owned gas stations in the GTA and southern Ontario.

Bill C-452 proposes a single amendment to the Competition Act. It would provide the Commissioner of Competition with the ability to launch formal inquiries under the Competition Act into entire sectors of the economy.

We need to be vigilant with respect to the duties that we impose on the bureau. Currently, the commissioner has the ability to conduct limited market studies as part of her role as an advocate for competitive markets. Studies into generic drug pricing and the practices of self-regulating professions are two recent examples where the commissioner examined the specific practices of various industry sectors and made recommendations to promote a more competitive marketplace.

There is evidence that these studies have been effective in improving competition in these sectors. The costs to business and the resource requirements within the bureau of such studies were minimal and did not interfere with the bureau's priority which is to enforce the act.

If a formal inquiry into an entire industry sector is required, the government may invoke its powers under the Inquiries Act. Such inquiries would include the authority to compel either oral or written evidence from witnesses and require witnesses to produce documents that are relevant to the matter that is under inquiry.

The government may also launch an inquiry under section 18 of the Canada International Trade Tribunal Act. This provision allows the tribunal to inquire into and report on matters of economic, trade or commercial interests to Canada. In the past, the tribunal has carried out studies on the competitiveness of the beef industry and the fresh and processed fruits and vegetables industries in Canada.

Given these existing avenues for inquiry and the range of issues that have been examined under the commission's current authority, I must say real doubt arises as to whether a new broader power is needed.

As we have seen, the Competition Bureau continues to aggressively enforce the Competition Act whenever violations occur in the petroleum sector. In addition, provisions in the act exist to ensure that action can be taken against abusive behaviour by dominant firms in any market. As well, the bureau has used its existing limited market studies authority to proactively promote constructive measures to improve competition in markets where structural problems exist.

Should Bill C-452 be referred to committee, I hope that there will be a thorough and detailed analysis of this proposal to determine whether it would truly advance the protection and promotion of competition for Canadian consumers and businesses.

[Gord Brown, Conservative, Leeds—Grenville, ON]

Madam Speaker, I welcome the opportunity take part in the second reading debate regarding Bill C-452, An Act to amend the Competition Act (inquiry into industry sector).

I begin today by taking a moment to make a few remarks on Canada's competitive landscape and the government's plan for improving Canada's competitiveness.

A strong and competitive economy is central to the quality of life for Canadians. A strong and competitive economy means jobs, more opportunity, choices for consumers and enhanced prosperity for all. The government continues to take actions that will allow Canadians to thrive and capitalize on economic opportunities at home and abroad, while at the same time safeguarding Canada's interests.

Productivity and growth are at the heart of our standard of living as individuals, as firms and ultimately as a country. Responsibility for a better Canada rests with every individual, as well as with government, which is responsible for implementing appropriate public policies, ensuring effective management and providing strong leadership. Canada must step up its game to become more competitive both at home and abroad.

In the global economy, the pace of competition has accelerated and our competitors are becoming more successful. As a country, we must position ourselves for more wins in this new global marketplace. As a result, the government is focusing on policies that generate future growth and opportunities to boost our economic productivity. It starts with everyone adopting a more competitive mindset.

Competition in our economy is of enormous importance to consumers and their employers alike. The government has recognized that fact by taking significant steps over the past two years to modernize Canada's competition regime and align it more closely with the competition laws of our country's major trading partners. This allows for improved collaboration with other countries and facilitates more transparent and coordinated enforcement initiatives.

The Competition Policy Review Panel report entitled “Compete to Win”, released in June 2008, and the government's actions to implement the panel's recommendations reflect this government's commitment to reach a better standard of living for all Canadians. To do so, we need greater competitive intensity, which in turn yields higher productivity and growth.

The panel spent a year reviewing Canada's competition and investment policies. In its report, the panel concluded that in order to prosper, Canada must adopt a more globally competitive mindset. It concluded that intensifying competition would build a stronger economy, better products at lower prices, more jobs and higher earnings, stronger firms and greater prosperity.

The panel called on the government to reduce or eliminate legal and regulatory barriers to vigorous competition within Canada, at the same encouraging more foreign investment, and to take a series of other measures, including a tax reform, attracting and developing talent and harmonizing our competition laws with those of the United States.

The panel recognized the importance of ensuring that consumers and legitimate businesses did not fall prey to illegal activity and, if they did, they had confidence that the law would be enforced effectively and that penalties would be tough enough to deter future illegal activity. That is why it recommended a number of important amendments to the Competition Act to ensure it promoted the most effective competitive landscape for Canada's consumers and businesses.

These reforms were implemented by the Budget Implementation Act, 2009. They are all about building a better foundation for Canadian businesses to succeed and fostering increased confidence in the marketplace among Canadians consumers and all those carrying on business or considering carrying on business in Canada.

We toughened our approach to clearly anti-competitive acts, made changes to ensure that the law would not chill legitimate business activity and simplified the law in many respects. The reforms introduced tougher penalties for price fixing and other hardcore conspiracies, while narrowing this provision to ensure it did not discourage potentially positive strategic alliances.

To summarize, the Competition Act now provides more certainty to businesses and supports the type of honest competition that benefits all Canadians. We now have robust laws that will protect and promote competitive markets in Canada so Canadian employers thrive and consumers can have confidence in the marketplace.

As we made clear in the Speech from the Throne, this government's goal, as we move forward in our recovery, is to ensure that all Canadians benefit from our agenda of providing more jobs and growth. Over the last year, our government has taken decisive steps to protect incomes, create jobs, ease credit markets and help workers and communities get back on their feet. Moving forward, our strategy for the economy is to create the conditions for continued success in the industries that are the foundation for Canada's prosperity.

Our government is committed to identifying and removing unnecessary job-killing regulation and barriers to growth. This government stands for free and open markets. Open and competitive markets are the best way to promote new, dynamic and innovative products and ideas. Businesses do not need unnecessary government oversight or new regulations to dictate how they should operate.

It is in this context that I wish to remind the hon. member of the significant new powers this government has provided the Commissioner of Competition in order to investigate and deter the types of activities that lie at the heart of the bill. These tools will be far more effective than the measures provided and proposed in Bill C-452.

[Robert Vincent, Bloc, Shefford, QC]

Madam Speaker, I am pleased to speak during second reading to ask each member to recognize the importance of Bill C-452 for the voters in their ridings.

When this bill is studied in committee, we will need to find answers to the questions being asked. I will give a few examples of questions we have in mind. The committee will hear witnesses, and I hope that we will get some clarification. I also hope that this bill will be passed soon and that we will not be debating it again.

The Conservative members are talking about amending the Competition Act and about Bill C-10. These measures provide for new legal powers, but no real powers for the Competition Bureau.

Industries and the public need to be protected, but the real problem lies in identifying the guilty parties. If the bureau does not have the authority to make an inquiry, then it cannot apprehend them. Yet the government is refusing to give it that authority. If it cannot initiate an inquiry, it cannot issue fines. But that is not all. in 1869, just after Canada was founded, the Competition Bureau was given certain powers, which gradually increased.

Did members know that in 1976 the investigative powers that we are currently asking be granted to the Competition Bureau were already included in the legislation? This is not new. In 1976, under section 47, the director of the Competition Bureau could independently launch an inquiry into the existence and impact of conditions or practices related to the product being investigated. Who took this power away from him?

This bill aims to give the director of the Competition Bureau the power to investigate. Who was in power in 1986? Brian Mulroney's Conservative government. When the Competition Bureau was restructured, that government took away some of its investigative powers. We simply want to reinstate the investigative powers taken away by the Conservatives in 1986.

There were also claims that section 47 had been repealed, at least partially, as a result of objections expressed by the business community. In 1981, the oil sector was investigated to determine whether there was any collusion among the oil companies. The Competition Bureau's power to investigate was taken away because companies complained to the government that it was too expensive, that the government was spending far too much money to protect consumers. They wanted the Competition Bureau's power to investigate to be taken away, so that industries would no longer have to worry and could do whatever they want. That is what we hope to correct with this bill.

I have three, four or five more points to raise. For instance, the price of gas is higher in some regions than in others. Why does a litre of gas cost $1.05 in Granby and only $1.00 or $1.01 just a few kilometres away? It is not complicated; the price varies depending on the population base. The more residents there are in a municipality, the higher the price of gas. The industry tries to tell us that the price is not the same everywhere and there is competition.

There is no competition. There are fewer people, so it is cheaper.

In conclusion, I hope my colleagues will vote to send this bill to committee.

[The Acting Speaker, NDP, Denise Savoie]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

On division.

[The Acting Speaker, NDP, Denise Savoie]

Motion agreed to.

Accordingly, the bill stands referred to the Standing Committee on Industry, Science and Technology.

(Motion agreed to, bill read the second time and referred to a committee)

Suspension of Sitting

[The Acting Speaker, NDP, Denise Savoie]

The House is now suspended until 12 o'clock for government orders.

(The sitting of the House was suspended at 11:53 a.m.)

(The House resumed at 12:00 p.m.)