Fairness at the Pumps Act

An Act to amend the Electricity and Gas Inspection Act and the Weights and Measures Act

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Tony Clement  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment provides for the imposition of administrative monetary penalties for contraventions to the Electricity and Gas Inspection Act and the Weights and Measures Act. It also provides for higher maximum fines for offences committed under each of those Acts and creates new offence provisions for repeat offenders.
The enactment also amends the Weights and Measures Act to require that traders cause any device that they use in trade or have in their possession for trade to be examined within the periods prescribed by regulation. That new requirement is to be enforced through a new offence provision. The enactment also provides the Minister of Industry with the authority to designate persons who are not employed in the federal public administration as inspectors to perform certain examinations.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / noon
See context

Conservative

Peter Van Loan Conservative York—Simcoe, ON

moved that Bill C-14, An Act to amend the Electricity and Gas Inspection Act and the Weights and Measures Act, be read the second time and referred to a committee.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / noon
See context

Edmonton—Mill Woods—Beaumont Alberta

Conservative

Mike Lake ConservativeParliamentary Secretary to the Minister of Industry

Mr. Speaker, on May 12, 2008, the former minister of industry, the hon. member for Calgary Centre-North stood in the House and responded to a question. The question had to do with media reports that an alarmingly high percentage of gas pumps across the country were not accurately measuring the volume of gas being pumped into the vehicles of Canadian consumers.

Even more troubling was that consumers were getting the short end of the nozzle. Three out of every five times the gas pump measured inaccurately, it was the motorist who was getting ripped off. Clearly something had to be done. Gas pumps are intricate machines. Consumers cannot tell if a pump is not operating properly unless it is widely off the mark. If the machine is over-charging consumers, for example, who is to know and who is to compel the retailer to fix the faulty pump if that retailer is unwilling to correct the error or does not even realize it exists?

The problem should also be considered at a deeper level. Commercial transactions, the millions of exchanges between buyers and sellers that take place every day in our country, are made on the basis of trust. The seller sells the agreed-upon quantity at a fair price. The buyer makes the agreed-upon payment in a timely manner.

When that social and financial trust, that fundamental expectation shared by buyers and sellers, comes into question it does harm to the entire system of commercial exchange on which our country's prosperity and ongoing growth is based. If that trust is gradually and perniciously eroded in one important industry, the entire system can fall under a shadow of doubt and suspicion. Obviously something had to be done and thankfully it is being done.

On that day 24 months ago, the minister told the House he had taken two immediate steps to bolster Canadians' trust in that vital system of commercial exchange. First, he instructed officials in his department to increase the number of gas pump inspections to be undertaken over the course of that summer, the summer of 2008. Second, he sent letters to all Canadian gas retailers informing them of the stepped-up inspection campaign and asking them to co-operate fully with government inspectors.

That is not all. My hon. colleague pledged he would take two additional steps. He would speed up the government's review of the laws that govern gasoline pumps to make sure those laws give the Government of Canada the authority to levy stiff fines on retailers whose pumps cheat Canadian consumers. And he would take measures to ensure that the number and frequency of inspections at gas pumps were permanently increased to make sure unscrupulous and negligent retailers did not resume overcharging their customers once the public furor over the scandalous behaviour died away.

We promised to take further action to protect Canadian consumers then and we are going to deliver on that promise right now.

I am delighted to have the opportunity to lead off debate on Bill C-14, the fairness at the pumps act. Talk about truth in advertising. The bill would provide Canadians with exactly what its title indicates, fairness at the pumps. It would do so by amending the two laws that govern the use of retail measuring devices such as gasoline pumps, the Weights and Measures Act and the Electricity and Gas Inspection Act.

To be precise, the bill would give the force of law to three specific changes that have been carefully designed to protect Canadian consumers and deter unscrupulous or negligent behaviour among retailers. One, the bill would sanction mandatory inspection frequencies for measuring devices used by retailers. Two, the bill would authorize the Minister of Industry to designate qualified authorized service providers to carry out inspections on measuring devices. Three, the bill would set down stiffer fines that could be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act and would put in place a new graduated system of administrative monetary penalties.

Each of these actions would be a tremendous advance in the way we as Canadians protect ourselves as consumers and make sure our retailers operate fairly and honestly.

Why do I believe so strongly in the merit of these new provisions? Let me go through each one in detail and show the House exactly what I mean.

The first change set down in the fairness at the pumps act is mandatory inspection frequencies. Mandatory inspection frequencies is a complicated way of saying that the new act would amend the Weights and Measures Act to instruct businesses in a variety of specific industries to have their measuring devices inspected regularly. The Government of Canada would use its regulatory authority under Bill C-14 to put these mandatory inspection frequencies in place. Once established, these compulsory inspections would apply to virtually all companies that rely on measuring devices as part of their daily business. Gasoline retailers as well as retailers of home heating oil would be required to have their devices inspected every two years. That would also be the mandatory inspection frequency for all devices used in what is known as the downstream petroleum sector, for example, loading rack meters used to fill petroleum transportation trucks.

That same two-year inspection frequency would apply to measuring devices used by businesses in the dairy industry, enterprises in mining and metals, and companies in the grain and field crop sector, other than measuring instruments used in grain elevators. That does not mean the new bill would exempt grain elevators. Businesses and agricultural co-operatives would have to make sure measuring devices in grain elevators were inspected every year. One year would also be the mandatory inspection frequency for propane dispensers, meters in the dairy sector, measuring devices in the fishing and fish-products industry and in logging and forestry.

The fairness at the pumps act would also cover businesses in the retail food sector. These businesses would have to have their scales and other kinds of measuring instruments regularly inspected.

While this is a lengthy list of industries, companies and frequencies, it is by no means a finite one. Should Canadians deem it necessary, Bill C-14 would enable the Government of Canada to expand its area of authority to include the measuring devices of businesses that operate in other industries and sectors as well.

At the same time, I should point out that any future decision to extend the application of the act would not be taken unilaterally. Representatives of the federal government would consult closely with business owners and operators in any industry sector that we decided must be included under regulations developed under authority of the fairness at the pumps act. That way we would make absolutely sure that any new demands we make on retailers were realistic, fair and consistent.

We have taken that kind of inclusive, respectful approach from the start. Officials at Measurement Canada consulted carefully and thoroughly with industry sector representatives immediately impacted by the bill we are considering today. As a matter of fact, these discussions have been ongoing, and we accelerated them to respond as quickly and as reliably as possible to the troubling situation uncovered by the media reports I spoke of at the beginning of my remarks.

Retailers have been with us every step of the way because they realize the importance of the bill. They know their credibility is at stake. They know that when their reputation as honest, fair businesses and business people takes a hit among Canadians, so do their prospects for continued success and prosperity. They also know that the best way for their businesses to maintain the trust of consumers is to have their measuring devices and instruments undergo regular inspections.

Granted the businesses and the industries I have pointed out would have to pay fees for those inspections, but these costs would be determined by the marketplace and are already understood and accepted as facts of life by businesses in these industries. In fact I anticipate many companies would take advantage of inspections to have service and repair work performed on the measuring devices being inspected.

Of course, inspections do not occur on their own, and the ramped-up regime of mandatory inspection frequencies made possible by Bill C-14 would certainly not appear miraculously. We would need more trained inspectors to make sure we could meet the stringent requirements set out in the fairness at the pumps act.

That point brings me to the second change outlined in the bill. The bill would authorize the Minister of Industry to designate authorized service providers to carry out inspections of measuring devices. These inspectors could be independent professionals or employees of companies. Either way we would guarantee those designated to carry out this important work under the new bill were up to the task. We would establish conditions that would make the organizations authorized to perform inspection work accountable. We would only designate organizations and their technicians that met a stringent and ongoing qualification process.

These authorized service providers would be responsible for ensuring that appropriate test equipment and inspection procedures approved by Measurement Canada were used. Individuals permitted to perform inspections would be required to pass mandatory training, which includes theoretical as well as practical evaluations. Annual assessments would be part of the monitoring process for authorized service providers.

In instances where responsibilities were not fulfilled, the minister could suspend or revoke their designations, an action that would severely impact their ability to conduct business. Measurement Canada has successfully piloted a similar program for initial inspections performed under the Weights and Measures Act. Assessments of this approach demonstrate that the quality of the work done by authorized service providers and their recognized technicians is in the 96% satisfaction range.

Even though Bill C-14 would see authorized service providers play an increasingly important and meaningful role in protecting consumers, Measurement Canada inspectors would remain leading forces in the field. They would perform independent inspections to assess the compliance of industries under the new act. They would respond to public complaints of companies suspected of measuring inaccurately and they would be solely responsible for taking actions to enforce the law when offences under the Weights and Measures Act and the Electricity and Gas Inspection Act were identified.

I should also point out that this approach is not entirely new. For many years, Measurement Canada has employed authorized service providers to carry out inspections under the Electricity and Gas Inspection Act.

The bill before us today would make it possible for us to expand the reach of non-government inspectors to include all of the industries subject to the Weights and Measures Act.

Like the involvement of service providers, fines and penalties for those who violate the Electricity and Gas Inspection Act and the Weights and Measures Act are not entirely new.

What is new is the amount of these court-imposed fines and the nature of those penalties.

That brings me to the third and final change set out in the fairness at the pumps act.

To be precise, Bill C-14 would increase the fines that can be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act. The bill would also put in place a new graduated system of administrative monetary penalties.

Let us consider the fines, first.

The fairness at the pumps act would increase the court imposed fines for the variety of the offences listed in the Electricity and Gas Inspection Act and the Weights and Measures Act. Fines under the two acts would rise from $1,000 to $10,000 for minor offences and from $5,000 to $25,000 for major offences. The bill would also introduce a new fine of $50,000 to be levied against those who repeatedly violate the acts.

Why have we chosen to make such substantial increases in the amounts of these fines? The answer is straightforward. The costs of gasoline, electricity, food and other measured products have risen dramatically and they are expected to keep on rising for the foreseeable future. It is only proper that we increase the penalties we impose on those who violate the law if we want the penalties to have a deterrent effect. After all, if an unscrupulous retailer can make money by cheating consumers even if he or she is fined, what good is the fine?

To levy fines under the two existing laws, the federal government must prosecute alleged offenders. However, a process as complex as a criminal proceeding and a punishment as severe as those listed under the new act are not always the most appropriate ways to deal with all those who violate the law.

Some contraventions of the law may call for less stern penalties. It is common sense. That is why we have introduced what are known as administrative monetary penalties. The fairness at the pumps act would give federal authorities the discretion to use a graduated system of penalties to punish offenders: monetary penalties, which would not lead to a criminal record for those who commit relatively minor offences; and criminal prosecution for those who commit serious offences or who are repeat offenders.

Enforcement action, such as the use of administrative monetary penalties, would not be abused. These measures would be used as part of a graduated enforcement structure that would include trader education and the use of warnings when appropriate. It is not the government's intention to punish the good players who demonstrate that they have taken appropriate steps to provide accurate measurement.

Like the joint public-private approach for inspections, this graduated system of administrative monetary penalties is not entirely new. Several departments and agencies that enforce regulations rely on administrative monetary penalties; large departments such as Transport Canada and smaller yet active and vital agencies such as the Competition Bureau and the Canadian Food Inspection Agency.

Those are the three advances proposed by Bill C-14, the fairness at the pumps act. Mandatory inspection frequencies to measure devises used by retailers, authorized service providers to carry out inspections of those measuring devices, stiffer fines and a new graduated system of administrative monetary penalties. They are reasonable steps taken in partnership with industry. They are a practical response to a problem we committed to resolve and, most important, they are a fair deal for consumers, retailers and all Canadians.

These changes are a fair deal for consumers because they would put in place an inspection regime that would make it possible for a host of qualified inspectors to root out inaccurate measuring devices. Measurement Canada estimates that the number of annual inspections of gas pumps alone would increase from 8,000 to approximately 65,000. That is taking action, that is keeping our commitments to Canadians and that is protecting consumers.

These changes are a fair deal for retailers because they would protect honest retailers from being associated with and harmed by the unscrupulous practices of the minority of retailers who willingly or unwillingly operate inaccurate measuring devices.

I am sure my hon. friends would agree with me that the overwhelming majority of retailers in our country are fair and honest businesspeople. Their businesses are tainted when companies in their industry engage in unscrupulous behaviour. They want us to deal with illegal and negligent behaviour by retailers just as much as consumers do. In fact, their representatives told us that businesses were willing to pay the fees associated with an increased number and frequency of inspections if these inspections will expose and punish negligent and unscrupulous retailers and safeguard the integrity of their industries.

These changes are a fair deal for all Canadians because, although the fairness at the pumps act is a direct product of inaccurate gas pumps, the bill would extend the reach of inspections enforcement beyond gas retailers to include companies that rely on measuring devices to conduct their day-to-day business. That way, the resulting law will benefit all Canadians.

The changes are also a fair deal for all Canadians because they would impose minimal costs on the federal government, and this is important. A report published by the International Organization of Legal Metrology in 2003 used Canadian device compliance rates to estimate dollars at risk for each type of device. When these figures were related to inspection activities, it was found that for each dollar spent on inspections, $11 of inaccurate measurement was corrected. With rising commodity costs, this is a return on investment I am sure all Canadians can support and just one more reason that I am convinced Canadians will support this bill.

Consumer protection is a priority for this government. Once this bill receives royal assent, the process for implementation will require that regulatory amendments be processed and that there be a capacity to have these inspections take place. These regulations will be put in place as soon as possible after royal assent.

Measurement Canada has been building capacity for implementation in the eight sectors that we are talking about here today. Over the coming months, Measurement Canada will be educating traders as to their responsibilities once the bill is enacted, as well as ramping up the authorized service provider capacity to implement.

I am also confident that this House will support Bill C-14, the fairness at the pumps act. I have given members three powerful reasons to do just that. I have outlined clearly how this bill is a fair deal to all, and yet perhaps the most important reason to support this bill is the principle that lies at its heart: Canadian consumers should get what they pay for, no more and certainly no less. What could be fairer than that?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:20 p.m.
See context

Liberal

Francis Scarpaleggia Liberal Lac-Saint-Louis, QC

Mr. Speaker, this is a nice, typical Conservative Potemkin village, just a facade to hide inaction or deeper problems that are influencing the high variability of oil prices.

I have a couple of questions. First, I would like the hon. member to tell me how much each driver in Canada will save as a result of this necessary recalibration of a small percentage of gasoline pumps.

Second, why is the government not going ahead with the fine Liberal idea to try to control the variability of retail gasoline prices in this country, which was the idea of creating an office of petroleum price information. which the current government did not proceed with after it took power in 2006?

It seems to me that information is power and if we really do care about consumers and we want to give consumers power, we do not just want to indulge in a one-time recalibration, if I may use that word again, of a few offending gasoline pumps.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:20 p.m.
See context

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Speaker, in terms of the small number of Canadians who the member says this change will affect, I want to point out that the number we are talking about in terms of the cost of this inaccuracy just at the gas pumps alone, and, of course, there are several industries that this bill touches on, is $20 million per year. I would say that is not an insignificant number, as the hon. member suggests it might be.

Several proposals that were put forward by the Liberal Party would have had an impact on gas prices over the last few years, but perhaps the most significant one was the proposal that it ran as the centrepiece of its last election campaign which was the carbon tax. That would have been devastating for Canadian consumers and businesses who purchase gasoline and virtually anything else that they would purchase.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:20 p.m.
See context

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I congratulate the government for bringing in the bill.

The fact is, however, that under the Weights and Measures Act the rollback of odometers in the auto industry or just in the country would be covered. I am just wondering why the government would have neglected to mention that in its press releases.

I would think that increasing the penalities for businesses and people who replace, rollback or disconnect odometers and sell cars as vehicles with less mileage on them than they have would be as big an issue or a greater issue than what the member is trying to solve here. I applaud him for trying to solve the issue of measurements as far as gasoline is concerned but what about the odometer rollbacks?

The penalities that he is applying in this bill would also apply to odometer rollbacks, which is a positive change. Why is the government not recognizing this? Why is it not being included in its press release?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:25 p.m.
See context

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Speaker, there is a whole variety of different things that governments can do to improve the lives of Canadians, and we are always looking for ways to make further improvements, but in this case we are focused very seriously on the measurement of products that Canadian consumers purchase.

In terms of what this bill would do regarding measuring devices, what we are looking at here is largely a problem with the calibration of devices, not necessarily intentional, although messing around with the devices is part of the problem, but what we are talking about are devices that are not inspected properly or, if they are inspected and found out to be wrong, they tend to get corrected when the problem is to the detriment of the retailer but not necessarily to the detriment of the consumer.

We see twice as many pumps that are inaccurate in their measurements to the detriment of the consumer as we see to the detriment of the retailer. Obviously, it is a very significant problem.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:25 p.m.
See context

Liberal

Larry Bagnell Liberal Yukon, YT

Mr. Speaker, I appreciate the bill and what it is attempting to do.

The member mentioned the calibration of devices. A bigger problem in my riding is the problem caused by the ambient temperature compensation because temperatures are much more extreme in our area of the country. Is the government taking action to deal with that problem in relation to the calibration of devices?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:25 p.m.
See context

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Speaker, this has been an issue that has been raised before. I know that John Manley looked at this when he was industry minister under the previous Liberal government and, with the advice of experts, he decided to stick with the global standard in terms of temperature control.

However, we always welcome input from hon. members on ways to even further strengthen legislation. If the hon. member wants to get more information, pass on more information or have a conversation with me afterward, he is welcome to do so.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:25 p.m.
See context

NDP

Bruce Hyer NDP Thunder Bay—Superior North, ON

Mr. Speaker, it has been exactly two years since this issue was raised and about two years since the Conservatives promised to do something about it. Better late than never, I guess.

I have a question. In northwestern and northeastern Ontario, while occasionally there may be small losses to consumers, our really big problem is the huge discrepancy in gas prices. Would it not be better to focus on the 20% or 25% disparity rather than the couple of percent disparity until we fix the problem with gas gouging in the north?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:25 p.m.
See context

Conservative

Mike Lake Conservative Edmonton—Mill Woods—Beaumont, AB

Mr. Speaker, I will deal with a couple of the assertions by the hon. member.

First, in terms of the timeframe, we are talking about two years and, with a situation like this, one of the most important things we can do is get it right. It is pretty technical in terms of the aspects that we are looking at. It is very important to consult with stakeholders, consumer groups and with the retailers because we do want to get this right.

One of the things about this legislation is that the impact is not just on consumers. The impact is on retailers who operate by the rules, play by the rules, ensure they maintain their equipment and are hurt by maybe the negligent, or worse, unscrupulous behaviour of other retailers in a small group of them.

The consultation process is critically important but the hon. member is in a party where he will never have to do the homework. His party can just get up and ask questions about things and criticize.

The gas price issue is something the Competition Bureau has looked at several times over the years. This government is the first government in Canadian history to take significant action against a group of retailers. We saw that over the course of the last couple of years with significant legal action and getting some convictions of retailers who were acting in consort with each other to set prices.

Again, we do welcome ideas from members of all parties to further strengthen the system.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:30 p.m.
See context

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Mr. Speaker, I am glad to have the opportunity to speak to Bill C-14, the so-called fairness at the pumps act. To paraphrase the Bard, the bill is full of sound and fury, or should I say full of a certain amount of self-righteousness, signifying nothing or very little.

The issue of gasoline pricing has been at the top of the minds of Canadians for many years. However, it appears to be an issue the Government of Canada has largely forgotten about. Bill C-14 proposes to amend the rules regarding retail gasoline pump calibration, such that retailers will be legally required to have their pumps inspected regularly.

This is the response, two years after the Prime Minister made an election promise to help Canadians with higher fuel prices. As all hon. members are aware, during the 2008 election, gasoline prices spiked in some cities by more than 12¢ per litre, and then the Prime Minister was forced to make an off-the-cuff policy announcement. Back then the government promised to crack down on inaccurate pumps. It took almost two years to finally get action from the government.

This delay begs the question, how important are consumers to the government? With all the pomp and circumstance of a major government announcement, the Minister of Industry suggested that the government was coming to the aid of Canadians all across the country who were being ripped off by greedy gasoline retailers. Then the minister went on to explain that only 6% of pumps were actually inaccurate, and in 2% of the 6%, they actually favoured the consumer.

Is this the best that we can expect from the government? If the government were truly concerned with helping Canadians at the pumps, it could turn its attention to any number of issues, including automatic temperature compensation, refinery closures, and the anemic state of competition at the refinery level.

I would like to take a moment to speak specifically about Bill C-14. Bill C-14 will attempt to solve the problem of inaccurate gasoline pumps by shifting the onus of inspection from the government to individual retailers. The bill will also create an administrative monetary policy regime as a means to enforce these new regulations. The bill will also codify the practice of licensing private inspectors for the purposes of performing these inspections.

The Liberal Party has a number of concerns with the bill. First, most gasoline retailers are small, independent businesses, which in fact operate on very small margins, as we know. The additional cost of these inspections may very well hurt their bottom line and force some of them out of business.

We also have concerns with the private inspector regime. Right now, Measurement Canada uses a blend of both private licensed inspectors and government employed inspectors. This allows retailers to have their pumps checked by accredited inspectors, while allowing Measurement Canada to continue verifying the calibration of pumps on its own.

In switching the onus of inspection to the retailer, the demand for private inspectors will increase drastically. I and many of my Liberal colleagues are concerned that retailers in northern and rural communities may not have access to the private inspectors required to ensure that they can stay within the letter and the spirit of the law. This is a critical point.

Pumps in rural and remote communities are often not the newest, best pumps. These are the pumps that are most likely to lose calibration. Can we really expect private inspectors to set up shop in these communities to ensure that these pumps are inspected regularly when the market would be so small, or would these retailers face much higher costs to bring in non-government inspectors?

There is another concern with this new provision of the Weights and Measures Act. The amendments made to section 15 of the Weights and Measures Act do not just apply to gasoline retailers. In fact, they apply to “every trader who uses a device in trade”.

This means that everyone from gasoline retailers to a local deli will be affected by these new regulations. Without seeing these proposed regulations, we have no concept of what burden is being placed on thousands of other retailers and businesses across the country.

If one stops to think about the number of scales or pumps we encounter in trade, it quickly becomes apparent how much commercial and industrial activity will be affected by these legislative changes. All of this to correct a problem that by the minister's own numbers affects only 6% of pumps in Canada.

Anyone who has spoken to gasoline retailers will say that gasoline pumps are very hard to tamper with. In fact, the tight inventory control regimes that these retailers utilize make it very difficult for these retailers to even consider tampering with their pumps. They actually check their pumps often. It is in their best interest to do so.

The government is also not being honest about how long it will take for this bill to have any effect on the ground. With the summer break approaching, I think it is fair to assume that this bill will not receive royal assent until fall at the earliest. On top of that, the government will have to bring forward the associated regulations, which will take months as well. Even after all that effort, there will still be a phase-in period. It will take time to train and accredit enough inspectors to enforce the law.

This means that it will take years before this regime is up and running. The Liberal Party believes firmly in consumer protection and any measure that will ensure gasoline pump accuracy is a good measure in principle. However, I fear that this bill is designed to be nothing more than political cover. Let us be perfectly clear. This bill does nothing to help lower gasoline prices or to encourage competition in the gasoline industry in Canada.

In fact, when it comes to higher gasoline prices, the Prime Minister himself has said that there is nothing the government can do to help Canadians. In the three elections since the Prime Minister has been leader of the Conservative Party, he has made no less than three specific commitments to help Canadians with ever-increasing fuel prices. This is the first that the government has followed through on.

In 2004, lest we forget, the Conservatives promised to eliminate the GST on gasoline prices above 85 ¢ a litre when they came to power. I do not think that happened. In 2008 they promised to lower the diesel excise tax. I do not believe that happened either. I think the real reason behind this legislation being introduced right now is so that the government can pretend to be helping consumers while they complain that prices are rising.

A government interested in helping Canadians combat high gasoline prices would be examining the Competition Act and the state of competition at the refinery level in this country, among other things. Even as prices rise and the industry claims that supply is down, refineries continue to be closed. This is a problem for the industry.

A government concerned about high fuel prices would examine automated temperature compensation so that its full implications to consumers could be explored. Automated temperature compensation means that the volume of gasoline pumped is automatically compensated as if the outside temperature was 15°C. This makes no sense in a country where the average annual temperature is only 6°C.

If the government were serious about helping Canadians, it would be looking at these issues and not parading around legislation that is going to do nothing to help Canadians burdened by high fuel prices. I also have serious concerns with some of the unintended effects that this bill may have on other industries.

For these reasons, I am looking forward to the opportunity to examine and amend the bill at committee and to hear from a variety of witnesses about how we can ensure we protect consumers without putting an excessive burden on Canadian industry.

However, I have concerns that yet again the government is using consumer protection legislation to try and change the channel or as political cover. We have seen this time and time again with legislation designed to protect consumers, for example, the Consumer Products Safety Act, which died on the order paper when the Prime Minister prorogued Parliament last December. None of this legislation has been seen all the way through to assent. Unfortunately, a fairly common pattern with the Conservative government.

In conclusion, I would like to emphasize that the Liberal Party is not against measures designed to protect consumers. However, we have serious concerns with this bill, its unintended effects, and the very real possibility that the government is using this to obscure the real issues related to fuel pricing in Canada.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:40 p.m.
See context

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Mr. Speaker, I wish to thank the hon. member for Westmount—Ville-Marie for giving such a good synopsis of Bill C-14.

As a northern Ontario member of Parliament, I have a concern about how this bill would affect rural Canada. It would really be very expensive to get an inspector at a small gas station when we consider the volume that goes through its pumps. When one is a small gas pump operator, getting an inspector in can take up a big chunk of profit.

One of the concerns of small independents is that they have to bring in an independent inspector, not a government inspector, to inspect the pumps. To bring someone in to inspect the pumps, usually from a large centre like Toronto or Montreal, a rural company would have to pay for the cost of travel, accommodation, and a number of different expenses. Someone does not just drop in. The inspector knows what is going on so the element of surprise is pretty well gone if we are looking to catch anyone. There are not that many small independent operators who are doing anything wrong. It is a very small number.

With all the added expenses, how would Bill C-14 guarantee that small independent operators would not get squeezed out of the market leaving us with only large producers in the market, making a tough market even tougher for rural Canadians?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:40 p.m.
See context

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Mr. Speaker, I thank my hon. colleague for a very good point. I could not have said it any better. There are absolutely no provisions in Bill C-14 for the situation that he described; that is, the retailers in small communities, particularly those in rural Canada and up north where my colleague comes from.

Even though the government likes to say it is concerned about the consumer, and it certainly pretends to care about rural and regional communities, it is very clear that it has not done its own analysis of the consequences of Bill C-14 on retailers in many of the small communities that they represent. The fact is that Bill C-14 contains absolutely nothing.

Bill C-14 is just an example of the government trying to play catch-up after it reneged on what it promised concerning the elimination of the GST above a certain price and also reducing the diesel excise tax. The government never did any of that, and now it is panicking and trying to play catch-up.

This is just like the broadband area. The Conservatives have been in power for four years and they have not done anything. Now that we in the Liberal Party have announced that we are going to do something to connect all Canadians, the Minister of Industry is out making emergency announcements to show that he understands it as well.

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:45 p.m.
See context

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I want to correct some of the facts. The member seems to suggest that the government should do something about the high price of gasoline. I am certainly with him on that point. The government should do something on that issue.

The fact is the Liberals were in power for 13 years and the Liberal member for Pickering—Scarborough East consistently attacked his government because it ignored the problem. I think there were 125 studies done over the years on high gas prices in our country. What was concluded out of all those studies was we had to change the Competition Act. Under the existing Competition Act, retailers that were price fixing, as we termed it, were not legally guilty of doing anything under the current act. The answer is to change the act.

The Liberals were in power for 13 years and they did not change the act. The member for Pickering—Scarborough East, who was his government's critic at the time, criticized his government. I will be interested to hear what that member has to say when he speaks to the bill later today. It is fine for the Liberal Party to criticize the government. However, it was in government for 13 years and it did nothing to reduce the high price of gasoline.

We know that having a price review board, such as is the case in the Maritimes, does not work. It simply adjusts the price to the highest figure. We need to change the Competition Act.

Does he agree with the member for Pickering—Scarborough East's consistent view on this matter?

Fairness at the Pumps ActGovernment Orders

May 10th, 2010 / 12:45 p.m.
See context

Liberal

Marc Garneau Liberal Westmount—Ville-Marie, QC

Mr. Speaker, we, as a party, are very fortunate to our colleague from Pickering—Scarborough East, who has always been an unabashed and strong defender of the consumer. He has done some great things in the time he has been in Parliament. I am sure he will very adequately address the comments of the member.