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 13th, 2010 / 10:45 a.m.
See context

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, consumer advocates have known for years that, after 125 studies gathering dust and no action being taken, the Competition Act needs to be changed to allow the commissioner to inquire into the oil industry.

It is rather interesting that in other parts of the economy and in other industries, for a quite a number of years now, the fight against price-fixing is actually being won. The travel industry, the real estate industry and the insurance industry are all industries where, for a number of years now, the Competition Bureau has sent out CDs and have held seminars explaining to them how they are breaking the law if they get together in collusion, say in a travel agency business, with the neighbour to price fix in a given area.

Somehow we are having an effect on the little businesses, which is fine, and we should, but the oil industry does not seem to be part of that whole equation. The government talks about too big to fail. Is this the case of the oil industry just being too big to regulate?

Nobody in the government seems to want to take on the oil industry. The government feels totally secure chasing around little real estate agents or travel agents to ensure they do not price fix but what about the oil companies? What is the government afraid of?

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:45 a.m.
See context

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, the member for Elmwood—Transcona has been a strong advocate for consumers, whether we are talking about the rip-offs taking place at the gas pumps or the rip-offs that take place around airline delays. He has been a consistently strong advocate for consumers right across this country.

We had the Conservatives campaigning on the oxymoronic slogan of Conservatives standing up for Canada. We certainly have not seen that in any area when we talk about trade. We have seen the softwood sellout, the shipbuilding sellout and now they are moving to sell off more of our resources and key industries in other trade agreements. They have the worst record we have ever had, even worse than the former Liberal government, which was difficult to beat. They really had to work hard to be that incompetent.

When it comes to the issue of standing up for consumers, the Conservatives are simply unable to do so. I do not think it is because of fear. I think it is because they are in the pockets of the very wealthy corporate CEOs on—

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:50 a.m.
See context

Conservative

The Deputy Speaker Conservative Andrew Scheer

Questions and comments. The hon. Parliamentary Secretary to the Minister of Fisheries and Oceans.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:50 a.m.
See context

Pitt Meadows—Maple Ridge—Mission B.C.

Conservative

Randy Kamp ConservativeParliamentary Secretary to the Minister of Fisheries and Oceans

Mr. Speaker, the member knows that nobody is in anybody's pocket as there are rules that we put in place about allowing contributions from any corporations, or unions for that matter, which probably affected his party.

I do have a question for the member. I did listen with interest and both he and his colleague from Elmwood—Transcona mentioned the 125 studies completed by the Competition Bureau, all of which I think they said came to the conclusion that there was no collusion going on.

What does the member think the reason is for those conclusions? Are the people at the Competition Bureau just a bunch of morons? Does he see something more sinister going on at the Competition Bureau? If that is what they think, they should be clear about that.

There are some provinces in Canada that do more regulation of gas prices, in the Maritimes for example, and their gas prices are very similar to all the rest. They do not change very quickly. I would ask the member if he thinks that is the solution he is looking for.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:50 a.m.
See context

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, the investigation showed that between 1999 and 2007, 5% of gas pumps, about 1 in 20, failed the inspections by dispensing less fuel then they should. Very clearly, that is something the government should have taken action on. These studies are available to the government. It does need to take action.

I do want to comment on one thing. I know the member is from British Columbia. We have the Conservatives who brought in the absolutely hated HST. We now have over 60 of the 85 ridings in British Columbia that have signed the petition campaign to force a referendum.

Will the government respect—

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:50 a.m.
See context

Conservative

The Deputy Speaker Conservative Andrew Scheer

Resuming debate. The hon. member for Bonavista—Gander—Grand Falls—Windsor.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 10:50 a.m.
See context

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, I thank the House for its indulgence in allowing me to speak since I just gave notice a short time ago. I thank the parliamentary secretary in particular because he is such a fan, albeit a moderate fan.

I have some great concerns about this particular bill. Looking at the surface of it, one can see that the bill has some great merits. It would cut down on potential gouging. It is not a tremendous part of the market, but nonetheless, in some instances it is a way to be more fair. It would also impose fines that are more dramatic and therefore may act as a larger deterrent.

In certain instances, we need to be concerned about the enforcement measures by which we want to put this out there. In order for it to be effective, it obviously needs to have some teeth. This bill does deserve more study. I support that measure, in and of itself, because this is an issue. As consumers go, it has become a larger demand as energy prices rise and as we have become far more dependent upon fuels for the sake of transportation.

I say that because I am from a rural riding that does not have the benefit of mass transit and therefore people rely more on singular vehicles and drive longer distances because of the distance between communities. I have 171 communities in my riding and close to half of the people in my riding do not work in their own community and sometimes drive to other communities. Therefore, the price they pay at the pumps is something that concerns them greatly.

When this bill was first introduced, the intention was one that merited a lot of attention because there are measures in it to protect consumers. I received an email from a person I know in my hometown of Bishop's Falls. He is not only a concerned consumer but he is the former petroleum commissioner of Newfoundland and Labrador. As a matter of fact, he was the one who originated the office in Newfoundland and Labrador to help regulate gas prices.

I want to pass along to the House some of his thoughts in his email because I think they are relevant. These are the types of questions we should be asking within the context of the committee. He uses a consumer in rural Newfoundland as an example. He says:

For example, a consumer in rural Newfoundland who buys fuel at a local general merchant with a single gas pump in his community, and feels he has received too little product for the price paid, decides to report his complaint. Who does he call? What official? If he does reach someone, what would they do? Who would investigate? Who would contact the consumer and what procedure would be followed? What investigative tools would be used to prove that his pump is inaccurate? What means would be employed to enforce the act? What court is used to challenge the charge? How will it be administered? The list of questions go on and on.

I wanted to read that to the House because his questions are quite pertinent in this particular situation. On the surface, the spirit is great, but the problem is that in practice it will be a little harder to enforce. I will get to that in a moment.

Mr. Saunders goes on to say that he is a little worried about the absence of a supportive bureaucracy and a regulatory system. He also wishes us all the best in putting this through. Not only was he the commissioner, but he started the office and knows quite a bit about the particular industry.

On the other side of this thing, I am concerned about the enforcement of this and how it would be put toward the private sector. In this particular situation, it all sounds great when we have fines that are levied and fines that are severe and doubled in many cases, but one of the issues becomes that they have put it to the private sector for the sake of enforcement.

What is troubling is the cost of enforcing this may come back to the consumer. This issue has been brought up in the debate already and I share that view. I gave an example of one retailer, the one gas pump in a smaller town in a rural community. Where would the retailer go to find an inspector if no inspectors were available? Who pays? The inspectors come at a cost. They perhaps have to travel a great distance. It is harder to find qualified inspectors in a much larger rural area.

What bothers me is this situation is similar to the rebates for heating homes. Rebates are available for people who insulate their homes for more efficient heating. How do people become eligible for these rebates? They have to hire an inspector to tell them what rebates they qualify for. They pay some to get some. I do not think that was the spirit of government legislation from the very beginning.

These questions should be posed at committee. On the surface, a lot of this is put upon the private sector, which in many cases would be the one to follow through with the enforcement and enactment of this measure. It may be something that is great for the consumer. It sounds nice, but in practice it could be complicated for areas of greater distance, areas with smaller communities, especially in the case where there is only one pump or where there are independent retailers.

I would like to bring up some other situations. Some communities' pumps are not used as much. Therefore, little things end up making this complicated. For example, because the pumps are not used as much, the introduction of ethanol could have an impact. Where we have higher use, there is a probability of breakdown and it is not really someone's fault. It is the result of wear and tear on the machines like any other machine that depreciates. It is a guarantee that goes on forever. With the introduction of elements such as ethanol, some of these older pumps may be affected as a result. Again, someone will have to pay for this. The inspector is brought in, the inspector finds something the government finds fault in and the fine is levied. What happens to that one independent retailer in that situation? Things get complicated. It is not only about the consumer, it is about the smaller retailer as well. I hope this will be addressed at committee.

I am also concerned that the legislation could also be a distraction in a small way, and this goes to the political realm. It could be dealt with by regulation, if there is the presence of a problem. The minister admitted that only 6% of the pumps were found to be faulty. Of that 6%, 4% of the 100% that were tested did not favour the consumer. Therefore, that makes it even more minuscule at that point. Just because the number is small does not mean it should be ignored and we should throw this out. What I am saying is it is going to be an onerous way of enforcing certain rules. Therefore, I am highly concerned about how we are throwing this on the private sector, as my hon. colleague in the NDP has pointed out on several occasions, and I agree with him.

Finally, I will quote from the member for Pickering—Scarborough East who said:

Let us deal with some real issues in this House for once and not go around contenting ourselves with some idea that we have a better widget than the people who preceded us or than the ones who preceded them. The reality is far more serious.

I know that members on the industry committee should have the benefit of all the questions, not just Measurement Canada, but to look beyond this first step. I am hoping it is a first step, because members will recall that, in the 2008 campaign, the Conservative Party pledged to deal with the issue of potential problems at the gas pumps...

We hope they will follow through on that.

Again, the hon. member has said this is a first step. At the second step in committee, I would implore all members of the House, and certainly the members of the industry committee, to look at this and fully analyze what is about to come down the pipe as it were.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11 a.m.
See context

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I know the member is absolutely right about the proposed inspection system.

If the Conservatives had done proper consultations on the bill with the industry and with the independents, I am sure the independents would be more than willing to see the government inspection team beefed up and perhaps over a period of a couple of years we could double or triple the number of inspections. However, I think those independents would trust a government inspector over a privatized inspector.

Let me tell the House what can happen with a privatized inspection system. It is contemplated that the privatized inspectors will be able to set their own prices. The member talked about a small town with a single gas pump. The operator will have to pay for that inspector, who might have to drive a couple of hundred miles. Since the inspector can set his own prices, he can charge an arm and a leg for that inspection.

The other issue is there now will be random inspections. Therefore, the operator will never know when the inspector will show up. We will have a system where the inspector will phone first, tip the operator off and then charge the operator triple the price that would be paid under a government program.

This is all messed up. This is typical Conservative consumer legislation, always an offset to private business.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, earlier I listened to the member's speech. He brought forward his experience in the Manitoba legislature, and I thank for that.

I have witnessed this in the past six years since being elected as a member of Parliament. Some programs, as I have said before, have been thrust upon the private market. I do not want to mislead anyone by thinking this is the wrong way to go in all general circumstances. In certain cases, we talk about public-private partnerships. Some of them have effective measures and some work substantially in many areas. However, the problem is the oversight and enforcement involved, or lack thereof. Even if that element is put upon the private sector, we could run into some problems as the member pointed out.

Private inspectors in rural areas have to travel and that costs money. They have to stay overnight in hotels, which costs money. All these costs, one after another, are thrown at the consumer.

I go back to the example about applying for rebates to make homes more energy efficient. The problem was with the inspectors. The government said that the inspectors would only cost a couple of hundred dollars. It was more than that in rural areas. People had to pay for the inspector's gas mileage and they had to pay for the hotel if the inspector had to stay overnight. They were lucky enough to share these costs with other people, but it became that much more complicated. The private sector decided the price. Let us face it, when it comes to setting the prices, inspectors will charge whatever the market will bear. Therefore, that makes its way up the scale. It was harder for people with low incomes to avail themselves of the program because they could not afford the inspection process.

I bring that up as an example only because we may have the same situation. I know the Conservatives scoff at the idea, but I hope they bear this in mind. It could become a problem for the consumers in the near future. I hope they will come up with suggestions to change the legislation so we protect the consumers from being gouged in more ways than just one.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Conservative

The Deputy Speaker Conservative Andrew Scheer

Is the House ready for the question?

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Some hon. members

Question.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Conservative

The Deputy Speaker Conservative Andrew Scheer

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

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Some hon. members

Agreed.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

An hon. member

On division.

Fairness at the Pumps ActGovernment Orders

May 13th, 2010 / 11:05 a.m.
See context

Conservative

The Deputy Speaker Conservative Andrew Scheer

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)