Bill C-14 (Historical)

Fairness at the Pumps Act

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

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.

Fairness at the Pumps Act

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I think the answer is that we need to change the Competition Act in order to deal with that.

The member brought up the issue of the companies policing themselves. That is one of the biggest things about this bill. It is fine to say that we are going to increase fines but if the companies have the ability to police themselves, it just does not work.

The other thing is there is no recourse for a customer to get reimbursed for being gouged at the pumps. We need an ombudsman in place to ensure that will occur.

Although the bill seems to be a step in the right direction, there is a lot of meat missing from it.

[Glenn Thibeault, NDP, Sudbury, ON]

Mr. Speaker, I have a question for the hon. member that relates to northerners.

I am her neighbour as well as a neighbour of my hon. colleague from Nickel Belt. We all seem to know a story from one individual or another who continues to get fleeced at gas stations.

We also know that our economy in northern Ontario, specifically in greater Sudbury, is hurting due to the strike at Vale Inco and the layoffs at Xstrata. We need to see a lot of things change. These poor individuals are being fleeced by companies.

What does the member think we can do in this bill to make it better, to help northerners from getting fleeced by big mining and oil companies?

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, we need to change the Competition Act. I am glad the member mentioned Vale Inco. My husband happens to be one of those people who are on strike. Our laws are truly unfair. The fact is, over and over again, the Liberals and Conservatives have voted against anti-scab legislation to deal with the issue.

With respect to the gas issue, people who are on strike are hurting right now because they are having to pay higher gas prices.

We need to deal with other issues as well. As I have indicated, it is not just a matter of a complaint and then an investigation. We need to have the ability for the consumer to have recourse with those companies. We need a process that will allow for a refund and compensation for consumers who are ripped off. We need refunds or restitution on the taxes collected on the phantom gasoline purchases. Also, we need an ombudsman office.

[Brian Murphy, Liberal, Moncton—Riverview—Dieppe, NB]

Mr. Speaker, I have a question for my hon. colleague concerning concentration of ownership distribution in the industry and how it affects the little guy.

I come from a small city in New Brunswick. The member comes from northern Ontario. There are towns, cities and villages that still have independent operators, operators of small stations who pump the gas themselves.

Does she have any statistics regarding how this concentration of ownership might affect the small, independent retailer in a negative way and what might we do in Parliament to make people aware of that concentration of ownership and lack of competition?

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, again, we need to change the Competition Act.

The impact of the bill on small gas stations is whether they will be able to police themselves. A lot of these entrepreneurs do not have the dollars to do more investigations.

We need to change the Competition Act. Bill C-452 is coming up today. It would address that. I hope the members will speak on that bill.

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

Mr. Speaker, the member has nailed the real problem 100%. Over many years, the provinces have done about 125 studies on price fixing, trying to nail those gas companies, those retailers. In fact, Bill C-452, as proposed by the Bloc, comes up this very day. The bill would amend the Competition Act to authorize the commissioner to conduct inquiries into the entire sector.

We have always said that the bill has some pluses to it. The increased penalties are a positive. However, the idea that giving an offset to the private sector and farming out the inspections is the wrong way to go. If I were a retailer, I would rather have the government doing the inspection on a random basis than pay some private entrepreneur who may charge me double or triple what he or she should in this situation.

The Conservatives never come up with consumer protection unless there is an offset to private business, and that is what this is.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I totally agree with my colleague. It should not be left to the private sector to police itself. Government needs to do it.

I remind the House that a question was asked of the government whether it would create an ombudsman position. The answer from the industry minister at that time was “we will not be creating the position of ombudsman”. That is a sad day for consumers.

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

Mr. Speaker, I listened closely to the speeches about Bill C-14. The member for Algoma—Manitoulin—Kapuskasing was right to say that the bill needs to be studied in detail.

I, too, am worried that the oil industry has been asked to police itself. Oil companies are being asked to evaluate how well they respect the laws. That is incredible. They are both judge and judged. The Bloc Québécois has the solution and it is Bill C-452, which will be debated a little later today.

Bill C-14 is also of direct interest to me. I often travel back and forth between Ottawa and my riding of Vaudreuil-Soulanges. Obviously, I have to take my car. Every time I stop to fill it up at a gas station, I cannot help but wonder why prices vary so much from region to region. In the same city or an area of a few kilometres, the prices may be the same or they may differ, oddly enough, by a number of cents a litre.

I often wonder if the prices at the pump are accurate. Those are a few reasons why I am interested in today's debate. I think that Bill C-14 is a good start, and because of that, I agree with it in principle. It would amend the Electricity and Gas Inspection Act and the Weights and Measures Act. However, the bill does not directly address collusion problems amongst oil companies, nor does it effectively prevent sudden gas price increases. I still believe that we need to continue our efforts in this area and encourage the members to pass Bill C-452.

In order to better understand the Bloc Québécois' position, it is important to understand what this bill is proposing. As its title indicates, the bill would make two amendments to two different acts. It would amend the Electricity and Gas Inspection Act by providing for higher maximum fines for offences, as well as punishing repeat offenders. It would also amend the Weights and Measures Act to require that retailers cause any device that they use in trade or have in their possession to be examined within a prescribed period. Non-compliance could result in penalties.

Bill C-14 introduces fines for violations of the Electricity and Gas Inspection Act. An inspector who noticed a violation would be able to impose a penalty on the offender.

In addition, a person who wanted to contest a fine would have to prove that he had exercised due diligence to prevent the commission of the violation.

Another interesting point is that the penalties can be cumulative. A violation that continues for more than one day is considered a separate violation for every day during which it continues. This measure is more stringent, because it requires offenders to act quickly and make the necessary changes to comply with the act.

Still in the section on amendments to the Electricity and Gas Inspection Act, Bill C-14 would allow the Minister of Industry to make public the names and address of persons who had violated the act. The advantage of releasing this sort of information is that people could avoid offending retailers.

We noted that a violation under the act would not constitute a Criminal Code offence, which means that an individual found guilty under Bill C-14 would not have a criminal record. This should be examined in more detail in committee.

Bill C-14 also amends the Weights and Measures Act. One of these amendments would allow inspectors to enter a retailer's premises. A government-appointed inspector who had reasonable grounds to believe that a violation had been committed could examine and seize any document that could prove that there was a violation. Under this provision, the inspector could even limit access to the premises and require that the retailer stop operating faulty equipment.

Bill C-14 provides for large increases in the penalties under the Weights and Measures Act. A person found guilty under the act would not be fined $1,000, as now, but up to $10,000, in addition to being liable to imprisonment of not more than six months for a first offence.

In the case of a first offence prosecuted by indictment, the fine is increased to $25,000 and can be accompanied by a maximum prison sentence of two years. In the case of a re-offence, the bill increases the maximum fine to $20,000 and if a repeat offender is tried for another conviction on indictment, the fine can go up to $50,000 with a maximum prison sentence of two years.

I am very anxious to hear the minister's arguments on this once public servants are invited to appear before the Standing Committee on Industry, Science and Technology to justify these sentences and elaborate on the problems at the pumps.

Much like the amendments to the Electricity and Gas Inspection Act, the proposed changes to the Weights and Measures Act will allow for cumulative sentences to be imposed for each of the days the offender is found to be in violation. The bill introduces stricter penalties and allows for cumulative sentences. Repeat offenders will be punished. That is basically what the bill aims to do.

The Bloc Québécois has several concerns. When the Conservative government prorogued Parliament in December 2009, the Bloc Québécois began a pre-budget tour. I met with many citizens and various associations from Vaudreuil-Soulanges to find out what they wanted and what they expected from the budget. These meetings confirmed that the public's main concerns are the environment and the economy. The Bloc Québécois' positions are explained in the document Saisir l'occasion pour le Québec.

As I said in my speech, the Bloc Québécois supports Bill C-14 in principle, but Bill C-452 is also a direct response to the problems related to competition. My colleagues, the hon. members for Shefford and Chicoutimi—Le Fjord, will discuss that a little later today.

The Bloc Québécois' Bill C-452 addresses the flaws in Bill C-14. At the risk of repeating myself, we have some concerns about Bill C-14, but since we are a responsible serious party, we are suggesting solutions.

In response to Bill C-14 and the shortcomings of the measures put in place by the January 2009 budget implementation bill, we have introduced Bill C-452, which would give real powers to the Competition Bureau. The Bureau could act on its own and initiate inquiries, without waiting for permission from the minister or for a complaint to be filed. If the Bureau had reasonable doubts, it could investigate.

Bill C-452 would strengthen the Competition Bureau and would better protect the public against the actions of some businesses, which might take advantage of their position to unfairly fleece and gouge consumers.

We have other possible solutions. My Bloc Québécois colleagues and I strongly believe that we must adopt a comprehensive strategy to combat the rising cost of petroleum products. There are three criteria needed to apply this comprehensive strategy.

The first criterion to make our comprehensive strategy a success is that we must continue to support initiatives that help us decrease our dependence on oil. The rising cost of oil is making Quebec poorer. Increased prices affect the economy in many other ways. Increased exports of Alberta oil tend to increase the value of the Canadian dollar. Our manufacturing companies are the ones who suffer.

The Bloc Québécois has three ideas to decrease our dependence on oil, and my colleagues can read about them in detail on the Bloc Québécois site, because the document is public.

We must increase the budget of the ecoEnergy for renewable heat program, and expand its scope to solar thermal power, to include forest biomass.

We need a program to support the use of forestry byproducts in energy and ethanol production. We have to stimulate new product research and development. We can do this by offering refundable tax credits for research and development so that companies can benefit even if they are at the development stage and are not yet making a profit.

There are many other suggestions and ways to reduce our dependence on oil. We just have to be bold and focus on the importance of acting now to help the environment. We need to think about what consumers, what our fellow citizens, what Quebeckers are really paying for when they use oil products.

Bill C-452 meets one of those criteria. Its goal is to discipline the oil industry. As parliamentarians, we have to show people that we are ready to protect their interests.

I encourage members to discipline the industry by voting for Bill C-452 because it gives more powers to the Competition Bureau. The government should commit to setting up a petroleum monitoring agency. It is time for oil companies to respect people. They have to be accountable.

The final criterion is to make the oil industry contribute. The price of oil is going up, which results in higher prices for transportation and many consumer goods. Because of this, the oil industry is raking in huge profits. The very least these companies can do is pay their fair share of taxes.

As part of our comprehensive strategy to address the rising cost of oil products, we want the government to eliminate tax breaks. In 2003, the government cut oil companies' taxes from 28% to 21%. In 2007, the Conservative government proposed another tax cut, and according to the 2007 economic update, oil companies will be taxed 15% in 2012. Why should such a rich sector of the economy benefit from so many tax breaks?

The oil industry needs to be part of the solution. The $3.6 billion pocketed by oil companies is not available to the public. That money could be reinvested in society.

Our comprehensive strategy to address rising oil costs is reasonable and feasible. There are only three ways to change the way we deal with oil. We have to reduce our dependence on oil, make the oil industry pay its share by eliminating tax breaks, and discipline the oil industry with Bill C-452.

I will give the House a short overview. In May 2003, before the Standing Committee on Industry, Science and Technology, the commissioner of competition pointed out that the Competition Bureau did not have the authority to initiate an inquiry.

Since 2003, subsequent governments have not taken action. The government never takes action when the price of gas fluctuates. It believes its inertia is justified by the fact that the Competition Bureau is not able to prove that there are agreements among oil companies to fix the price of gas.

[An hon. member]

Well, that is obvious.

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

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

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

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

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

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

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

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

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

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

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

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

[Dan McTeague, Liberal, Pickering—Scarborough East, ON]

Mr. Speaker, I listened carefully to the member for Vaudreuil-Soulanges, and I am pleased to see that she is very knowledgeable about this subject. I know that this issue will be discussed later this afternoon, when we examine a bill from one of her Bloc colleagues. The former commissioner of competition clearly indicated that he needed the power to initiate investigations. I will quote the then-commissioner, Konrad von Finckenstein, in English, because I unfortunately do not have this quote in French. It was in response to a question he was asked by my former colleague, Serge Marcil, who unfortunately passed away in Haiti. Mr. von Finckenstein's response at the time was:

We have the power to undertake investigations ourselves, but we generally respond to complaints. If you are talking about tools, yes, we have all the tools we need. The provisions of the Competition Act give us the mandate we need to do our work.

What I am trying to say to the Bloc member is that we are talking about a power that perhaps already exists. Perhaps there truly was a misunderstanding, despite the good intentions of the member who will present his bill later this afternoon.

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

Mr. Speaker, I would like to thank my colleague.

He listened closely to my speech. I did refer to the commissioner's comments. The problem this bureau has is with launching inquiries of its own accord. Yes, it has tools: it can use wiretaps and do investigative work. The problem comes when it wants to undertake an inquiry. The commissioner does not have the latitude needed to determine the scope of the inquiry and the structure of a particular industry or sector. That is what Bill C-452 is referring to.

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

Mr. Speaker, I really do think that the Bloc's Bill C-452, sponsored by the member for Shefford, has a lot of potential. I have been following this issue for probably 20 years now and there have been 125 studies done in this country. Piles of studies and thousands of dollars have all come up with the same conclusion: the authorities cannot track down the price fixing in the gasoline industry because of the Competition Act.

This bill is going to amend the Competition Act to authorize the Commissioner of Competition to inquire into the entire industry sector. I think that this Parliament owes it to debate this Bloc bill later on today and refer it to committee. I think we are going to have some real potential here for some real change.

Dealing with Bill C-14 itself, I do want to ask questions of government members, but for the last two days I have not seen one yet. I do want to talk about the whole area of—

[The Acting Speaker, Conservative, Barry Devolin]

Order. This hon. member is an experienced parliamentarian and knows that this is a period for questions and answers. This is not time for speech making. If there is time, he can ask a second question, but we try to hold questions to one minute and 15 seconds to a minute and a half. This member has been going on for more than two minutes now. I indicated several times for him to wrap up, which he did not.

The hon. member for Vaudreuil-Soulanges.

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

Mr. Speaker, I believe that we will have a chance to hear him speak later on. Given how often he speaks in the House, my colleague will have ample opportunity to finish his thoughts.

I would like to thank him in advance for his support for Bill C-452. The Bloc Québécois is proposing this legislation to strengthen the Competition Bureau's authority. I believe that a comprehensive strategy for dealing with increases in the price of petroleum products would close the loopholes in Bill C-14. I spoke about that strategy earlier.

The member said that he has been following this issue for about 20 years. I agree with him because I have been driving for about 20 years, and I have seen gas prices fluctuate from one region to the next. One thing I have learned in the House is that you have to have patience if you want to take on the banks and oil companies.