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

[Bruce Hyer, NDP, Thunder Bay—Superior North, ON]

Madam Speaker, I am very grateful for the opportunity to speak to the government's Bill C-14. What it is calling a fairness at the pumps act seems to me to have more to do with politics than real fairness.

I was particularly impressed with the long, detailed and interesting speech by the member for Pickering—Scarborough East. He seems to have identified what I have identified, that this is mostly about what the current government has been very good at, very skilfully and successfully, quite often, at changing the channel on what the real issues are.

As I read between the lines, along with the hon. member for Pickering—Scarborough East, this deals with a lot more than just pumps and a lot more than just fixing gas pumps with small errors in them. It would amend the Electricity and Gas Inspection Act and the Weights and Measures Act and would increase mandatory inspection of measuring devices in a whole host of industries like dairy, retail, food, fishing, logging, grain, field crops, mining, et cetera. However, the way it is being marketed and sold here is that it is supposedly about the petroleum sector.

There are about 125,000 gas pumps in Canada, with about 60,000 of them to be inspected every year for accuracy under this bill. Why does this come all so late? It was over two years ago that the Ottawa Citizen and our party in the House reported on investigations that showed government inspections found that about 5% of pumps delivered more or less fuel than reported in the pump display on pumps across Canada. In the 2008 election campaign, the Conservatives were emphatic in saying that they would take immediate action. That is two years of consumers getting hosed, on average, twice a year per consumer. The government has collected taxes on all those overcharged consumers during that time. Why did the government not act sooner?

One thing that is interesting about the bill is it would outsource inspections on all sorts of measuring devices, including gas pumps, to private companies and private inspectors. There would be about 400 to 900 private sector inspectors required to carry out the inspections of the pumps alone. This would add perhaps $2 million in costs for the taxpayers each year. There would be the question of oversight of all these private inspectors. What is to stop a company in the oil business from having its inspectors in this position in a biased position?

A lot of questions are left unanswered by the bill. One problem the bill tries to solve is that while occasionally the pumps give consumers extra gas they did not pay for, far more often they give them less gas than they paid for. That can hardly be coincidental. As a former scientist, the degree of difference here does not seem to be random or accidental.

The bill would increase fines for pump discrepancies to $10,000, or $25,000 for big offences, and would add new fines of $50,000 for repeat offenders.

However, the biggest problem is not inadequate fines right now. Getting caught with inaccurate pumps already results in fines. The problem is authorities do not have the investigative power to gather evidence to impose fines where they are needed in the first place, not with inaccurate pumps, but with the price of gas itself.

Gas station owners should have properly calibrated pumps, and in fact the vast majority do. However, targeting them with more frequent inspections and higher fines is missing the big mark. The bill would use them as scapegoats, and the government seems to be unwilling to tackle the real problem. The bigger problem is not faulty pumps. It is high gas prices and unconscionable margins and probably collusion and price-fixing, prices among competitors that mysteriously go up in lockstep with one another and prices that shoot up quite quickly when the price of oil rises, but never seem to fall very fast or very far when the price of oil drops.

The real problem is that once again we are changing the channel away from the real issues. My region of northwestern Ontario knows this all too well, perhaps better than almost anywhere in Canada. My office hears over and over again from people who feel they are getting hosed. I do not blame them. Over the last 48 hours, eight out of the top ten most expensive pump prices in Ontario were in northwestern Ontario and the other two were in northeastern Ontario. In fact, our gas is usually more than 20¢ a litre more than in most parts of Ontario or in Manitoba.

This weekend while gas prices were as low as 89¢ a litre in Ottawa and 95¢ in Toronto, they were $1.10 or more in Thunder Bay, $1.13 in Terrace Bay and $1.15 in Longlac, among some of the highest prices in Canada. It is outrageous and fines for faulty pumps will not fix this. The problem is not with the pumps and it is not with the small gas station owners either for the most part, who as I said, the vast majority are honest and have accurate pumps. Most do not make very good margins themselves. Most do not even set the prices. It is the big oil companies that set those prices.

If we want to help a minority of consumers getting cheated at faulty pumps twice a year, that is okay. However, what about helping the vast majority of Canadian consumers who are getting gouged every time we fill up on gas? There are lots of unanswered questions. Why are prices in some regions like northwestern Ontario 25% higher most of the time? Obviously, different provincial taxes and periodic problems with refinery supply and shipping play a role in gas prices. The freight cost of transporting gasoline to the northwest is often given as a reason as well, but other regions in Canada just as far away do not have a whopping 25% price difference. As Thunder Bay's the Chronicle Journal newspaper wrote on July 10 of last year when things were really out of hand:

—the one definitive study into city gas prices...determined that prices here should be a maximum of only four cents a litre higher than the rest of Ontario.

What is needed is a public inquiry into price fixing in the gas market and industry oversight with real teeth. I know that when my colleagues in the NDP have called for public inquiries before, the government has suggested that consumers should take their concerns to the Competition Bureau. It knows full well that the Competition Bureau cannot do anything without a smoking gun. About the only time something really gets done is when an informant comes forward from inside the scheme, like we saw in the Quebec gas fixing cartel in 2008.

Virtually all the convictions from price fixing in the last two decades come from that one single case because someone on the inside came forward. In that case, the Competition Bureau commissioner at the time, Sheridan Scott, said an overwhelming majority of gas businesses in the markets involved were accused of participating in the scheme.

Eleven companies were charged with things like illegally fixing gas prices. They were able to convict four and only because they had an informant. I wonder how much similar activity goes on today across Canada that we cannot prove because there are no informants tipping the Competition Bureau off and the bureau does not have the authority to perform more than a cursory investigation of any consumer complaints. It can only investigate violations to the Competition Act, so a great majority of gas price complaints can go nowhere.

I hope the government will be open to starting a real inquiry into the matter and a public investigation of what can be done to really improve the situation for consumers.

One thing my party has been calling for is a gas price ombudsperson. Since the Competition Bureau is so limited in what it can do, we need an ombudsperson who could handle public complaints and give us strong and effective consumer protection.

Our member for Hamilton Mountain has tabled Bill C-286, which would do just that. It would enable Parliament to appoint an independent ombudsperson to investigate complaints about gas pricing and report to the ministry of industry if it is not satisfied with the response from the oil or gas supplier.

If given adequate investigative powers, the ombudsperson would help provide strong, effective consumer protection, including fines of half a million dollars if necessary, to ensure the really big offenders did not get away with swindling consumers. It would help ensure that we paid a fair price for gas so small and independent retailers would finally have proof that they were the good corporate citizens, as most of them are. It would ensure there would be greater oversight and accountability on the big oil companies. It is these big offenders and big distributors we need to go after, even more than those small business people with faulty pumps or the rare unscrupulous gas station owner who might nickel and dime customers.

There is one more thing I would like to bring up when it comes to fairness at the pumps.

No discussion of gas fairness is complete without talking about the harmonized sales tax. As we know, the HST being imposed by the Conservative government on consumers will raise the price of gasoline by 8% in Ontario. This price hike is orders of magnitude more costly than any savings Bill C-14 might ever bring to consumers.

Passing Bill C-14 off as a magic bullet to fix gas gouging, as the government is doing, while hiking gas prices across the board, is the biggest bait and switch in gas marketing history. It has been calculated that the average family of four, through the HST in Ontario, will be hit with an increase of $232 per year, even more in Thunder Bay where it is based on a higher price, and about $900 million across Ontario each year. It is a tax grab.

The Conservative government is tabling a fairness at the pumps bill to crack down on the 5% of pumps that are faulty, but hitting 100% of pumps with the biggest gas tax hike in history. Is this what Conservatives think of as fairness?

To conclude, this bill pays lip service to controlling unfair business practices in the sale of gas. Significant measures need to be added to the bill to make it really worthwhile for Canadian consumers who need it desperately. Do the Conservatives really care about consumers? Do they care about taxpayers? Do they care about average Canadian citizens, or do they really just care about big oil and oil and gasoline distributors?

It is my understanding that the amount of oil and gasoline that we export to the United States is roughly equivalent to what the east coast imports from Saudi Arabia and Venezuela. We know where the real priorities of the Conservatives lie, especially the Alberta-based Conservatives.

I hope the government will prove me wrong and will be open to stronger consumer protection measures in Bill C-14. It will be a litmus test to see whether the government really wants to tackle gas price gouging or if it is all just political positioning.

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

Madam Speaker, I thank my colleague for his fine speech on Bill C-14. It is clear that an investigative process will not help individual people. I agree with what the member said about not letting the industry govern itself.

There is also the fact that a lot of taxes were paid on gasoline that people never received. So I am wondering if the member agrees that we need a better process for ensuring that people can file complaints, and for refunding certain taxes or services that consumers never received.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, the government could have acted more quickly, especially since, as the member mentioned, a report was submitted in 2008 and a measure is now being proposed two years later.

In Bill C-14, the government talks about better prices resulting from competition, having more competition and having prices that foster competition. I believe that Bill C-14 does not truly address the issue of competitive pricing. It responds to the fact that the consumer purchases a certain quantity. However, the aspect of competition is truly set aside. There should be measures that deal not just with the quantity purchased but also the real price to be paid. To arrive at the real price, there must be competition and, on that matter, the bill is silent.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I am pleased to rise today to speak about a subject that affects a number of citizens. Everyone has an opinion about the price of gasoline and how that price is calculated. In past years, some reports and newspaper articles shed a light on gas pumps that were not accurately measuring the quantity of gas at some retailers. Consumers were frustrated, especially since at the time, gas was even more expensive than it is now. Bill C-14 was introduced in response to these reports.

The Bloc Québécois believes that it is important to modernize the legislation to guarantee better consumer protection and to deter businesses that could profit from these inaccuracies. The government must act as quickly as possible. But first, I would like to outline the position of the Bloc Québécois before I talk about our concerns about this bill.

I would like to begin by saying that the Bloc agrees with the principle of Bill C-14. However, the bill does not respond directly to the issue of collusion, such as recently came to light in Quebec, nor does it effectively prevent sudden gas price increases.

This is an important issue for the Bloc Québécois and we believe that we must continue to try and respond effectively to gas price increases with Bill C-452 because Bill C-14, which we are talking about today, still does not allow the Competition Bureau to initiate an inquiry. It has to wait until it receives a complaint from an individual before launching an investigation. The Competition Bureau does not have the power to investigate if it has not received a complaint.

Although the Bloc Québécois agrees with the principle of Bill C-14, the bill is not an end in itself. It does not deal with the major issue of apparent collusion in this industry. We believe that it is time to make amendments to the Electricity and Gas Inspection Act and the Weights and Measures Act.

First, any retailer that violated the Electricity and Gas Inspection Act would automatically receive a fine of up to $2,000. Inspectors who discover the violation would issue a ticket ordering the offender to pay the fine. The offender could then pay the fine or contest it within the timeframe and according to the terms of the ticket.

The defendant could present a due diligence defence, demonstrating that he had exercised due diligence in order to prevent the offence from being committed. Consequently, it would be up to the retailer to prove that he is not guilty, and there could be additional penalties if the retailer continues to operate in violation of the law.

However, the most important thing, I feel, is that the act would allow the names of offending businesses to be published. In an area such as gasoline sales, if a retailer were found guilty, there would be a serious impact. Word travels quickly in some neighbourhoods and since there are numerous gas stations, some businesses could lose customers. This measure would definitely force certain retailers to obey the new law.

Second, the amendment to the Weights and Measures Act will allow authorities to impose much stiffer fines on offenders.

Under the new provisions of this bill, government appointed inspectors will be authorized to enter the premises where they have reasonable grounds to believe that an infraction has been committed. They will be authorized to examine, seize and keep anything found there, use any computer or communication system found there and prepare documents based on that information. They can also restrict access to the premises and force the shutdown of defective equipment.

As is the case with the Electricity and Gas Inspection Act, a retailer who violates the law repeatedly over several days will face cumulative sentences for each of the days.

Bill C-14 also amends section 35 of the Weights and Measures Act to increase the penalties imposed on offenders. In the case of a first offence, a conviction will carry a maximum fine of $10,000 and/or up to six months of imprisonment.

In the case of an offence prosecuted by indictment, the maximum fine will be $25,000 and/or up to two years of imprisonment.

In cases of repeat offences, the maximum fine for an offence punishable on summary conviction will be $20,000, although the maximum prison time remains unchanged at six months.

If the offence is prosecuted on conviction on indictment, the maximum fine will be $50,000, still with the possibility of a maximum prison sentence of two years.

Lastly, a fine of $10,000, or $20,000 in cases of repeat offences, has been established for offences that are not already covered by the legislation.

Bill C-14 is not meant to frighten retailers, but simply to correct a piece of legislation that no longer meets current standards.

It is only natural that, in 2010, inspectors should be able to ensure that consumers are not being cheated. Consumers must receive the amount they pay for. They must get their money's worth.

All the same, we do have some concerns about the bill, and we intend to raise certain issues when this bill goes to committee for examination.

We believe that Bill C-14 could have included an amendment to the Competition Act. The government should use this bill as an opportunity to introduce additional measures to protect consumers.

I have been a member of the House of Commons since June 2004, and every time we have debated the price of gas and rising prices, the government, be it Liberal or Conservative, has always said the same thing: their hands are tied because the Competition Bureau found no evidence of price-fixing among oil companies. There was therefore no problem.

What we really need to grasp here is the fact that the Competition Act has some major loopholes. The Competition Bureau cannot launch an inquiry of its own accord. Inquiries can take place only at the minister's instigation or if a consumer, a legal entity or otherwise, files a complaint.

I know the government says that it implemented measures to fix the problem as part of the 2009 budget implementation act. However, these new provisions still do not enable the Competition Bureau to inquire of its own accord or to take this kind of initiative.

The inquiry process cannot be launched until a complaint is received. That is how it works right now.

In fact, that is why we believe that the Bloc Québécois' Bill C-452 is still needed. It would enable the Commissioner of the Competition Bureau to inquire into an industry sector if he or she deems it necessary to do so. As it stands, Bill C-14 does not address that issue.

Bill C-452 gives the Competition Bureau the power to take the initiative to carry out real inquiries into the industry if it has good reason to do so, which is not something it can do right now. It cannot act until it receives a complaint.

It goes without saying that if we pass such a bill, the Competition Bureau will be far better equipped to fight companies that seek to take advantage of market dominance to fleece consumers.

I hope that my colleagues of all political stripes in the House will tell us what they think of Bill C-452 and whether they agree with us about the Competition Act's shortcomings. As I said before, the current Competition Act does not allow the Competition Bureau to hold inquiries of its own accord. It cannot launch an inquiry unless it receives a complaint or is authorized to do so by the minister.

For years we have also been calling for a petroleum monitoring agency to closely monitor the price of gas and to address any attempt at collusion or unjustified price increases.

The Bloc Québécois is not alone in recommending changes. For years we have been repeating the recommendations of the Standing Committee on Industry, Science and Technology made in November 2003. The federal government has never done anything to help consumers and has a fine opportunity here to set up a system to monitor the petroleum industry.

In November 2003, the Standing Committee on Industry, Science and Technology strongly recommended the creation of an agency to monitor the oil sector. A committee would be asked to submit an annual report to Parliament on the competitive aspects. The creation of such an agency would enable the government and us as legislators to keep a close eye on the industry.

To the Bloc Québécois, there is no doubt that the Competition Bureau must have more freedom to act and more discretionary power over its inquiries. The Competition Bureau must have access to all documentation when conducting an inquiry. The Competition Bureau could then effectively play its role as an advocate for competition. When there is competition, the consumer pays a fair price.

Only if it is given more responsibility can the Competition Bureau undertake a real inquiry into the true nature of the activities of an industy sector.

Today we are no further ahead than we were seven years ago. Bill C-14 is a step in the right direction, but it is just the first step. For a long time now, the Bloc Québécois has been urging the government to take action to deal with the high prices of petroleum products. Bill C-452 is just the first step in fighting the high price of gas.

Bill C-452 aside, the Bloc Québécois is more convinced than ever that the industry must do its fair share. With skyrocketing energy prices and the oil industry's profits, the economy as a whole is suffering while the oil companies profit. We have to do away with the fat tax breaks the oil companies are getting.

One year after coming to power, in its 2007 economic statement, the Conservative government announced additional tax cuts for the oil companies, which will see their tax rate go down to 15% in 2012. Canadian oil companies will pocket nearly $3.6 billion in 2012 alone because of these tax breaks.

Third, we must reduce our dependence on oil. Quebec does not produce any oil, and every drop we consume makes Quebec poorer, in addition to contributing to global warming. The Bloc Québécois therefore proposes that we reduce our dependence on oil.

In 2009 alone, Quebec imported $9 billion worth of oil, less than usual because of the recession, but in 2008, oil imports totalled $17 billion, up $11 billion from 2003.

To reduce our dependence on oil, the Bloc has proposed substantial investments in alternative energy to create a green energy fund, launch a real initiative to reduce our consumption of oil for transportation, heating and industry, including an incentive to convert oil heating systems, and introduce a plan for electric cars.

We have to get ready, because by 2012, 11 auto manufacturers plan to introduce some 30 fully electric and hybrid models, more reliable cars with better energy efficiency and much lower operating costs than gas-powered cars.

I do not want to get away from the objectives of Bill C-14, but for the Bloc Québécois, any discussion of oil consumption has to include a real plan and a structure for attaining these three goals.

In closing, I will briefly go over the three steps to a more effective law. First, we have to bring the industry in line by giving the Competition Act more teeth. Second, the industry has to pay its fair share of taxes, which means doing away with fat tax breaks. Third, we have to reduce our dependence on oil by, among other things, introducing incentives for consumers to buy electric vehicles.

Better ways to prevent fraud, as Bill C-14 is proposing, are needed, but we must introduce measures that will really benefit us in future, with a comprehensive action plan.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I have the pleasure of serving on the Standing Committee on Industry, Science and Technology, so I know the member who spoke very well, since we have been working together on this issue in committee for a few months now. The hon. member has often seemed to be much more reasonable than his own party.

I believe the purpose of Bill C-14 is to ensure that consumers receive the correct amount of gasoline for the price they are paying, but it does not propose a measure to control gas prices. We need such a measure. Consumers are not paying and will not be paying a fair price, because competition does not work the way it should.

Can the member tell me why the Conservatives did not put any measures in Bill C-14 that would encourage competition and allow consumers to buy gas at a fair price?

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, I wish to thank the House for giving me this opportunity to voice my support for the fairness at the pumps act, an act that upholds the integrity of many Canadian industries, an act that boosts consumer confidence and promotes competition in the marketplace, and an act that honours the promise my hon. colleagues and I made to Canadians when we formed this government.

I urge members of the House to recall that promise now, to remember the events of two years ago. At that time, gas prices were rising steadily across the country. With each passing month Canadians were pressed to dig deeper into their pockets to drive their children to school, commute to work, and to purchase consumer goods transported long distances to local stores. By spring, the cost of fuel was reaching historic highs.

That is when the news hit. Some retailers were capitalizing on the hardships of Canadians fraudulently. Media outlets covered the story recalling that as a result of inaccurate measurements at the pump, many people paid for fuel they never received. Canadians cried foul and rightly so. The fundamental rights of consumers had been violated. The vital trust between buyers and sellers had been broken. The time-honoured principles that formed the very basis of this country's market economy had been dishonoured.

The Government of Canada took action immediately. We vowed then and there to amend the Electricity and Gas Inspection Act and the Weights and Measures Act. We vowed to ensure that people across the country receive what they pay for at the pumps. We vowed to protect consumers in all trade sectors that depend on accurate measurements of goods.

We made a promise in 2009. Today, we keep that promise. We keep that promise through the introduction of the fairness at the pumps act, a piece of legislation that holds retailers accountable to buyers for the volume of product sold, that enshrines consumers' rights to know what and exactly how much they buy of any product, and that promotes fairness, honesty and decency. These are the values all Canadians cherish.

I am sure many members of the House agree with me. Such legislation is vitally necessary, but will Bill C-14 be effective? Will Bill C-14 accomplish the goals to which it aspires? Will Bill C-14 prevent fraud in the retail petrol sector? These are valid questions.

Too many well-intended laws lack the robustness needed to bring about real change. The Electricity and Gas Inspection Act and the Weights and Measures Act are proof enough. By virtue of these laws it has long been a criminal offence to cheat the measurement of goods and services and so deceive consumers. Still, many retailers fail to follow the letter of the law.

In 2006-07 Measurement Canada made it a priority to get to the bottom of the issue. Indeed, the special operating agency declared its resolve to address the problem of measurement inaccuracy in eight trade sectors, including the retail petroleum sector in Industry Canada's 2006-07 report on plans and priorities.

Since then, Measurement Canada has consulted extensively with industry leaders, small business owners and with members of the public. In each discussion one truth continually resurfaced. One truth that now provides the rationale for the specific amendments to the Electricity and Gas Inspection Act and the Weights and Measures Act presented in the fairness at the pumps act.

There are two types of non-compliant retailers. There are retailers who mislead consumers inadvertently and much more seriously, there are retailers who cheat consumers maliciously.

Let me speak first of all to those who mislead consumers inadvertently. By and large, these are honest retailers. These are decent, otherwise dependable men and women who through ignorance or negligence fail to monitor and maintain the accuracy of their equipment.

At present, the only means to punish even minor contraventions to the Electricity and Gas Inspection Act and the Weights and Measures Act is in the courts. Prosecution, however, is not always the most appropriate means to penalize careless retailers. After all, these are not necessarily felons. These are not people whose actions are so monstrous as to warrant a lifelong criminal record. These are people who should be warned, who should be disciplined, and who should be taught to be accountable for the distribution of their products and services.

For those retailers the solution is simple: more frequent inspections. Under the fairness at the pumps act, businesses would be required to have the accuracy of their gas pumps or other measurement equipment validated and certified regularly by the authorized service providers trained to meet Measurement Canada's performance criteria. Retailers found to be non-compliant with consumer laws would face monetary penalties in line with the severity of their offence.

What about retailers who cheat consumers maliciously? What about the second type of non-compliant retailer who knowingly undermines the accuracy of his or her devices so as to profit at the expense of others? Periodic audits of measurement accuracy are not enough to protect Canadians from such racketeers. Strong enforcement mechanisms are necessary.

Here is where the existing legislation falls flat. At present, the maximum fine for non-compliance is $5,000. A minor offence runs retailers a mere $1,000. The penalties are a pittance compared to the money dishonourable retailers stand to gain. Make no mistake. Tampering with the accuracy of measurements is not a crime of passion or revenge. It is not a crime of hatred or a crime of fear. It is a crime of greed. Money is always the motive. Therefore, let money also be the deterrent. Let criminal behaviour be made less lucrative. Let criminal behaviour be made less compelling.

The fairness at the pumps act would increase court-imposed fines up to tenfold and would add new administrative monetary penalties. Retailers who commit minor transgressions would pay for their non-compliance with a fine of $10,000. Retailers who are more conniving, unscrupulous and deceptive would face fines of up to $25,000 and could find themselves before a judge. Retailers who are found to measure fuel or other goods inaccurately more than once would risk a $50,000 and legal prosecution.

In this way, the fairness at the pumps act would provide what existing legislation lacks: a strong arm to enforce the law and deter criminal behaviour before it starts. For this reason, I am confident that Bill C-14 is not merely a mouthpiece for consumers. Bill C-14 is a champion of consumer rights, with the backbone to defend the interests of Canadians at the gas pump and everywhere else consumer goods are sold on the basis of measurement across this country.

I urge my hon. colleagues to also defend the interests of Canadians. I urge my hon. colleagues to contemplate the merits of the fairness at the pumps act and pass Bill C-14. Indeed, I urge my hon. colleagues to vote in favour of this act with as much conviction, as much determination and as much principle as Canadians did when they elected us as their representatives and entrusted us with the responsibility to protect the rights of consumers.

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

Mr. Speaker, I wish to thank the member for his presentation on Bill C-14 today. I certainly have supported his work over the last number of years on this particular issue, but in terms of this particular bill itself, it seems to me that increasing the penalties is something that is long overdue and should help in the situation. I think the member would more than likely agree with that.

Given that we are bringing in this bill to save basically $20 million, are we looking at the other side, which is the cost to the businesses?

The only time a Conservative government ever brings in consumer legislation is if there is an offset to business, and the offset to business here is that it is going to allow private people to get into the inspection business. It is going to let the inspection services be determined by market forces. That means that these little retailers, in some cases in the rural areas and up north, are going to have to shop around for an inspector, maybe at a cost of hundreds of dollars, to come and inspect their pumps.

It seems to me that with the random system we have right now, inspection by the government, there is no conflict of interest there and that is the system to have. Maybe we should be doubling the number of government inspectors and keeping the inspections on a random basis so that the retailer does not know when the inspector is going to show up.

This proposal says that they have to find their own inspector and that they are going to know when the inspector is going to show up to do the inspections.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, the member says that Bill C-14 does not really solve the problem of the price of gas at the pumps. It is my understanding that he believes that competition is the solution.

Does my colleague believe that if the Competition Bureau had real investigative powers, it would foster more competition? We know that more competition often results in consumers paying the true cost.

[Robert Bouchard, Bloc, Chicoutimi—Le Fjord, QC]

Mr. Speaker, Bill C-14 imposes rather stiff penalties. The hon. member also spoke of the fact that gas pumps and gas meters are quite precise.

Does the retailer have to exceed a specific margin of error in order to be found guilty?

[Mike Wallace, Conservative, Burlington, ON]

Mr. Speaker, I thank the member for Abbotsford for sharing his time with me today. He is a leader not only in Abbotsford but within the Conservative caucus. I appreciate the effort he has put in today and every day.

It is a pleasure to speak today in support of Bill C-14, the fairness at the pumps act.

I am proud to stand before members as my government takes decisive action to protect Canadians from inaccurate measurements at the gas pumps and other measuring transactions across the country. We pledged in our 2008 election campaign to expedite the issue of measurement inaccuracies, and today we take an important step toward making good on that promise.

The Weights and Measures Act has for many years set the measurement rules for the purchase and sale of products that Canadians enjoy every day and the Electricity and Gas Inspection Act sets rules for the purchase and sale of electricity and natural gas, critical commodities for sustaining our Canadian way of life.

Bill C-14, the fairness at the pumps act, would amend those two pieces of legislation to protect Canadian consumers and retailers from inaccurate measurements. The bill is just one more instance of the Minister of Industry's energetic commitment to ensure fairness in all business practices across the country.

Bill C-14 may strike some of my hon. colleagues as a housekeeping law, but I can assure them that it represents far more than that. When measurement inaccuracies occur, whether deliberate or inadvertent, they represent a great potential liability for Canadians. The fairness at the pumps act attacks this critical and compelling consumer issue by increasing the onus on retailers to take charge of their measurement practices and ensure all customers get a fair reading of their product purchases.

The act would accomplish this by imposing fines on non-compliant businesses and by calling for mandatory inspection frequencies. This means that businesses would be required to have their measurement equipment inspected by a third party every one to five years, depending on the industry. If the equipment does not operate accurately, the business must have it repaired.

I refer to this consumer issue as critical and compelling because it has been top of mind with Canadians since 2008 when the news media reported on how very often gas pumps inaccurately measured the fuel they were dispensing. Canadians also learned from those news stories that the consumer was the loser in three out of five instances of incorrectly measured fuel.

Understandably, Canadians have become increasingly concerned about whether they are getting their money's worth at the pump. They wonder if they are being overcharged because they have no means of judging for themselves the accuracy of the neighbouring gas pump in question. It is a situation that is completely unacceptable, which is why the Minister of Industry and his predecessor have followed such a decisive course of action in developing this bill.

Despite the bill's name, the fairness at the pumps act, it extends well beyond gasoline retailers. It calls for inspections in other sectors, including downstream petroleum, dairy, retail food, fishing, logging, grain and field crops, and mining. My government may add additional sectors to this list in the future according to the needs of Canadians.

One great strength of Bill C-14 is that it has been carefully crafted to anticipate a wide range of offences, from the relatively minor to the serious. The fairness at the pumps act would ensure not only that retailers have their measurement scales inspected frequently enough to guarantee accuracy in nearly all cases, but it would also impose stiff penalties on retailers who fail to comply.

As my hon. colleagues know, some people will only make the effort to comply if there is a criminal charge to be had, only if circumstances are dire. By raising the fine of non-compliance from $1,000 to $10,000 for minor offences, from $5,000 to $25,000 for more serious offences and up to $50,000 for repeat offenders, the Minister of Industry is sending a strong signal to gas pump operators and retailers across this country: comply or pay.

Canadians are tired of being victimized by lax measurement standards. This new legislation would protect them from that. At the same time, Bill C-14 offers a means of penalizing offenders without actually prosecuting them as criminals.

Although the bill calls for swift punishment when necessary, it also recognizes that some measurement offences are relatively minor and inadvertent. As such, Bill C-14 offers what we have called a graduated enforcement approach, which means the penalty can fit the offence.

Canadians believe in appropriate justice and this legislation reflects that ethos. Indeed the fairness at the pumps act approaches the very issue of enforcement in the spirit of fairness and constructive encouragement rather than casting all offenders as hardened criminals.

Not only does Bill C-14 protect consumers and make allowances for minor offenders, it is also a boon to small business operators who will act as government appointed inspectors under the legislation. One of the media's principle criticisms of Measurement Canada's performance in 2008 was the organization's lack of capacity to protect consumer interests. My government has addressed this issue by requiring businesses to manage their own inspection schedules in compliance with this new legislation.

The fairness at the pumps act calls for the use of private sector operators as authorized service providers. These businesses would conduct inspections under the Weights and Measures Act on behalf of the government and charge for their services according to supply and demand.

Rather than imposing a top-down government-driven inspection regime, Industry Canada will train small businesses to undertake this important work. It will evaluate them every year to ensure they are doing the job correctly and then trust them to carry out their job with accuracy and integrity. If they violate that trust, Industry Canada may revoke their authority.

Will Bill C-14 put undue strain on small business operators required to comply? My government believes it does not. There will be minor additional costs for small businesses, but the conveniences inherent in the new system may well offset those costs.

For example, authorized service providers, the inspectors who the Minister of Industry will designate, could also service and repair measurement devices as they perform their inspections. In this way, small businesses will find that they can kill two birds with one store and keep their equipment working at an optimally at all times.

Gas and food prices continue to be a concern of all Canadians. With these price pressures comes a great responsibility to ensure that the quality of the product is near perfection. No purchased good can approach perfection if its weight or volume has been calculated incorrectly.

This reality rings especially true for the single mother who is feeding her family on a shoestring budget, for the small business landscaper whose company has to pay onerous gasoline bills to reach rural customers and for working parents who have to heat their home with increasingly expensive natural gas through a bitter prairie winter.

I call on my hon. colleagues to recognize that on the issue of measurement standards, these Canadians cannot afford anything less than the protections in Bill C-14. If retailers fail to comply with the perfectly reasonable stipulations of the fairness at the pumps act, they must be made to pay.

The House resumed consideration of the motion 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.

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, it is a pleasure to have the opportunity to speak in support of Bill C-14, the fairness at the pumps act.

I will be splitting my time with my colleague, the hard-working member for Burlington. He and I were elected at the same time. He has worked very hard to ensure fairness at the pumps and to protect consumers, as well as victims with our criminal justice legislation.

For some time now, Canadians have been calling for this important legislation. This bill would move Canada forward in establishing fairer business practices in industries that measure or weigh products they sell. Canadians continue to worry about whether retailers are improperly charging at their local gas pumps or overstating the weight of groceries purchased at the local supermarket.

Today our Conservative government is taking a bold step forward to fix this problem, hopefully once and for all.

It is the responsibility of the Industry Canada to ensure that consumers and businesses receive fair and accurate measures for the goods they purchase. Although the importance of enforcing accurate measurements may sound obvious enough, experience has shown that only through a carefully monitored regulatory regime can Measurement Canada accomplish this task. The fairness at the pumps act would provide the foundation for such enforcement.

Once this legislation becomes law, retailers will be able to build a solid track record that will go a long way toward developing renewed trust with Canadian consumers. Consumers have the right to know exactly what they are paying for each and every time. Our Conservative government's goal with Bill C-14 is clear: to give Canadians greater confidence when they purchase products and goods in the market.

I would like to remind my colleagues in the House that at present many Canadians have little faith in the measurement practices of the businesses they patronize. Who can blame them? Federal measurement standards took a drubbing in our national media in 2008. Article after article revealed that Canadians were being unfairly charged at the gas pumps.

Our Minister of Industry responded and responded quickly. After consulting broadly with stakeholders in the gas, dairy, retail food and other retail sectors, our Conservative government created legislation that placed the onus squarely on businesses to guarantee the measurement accuracy of their products.

The fairness at the pumps act would ensure compliance in part by calling for increased fines for offenders. This tool is an excellent deterrent to criminal behaviour but, perhaps more important, it also calls for mandatory inspections of measuring devices.

This would help to address a critical element of the measurement problem, namely, retailers who neglect to inspect and maintain their measurement equipment. As a result, customers are often unfairly charged for the goods they purchase. Many retailers may not mean to charge unfairly but, as the media articles of 2008 made clear, such errors happen all too often.

Previously, businesses were not required to have their measuring devices checked periodically for accuracy. Bill C-14 would require mandatory inspection frequencies. This means that inspections must be carried out every one to five years, depending on the industry.

Under Bill C-14, inspection frequencies would be first introduced in eight sectors: retail petroleum, downstream or wholesale petroleum, dairy, retail food, fishing, logging, grain and field crops, and mining. Other sectors may be added in the future based on the results of our ongoing consultations with stakeholders.

It is important to note that it would not be government that carries out these mandatory inspections. The fairness at the pumps act authorizes specially trained private sector firms to do the work on behalf of government. This means that once inspection firms have been designated, they will be available for hire whenever retailers need them.

Our research has told us that this will lead to many more inspections than we see under the current legislation. Just as important, government will not set a price for inspections. Supply and demand will determine price and also the number of firms that Industry Canada will authorize to carry out those inspections. This puts the mandatory inspection aspect of Bill C-14 firmly in the realm of market forces where it belongs.

Many other countries and jurisdictions, such as France, Germany and most of the American states, have used mandatory inspection frequencies for many years. Canada has lagged far behind. It is high time that we have a modernized law, such as the proposed fairness at the pumps act, to put our country's approach to retail measurement in line with international standards.

Clearly, there is a pressing need to give Canadians a greater sense of confidence in retail measurement standards. This need was the strong impetus behind Bill C-14 but we also drafted the fairness at the pumps act with a keen eye to the needs of other stakeholders within the industrial sectors I mentioned a moment ago. I will explain.

Canadian entrepreneurs have been working with great effort over several years to effect change on this issue. Honest and fair-minded business operators feel the sting and the opprobrium just as much as consumers when less conscious competitors do not accurately measure the products they sell.

This bill would help to level the playing field for small businesses. It finally recognizes that the large majority of retailers who are honest suffer by the actions of the unscrupulous few who do not want to follow an ethical approach to business.

In truth, our action on this issue predates the negative media coverage from 2008. We began working with stakeholders, including many business operators, on a broad range of proposed reforms back in 2006. We started this work when we saw that compliance rates for accurate measurements were actually trending downwards. Indeed, industry has had ample opportunity to provide input into the challenges it faces in the measurement and sale of good and services. Industry's input has been invaluable.

Our stakeholder consultations underscore the fact that retailers can also be victimized by inaccurate measurements, whether inadvertent or deliberate. In fact, it was our stakeholder consultations that led to a recommendation for mandatory inspection frequencies. Indeed, some stakeholders have implemented inspection frequencies voluntarily, and I commend them for being proactive. By establishing voluntary mandatory inspection regimes, these companies know beyond a doubt exactly how much they are selling and they face fewer inventory problems.

It is important to understand that the legislation before us today is not just another government imposed cost for small business. This law would protect average Canadian consumers and, yes, there would be some relatively minor costs associated with keeping measurement devices inspected and working properly, but, as I have just explained, the legislation offers tangible benefits for the small business operator, the independent gas retailer, the independent grocer, the rural lumber mill or the small scale cheese factory. All of these small businesses are owned by people who cannot afford to be undercut by unscrupulous competitors.

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

Mr. Speaker, I am pleased today to speak to Bill C-14, a bill that has been a long time coming to the House.

On April 15, 2010 the Minister of Industry introduced Bill C-14, An Act to amend the Electricity and Gas Inspection Act and the Weights and Measures Act, which is when it was given first reading. Of course, the government calls it the fairness at the pumps act.

Bill C-14 provides for court imposed fines under 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. In fact, it increases them by quite a substantial amount, and that is a very positive thing. It creates new offence provisions for repeat offenders.

The bill also amends the Weights and Measures Act to require retailers to have their devices that they use in trade or in their possession inspected at regular intervals. 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 non-government inspectors or authorized service providers as inspectors to perform certain examinations.

At the outset, we are certainly looking for some amendments to this particular bill. As I had indicated, two years ago an Ottawa Citizen report on a Measurement Canada investigation revealed that between 1999 and 2007, government inspections of over 200,000 fuel pumps found that about 5% of the pumps delivered less fuel than reported on the pump display. Government inspection data showed that about one-third of Canada's gas stations, or about 14,000 of them, had at least one faulty pump. A motorist who fills up at various stations and pumps is likely to be short-changed about twice a year. This means that Canadians have been paying for gasoline they did not receive and the government was collecting tax revenue based on phantom gasoline purchases.

At the time the story came out, our critic questioned the minister, and he indicated that he would change the regulations to impose higher fines and have more inspections. In fact, nothing happened at that time. During the election campaign of 2008, the Conservatives made a promise to bring about changes to increase the monitoring of fuel pumps across the country and increase the fines for violations. Once again, nothing happened until now with the introduction of the bill. We could always say better late than never, but it certainly has been late.

No resolution or corrective action has been taken since the original report back in 2008, which means that the faulty pumps the government is talking about have been overcharging customers across the country and the violators have not been punished, even though the data from Measurement Canada would indicate the locations of repeat offenders. In addition, the question of government collecting taxes on these phantom purchases or overcharges has never actually been resolved.

Bill C-14 will, as I had indicated, increase fines and introduce administrative monetary penalties. The fairness at the pumps act proposes to strengthen consumer protection and provide greater deterrents against inaccurate measurement by increasing the court imposed fines under the Electricity and Gas Inspection Act and the Weights and Measurements Act. The fines on 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 amendments also introduce a new fine of up to $50,000 for repeat offences.

The fines under the Weights and Measurements Act would also cover odometer rollbacks. We say that is a good thing, but interestingly enough, no mention has been made of that. It is listed further on the sections that will be impacted by the bill.

At no point does it mention that the issue of the rollback and tampering of odometers is now going to meet with the same penalties and severity that is being used for this issue of the gas pumps. I wonder why that is the case. Perhaps it is an oversight that no one over there noticed, though I find that hard to believe. It seems to me that odometer rollbacks would be an even bigger and more popular issue for a government that wants to act on behalf of consumers.

For many generations now, since the invention of the automobile, people have been disconnecting their odometers. Both private individuals and car industry people have been replacing their odometers and rolling their odometers back. That has resulted in huge consumer losses. Many people listening today and even people in this chamber may not know that in the past they may have purchased a vehicle with a certain mileage on it. In fact, it may have been a vehicle that had many more miles on it, but the odometer had been disconnected, replaced or rolled back. They will never know that this has happened to them.

To me, that is a big exposure. We dealt with this issue in Manitoba a number of years ago under the previous Filmon government. The owner of a garage had been convicted under the Weights and Measures Act 25 years prior. It did not stop him because the penalties were just not there. He just kept doing what he was doing. He was buying cars in auctions in Toronto. They were cars that had maybe 300,000 kilometres on them. He was systematically rolling them back and putting them at 80,000 kilometres so that these four year or five year old cars would not draw attention.

He was buying them for $4,000 and selling them for $8,000. That seemed to be the formula he was using so that people would not be suspicious of the amount of mileage on the car. As a matter of fact, police officers told me at the time that they just had to go to the lot to spot dealerships that were rolling back odometers. If pretty much all the cars on the lot were all around the 80,000 kilometre mark, they knew that they had somebody who was rolling back odometers.

We know that this was a big, widespread activity. In fact, when this gentleman was caught for the second time, the Weights and Measures Act penalties were once again not sufficient to really cause him huge concern. I am even happier now to have the penalties we see under this act raised knowing that they will cover the issue with odometers.

The government is also looking at setting private inspectors up to do inspections. We wonder how much that is going to impact the cost to business. In Manitoba, a number of years ago under the previous Filmon government and at about the same time as the gentleman I just spoke about was rolling back odometers, the government decided to change the provincial rules and require the new odometer readings to be put into the computer and onto the system each time a car was sold.

Also around that time, because of lobbying on the part of the Manitoba Motor Dealers Association, the government of the day decided to make safety inspections mandatory. Up to that time, previous governments simply did it on a random basis. Cars would be called in for a safety inspection every two, three or four years. The government changed the rule that said that private garages had to inspect cars every time the cars were sold. Now, if a car had been owned for 10 years, it never received an inspection at all until it was sold, whereas the old system had a random approach and the inspection one received was for two years.

That led to a lot of abuses. In many cases, garages would take advantage of the consumers and could spot all sorts of defects in the car. Alternatively, the media, which did some checking of different garages, found that some garages wanted to fix many more items than needed to be fixed. In other cases, people would simply approve a car because they knew somebody. Therefore, this system did not work that great.

However, the point is it was brought in not because of any huge consumer demand for it, but because industry wanted it. Industry wanted to be able to inspect those used cars. What it did, almost overnight, was drive the cost of used cars up, at least at the low end. Once it was institutionalized, when the government changed in 1999 and the NDP came back in power, not only did it not remove it and go back to the old random inspections on behalf of the government, but it changed the rules once again. Under lobbying from the Motor Dealers Association, it changed the rules so it was no longer a two-year inspection but a one-year inspection. We have had this system now for a number of years.

I only relate this experience because of potentially what can happen in a case like this. The last two speakers to the bill have mentioned the fact that this will save the consumers roughly $20 million, but the cost to business has not been quantified. The government is planning to increase the number of inspections. More important, it is planning to allow the private sector to start conducting the inspections.

For rural areas and areas up north, this may mean greatly increased costs. My friend from Yukon will be up asking me a question about this in short order. In areas such as Yukon and the Northwest Territories, how is the government going to deal with that situation? To have an inspection done now may literally cost the little retailer hundreds and hundreds of dollars.

It remains to be seen what is being unleashed here. I am certainly sympathetic and agreeable to the idea because it should be done. In terms of having private inspection services involved, I see a lot of potential for abuse. I do not know whether the government is going to mandate the fee schedule that these inspectors have to charge or whether it is going to mandate the training that the inspectors need to have. We do not know any of that at this point.

The privatization of this inspection service by mandating these frequent inspections is going to be carried out by these newly authorized service providers or private companies. I guess it is basically another privatization effort. The Filmon government took a functioning government program in Manitoba, and changed it. It was a fair system that had been functioning for probably 20 years. On a random basis, people's cars would be called in for an inspection. The inspection would be done by a government motor vehicles inspector, who the public would trust. The member for Yukon can appreciate that. If people had been driving their cars for 10 years and all of a sudden they received a notice in the mail to bring them in to be inspected, they knew it was a government inspector, a qualified motor vehicles inspector, who would inspect the car and who had no incentive to do bad things. If something needed to be replaced, it would be written up and it would have to be replaced.

The Filmon government changed that inspection system and turned it over to the private sector, to private garages. Overnight we saw examples of gouging the public. The same garage doing the inspection report was also doing the repairs. It was very easy to take a car, find a dozen things wrong with it and then repair them and bill the customer. Not only now were people making money for doing the inspections, they were also making money for the repairs.

CBC did an indepth study with a ghost car program. I went to Canadian Tire and other garages. By the way, this was not done only once, it was done over a period of time. It did one series of inspections and a year later, guess what? It was the same garages doing the very same thing to the public. Some of the better known names fared worse in the study than some of the little mom and pop garages that were involved in the investigation.

What are we going to do? The private inspections are going to be increased from 8,000 to 65,000 a year. Perhaps the member for Yukon will put forward an amendment to revisit this after a number of years to see how the system has worked. I am not suggesting a sunset clause, but some sort of amendment that we would have a mandatory review after a three year period, a cost benefit analysis to see how well the system had worked.

There is no ombudsman office to evaluate problems or investigate complaints. There is no refund or compensation for consumers who are ripped off. There is no refund or restitution on the taxes collected by the phantom gasoline purchases.

I know a number of speakers want to talk about gas prices and that certainly is an issue. However, I want to talk about the fairness at the pumps act, which proposes to increase retailer accountability for measuring device accuracy by requiring retailers to have the devices inspected at regular intervals. I am not certain what those regular intervals would be, whether it would be six months or an annual inspection.

I believe the Liberal member talked about the inspection not being random any more. Right now there are random inspections. In many cases, a random inspection would be the best idea. However, if an inspection is appointment-based, if any skullduggery goes on in the system, what will stop the retailer from simply making certain the problem is fixed the day the inspector shows up and then change the pumps back after the inspector leaves. I am not certain how these things work. If people know when the inspector is coming, they can set up the pumps to ensure they pass the inspection. If that is the case, what is the point of doing this? I would think the random inspection is probably enough to keep people honest.

Let us assume the government is on the right track on the fines. I believe that to be the case. Let us congratulate it for the fines, but maybe we should look at leaving the inspections on a random basis so retailers are unaware when the inspector will come.

The bill would apply to retail food, dairy, logging, retail, petroleum, a whole number of areas, including the area of the odometer rollbacks, which is not mentioned in the process. The point is mandatory inspections are being done in other countries such as France, Germany and the United States.

[Serge Cardin, Bloc, Sherbrooke, QC]

Mr. Speaker, Bill C-14 is obviously important, but frankly, only relatively so. For the next 20 minutes, I will try to clearly explain the Bloc's position. I may not go into every detail of Bill C-14, but I will describe the Bloc's concerns about the Competition Act and the fact that successive governments have done nothing. And, of course, I will describe the Bloc's response to this bill, which is Bill C-452. I will also briefly explain a comprehensive strategy for dealing with increases in the price of petroleum products.

As the parliamentary secretary said earlier in his speech, the government introduced its bill to protect itself and consumers against negligent retailers. “Negligent” is putting it rather mildly. There will obviously be mandatory inspections, but they will be much more frequent. The government is talking about increasing the number of inspections from 8,000 to 65,000. The bill would also authorize the minister to appoint or designate professionals to conduct these inspections. In addition, there would obviously be fines that could be quite high, especially for repeat offenders. Of course, the government says that it is doing all this to protect the consumer.

Has the government, as usual, conducted an impact study of its bill to compare it to what is being done to manage or monitor gas prices at the pump? Naturally, there will be costs associated with all that. Inspections are not free, of course, and retailers will likely be stuck with the bill in the end. I imagine that retailers' costs will go up substantially, all to save consumers about $20 million, which is the estimated difference between the prices. That may seem like a lot of money, and it is, but how many litres and how many consumers are we talking about? Are all the costs of implementing Bill C-14 really worth it? I do have to say, though, that when consumers are hurt, it is our duty to try to make things right.

So I will say right away that we support Bill C-14 in principle. But it does not directly address collusion problems, like the ones that recently came to light in Quebec, nor does it effectively prevent sudden gas price hikes.

The Bloc Québécois still believes that the government needs to work toward offering an effective response to rising gas prices by passing the Bloc's Bill C-452. This bill would strengthen the Competition Act and create a petroleum monitoring agency.

The Competition Act still does not allow the Competition Bureau to conduct an inquiry of its own accord. It has to wait until it receives a complaint before launching an inquiry. The Bloc Québécois also wants the government to establish a petroleum monitoring agency to scrutinize gas prices and to deal with attempts to collude and unjustified price hikes.

According to tools devised to measure how much this is costing consumers, the suggested figure is $20 million.

According to the April 2009 gas consumption data that I found, that $20 million corresponds to one-tenth of a cent per litre of gas purchased in Canada. The cost of gas varies from 90¢ to $1, but it always includes a decimal that people rarely look at. However, oil companies adjust their prices to a tenth of a cent, which represents an amount much higher than the $20 million per year those tools suggest.

Overall, a one-cent difference adds up to $200 million per year, not the $20 million they are trying to correct for.

The Minister of Industry introduced Bill C-14 at first reading on April 15, 2010, claiming that it will protect Canadian consumers from inaccurate measurement when they buy gas. The proposed bill would make retailers more accountable by imposing regular mandatory inspections of measuring devices, such as gas pumps.

The penalties that the courts can impose under the Weights and Measures Act will increase from $1,000 to $10,000 for minor offences and from $5,000 to $25,000 for major offences. For consumers who feel they have been wronged, this might lead them to believe they have increased protection thanks to their hallowed and benevolent government. This is just more smoke and mirrors to trick consumers who believe they are being protected from additional costs, when the government is not doing enough to protect them when it comes to gas prices.

I am going to skip the other possible fines, because I would like to get straight to the point. The new section 29.28 in the Electricity and Gas Inspection Act allows the Minister of Industry to disclose the names and addresses of people convicted under this legislation.

If the retailer can show that he did due diligence and did everything to ensure the accuracy of his equipment, his name will likely not appear on the list of those whose equipment is defective in terms of measuring the volume. We need to determine how this measure will be applied, because any retailer could wind up on that list, even by mistake.

A clarification has been made to establish that violations of this legislation are not actually offences and therefore not subject to the Criminal Code. The individual would not have a criminal record following a conviction.

If convictions are frequent, can they be subject to a prison sentence, in cases of repeat offences, of less than two years, since they are not criminal offences? Once again, the provinces and Quebec are left to pay for this. With respect to offences, recidivism and imprisonment, Quebec will have to pay, no matter what it costs to send someone to prison for less than two years.

The Bloc's main concern is that every time the price of gas skyrockets, the government invariably says the same thing, that its hands are tied because the Competition Bureau has found that there is no collusion between the oil companies to set the price of gas and therefore there is no problem.

It is always the same answer. It is never the oil companies' fault and when the Competition Bureau conducts an investigation it always comes to the same conclusion: there is no collusion.

It would be rather surprising to see representatives of all the major oil companies openly sitting around the same table at a big restaurant. It is not likely to happen. It may be more difficult, but there must be a will to find a solution.

The Competition Act has major shortcomings that prevent the Competition Bureau from initiating an investigation. Any investigation has to be requested by the department or initiated as the result of complaints. On May 5, 2003, when Konrad von Finckenstein, the then commissioner of competition and the current chair of the CRTC, appeared before the Standing Committee on Industry, Science and Technology, he pointed out the shortcomings in the Competition Act. He said:

...while the bureau's mandate includes the very important role of being investigator and advocate for competition, the current legislation does not provide the bureau with the authority to conduct an industry study.

There was some borrowing from Bill C-452, and equivalent measures were put in place as part of the January 27, 2009 budget implementation act. However, these new provisions still do not give the Competition Bureau the authority to investigate on its own initiative. A complaint is still required before an investigation can begin.

In 2003, the Standing Committee on Industry, Science and Technology concluded its study on gas prices by making two recommendations to the government: create a petroleum monitoring agency and toughen up the Competition Act.

In 2003, the Standing Committee on Industry, Science and Technology also spelled out the changes it wanted to see made to the Competition Act. The Bloc Québécois was adamant that the government respect the committee's recommendations.

In October 2005, shortly before the election, the Liberal government finally agreed with the Bloc's arguments and, as part of its federal plan to help alleviate the impact of high gas prices, introduced Bill C-19 to amend the Competition Act. It strengthened this act by raising the maximum fine for conspiracy from $10 million to $25 million and broadening the Competition Bureau's authority to investigate, which would have allowed it to inquire into an entire industry sector.

However, the government bill ignored these recommendations from the Standing Committee on Industry, Science and Technology: reverse the burden of proof to deal with agreements among competitors and to determine whether there is a conspiracy—the objective of this was to make it the responsibility of the party wishing to enter into an agreement to prove the ultimate social value of that agreement—as well as allow the Competition Tribunal to award damages to parties affected by restrictive trade practices, where applicable.

The Bloc Québécois had proposed numerous amendments along these lines.

Bill C-452 would address the shortcomings in the measures put in place under the January 2009 budget implementation act, Bill C-10

The Competition Bureau needs true investigative powers. Bill C-452 would give the Competition Bureau the authority to carry out real investigations into the industry, if warranted, on its own initiative, something it is not currently permitted to do because it must receive a complaint first.

If this legislation were passed, the Competition Bureau would be much better equipped to take on businesses that try to use their dominant position in the market to fleece consumers.

We could implement a comprehensive strategy to deal with price hikes of petroleum products. 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 dependence 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. The Bloc Québécois is proposing to reduce our dependence on oil. 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, 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. It is time to put an end to the tax holiday for the oil sector.

In 2003, the Liberal government, supported by the Conservatives, introduced a vast reform of taxation for the petroleum sector. Although the oil sector had special status under the Income Tax Act, with its Bill C-48 the government reduced the overall tax rate for oil companies from 28% to 21% and also introduced many tax breaks, including accelerated capital cost allowance and preferential treatment of royalties.

This made taxes for Canada's oil sector more advantageous than in Texas. As if that were not enough, in the 2007 economic statement, the Conservatives presented additional tax reductions for oil companies, which would bring the tax rate down to only 15% by 2012. These tax breaks will enable Canadian oil companies to pocket close to $3.6 billion in 2012 alone. The Bloc Québécois thinks that these measures for the oil companies are unjustified. That it why it is proposing that we eliminate handouts to the oil companies.

I was saying that the long-term solution is to reduce our dependency on oil. We must invest considerably in alternative energies; allocate $500 million per year over five years to green energies; launch a real initiative to reduce our consumption of oil for transportation, heating and industry; introduce incentives of $500 million per year over five years to convert oil heating systems; develop a plan worth $475 million per year over five years for electric cars.

By 2012, 11 manufacturers plan on releasing some 30 fully electric or rechargeable hybrid models. These cars will be more reliable, more energy efficient and much cheaper to operate than gas-powered models.

Bill C-14 is intended to save consumers $20 million. As I was saying earlier, $20 million corresponds to one-tenth of a cent per litre of gas. Therefore, just one cent per litre could save $200 million per year. Furthermore, we must strengthen the Competition Act.

[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.