Mr. Speaker, on May 12, 2008, the former minister of industry, the hon. member for Calgary Centre-North stood in the House and responded to a question. The question had to do with media reports that an alarmingly high percentage of gas pumps across the country were not accurately measuring the volume of gas being pumped into the vehicles of Canadian consumers.
Even more troubling was that consumers were getting the short end of the nozzle. Three out of every five times the gas pump measured inaccurately, it was the motorist who was getting ripped off. Clearly something had to be done. Gas pumps are intricate machines. Consumers cannot tell if a pump is not operating properly unless it is widely off the mark. If the machine is over-charging consumers, for example, who is to know and who is to compel the retailer to fix the faulty pump if that retailer is unwilling to correct the error or does not even realize it exists?
The problem should also be considered at a deeper level. Commercial transactions, the millions of exchanges between buyers and sellers that take place every day in our country, are made on the basis of trust. The seller sells the agreed-upon quantity at a fair price. The buyer makes the agreed-upon payment in a timely manner.
When that social and financial trust, that fundamental expectation shared by buyers and sellers, comes into question it does harm to the entire system of commercial exchange on which our country's prosperity and ongoing growth is based. If that trust is gradually and perniciously eroded in one important industry, the entire system can fall under a shadow of doubt and suspicion. Obviously something had to be done and thankfully it is being done.
On that day 24 months ago, the minister told the House he had taken two immediate steps to bolster Canadians' trust in that vital system of commercial exchange. First, he instructed officials in his department to increase the number of gas pump inspections to be undertaken over the course of that summer, the summer of 2008. Second, he sent letters to all Canadian gas retailers informing them of the stepped-up inspection campaign and asking them to co-operate fully with government inspectors.
That is not all. My hon. colleague pledged he would take two additional steps. He would speed up the government's review of the laws that govern gasoline pumps to make sure those laws give the Government of Canada the authority to levy stiff fines on retailers whose pumps cheat Canadian consumers. And he would take measures to ensure that the number and frequency of inspections at gas pumps were permanently increased to make sure unscrupulous and negligent retailers did not resume overcharging their customers once the public furor over the scandalous behaviour died away.
We promised to take further action to protect Canadian consumers then and we are going to deliver on that promise right now.
I am delighted to have the opportunity to lead off debate on Bill C-14, the fairness at the pumps act. Talk about truth in advertising. The bill would provide Canadians with exactly what its title indicates, fairness at the pumps. It would do so by amending the two laws that govern the use of retail measuring devices such as gasoline pumps, the Weights and Measures Act and the Electricity and Gas Inspection Act.
To be precise, the bill would give the force of law to three specific changes that have been carefully designed to protect Canadian consumers and deter unscrupulous or negligent behaviour among retailers. One, the bill would sanction mandatory inspection frequencies for measuring devices used by retailers. Two, the bill would authorize the Minister of Industry to designate qualified authorized service providers to carry out inspections on measuring devices. Three, the bill would set down stiffer fines that could be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act and would put in place a new graduated system of administrative monetary penalties.
Each of these actions would be a tremendous advance in the way we as Canadians protect ourselves as consumers and make sure our retailers operate fairly and honestly.
Why do I believe so strongly in the merit of these new provisions? Let me go through each one in detail and show the House exactly what I mean.
The first change set down in the fairness at the pumps act is mandatory inspection frequencies. Mandatory inspection frequencies is a complicated way of saying that the new act would amend the Weights and Measures Act to instruct businesses in a variety of specific industries to have their measuring devices inspected regularly. The Government of Canada would use its regulatory authority under Bill C-14 to put these mandatory inspection frequencies in place. Once established, these compulsory inspections would apply to virtually all companies that rely on measuring devices as part of their daily business. Gasoline retailers as well as retailers of home heating oil would be required to have their devices inspected every two years. That would also be the mandatory inspection frequency for all devices used in what is known as the downstream petroleum sector, for example, loading rack meters used to fill petroleum transportation trucks.
That same two-year inspection frequency would apply to measuring devices used by businesses in the dairy industry, enterprises in mining and metals, and companies in the grain and field crop sector, other than measuring instruments used in grain elevators. That does not mean the new bill would exempt grain elevators. Businesses and agricultural co-operatives would have to make sure measuring devices in grain elevators were inspected every year. One year would also be the mandatory inspection frequency for propane dispensers, meters in the dairy sector, measuring devices in the fishing and fish-products industry and in logging and forestry.
The fairness at the pumps act would also cover businesses in the retail food sector. These businesses would have to have their scales and other kinds of measuring instruments regularly inspected.
While this is a lengthy list of industries, companies and frequencies, it is by no means a finite one. Should Canadians deem it necessary, Bill C-14 would enable the Government of Canada to expand its area of authority to include the measuring devices of businesses that operate in other industries and sectors as well.
At the same time, I should point out that any future decision to extend the application of the act would not be taken unilaterally. Representatives of the federal government would consult closely with business owners and operators in any industry sector that we decided must be included under regulations developed under authority of the fairness at the pumps act. That way we would make absolutely sure that any new demands we make on retailers were realistic, fair and consistent.
We have taken that kind of inclusive, respectful approach from the start. Officials at Measurement Canada consulted carefully and thoroughly with industry sector representatives immediately impacted by the bill we are considering today. As a matter of fact, these discussions have been ongoing, and we accelerated them to respond as quickly and as reliably as possible to the troubling situation uncovered by the media reports I spoke of at the beginning of my remarks.
Retailers have been with us every step of the way because they realize the importance of the bill. They know their credibility is at stake. They know that when their reputation as honest, fair businesses and business people takes a hit among Canadians, so do their prospects for continued success and prosperity. They also know that the best way for their businesses to maintain the trust of consumers is to have their measuring devices and instruments undergo regular inspections.
Granted the businesses and the industries I have pointed out would have to pay fees for those inspections, but these costs would be determined by the marketplace and are already understood and accepted as facts of life by businesses in these industries. In fact I anticipate many companies would take advantage of inspections to have service and repair work performed on the measuring devices being inspected.
Of course, inspections do not occur on their own, and the ramped-up regime of mandatory inspection frequencies made possible by Bill C-14 would certainly not appear miraculously. We would need more trained inspectors to make sure we could meet the stringent requirements set out in the fairness at the pumps act.
That point brings me to the second change outlined in the bill. The bill would authorize the Minister of Industry to designate authorized service providers to carry out inspections of measuring devices. These inspectors could be independent professionals or employees of companies. Either way we would guarantee those designated to carry out this important work under the new bill were up to the task. We would establish conditions that would make the organizations authorized to perform inspection work accountable. We would only designate organizations and their technicians that met a stringent and ongoing qualification process.
These authorized service providers would be responsible for ensuring that appropriate test equipment and inspection procedures approved by Measurement Canada were used. Individuals permitted to perform inspections would be required to pass mandatory training, which includes theoretical as well as practical evaluations. Annual assessments would be part of the monitoring process for authorized service providers.
In instances where responsibilities were not fulfilled, the minister could suspend or revoke their designations, an action that would severely impact their ability to conduct business. Measurement Canada has successfully piloted a similar program for initial inspections performed under the Weights and Measures Act. Assessments of this approach demonstrate that the quality of the work done by authorized service providers and their recognized technicians is in the 96% satisfaction range.
Even though Bill C-14 would see authorized service providers play an increasingly important and meaningful role in protecting consumers, Measurement Canada inspectors would remain leading forces in the field. They would perform independent inspections to assess the compliance of industries under the new act. They would respond to public complaints of companies suspected of measuring inaccurately and they would be solely responsible for taking actions to enforce the law when offences under the Weights and Measures Act and the Electricity and Gas Inspection Act were identified.
I should also point out that this approach is not entirely new. For many years, Measurement Canada has employed authorized service providers to carry out inspections under the Electricity and Gas Inspection Act.
The bill before us today would make it possible for us to expand the reach of non-government inspectors to include all of the industries subject to the Weights and Measures Act.
Like the involvement of service providers, fines and penalties for those who violate the Electricity and Gas Inspection Act and the Weights and Measures Act are not entirely new.
What is new is the amount of these court-imposed fines and the nature of those penalties.
That brings me to the third and final change set out in the fairness at the pumps act.
To be precise, Bill C-14 would increase the fines that can be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act. The bill would also put in place a new graduated system of administrative monetary penalties.
Let us consider the fines, first.
The fairness at the pumps act would increase the court imposed fines for the variety of the offences listed in the Electricity and Gas Inspection Act and the Weights and Measures Act. Fines under the two acts would rise from $1,000 to $10,000 for minor offences and from $5,000 to $25,000 for major offences. The bill would also introduce a new fine of $50,000 to be levied against those who repeatedly violate the acts.
Why have we chosen to make such substantial increases in the amounts of these fines? The answer is straightforward. The costs of gasoline, electricity, food and other measured products have risen dramatically and they are expected to keep on rising for the foreseeable future. It is only proper that we increase the penalties we impose on those who violate the law if we want the penalties to have a deterrent effect. After all, if an unscrupulous retailer can make money by cheating consumers even if he or she is fined, what good is the fine?
To levy fines under the two existing laws, the federal government must prosecute alleged offenders. However, a process as complex as a criminal proceeding and a punishment as severe as those listed under the new act are not always the most appropriate ways to deal with all those who violate the law.
Some contraventions of the law may call for less stern penalties. It is common sense. That is why we have introduced what are known as administrative monetary penalties. The fairness at the pumps act would give federal authorities the discretion to use a graduated system of penalties to punish offenders: monetary penalties, which would not lead to a criminal record for those who commit relatively minor offences; and criminal prosecution for those who commit serious offences or who are repeat offenders.
Enforcement action, such as the use of administrative monetary penalties, would not be abused. These measures would be used as part of a graduated enforcement structure that would include trader education and the use of warnings when appropriate. It is not the government's intention to punish the good players who demonstrate that they have taken appropriate steps to provide accurate measurement.
Like the joint public-private approach for inspections, this graduated system of administrative monetary penalties is not entirely new. Several departments and agencies that enforce regulations rely on administrative monetary penalties; large departments such as Transport Canada and smaller yet active and vital agencies such as the Competition Bureau and the Canadian Food Inspection Agency.
Those are the three advances proposed by Bill C-14, the fairness at the pumps act. Mandatory inspection frequencies to measure devises used by retailers, authorized service providers to carry out inspections of those measuring devices, stiffer fines and a new graduated system of administrative monetary penalties. They are reasonable steps taken in partnership with industry. They are a practical response to a problem we committed to resolve and, most important, they are a fair deal for consumers, retailers and all Canadians.
These changes are a fair deal for consumers because they would put in place an inspection regime that would make it possible for a host of qualified inspectors to root out inaccurate measuring devices. Measurement Canada estimates that the number of annual inspections of gas pumps alone would increase from 8,000 to approximately 65,000. That is taking action, that is keeping our commitments to Canadians and that is protecting consumers.
These changes are a fair deal for retailers because they would protect honest retailers from being associated with and harmed by the unscrupulous practices of the minority of retailers who willingly or unwillingly operate inaccurate measuring devices.
I am sure my hon. friends would agree with me that the overwhelming majority of retailers in our country are fair and honest businesspeople. Their businesses are tainted when companies in their industry engage in unscrupulous behaviour. They want us to deal with illegal and negligent behaviour by retailers just as much as consumers do. In fact, their representatives told us that businesses were willing to pay the fees associated with an increased number and frequency of inspections if these inspections will expose and punish negligent and unscrupulous retailers and safeguard the integrity of their industries.
These changes are a fair deal for all Canadians because, although the fairness at the pumps act is a direct product of inaccurate gas pumps, the bill would extend the reach of inspections enforcement beyond gas retailers to include companies that rely on measuring devices to conduct their day-to-day business. That way, the resulting law will benefit all Canadians.
The changes are also a fair deal for all Canadians because they would impose minimal costs on the federal government, and this is important. A report published by the International Organization of Legal Metrology in 2003 used Canadian device compliance rates to estimate dollars at risk for each type of device. When these figures were related to inspection activities, it was found that for each dollar spent on inspections, $11 of inaccurate measurement was corrected. With rising commodity costs, this is a return on investment I am sure all Canadians can support and just one more reason that I am convinced Canadians will support this bill.
Consumer protection is a priority for this government. Once this bill receives royal assent, the process for implementation will require that regulatory amendments be processed and that there be a capacity to have these inspections take place. These regulations will be put in place as soon as possible after royal assent.
Measurement Canada has been building capacity for implementation in the eight sectors that we are talking about here today. Over the coming months, Measurement Canada will be educating traders as to their responsibilities once the bill is enacted, as well as ramping up the authorized service provider capacity to implement.
I am also confident that this House will support Bill C-14, the fairness at the pumps act. I have given members three powerful reasons to do just that. I have outlined clearly how this bill is a fair deal to all, and yet perhaps the most important reason to support this bill is the principle that lies at its heart: Canadian consumers should get what they pay for, no more and certainly no less. What could be fairer than that?
