An Act to amend the Competition Act (inquiry into industry sector)

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

This bill was previously introduced in the 40th Parliament, 2nd Session.

Sponsor

Robert Vincent  Bloc

Introduced as a private member’s bill. (These don’t often become law.)

Status

Outside the Order of Precedence (a private member's bill that hasn't yet won the draw that determines which private member's bills can be debated), as of Oct. 1, 2009
(This bill did not become law.)

Summary

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

This enactment amends the Competition Act to authorize the Commissioner of Competition to inquire into an entire industry sector.

Elsewhere

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

The House resumed from May 10 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.

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:20 p.m.
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Liberal

The Speaker Liberal Peter Milliken

When the matter was last before the House, the hon. member for Algoma—Manitoulin—Kapuskasing had the floor. There are 17 minutes remaining in the time allotted for her remarks. I therefore recognize the hon. member for Algoma—Manitoulin—Kapuskasing.

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:20 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Mr. Speaker, as it has been two days since I started my speech, I will take some time to refresh the House a little.

This all came about because of an investigation by the Ottawa Citizen which 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. The government inspection data showed that about one-third of Canada's gas stations, which is about 14,000, had at least one faulty pump. That occurred more than three years ago and the government has waited this long to respond.

It will come as little surprise to most members that gas prices in my constituency of Algoma—Manitoulin—Kapuskasing are through the roof. When we hear Measurement Canada say that 5% of the pumps out there are delivering less fuel than reported on the pump display, we feel even more vulnerable based on the already too high gas prices we pay.

New Democrats have some problems with the bill and, by now, members will have heard most of these. Still, it is worth repeating some of them for the benefit of people who may have just begun to pay attention to this debate.

I would like to talk about some of the gas prices in my riding at this point. In Elliot Lake on Monday the price was 105.3 and today it is 104.9. In Espanola today it is 105.9. In Kapuskasing last Monday it was $1.10. Unfortunately, I could not get the price today because I did not have a chance to check. In Sault Ste. Marie on Monday it was 106.9 and in Sudbury it was 104.9.

In the rural parts of Canada we pay more for gas than in cities. I would like to read some of the emails that I have received over the last couple of years. I have just picked them randomly because it is important to show that from year to year there have been some concerns by the citizens in my area. This email is from Eric Vincent of Elliot Lake. He says:

The daily gas prices shown on the [member for Pickering—Scarborough East]website should be enough evidence to see that the 2 gas stations here in Elliot Lake are not lowering their gas prices when others are lowering theirs and that they are too slow to lower them when they finally do.

I feel that we are continuously overcharged here. For example: we are no further remote from the refineries than Ottawa is. Tankers get to Ottawa one at a time the same as the tankers that arrive here, one at a time, to deliver gas to the only 2 stations that we have. Then these two stations always sell gas at exactly the same price.

Every day we hear of prices falling across Ontario, yet ours stay pinned at the same price long after any lower prices appear elsewhere.

For example: our price here [November 21, 2008] is 91.9 cents per litre which it has been for many weeks, while the gas price in Ottawa is 73.5 cents per litre. This is a whopping 20% difference today.

If you were able to locate the Gas Baron by phone to advise that immediate attention is needed to remove this major discrepancy, I am certain that it would result in immediate fairness at the pumps that could result in them making changes daily here in Elliot Lake and across Your entire constituency.

That is exactly why we need a commission and exactly why we need an ombudsman.

I have another email from Maurice Drolet who says:

As you may have noticed, the gas price has risen quite substantially in the past month. I do not understand why here in the North East Ontario, where we depend on vehicles as there are no transit or subway, the gas is much more expensive than anywhere else. The barrels are at a price where we used to pay around $0.78 a litre [February 13, 2009] but now we are paying $0.91.9. I feel that the people in the North should be hearing on the news, and newspaper that you are screaming bloody hell to the government about this outrageous lack of concern from the government toward us.

It is the not the first time that I bring the issues of the gas prices and gas gouging to the House. This one is from Jerry Allen, who wrote on March 2, 2009:

I and many others are wondering how long the government is going to allow the oil companies to keep gouging the public. The price of oil per barrel has dropped dramatically, but the price of a liter of gasoline HAS NOT dropped accordingly.

On November 18, 2009, Garland Sullivan wrote:

...I was going to Sudbury the other day and I filled the car up at Thessalon, at a buck six [$1.06]. When I got to the Espanola turnoff, it was ninety three [93¢]. When I get to Sudbury, I saw two places at ninety two [92¢]??????.

I have been in the transportation business most of my life, and there is no way anyone can justify that much of a difference in cost to move the stuff, and the expenses to operate a business in the Soo are no more than they are in Sudbury, SOOO back to the old adage we in the north are getting it where it hurts. Now what do we do about this, this seems to be a slap in the face to the northerners because we here in the north need our gas and fuel and I have not heard of ANYONE taking up our cause here in the north.

Just thought I would let you in on the secret.

I want Canadians to know that we certainly have been raising this issue here for the people in the north, and there continues to be concern that no one is being heard.

Some people say that the price of gas depends on where one is in the north and it depends on the markets and on whether the price of a barrel of oil is up. Recently I went to a reception on the Hill with some of the gas providers. I was told that it depends on whether or not a gas station sells other things, that the owner could make up the profit from those sales and lose a l bit on the gas.

My colleague, the member for Timmins—James Bay, and a provincial colleague talked about the price of gas and that a case of beer, no matter where it is bought, is the same price. Another thing I was told was that if a location sold a lot of gas, the price of gas could be reduced because it is cheaper to buy it in bulk. Well, if more beer is sold at one of the beer stores, it is still the same price no matter where one buys it.

I regularly get phone calls from people about accuracy at the pumps and, of course, the high price of gas, as I have mentioned. It is a hot button issue in my riding of Algoma—Manitoulin—Kapuskasing.

I want to read another comment, which I received on May 10. Mr. Tracy in Little Current talked about the price of crude oil and the disparity with regard to the price of crude oil when it is $20 a barrel at the well head, and the price quoted on TV is around $90. He wrote:

With Canada pumping 2 million barrels of crude oil per day the Canadian public are being taken for a ride.

Example - TV price of oil in the past year or so went down to around $40 a barrel - and the public have been told as much as $140 a barrel. YET AT THE SAME TIME A BARREL OF CRUDE OIL WAS ALWAYS LESS THAN $20 A BARREL AT THE WELL HEAD.

We need to look at what is really in this bill. This type of legislation has been needed for some time. On paper the bill seems logical, yet the bill before us is difficult to support in its present form, which is a shame. The idea is good, but it is framed inside the same old Conservative fixtures.

The way in which the private sector is being utilized in this bill seems almost quasi-official. It is the first layer of bureaucracy that will decide if the next layer will be needed. If I understand this correctly, it is little more than a screening process. The actual inspectors from Measurement Canada would be required to do the heavy lifting.

The fact that there is no ombudsman being established in this bill is a huge oversight. This leaves no method of recourse. Let us not forget that it would not always be the consumer who required the assistance of an ombudsman. Very real taxes have been paid on what amounts to phantom fuel. We can look at this any way we want to and it still amounts to taxes paid on nothing at all. Consumers who have been ripped off would have no means to regain lost money, nor would there be any refund or restitution for taxes collected for phantom gas purchases.

As I mentioned in this House in November 2008, Algoma—Manitoulin—Kapuskasing is a big riding and there is not a lot of public transportation. I have also discussed this in my speech today. Things that many Canadians take for granted, such as the ability to get to work or a doctor's appointment, can be a big deal for many of my constituents because the gas prices in the riding are much higher than they are in the major centres. This is just not right. When people have no choice but to rely on a car to get around, we can understand the frustration of those residents when they know they are being gouged at the pumps due to higher gas prices, inadequate measurement and false temperatures.

Information gathered shows that a motorist gets shortchanged at least twice a year. The results from a review of gas stations in Windsor showed that 25% of fuel pumps inspected were faulty. This study took over eight years. Again, let me remind members that not only were people shortchanged on the amount of gas they paid for, but also on the amount of tax paid on that gas.

Consumers have been gouged by millions and are now being told they will have to settle for a process that would do little to address all of the issues related to consumer gouging.

The proposed fairness at the pumps act would actually remove the federal government from the inspection process and would allow the oil industry to police itself. Can anyone imagine that?

My colleague from Windsor West, who happens to be the NDP industry, automobile and border critic, said:

The shocking revelation is not that this was only exposed by an access to information request by a media outlet, but that the Minister has not even met with the oil companies to correct the massive anomaly of a quarter of the fuel pumps in the Windsor and Essex area that are defrauding ordinary Canadians. This rip off needs to end now....

It is unfair that Canadians are being gouged at the pumps while big oil companies continue to reap record profits. We challenge the government to stand up to its big oil buddies and ensure fairness at the pumps.

I raised this issue in the House in November 2008 and again on February 11 in my speech on the budget. In that speech I told the government it is unacceptable that people in northern Ontario are paying ridiculously high prices for gas as the price per barrel of oil drops.

Unfortunately, there is currently no government department or watchdog that would deal with the issue of high gas prices or the gouging that makes gas more expensive from some companies but less expensive from others. This is why the creation of an ombudsman who could serve as a watchdog is so critical.

Gouging at the pumps is not fair, especially in regions such as northern Ontario, where there are no other viable methods of transportation. We need fairness at the pumps for Canadians.

I want to read a couple of sentences from an article that was in the Ottawa Citizen on Monday, May 12:

Most of the pump errors were small--between 30 and 60 cents' worth of gas on a fill-up at today's prices. But some pumps have shown much larger failures. Last year, a pump at a station near Chatham, Ont., was caught shorting consumers by one-and-a-half litres on a 50-litre tank, which is common to most average-sized cars. Drivers who visited one pump in Corner Brook, NL, would have had to buy an extra two litres to top up their tanks. And at a certain outlet in Yarmouth, N.S., a fill would have cost about $2.25 more than it should have.

This is going on across Canada. The articles continues:

Measurement Canada conducts inspections based on standards set in the Weights and Measures Act, which peg the allowable maximum error for gasoline dispensers at an internationally accepted standard of 100 millilitres for every 20 litres pumped, or 0.5%.

That means on an average fill-up of a 50 litre gas tank at today's prices, a pump can legally shortchange the consumer by about 30 cents' worth of gas and still fall within the allowable tolerance zone.

As I have indicated, the bill seems to be a step in the right direction on paper, but there are so many difficulties with it. There is still the issue about the privatization of the inspection service by mandating frequent inspections that must be carried out by the newly created authorized service providers of private companies. We are asking them to police themselves. That is wrong.

We know what happened in the forestry industry when we asked companies to police themselves. We might as well be telling criminals that we are going to put them in jail and when they are on probation they can regulate themselves, or we can put people under house arrest and say that we will count on them to follow the guidelines.

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:35 p.m.
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NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, Bill C-14 will increase fines and introduce administrative monetary penalties. The fairness at the pumps act proposes to strengthen consumer protection and provide greater deterrence against inaccurate measurements by increasing court imposed fines and mandatory inspections. The fairness at the pumps act proposes to increase retailer accountability and use of private sector authorized service providers. Mandatory inspections would be conducted by authorized service providers. Fees for independent inspection services would be determined by market forces. It is estimated that the number of annual gas pump inspections would increase from 8,000 to approximately 65,000.

Could the hon. member for Algoma—Manitoulin—Kapuskasing tell me what the problems are with the bill?

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:35 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

Mr. Speaker, as I mentioned during my speech, the most important part of the problem is that the government sees fit to allow companies basically to police themselves.

It is great that the government is increasing the fines, but we know what happens when one polices oneself. We do not really see what is actually occurring and we will continue to see the problems that we are experiencing today.

The other issue is with regard to mandating private inspections which will now increase from 8,000 per year to 65,000 per year. We are telling the companies that we want them to police themselves and we expect them to do all of these inspections. For some of these organizations that is not financially viable.

I will wait for the next question because I have a few more things to add.

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:40 p.m.
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Liberal

John Cannis Liberal Scarborough Centre, ON

Mr. Speaker, the thing that stood out in my mind as the member was speaking was that Bill C-14 allows the industry to police itself. That is kind of scary for me, given what is going on at the pumps.

A year and a half ago we were paying almost double per barrel what is being charged now and the prices at the pump were about $1.00 or $1.01. The prices now are about $1.00 or $1.01 and the price per barrel is half the price what it was.

There has to be some regulation. If we are allowing the companies to police themselves, God knows what is going to happen tomorrow. Could the member elaborate on that for us?

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:40 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

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

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:40 p.m.
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NDP

Glenn Thibeault NDP Sudbury, ON

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

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:40 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:40 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:45 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:45 p.m.
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NDP

Jim Maloway NDP Elmwood—Transcona, MB

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:45 p.m.
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NDP

Carol Hughes NDP Algoma—Manitoulin—Kapuskasing, ON

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:45 p.m.
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Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Fairness at the Pumps ActGovernment Orders

May 12th, 2010 / 3:55 p.m.
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An hon. member

Well, that is obvious.