Bill C-452 (Historical)

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

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

Fairness at the Pumps Act

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, it is my turn so speak to Bill C-14, An Act to amend the Electricity and Gas Inspection Act and the Weights and Measures Act.

Bill C-14 is not bad in itself because it is very important for pump measurements to be accurate. I have noted, though, the criticisms voiced by my colleagues. They said that consumers should not have to bear the cost of the new monitoring requirements under Bill C-14. We will have to be careful in committee to fully clarify this issue.

The Bloc Québécois is in favour of sending the bill to committee. However, the bill does nothing to address the real concern of people, which is that they pay too much for gasoline. Two things need to be done: we have to create an agency to monitor gasoline prices and to give the Competition Act more bite.

The Bloc Québécois has introduced some bills in this regard that I will discuss in a few moments. That is what we need to talk about. I hope the government is not going to pat itself on the back, claiming that it introduced a bill to regulate the fluctuations in the price of gasoline and it will ensure that people pay a fair price through tighter monitoring of the measurement devices at the pump. The accuracy of these measurements is a very interesting point.

We do not even know if consumers benefit or are penalized when pumps are not working quite right. I suppose that if people are tampering with the pumps, it is not to do consumers any favours. It remains to be seen, though, whether people have fiddled with the gauge showing the number of litres pumped. That is not the solution, and I will show why in the next few minutes.

Bill C-14 amends certain provisions of the Electricity and Gas Inspection Act and the Weights and Measures Act in order to better protect consumers against inaccurate gasoline pump measurements. That is basically what we are talking about. Many people are concerned about this. The bill covers other measurement devices as well and not just gasoline pumps.

The bill imposes penalties for contraventions to the laws in question, increases maximum fines for offences, and introduces a new fine for repeat offenders. It also introduced mandatory frequencies for measuring devices and proposes the appointment of non-government inspectors, to be trained and certified by Measurement Canada to conduct mandatory measuring device inspections.

The Bloc Québécois is in favour of Bill C-14 in principle and of sending it to committee.

However, Bill C-14 does not directly address the issue of collusion that has recently come to light in Quebec. Nor does it effectively prevent sudden increases in gas prices. I spoke about two objectives earlier: creating an agency to monitor gasoline prices and giving the Competition Act more teeth.

I want to talk about what happened in my own municipality. Many vehicles are stolen and many people are in possession of stolen vehicles in central Quebec. I do not want people to think that my region is particularly problematic, but in Victoriaville we also had the infamous gas price cartel. Luckily, the scheme was uncovered and people are being held accountable. I hope that if this happens elsewhere in Canada, we will be able to stop them.

However, under current legislation, criticism or complaints must be filed in order for the Competition Bureau to act. That is the difference. The Competition Bureau needs to have quasi-police authority to act when it feels the need and as soon as there are suspicions, not only when there is a complaint. I will come back to that.

We also believe that we still need to make an effort to efficiently respond to rising gas prices, and we can do so with our bill, Bill C-452, which the NDP member mentioned during questions and comments. That bill was introduced by my colleague from Shefford. The Competition Act does not allow the Competition Bureau to conduct inquiries on its own initiative. It must always wait for a private complaint before it can start an inquiry. We are also calling for a petroleum agency to closely monitor gasoline prices and to respond to any attempts at collusion or unjustified price hikes.

If the government had taken a serious approach to really helping consumers, it would have focused on those two points. Every time the price of gasoline rises suddenly, people begin to wonder about the oil industry, and rightfully so. These increases are unjustified, and consumers must not be the victims of dubious business practices on the part of oil companies. I repeat, the existing Competition Act has significant gaps. For instance, it does not allow the Competition Bureau to undertake a real investigation of an industrial sector. How can it gather information if it can neither force the disclosure of documents nor protect witnesses? This aspect must be corrected.

Bill C-452 introduced by the Bloc Québécois would toughen up the Competition Act to give the federal trade tribunal the right to initiate an investigation, rather than waiting for complaints or accusations, the right to protect witnesses and the right to conduct searches and seize documents. A petition to that effect has been circulating. It is a very popular petition, particularly in my region, understandably, since it was seriously affected by this cartel. To ensure that everyone clearly understands the importance of this issue, I would like to read the petition.

WHEREAS:

1. Individuals and companies pled guilty in the summer of 2008 to conspiring to fix the price of gasoline;

2. According to Le Soleil, retailers could be overcharging by more than $100 million a year;

3. The current Competition Act has significant gaps, preventing the Competition Bureau from conducting investigations until complaints are lodged.

THEREFORE, your petitioners call upon the House of Commons to pass Bill C-452, An Act to amend the Competition Act (inquiry into industry sector), authorizing the Commissioner of Competition to conduct an inquiry of her own accord into the fluctuating price of gasoline.

I can say that this petition is very popular. People are requesting it. They get it online and sign it. People want something to be done about what happened. The Competition Bureau did manage to take action in my region. It is so difficult to do anything about this that this was only the second time the Competition Bureau was able to take action in this type of incident. The first time was in Vancouver in 1995. The second time was in 2008 because there was a complaint. We should not have to wait for a complaint before something can be done. Nonetheless, it worked out and that is how it should be, with increased powers and investigations before things get to the complaint stage.

The Competition Bureau discovered a gasoline cartel in Quebec. By cartel we mean an agreement between companies not to compete with one another. It is a rather simple definition. I will read from a Competition Bureau document, a press release that was issued on June 12, 2008:

...the Competition Bureau became aware of allegations of price-fixing at gas stations in Victoriaville, Quebec. The evidence gathered during the Victoriaville investigation led to further probes in other local markets in Quebec, namely Thetford Mines, Sherbrooke and Magog.

In conducting its investigation, the Bureau uncovered evidence of agreements between competitors to fix the price at the pump at which gasoline was sold to consumers. The evidence indicated that participants in the targeted markets carried out the conspiracy mainly by phoning each other to agree on the price of gasoline and about the timing of price increases, contrary to section 45 of the Competition Act.

A number of investigative tools were used, including wiretaps, searches and the Competition Bureau’s Immunity Program.

Some could dispute my argument since I was saying earlier that the Competition Bureau did not have enough room to manoeuvre. Some might say there was collusion, and that a cartel formed in Victoriaville, Thetford Mines, Sherbrooke, and Magog and perhaps elsewhere, but there have been no reports of this in other places.

The competition bureau was able to take action. Lawsuits were filed and some people have already pleaded guilty. So, it works. However, as I keep saying, it took a complaint. At one point, a gasoline retailer from the Victoriaville area received threats, seemingly from other retailers, because he did not want to go along with their scheme. He would keep his prices a little lower than those of the others for a while. His company supported him for a while. However, he eventually found himself all alone and he decided to expose this situation. If I am not mistaken, he talked to a local weekly newspaper. He expressed his frustration to a journalist regarding these events, the threats he had received and the fact that, as a merchant, he wanted to continue to be able to compete with the others.

That is what is wrong with the petroleum industry. If someone wants to buy a pair of shoes, he can go to two or three different stores. Chances are the price of a pair of shoes of the same brand and colour will not be the same everywhere. There may be a $5 or $10 difference. The person may even find a pair on sale, at 50% off the regular price if he is lucky. However, when it comes to gasoline, even if we look everywhere, we will rarely find much variation in prices. In the case that took place in my community, the competition bureau showed that retailers would phone each other and set prices. So, obviously, prices were the same everywhere.

That individual decided that enough was enough, and he spoke out about it. It is only when the competition bureau saw what was going on that it could take action. It reasoned that since a complaint had been filed, it could take action. Otherwise, it could not have done anything. That is why the procedure at the competition bureau must change.

As I said, a number of charges were laid. In Victoriaville, 11 companies were involved in the scheme. In Thetford Mines there were 6. In Sherbrooke there were 20, and in Magog there were 5.

As I mentioned earlier, several companies in Victoriaville, Thetford Mines and Sherbrooke pleaded guilty. The fines are rather stiff, that is $179,000 in one case, $1,850,000 for an oil company, and $600,000 and $90,000 respectively for two other companies. That is more than a slap on the wrist. The $1,850,000 fine was imposed on an oil company, not on a retailer. There is no doubt that these penalties will have a sobering effect.

Obviously, I travel a lot, like all of my colleagues here. We all travel within our ridings. When we are responsible for files, we deal with them away from here, which allows us to compare gas prices. It is interesting to note that at one time in Victoriaville, gas was always slightly more expensive than in Trois-Rivières or Drummondville. Sometimes it was less expensive than in Quebec City, but it was not the cheapest in the province, far from it. Since the Competition Bureau started its inquiry and the results came out, it is funny, but the prices are often lower. People had to be caught red-handed for others to be far more careful in terms of fixing prices. We are still the ones who are benefiting today. Luckily, the Competition Bureau's inquiry allowed us to find out what was going on.

As for the individuals linked to this collusion, this cartel, there were fines of $50,000, $10,000 and $5,000. For once, we caught the people and were able to make them pay. I have here a series of fines for $10,000, $20,000 and $25,000, depending on the person's involvement in the scheme.

As for how this all played out, an article in La Tribune says that the gas cartel may have cost each car owner up to $180. This whole story came to light in 2008, but prices were fixed between 2002 and 2006. The newspaper article says:

A very rough estimate [because it is difficult to know how much gas each person bought over the years] is that each year a car owner in Sherbrooke, Magog, Thetford Mines and Victoriaville paid an extra $20 to $40 to fill up their vehicle because of the cartel, which distorted gas prices for approximately four and a half years.

It is interesting to note that a class action lawsuit against the gas cartel is now before the civil division of the Quebec Superior Court, which will attempt to determine how much money should be given back to people who were swindled for four and a half years.

To date, over 12,000 people—and that number is a few months old—have signed on to the class action lawsuit authorized by Quebec Superior Court Justice Dominique Bélanger on November 30, 2010, concerning gas price fixing between January 1, 2002, and June 30, 2006, in the aforementioned cities.

According to another interesting article, this time in Le Soleil:

Plaintiffs are seeking $7.5 million plus interest as of January 1, 2002. In addition, they are seeking $500 for trouble and inconvenience for each participant in the lawsuit, as well as $1,000 in punitive damages. The Automobile Protection Association is also seeking $250,000.

That should give a sense of the amounts of money sought by this class action. It is important to note that Bill C-14 does not address these concerns at all. Conservative members should not be saying that this bill will solve all gas price fixing problems. The bill might make retailers more accountable by imposing regular mandatory inspections of measuring devices, such as gas pumps, but it will not prevent the price of gas from going up right before a long weekend for who knows what reason.

I have said this a number of times in the House and I will say it again: every time I see gas prices jump and watch television reports about it, I am always curious about what could possibly have caused gas prices to jump by 5¢, 10¢ or 12¢ per litre.

When a representative of the association of oil companies explains on television that there is a problem in Iraq or an oil rig leak, it is always rather difficult to believe him. In many cases, the facts show that the price of a barrel of oil, given that we have reserves, was a certain amount when the problem occurred. As this amount has still not gone up, the price hike should come later, but that is not what happens. As soon as a problem is announced—and we never know if it is real—the price at the pump goes up right away and never goes down as quickly as it should. Thus, we have reason to wonder.

Getting back to Bill C-14, the fines that the courts could impose pursuant to the Weights and Measures Act would increase from $1,000 to $10,000 for minor offences, and from $5,000 to $25,000 for major offences. In the case of subsequent offences, a new maximum fine of $50,000 and/or imprisonment for a term not exceeding two years could be imposed. I would be surprised to see that happen.

There are some measures like this in Bill C-14 but, I repeat, that is not what consumers asked for initially.

The member for Westmount—Ville-Marie even said that the Liberal Party, in 2005, had introduced Bill C-19. There again, the recommendations of the Standing Committee on Industry, Science and Technology, which called for the creation of a gasoline price monitoring agency and more teeth for the Competition Act, were ignored. These two objectives were not achieved by the previous Liberal government, nor by the Conservative government. It is our responsibility to tackle this issue immediately.

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

Mr. Speaker, the member will know that the Bloc's Bill C-452 would go a long way toward solving the problem here. It would change the Competition Act to authorize the commissioner to inquire into an entire industry sector, which is what we really need to do in this country.

The public has been aware of price fixing on gasoline prices for many years and yet 125 studies, paid for by provincial governments and the federal government, have all concluded that the legal framework is not there to get a conviction. We need to change the Competition Act.

The federal people have been able to chase the real estate agents on two occasions and get action from them to stop price fixing. They managed to get travel agents to stop price fixing. If they can do it with those other industries, why can they not do it with the retail gasoline industry?

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

Mr. Speaker, as the Bloc Québécois industry critic, I had an opportunity to follow progress on Bill C-14 in the spring and to hear testimony at the committee meetings.

Bill C-14 amends the Electricity and Gas Inspection Act and the Weights and Measures Act.

Although the bill has not generated a lot of controversy, nonetheless, overall, it could have gone a lot farther.

In fact, that is why my colleague from Shefford introduced Bill C-452. That bill is particularly important given that Bill C-14 still does not allow the Competition Bureau to conduct inquiries on its own initiative.

My colleague therefore introduced Bill C-452 to give the Competition Bureau more teeth, so it can initiate inquiries on its own initiative.

It still has to wait for a complaint before undertaking an inquiry. This is a classic response from the Competition Bureau: a complaint has to be filed in order for an inquiry to be started. As a result, Bill C-14 still does not address one of the major issues, the appearance of collusion in the oil industry.

Although the Bloc Québécois expressed support for the bill, as I said in my last speech in the spring, that does not mean that it is sufficient. Moreover, the clause-by-clause consideration of the bill did not result in many amendments. The amendments that were made related more to secondary issues. Personally, I think that even though the bill does not have as many teeth as we would have liked, it is hard to be against motherhood, particularly when we are trying to provide better protection for the public.

Even though we think it is in fact high time to make changes to the Electricity and Gas Inspection Act and the Weights and Measures Act, Bill C-452 could give the Competition Bureau tools for battling companies that might want to profit from their dominant position in the market to rip off consumers.

The good thing about Bill C-14 is that from now on, the onus will be on the trader to prove they are not guilty. As well, there may be additional penalties if the trader continues to operate in violation of the law.

But what is more important, to my mind, is that the law will allow the names of offending businesses to be posted and announced publicly. In an area like gasoline sales, if a trader is convicted, we can bet that the retailer will want to remedy the situation quickly. Information moves fast in social media and neighbourhoods, and there are also service stations in various locations, on almost every corner, and so it will be easy for consumers to switch from one business to another when they see that the retail price of gas is higher in one location.

In addition, the amendment to the Weights and Measures Act will allow for much higher fines for offenders. Under the new provisions of the act, inspectors appointed by the government will be authorized to enter premises that they have reasonable grounds to examine and to seize or detain anything in the place, to use any computer or communication system in the place and to prepare a document based on the data. They may also prohibit access to the place and require that faulty equipment be shut down.

Bill C-14 is not intended to instill fear in traders, but rather to make improvements to legislation that no longer meets modern standards. It is quite appropriate in 2010 for inspectors to ensure that consumers are not being shortchanged.

In my last speech in this House on Bill C-14, I remarked that in committee certain questions would be asked regarding things that we would like to see included in this bill.

It is a tremendous opportunity for us as parliamentarians to give the bill some teeth and allow the Competition Bureau to launch inquiries of its own accord.

For a number of years, we have also been calling for a petroleum monitoring agency, which would closely monitor gas prices and tackle any attempts at collusion or unjustified price hikes. The Bloc Québécois is not coming up with anything new here. For years now, we have cited the recommendations in the November 2003 report of the Standing Committee on Industry, Science and Technology.

The federal government has never done anything to assist consumers in this area, and it has to some extent let the opportunity to institute a petroleum monitoring system slip by. In spite of this, I reiterate that this is a step in the right direction.

Setting aside Bill C-452, the Bloc is convinced more than ever that the industry must contribute its fair share. With the skyrocketing rise in energy prices and oil companies’ profits, we are witnessing a real across-the-board economic bloodletting for the benefit of the oil companies. The overly generous tax benefits for oil companies must end.

We need to be prepared because by 2012, 11 car manufacturers intend to put about 30 fully electric or rechargeable hybrid models on the market. These cars will be more reliable and fuel-efficient and cost much less to operate than gasoline-powered cars.

I do not want to stray from the objectives of Bill C-14, but for the Bloc Québécois, any discussion on oil consumption absolutely must include a genuine plan and restructuring of the sector that focuses on achieving the following three things.

So once again, here are the three steps that must be taken in order to have legislation that truly has more teeth: first, the oil industry needs disciplining, and this can be achieved by way of a tougher Competition Act. Second, the oil industry must contribute by being made to pay its fair share in taxes. Lastly, we need to reduce our reliance on oil by, for instance, providing incentives to consumers to encourage them to buy electric cars.

We must be prepared, because electric cars will be available soon enough. So we should offer assistance for municipalities to install charging stations. We should also do further research on the batteries of these future vehicles so that they keep their charge longer.

We must implement better measures to prevent fraud, as proposed in Bill C-14. Having measures like these and a comprehensive action plan will enable us to come out on top.

In conclusion, I will briefly present the position of the Bloc Québécois.

The Bloc Québécois supports Bill C-14 in principle. However, this bill does not directly address the problems of collusion, such as the problems that recently came to light in Quebec, nor does it provide ways to effectively predict sudden increases in gas prices.

Therefore, the Bloc Québécois believes that we still need to look at ways to effectively address rising gas prices through Bill C-452, which we introduced.

In addition, the Competition Act still does not allow the Competition Bureau to conduct inquiries on its own initiative. A complaint must be filed, because if there is no complaint, the Competition Bureau does not take action, does not do anything.

The Bloc Québécois is also calling for the creation of a petroleum monitoring agency to closely monitor gas prices and to deal with attempts to collude and with unjustified price hikes.

That is the Bloc's position. I want to repeat that in principle, we support Bill C-14, which we are debating today.

Gasoline Prices

[Gérard Asselin, Bloc, Manicouagan, QC]

Mr. Speaker, pursuant to Standing Order 36, I am presenting a petition signed by citizens of the riding of Manicouagan in the House today. The petitioners are asking the federal government to pass Bill C-452 to give the Competition Bureau the power to inquire into and create legislation regarding fluctuating gasoline prices.

Competition Act

[Gord Brown, Conservative, Leeds—Grenville, ON]

Madam Speaker, I welcome the opportunity take part in the second reading debate regarding Bill C-452, An Act to amend the Competition Act (inquiry into industry sector).

I begin today by taking a moment to make a few remarks on Canada's competitive landscape and the government's plan for improving Canada's competitiveness.

A strong and competitive economy is central to the quality of life for Canadians. A strong and competitive economy means jobs, more opportunity, choices for consumers and enhanced prosperity for all. The government continues to take actions that will allow Canadians to thrive and capitalize on economic opportunities at home and abroad, while at the same time safeguarding Canada's interests.

Productivity and growth are at the heart of our standard of living as individuals, as firms and ultimately as a country. Responsibility for a better Canada rests with every individual, as well as with government, which is responsible for implementing appropriate public policies, ensuring effective management and providing strong leadership. Canada must step up its game to become more competitive both at home and abroad.

In the global economy, the pace of competition has accelerated and our competitors are becoming more successful. As a country, we must position ourselves for more wins in this new global marketplace. As a result, the government is focusing on policies that generate future growth and opportunities to boost our economic productivity. It starts with everyone adopting a more competitive mindset.

Competition in our economy is of enormous importance to consumers and their employers alike. The government has recognized that fact by taking significant steps over the past two years to modernize Canada's competition regime and align it more closely with the competition laws of our country's major trading partners. This allows for improved collaboration with other countries and facilitates more transparent and coordinated enforcement initiatives.

The Competition Policy Review Panel report entitled “Compete to Win”, released in June 2008, and the government's actions to implement the panel's recommendations reflect this government's commitment to reach a better standard of living for all Canadians. To do so, we need greater competitive intensity, which in turn yields higher productivity and growth.

The panel spent a year reviewing Canada's competition and investment policies. In its report, the panel concluded that in order to prosper, Canada must adopt a more globally competitive mindset. It concluded that intensifying competition would build a stronger economy, better products at lower prices, more jobs and higher earnings, stronger firms and greater prosperity.

The panel called on the government to reduce or eliminate legal and regulatory barriers to vigorous competition within Canada, at the same encouraging more foreign investment, and to take a series of other measures, including a tax reform, attracting and developing talent and harmonizing our competition laws with those of the United States.

The panel recognized the importance of ensuring that consumers and legitimate businesses did not fall prey to illegal activity and, if they did, they had confidence that the law would be enforced effectively and that penalties would be tough enough to deter future illegal activity. That is why it recommended a number of important amendments to the Competition Act to ensure it promoted the most effective competitive landscape for Canada's consumers and businesses.

These reforms were implemented by the Budget Implementation Act, 2009. They are all about building a better foundation for Canadian businesses to succeed and fostering increased confidence in the marketplace among Canadians consumers and all those carrying on business or considering carrying on business in Canada.

We toughened our approach to clearly anti-competitive acts, made changes to ensure that the law would not chill legitimate business activity and simplified the law in many respects. The reforms introduced tougher penalties for price fixing and other hardcore conspiracies, while narrowing this provision to ensure it did not discourage potentially positive strategic alliances.

To summarize, the Competition Act now provides more certainty to businesses and supports the type of honest competition that benefits all Canadians. We now have robust laws that will protect and promote competitive markets in Canada so Canadian employers thrive and consumers can have confidence in the marketplace.

As we made clear in the Speech from the Throne, this government's goal, as we move forward in our recovery, is to ensure that all Canadians benefit from our agenda of providing more jobs and growth. Over the last year, our government has taken decisive steps to protect incomes, create jobs, ease credit markets and help workers and communities get back on their feet. Moving forward, our strategy for the economy is to create the conditions for continued success in the industries that are the foundation for Canada's prosperity.

Our government is committed to identifying and removing unnecessary job-killing regulation and barriers to growth. This government stands for free and open markets. Open and competitive markets are the best way to promote new, dynamic and innovative products and ideas. Businesses do not need unnecessary government oversight or new regulations to dictate how they should operate.

It is in this context that I wish to remind the hon. member of the significant new powers this government has provided the Commissioner of Competition in order to investigate and deter the types of activities that lie at the heart of the bill. These tools will be far more effective than the measures provided and proposed in Bill C-452.

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

Madam Speaker, I am pleased to take part in the second reading debate on Bill C-452, An Act to amend the Competition Act (inquiry into industry sector).

As I understand it, the underlying objective of this bill is to address potential problems associated with investigating the petroleum sector. We are all concerned with high gas prices and as many in the House are aware, gasoline prices have long been a focus of the Competition Bureau.

High prices in and of themselves are not illegal under the Competition Act as long as long as they result from free market forces and are not the result of anti-competitive behaviour. The bureau does not hesitate to take action to protect both competition and consumers when there is concrete evidence that the high prices are the result of anti-competitive conduct.

In this regard, since 1972 the bureau's investigations in the gasoline and heating oil markets have led to thirteen trials involving charges of local price maintenance, eight of which have resulted in convictions. The bureau has also conducted six major investigations into allegations of collusion and other anti-competitive behaviour in the petroleum sector since 1990.

Those investigations did not find any evidence to suggest that periodic price increases resulted from a national conspiracy to limit competition in the supply of gasoline or from abusive behaviour by firms holding a dominant position in the market. Instead, they found that market forces such as supply and demand and rising crude oil prices caused the price spikes.

That has not stopped the bureau from remaining vigilant regarding the activities of this industry. In 2008, the bureau's investigation into certain cartel activities led to criminal charges against 13 individuals and 11 companies accused of fixing gasoline prices at the pumps in Victoriaville, Thetford Mines, Magog and Sherbrooke, Quebec. As of December 2009, ten individuals and six companies have pleaded guilty in this case, with fines totalling over $2.7 million. Of the ten individuals who pleaded guilty, six have been sentenced to terms of imprisonment totalling 54 months.

The same vigilance is evident in the bureau's work in reviewing mergers in the petroleum sector. In July 2009, the bureau announced that it had reached a consent agreement with Suncor Energy and Petro-Canada regarding their proposed merger. If this transaction had proceeded without the bureau's intervention, Suncor and Petro-Canada would have been in a position to restrict supply at the wholesale level, as well as to reduce competition in the retail sector in southern Ontario.

The consent agreement in this case required the merged company to sell terminal space and distribution capacity at its gasoline terminals in the GTA to an unrelated third party to ensure continued competition in the market for wholesale distribution of gasoline in southern Ontario and the GTA. This agreement also required the merged company to supply 98 million litres of gasoline to independent gasoline retailers each year during the 10-year period.

To address competition concerns in the retail sector, the consent agreement also required the merging parties to sell 104 corporate-owned gas stations in the GTA and southern Ontario.

Bill C-452 proposes a single amendment to the Competition Act. It would provide the Commissioner of Competition with the ability to launch formal inquiries under the Competition Act into entire sectors of the economy.

We need to be vigilant with respect to the duties that we impose on the bureau. Currently, the commissioner has the ability to conduct limited market studies as part of her role as an advocate for competitive markets. Studies into generic drug pricing and the practices of self-regulating professions are two recent examples where the commissioner examined the specific practices of various industry sectors and made recommendations to promote a more competitive marketplace.

There is evidence that these studies have been effective in improving competition in these sectors. The costs to business and the resource requirements within the bureau of such studies were minimal and did not interfere with the bureau's priority which is to enforce the act.

If a formal inquiry into an entire industry sector is required, the government may invoke its powers under the Inquiries Act. Such inquiries would include the authority to compel either oral or written evidence from witnesses and require witnesses to produce documents that are relevant to the matter that is under inquiry.

The government may also launch an inquiry under section 18 of the Canada International Trade Tribunal Act. This provision allows the tribunal to inquire into and report on matters of economic, trade or commercial interests to Canada. In the past, the tribunal has carried out studies on the competitiveness of the beef industry and the fresh and processed fruits and vegetables industries in Canada.

Given these existing avenues for inquiry and the range of issues that have been examined under the commission's current authority, I must say real doubt arises as to whether a new broader power is needed.

As we have seen, the Competition Bureau continues to aggressively enforce the Competition Act whenever violations occur in the petroleum sector. In addition, provisions in the act exist to ensure that action can be taken against abusive behaviour by dominant firms in any market. As well, the bureau has used its existing limited market studies authority to proactively promote constructive measures to improve competition in markets where structural problems exist.

Should Bill C-452 be referred to committee, I hope that there will be a thorough and detailed analysis of this proposal to determine whether it would truly advance the protection and promotion of competition for Canadian consumers and businesses.

[Serge Cardin, Bloc, Sherbrooke, QC]

Madam Speaker, I would like to congratulate my colleague from Shefford for introducing Bill C-452. The Competition Act is a very relevant topic, particularly with all of the news lately about oil. A huge quantity of oil is spilling into a natural environment and causing terrible pollution. I do not believe that such a major catastrophe has ever happened in our oceans. Those who authorize the construction of drilling platforms should make sure that they will be problem-free before construction begins.

The introduction of Bill C-452 virtually coincides with the study of Bill C-14. The Conservatives call this bill the Fairness at the Pumps Act, but that is just for show and yet another con on their part.

It is a little like the bill whose title referred to trafficking in children, but that contained nothing on the subject at all. That is how the Conservative Party operates. Calling it the Fairness at the Pumps Act is just a marketing strategy. Nothing could be further from the truth. The Electricity and Gas Inspection Act and the Weights and Measures Act cover all measuring instruments, from scales used at the grocery store to weigh fruits and vegetables to those that weigh gold extracted from a mine. The acts cover all weights and measures. The Conservatives are calling this bill the Fairness at the Pumps Act because they want to look good in the public eye by positioning this as an issue that has a financial impact on Canadian and Quebec families.

The summer will soon be here. Some companies will get together to fix prices, because they know that gas use goes up in the summer. So they make the price fluctuate. Obviously, when we point a finger at the oil companies and say that there must certainly be collusion, proponents of economic theory and of the oil sector say that it is a result of the law of the market and the price of crude oil on the stock exchange, and even the price of gas on the stock exchange. I think it is a combination of faulty basic economic principles and people who speculate on the important issue of gas.

There is no doubt that we missed our chance, and that we have a problem with our dependency on oil. We must not be afraid to admit that society has failed. It is too easy to extract oil, but it is becoming a little more difficult. People are starting to think of alternatives. In Quebec, the Bloc Québécois has been saying for a number of years that we need to reduce our dependency on oil.

Right now, on the island of Montreal, the Shell refinery will perhaps force us to reduce that dependency more quickly. However, we must not forget that, as I was saying earlier, there has been a failure in terms of alternative and renewable energy.

The Competition Bureau still does not have the ability to launch its own inquiries. There must be a complaint from the private sector. Then, the Bureau can launch inquiries regarding potential collusion among oil companies, and even gas stations themselves, as we saw in the Eastern Townships two years ago. Time certainly flies.

We really have to change our attitude toward the oil industry and competition.

We need to develop a comprehensive strategy for dealing with oil price hikes. 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 dependency 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.

Oil is making Quebec poorer, and we have to put an end to the bloodletting. 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 in 2009, 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.

Meanwhile, the oil companies are shamelessly taking advantage of this situation. They are posting record profits. In 1995, the entire Canadian oil and gas sector posted combined sales of $25 billion. By 2004, this figure had climbed to $84 billion.

Using and importing oil has a very significant impact on Quebec. Consequently, oil prices must be competitive and allow for alternative solutions to reduce our dependency on oil.

The best way to do that in the short term is to vote for Bill C-452, which would take fairness at the pumps beyond weights and measures and extend it to the oil industry as a whole.

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

Madam Speaker, I am pleased to speak today to Bill C-452. I am happy the member introduced it as it is a long overdue measure in Canada. It would amend the Competition Act to authorize the Commissioner of Competition to inquire into an entire industry sector.

For the past 100 years, we have had a situation that is not necessarily peculiar to the gasoline industry but it is an industry that the average consumer can relate to. For many years consumers have been phoning their politicians and telling us that there is something wrong in the gasoline retailing industry. When one gas station raises the price, the one across the street raises it a couple of minutes later, and then when one lowers it, the other lowers it as well. They work in concert.

Over the last number of years numerous studies have been done on price-fixing in the gasoline retailing industry. After about 150 studies, many feet thick sitting on the desk of the minister, the conclusion is always the same. We know something is going on, we know someone is doing something but we do not know how they are doing it and we cannot prove that they are doing it. That is why we have not made progress.

From 1988 to 1999, I was the consumer critic in the opposition in Manitoba and among the many issues that I dealt with as the consumer critic, one of them was the area of prices increases. We looked at the regulation of gas prices in the Maritimes and concluded that was not the way to go because the regulations seemed to be always going up to the highest price. The minister of the day, Jim Ernst, had a very open mind on this issue. He was not taking the side of the industry but he was prepared to let things go as far as they could. He commissioned a study at the time and once again the same conclusion was that the law had to be changed, that we were not catching the industry because the law was not broad enough.

That is a federal responsibility. The member is a federal member and he is doing what has to be done in this situation.

The government said that it brought in new changes in its omnibus budget bill last year, and I applaud it for the changes, but the member who just spoke for the government said that we should stop there because we do not want to give the Competition Bureau unlimited powers. It could go on a wild goose chase and tie up the companies in red tape and cost the economy a tremendous amount of money on some sort of whim.

I do not know where the member got his notes on this subject but the fact is that having tough laws are what prevent businesses from doing exactly what we are trying to prevent, which is price fix and collude.

In terms of price-fixing, we always think of large industries. We think of the gasoline industry, the credit card industry and other major industries but price-fixing and collusion can happen with small entities as well.

Price-fixing can appear in very small businesses. In a small town, two real estate firms could get together and decide that commission rates will all be 5%, 6% or 7%. Travel agencies in a small market could get together and collude. Until the Competition Bureau laid down the law a number of years ago and sent out promotional videos that indicated to the industry that this would not be tolerated, many businesses were unaware that it was even against the law. In other words, there was a law but the businesses were not aware of it.

However, once the Competition Bureau became proactive and started to chase the travel industry and the real estate industry, little businesses became aware that it was against the law and if they were doing it, and some were, they stopped doing it. We need very stringent laws, strict fines and we need promotion so that businesses do not get involved in it.

A year or two ago, no lesser a company than Sotheby's, the big worldwide auction firm, we saw two major auction houses in England come together and set prices for auctioning off items at Sotheby's. This practice went on for two or three years until one of the customers who was auctioning his store of art decided to investigate and started to make complaints. Eventually, one of the employees of Sotheby's or the other firm went to the authorities and gave all the information. Can anyone guess what happened? As a result, one of the firm's owners went to jail for a few months and, if he did not go to jail, he certainly paid very big fines, but the company is back to competing again. There was an end to the price-fixing.

However, that only happened because a customer was motivated to investigate, make the complaints and the charges to get things done.

In this House, we had the Liberals in power for 13 years. I have read the speeches in Hansard on this bill and others, and the Liberals have absolutely no credibility on this issue. They were the government all those years and there is only one member of the entire Liberal caucus who has any credibility on this issue at all and that is the member for Pickering—Scarborough East because, while the Liberals were the government, he was the lone member who actually attacked his own government and said that it should take off the blinders, that price-fixing was going on in the retail gasoline business and that something needed to be done about it. What did the Liberals do to him? They simply moved him back a couple of rows and ignored him.

The Conservative government has made some tentative steps, and I applaud it for that, but it is important for the member's bill go to committee where we can call in witnesses and discuss at length the matter of adding on extra powers for the Commissioner of Competition to inquire into the entire industry sector, which is what we want to do.

There is an another reason we want to do this. In case there are some industries that want to continue to flaunt the laws because they do not think that even the new penalties and laws are strong enough, then we want to give the commissioner the power to initiate her own investigations and not have to take direction from the minister, which is what happened during those 13 years of inaction under the Liberals and the previous 100 years of inaction in this country.

Let us pass this bill on to committee, let us study it and let us give more power to the commissioner.

[Martha Hall Findlay, Liberal, Willowdale, ON]

Madam Speaker, I would like to commend my colleague for introducing Bill C-452 with regard to the Competition Act. I would like to commend all of my colleagues for participating in the debate on this particular topic. We all, I believe, understand the value of competition.

Certainly, we in the Liberal Party value and understand the importance of competition in the market and understand that a competitive economy is a more prosperous economy. We also understand the need for protecting consumers and to ensure that the market itself is not so much protected but operated in a manner that prevents distortions in the market that may result from concentration or inappropriate behaviour.

Although the Competition Act and the Commissioner of Competition have important rights, which we value in terms of investigating particular businesses and their activities, the commissioner can only do that as a result of a specific complaint from an entity, individual or some other enterprise. In the market there are times when an individual or entity may, in fact, be hesitant for competitive, market or other reasons that we may not be aware of to raise a specific complaint with the Competition Bureau. In that sense, where those situations exist, it is important to give the Commissioner of Competition the opportunity to look at an entire industry sector.

I have no intention today of raising specific industries. My view is that this is an opportunity for the Commissioner of Competition, when it is appropriate, regardless of the industry, if there are issues that have been raised that suggest that an investigation is warranted into the industry as a whole. This is indeed an improvement to the Competition Act that would allow the commissioner to do just that.

I would like to thank my colleague for introducing this bill, which would enhance the Competition Act. Liberal members understand how important it is to have marketplace competition, but we also recognize the importance of protecting consumers by ensuring that prices and products on the Canadian market comply with the law.

There have been a number of arguments put forward in debate in this House that perhaps this gives too much discretion to the Commissioner of Competition. I would argue that this is not a situation where the commissioner would undertake an investigation willy-nilly. The history of the Competition Bureau has been one of operating with significant understanding of the Canadian market in all the different industries that have been looked at.

I would also argue that the Commissioner of Competition has had the opportunity to review certain industries as a result of investigations into particular business activities, particular activities engaged in by particular enterprises. That particular study ends up being done appropriately but too often through the back door. The addition of this provision would allow the competition authorities to engage in that larger investigation of an entire industry where warranted.

To address a concern that somehow this would provide an opportunity to go looking for problems, I completely disagree with that. The history of the Competition Bureau has been one of real understanding of the need of when to be involved and when not to be involved. I will repeat my earlier comment that up until now the opportunity has only arisen when a specific complaint has been laid.

The addition of this clause would allow the Competition Bureau to investigate an entire industry sector. That would not happen out of the blue. The entire history of the Competition Bureau would suggest that any such investigation would only happen when there was sufficient information available, whether through the market or through other indications that such an investigation would in fact be warranted.

In that regard, I have considerable faith in the Competition Bureau as an entity and in the people involved not to be engaging in witch hunts but, in fact, to take advantage the addition of a clause like this one to enhance their ability to balance the needs in the Canadian market of encouraging competition and competitive activity in this country in order to ensure the most prosperous domestic economy that we can achieve. We must also ensure the greatest level of global competitiveness that we can, all the while understanding the need to ensure that consumers in Canada are able to obtain the best products at the best prices without any undue influence in the market or any distortions in the market that may be seen in any particular industry.

I want to again thank my colleague for introducing this amendment to the Competition Act. I want to thank all of my colleagues who have participated in this debate. I have heard some of the arguments against it, but I would suggest that we should have a greater level of confidence in the Competition Bureau and the people who work in the Competition Bureau to use this to enhance their ability to encourage competition, and to ensure the best market and economic opportunities, and the protections that consumers need in Canada.

I look forward to hearing continued debate.

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, from where I left off a couple of weeks ago, a concern that I find with this legislation is the relatively broad scope of powers that it would afford with such a simple change of Canada's Competition Act.

The bill would give Canada's Commissioner of Competition unlimited powers to call an inquiry into an entire industry sector, with no evidence of any wrongdoing, and place entire sectors under scrutiny, through no fault of their own.

Not only would this investigative process cause problems by shifting the focus of a company away from its day-to-day operations to co-operating with the commissioner's investigation, it would also place a great deal of pressure upon the office of the commissioner. As I said previously, the office of the commissioner is one that exercises its authority with the utmost care and responsibility. However, with what this bill is proposing, a great deal of pressure would be placed upon the office to investigate virtually any rumour of wrongdoing by the industry sector, regardless of the grounds upon which these suspicions were made known.

I had begun to talk about our government's budget implement act in the first hour of debate on Bill C-452 and would like to finish my thoughts on that.

In March 2009 this government introduced the most substantial amendments to Canada's anti-cartel laws in over 100 years. These changes introduced an outright prohibition on agreements between competitors regarding prices, output levels or market sharing. They also significantly increased the penalties for these offences to $25 million and/or 14 years in prison. To allow business to adjust, the government also allocated a one-year period for them to review their practices and bring about compliance with these measures.

With the coming into force of these provisions on March 12, the Commissioner of Competition finally has the types of improved tools she needs to aggressively pursue and convict those engaged in the most harmful types of cartel behaviour which distort competition and undermine confidence in the marketplace.

Our government has made great strides in legislation to strengthen competition and punish non-compliance of the fundamental principle of a free market system. Broadening the Commissioner of Competition's powers from simply being investigative to the much more comprehensive level of launching inquiries may quickly prove to be ill-thought, both in terms of time and resources.

One thing our government seems to recognize more than the opposition parties is that just as anti-competitive behaviour drives up prices, so too does costly bureaucratic red tape.

In conclusion, the question that we must ask as we consider this measure is whether we as members of Parliament are willing to impose the types of burdens on businesses that would flow from this bill. Do we want to subject businesses to costly and time-consuming investigations where there is no evidence of wrongdoing? Is it appropriate to distract the commissioner's focus for enforcing the Competition Act?

We are very wary of imposing any new regulatory burdens on business, especially in light of today's harsh economic realities.

The House resumed from May 12 consideration of the motion that Bill C-452, An Act to amend the Competition Act (inquiry into industry sector), be read the second time and referred to a committee.

Fairness at the Pumps Act

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

Mr. Speaker, members are aware that over the last 20 years, perhaps, successive studies have been done. As a matter of fact the pile is thick. I believe about 125 studies have been done on price fixing at the gas pumps. In all cases, at the end of the day the conclusion has always been that the oil companies are doing nothing wrong, when the public knows better. The fact of the matter is that the Competition Act has to be changed. That is key to this whole business.

The Bloc has introduced a bill in private members' hour, Bill C-452, to do exactly that. Under the Competition Act, it would authorize the Commissioner of Competition to inquire into an entire industry sector.

It has been pointed out many times that gas prices are much higher here than in the United States. We know there is price gouging and price fixing going on. It has been reported many, many times by people, who actually work in the gas stations, that they get a phone call from their head office and are told to raise the price. They do this with all of their stations. They do not dare question that.

That is what is really key here, but does the government make any moves in this direction? Absolutely not. Did the Liberal government do anything about this issue during its 13 years in power? Absolutely not. At the end of the day, we can only conclude that what we need is an NDP government in this country to bring in real consumer protection, because it will not happen under Conservatives or Liberals.

Competition Act (Inquiry into Industry Sector)

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Madam Speaker, I welcome this opportunity to take part in the second reading debate regarding Bill C-452, An Act to amend the Competition Act (inquiry into industry sector).

I would like to take a moment to frame my thoughts on this bill within the broader context of the government's plan for Canada's continuing economic recovery.

As we made clear in the Speech from the Throne, this government's goal, as we move forward into our recovery, is to ensure all Canadians benefit from our agenda of providing jobs and growth.

Over the last year, our government has taken decisive steps to protect incomes, create jobs, ease credit markets and help workers and communities get back on their feet.

Moving forward, our strategy for the economy is to create the conditions for continued success in the industries that are the foundation for Canada's prosperity. Our government is committed to identifying and removing unnecessary job-killing regulation and barriers to growth. This government stands for free and open markets. Open and competitive markets are the best way to promote new dynamic, innovative products and ideas.

Having set out this broader perspective on the government's priorities, allow me now to the turn to the details of the bill.

On its face, the bill appears to be quite straightforward. It proposes a single amendment to the Competition Act. If adopted, it would provide the Commissioner of Competition with additional power to commence a formal inquiry under the act.

To be clear, the act already allows the commissioner to start a formal inquiry into the conduct of a company, or companies, whenever she has reasonable grounds to believe that the act has, in some way, been violated. The amendment being proposed now would add to that authority. It would allow the commissioner to start an inquiry into an entire industry sector at large.

There is an important distinction between what exists today and what is being proposed.

Under Bill C-452, there would be no requirement to show any evidence that the enforcement provisions of the act might, in some way, have been contravened.

It is important to understand the consequences of such a change. The commencement of a formal inquiry is a serious step in the investigative process. Once at the stage of inquiry, the commissioner is able to apply to the courts for permission to use the investigative powers of the Competition Act to subpoena oral and written evidence from any party who may have relevant information regarding the matter under investigation. This is reasonable power for the commissioner when she is examining business practices that she has a basis for believing violate the enforcement sections of the act.

The commissioner must have access to modern and sophisticated investment tools to allow her to determine, in an unbiased fashion, whether the law has been violated.

At the same time, this is an authority that imposes both considerable and complicated obligations for those under investigation and significant public and private costs to ensure the obligations are met. Failure to comply raises the risk of being found in contempt and the possibility of fines and imprisonment.

The position of the Commissioner of Competition demands the exercise of prudence and good judgment. I have every confidence that the Commissioner of Competition does, and will continue to, exercise her authorities with the utmost care and responsibility.

However, the Office of the Commissioner requires direction. The introduction of this type of power proposed by the bill would put at risk the reputation of the commissioner and the staff she directs. The authority to inquire into an entire industry sector without any evidence of wrongdoing would open the commissioner to criticism that she is engaging in a costly fishing expedition.

We must also remember that the commencement of a formal inquiry and the commissioner's use of her formal powers come at a cost to her office. Her primary responsibilities are the enforcement provisions of the Competition Act. Any inquiry into an entire industry sector would demand extensive use of limited bureau resources. Without additional funding, the commissioner would need to reallocate assets from her other priorities.

It is imperative that Parliament consider the burdens we would impose on the commissioner when we amend the legislation and establish her enforcement priorities, and the cost to Canadian businesses and consumers if we distract from that principled focus.

As I noted at the outset of my comments, this government is committed to improving job opportunities for Canadians and growing our economy. We are committed to finding and eliminating unnecessary job-killing regulation and barriers to growth. We are not here to introduce measures that would result in new barriers to growth and prosperity.

As we consider this bill, we must also remember the steps that this government and this Parliament have already taken to address the issues that lie at the heart of this bill.

With the passage of Bill C-10, the Budget Implementation Act, 2009, in March 2009, this government introduced the most substantial amendments to Canada's anti-cartel laws in more than 100 years. These changes introduced an outright prohibition on agreements between competitors regarding prices, output levels and market sharing.

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

Madam Speaker, it is a pleasure for me to rise today on Bill C-452. I want to congratulate my colleague, the hon. member for Shefford, for having introduced this bill to strengthen the Competition Bureau’s ability to make inquiries. We also hope that some parts of this legislation will find their way into government bill C-14 on electricity and gas inspection and on the Weights and Measures Act.

I had an opportunity earlier this week to speak on Bill C-14, and it is good that we are now going to discuss Bill C-452, which is still necessary in our view. We need to continue our efforts to deal effectively with the problem posed by the Competition Act, which still does not allow the Competition Bureau to conduct inquiries on its own initiative. It is still necessary, unfortunately, to wait for a complaint from some individual before an inquiry can be initiated.

Even though the Bloc Québécois supports Bill C-14 in principle, it is not an end in itself. With the introduction of Bill C-452, the Bloc Québécois reiterates its intention of freeing Quebec from its dependence on oil through a bold program focused on green energy and the electric car.

To do this, Bill C-452 expands on the measures the government is introducing in Bill C-14 by proposing further steps that could be taken to protect consumers.

Our bill would give the Competition Bureau the power to conduct on its own initiative real inquiries into an industry if there are reasonable grounds for doing so. At present, this is not permitted. The Bureau has to wait for complaints or for instructions from the minister before it can act.

Even though the government says it took action to correct the situation in the Budget Implementation Act of January 2009, there are no provisions in this act allowing the Competition Bureau to make inquiries on its own initiative. A complaint is still needed before an inquiry can be launched.

It is obvious that a bill like this would leave the Competition Bureau much better equipped to fight companies that want to take advantage of their dominant position in the market to fleece consumers.

The Bloc Québécois is not inventing anything new here. We have simply repeated for several years now the recommendations in the report of the Standing Committee on Industry, Science and Technology, which was tabled in November 2003. The federal government has never done anything to help consumers in this regard. It has a fine opportunity here, though, to set up a monitoring system for the petroleum industry.

To understand the steps leading to the debate on Bill C-452, we need to go into the history of it.

In 2003, the Standing Committee on Industry, Science and Technology tabled a study on the price of gasoline that made two recommendations to the government: create a petroleum monitoring agency and tighten up the Competition Act. The committee even specified the changes to the Competition Act that it would like to see. At the time, the Bloc was already saying that the government should implement the committee’s recommendations.

In October 2005, the Liberal government came around to the Bloc’s arguments and, as part of its plan to help curb the increase in the price of gas, it tabled amendments to the Competition Act in Bill C-19.

Unfortunately, Bill C-19 was just an election gimmick to give the impression the government was doing something to discipline the oil industry and it died on the order paper.

The Conservatives are quite enamoured of the oil industry, of course, and it is hardly surprising that they did not re-introduce the bill.

As a result, in 2007 the Bloc Québécois tabled Bill C-454, which passed second reading on April 28, 2008. But it too died on the order paper when an election was called in 2008.

In 2009, the Conservative government partly revived Bill C-454 in the Budget Implementation Act of January 27, 2009, although the Competition Bureau still was not allowed to launch inquiries on its initiative.

So here we are seven years later debating Bill C-452 to give the Competition Bureau some real teeth.

There is no doubt, in the Bloc’s view, that the Competition Bureau should have greater freedom of action and more discretionary power over its inquiries. To conduct an inquiry, the Competition Bureau needs access to all the documents so that it can do a good job of investigating and promoting competition.

The Bloc Québécois has long been pressing the government to take action in view of the rising price of petroleum products. Bill C-452 is just a first step toward countering the increase in the price of gas.

Apart from Bill C-452, the Bloc is more convinced than ever that the industry should do its fair share.

As I said at the beginning of my speech, Bill C-452 is part of a plan for sweeping change.

First, we must put a stop to the tax cuts for oil companies. In 2007 or just one year after taking power, the Conservative government gave the oil companies another tax cut in the 2007 economic update. As a result, the companies will see their tax rate fall to 15% in 2012. In that year alone, this tax break will help them pocket nearly $3.6 billion.

We also need to reduce our dependence on oil. Quebec does not produce any oil and every drop that Quebeckers consume impoverishes Quebec, in addition to contributing to global warming. The Bloc Québécois therefore wants to 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. Over a period of five years, from 2003 to 2008, oil imports increased by $11 billion.

Furthermore, to reduce our dependence on oil, the Bloc has proposed substantial investments in alternative energies 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.

The objectives of Bill C-452 are clear. A bold program focused on green energies and electric cars that will allow Quebec to end its dependence on oil is urgently needed.

Until we can put an end to this dependence on oil, we must give more power to the Competition Bureau by allowing it to initiate inquiries, and by creating a petroleum monitoring agency.

[Brian Masse, NDP, Windsor West, ON]

Madam Speaker, I am pleased to speak to Bill C-452. The New Democratic Party will be supporting this initiative. The member should be commended for bringing this issue forward. There are those who argue that the Competition Bureau does have sufficient powers right now and does not need additional resources, but I am of a different opinion. There are a number of different products and services out there with which I will deal.

I think competition is not entirely happening the way that it should. It should be noted that the debate that will continue at committee will be very important as part of a process to review a series of sectors and I hope we can get experts and witnesses to come forward.

The sponsor of the bill made reference to the oil and gas industry in the previous debate on a government bill and mentioned the lack of competition in the oil and gas sector. There is almost a collusive element. I noted in particular the Petro-Canada situation where instead of investing in Petro-Canada refineries in Burlington, it shut down the plant and now imports gasoline from Esso and sells it in Petro-Canada stations across Ontario. So there does not necessarily have to be price fixing, but there will not be very much in variables involved with regard to trying to move into a more competitive situation.

It has always been the case, as we look at the oil and gas sector, where there is a lack of refinery capacity, vertical integration with the industry, a series of different elements that lead to basically a formula that is a recipe for disaster for Canadians and their pocketbooks. It was interesting when the government lowered the GST with regard to oil and gas, and the cost that the companies now actually get back, it was not passed on to the consumers. The prices and profits have risen significantly and not even one single organization or company took advantage of the opportunity of the 2¢ reduction to pass it on to consumers. They took it and put in their own pockets.

Because the government had no accountability whatsoever in terms of monitoring the process, or no interest whatsoever, we have lost hundreds of millions of dollars out of the coffers of this country every single year that could have gone to different things whether it be health care, or whether it be more money to the Competition Bureau to be able to examine anti-competitive practices. A whole series of things that could have been addressed are now gone, and the companies now have record profits and record tax cuts from the government which are windfalls they have enjoyed.

It is only fair that we actually examine the bill and look at the oil and gas sector as one of the variables in how it can be addressed because the bill is specifically geared to the industry sector which is a responsible way to approach it. It allows targeting to certain areas where there is a lot of interest.

We are seeing that now at committee where there are a couple of current issues that are very important. We have the entrance of new players into the Canadian market with regard to telecom and that means more communication devices, cellphones, BlackBerrys and wireless service provisions that are being expanded in Canada. There are those who feel there is no competition in that sector and relatively similar price elements make it very difficult for consumers to get a better benefit. They have also been receiving record profits and are quite lucrative. Almost all the groups and organizations of the big telecommunication companies have done well.

There are three new entrants coming into the market, so there is no question that this is timely to look at whether or not the Competition Bureau is going to be sufficient to have the independence to examine cases, have the resources to do so, and have the tools to be able to make decisions that are going to increase the competitive nature of businesses in Canada, those that are regulated and those that are non-regulated.

Another issue raised often with regard to this issue is credit cards. New Democrats have been calling for a number of credit card reforms. My good colleague from Sudbury has been pushing this issue and the Minister of Finance is basically moving for a voluntary agreement. It is clear that we have deficient credit card competition in Canada. There are some groups and organizations that are more progressive, but at the same time it is seen basically as a system that is stuck where the vast majority of credit cards have interest rates that are quite similar.

Once again, that is an area where we want to see more healthy competition, but we have not. The banks are also making record profits and we have seen the same things there. My office receives complaints with regard to how close bank fees are among different organizations.

There does not actually have to be a collusion, where there are brown envelopes changing hands and information being wired back and forth to predetermine the actual cost of items and passing them on to the consumer. There just has to be basically a general acknowledgement that they are going to stay in a certain field of play and compete in that field of play. That is not real competition.

For a few years, we used to carry out inquiries into the insurance industry as well and about the issues there. We just have to talk to people about auto insurance and a series of things, and they often find that there is not enough healthy competition or they cannot get certain services whatsoever. I know that some people are outright denied or have to pay really high fees. There are maybe only one or two companies that will provide that demographic, so the fees are through the roof with regard to costs and they really do not get into a competitive market because certain groups of people are written off altogether by these companies.

The Competition Bureau would be well-equipped to look into that because if people cannot even get quotes on insurance, they are stuck with very few recourses of action. We can just talk to young people about what they are paying for auto insurance. They in particular are scammed because I have not seen the evidence that warrants that type of behaviour.

The other issue I have been working on regarding competition is the issue with Toyota. Toyota is a company that is under criminal investigation in Japan, the United States and Europe. Yet here, the government has not even done anything, aside from having two meetings at the transport committee, which we forced the government to do.

The issue behind that is not just in regard to the safety of the vehicles. It is also an issue of competition. Did Toyota know about problems with its vehicles and choose not to fix them, to gain market share at the expense of other manufacturers? It does not matter if one makes a curling iron or a car, if one knows that the device has a problem and chooses to neglect and not fix that to gain market share, it becomes a competition issue because it runs other companies under.

I am very proud of negotiating a change in public policy here, with the Liberals at that time, a number of years ago. It used to be law in Canada that if a business was given an environmental fine or penalty, it could claim that as a business tax deduction. I viewed that as an environmental issue, health and public safety issue, but also a competition issue, and here is why.

We had a drug company, for example, which had a $10 million fine. To explain this clearly, this company was charged with something. It went to court. It was fined $14 million and at tax time, it actually got $10 million back as a business-related expense. If a company polluted the lakes, oceans and streams, and it got caught and was fined, whether it be millions of dollars or hundreds of thousands of dollars, it could claim it as a business tax deduction and get money back on that.

What was important about this change, and why I am proud of negotiating the end to it, was that the good companies were getting punished just as much as any others. They were following the law and doing the right things and they had to compete against those that were actually abusing people and the environment, and that is not right.

I welcome the member's bill here today and look forward to having the discussion at committee. I think it will be a helpful discussion at a very important time, when many products and services need to be looked at under a competitive regime.