Madam Speaker, I am pleased to speak to this bill today. Bill C-94 proposes to regulate interprovincial trade in and the importation for commercial purposes of certain manganese based substances.
Before I go any further, let me clarify for the House what MMT is. MMT or methylcyclopentadienyl manganese tricarbonyl is a fuel additive. I am really pleased I had my two years of organic chemistry in order to be able to fumble through that. I will be using MMT for the rest of my speech.
MMT is a fuel additive which boosts the octane of gasoline and increases its efficiency. It has been used since 1977 in almost all Canadian unleaded gasoline.
MMT was introduced as an additive to gasoline when lead was banned and its addition has proven to enhance the effectiveness of fuel and has shown environmental benefits. This bill is designed to eliminate the use of MMT which is a lead replacement in unleaded fuels.
Bill C-94 allows the minister to authorize an exception for MMT. It will not be used in unleaded gasoline subject to monitoring requirements. Coverage of the bill can also be expanded by order in council to cover other manganese based substances and the bill will be binding on all persons, including the federal and provincial governments.
The penalties for unauthorized import or interprovincial trade of MMT are harsh and range from a $300,000 to $1 million fine and six months to three years in jail. That is pretty stiff.
I have several concerns with the bill. I am concerned about the government initiative in this matter in the first place. The government should not be interfering into private disputes between businesses. That is what this is. It should be resolved between the concerned parties and not by government legislation.
I am also concerned about the lack of research behind the bill. The government has refused to conduct an independent technical reviews to address the issues in dispute, as suggested by several provinces, gasoline refiners and the manufacturers of MMT. Instead the government is legislating a ban on a product without any proper investigation.
This is a technical industry issue which can only be resolved through an independent technical review, not by subjective government action. Reform has been very clear that it does not want to take sides on the issue. It has met with both sides, Ethyl and the Motor Vehicle Manufacturers Associations, MVMA, and both sides appear to have credible arguments. Both sides have run exhaustive tests and come up with two different and contradictory results. This is why Reform feels that there is a need to run a third party independent test on the product before any conclusions are reached.
I am concerned that the bill is going ahead despite the fact that government does not have any conclusive evidence that MMT has an adverse effect on the environment. The minister's claim that MMT has been linked to increasing vehicle repair costs to the engine and emission control systems are unfounded. There is no external evidence to support any claim that the removal of MMT will decrease repair costs to the motorists.
The minister also claims that MMT causes on board diagnostic units to malfunction in the new 1996 cars. There is no evidence to support this either. The MVMA claims to have data to support this claim, but Ethyl says that test results from the largest EPA approved fuel additives testing program in history demonstrate that contrary to claims by the MVMA, MMT in Canadian gasoline is fully compatible with the new on board diagnostic catalyst monitoring systems.
Again, no independent third party testing has been conducted in Canada on MMT and the 1996 on board diagnostics. There is also no evidence to support claims that MMT damages the life of
emission control equipment or that the use of MMT in gas increases fuel consumption or pollution.
This legislatio is based solely on the evidence developed and put forward by the Motor Vehicle Manufacturers' Association, one of the parties directly involved in the dispute. Again, none of the evidence has been subject to third party analysis.
The Motor Vehicle Manufacturers' Associations has not made their evidence available to the general public. One has to ask why. Of what are they afraid?
When asked in the House of Commons for evidence to support this legislation, the minister side stepped the issue, refusing to bring the evidence into the open. Why? Clearly because the minister does not have sufficient evidence.
In fact there is evidence that appears to point to the contrary. Health Canada conducted a study in December 1994 which concluded that the current use of MMT does not harm Canadians. The report stated: "All analyses indicate that the combustion products of MMT in gasoline do not represent an added health risk to the Canadian population". Evidence provided by Ethyl Corporation, the manufacturer of MMT, also contradicts the conclusions of the MVMA.
It is important to note the method the government is using to implement this ban. The legislation proposes to ban MMT through a trade restriction, not an environmental ban. It is important. Why? Because the government has no legislative grounds to remove MMT for health, environmental or technical reasons. If there is something environmentally wrong with MMT then use the Canadian Environmental Protection Act. Do not use a trade ban. There is something wrong with this picture. If the government is going to ban a substance it should have conclusive evidence that will support the ban which it does not have.
I am concerned about the precedent set by this bill of government interfering in business. The two concerned parties, industry and Ethyl, are both making contradictory claims and have been unable to smooth out their differences on their own.
Before the environment minister stepped in, the two sides were close to negotiating an understanding to bring in third party testing, which is what we want. However, the minister's interference in this issue has brought matters to a standstill. As soon as one side felt the minister was on its side, all talks were broken off. Rather than helping the situation the minister's interference hindered the course of events.
I am also concerned that Bill C-94 sets a precedent for business to drive the government agenda. The MVMA has threatened to raise automobile prices and to withdraw automobile manufacturers across the border if these companies do not get their way. This bill is clearly the response.
Government should not be responding to unfounded threats from the business community with legislation. This is no way to run the country, although it may now be the new way of Liberals doing business.
My concern with Bill C-94 is not who is right or wrong. I do not feel I can take a position on the issue because at this point there is not enough evidence to support one side or the other. My concern with the bill is the manner in which decisions are being made by government. Government should not be making decisions until there is clear third party, unbiased evidence on the table. There needs to be a fair and independent technical review of the facts.
Given that most automobile manufacturers are based in Ontario it is clear why the government has chosen to support the Motor Vehicle Manufacturers' Association in this dispute. Lobbying is the issue here, not MMT.
Government should not base its legislative decisions on lobbying or on where it feels its election interests may lie. MMT is the only gasoline additive available in Canada that is capable of reducing nitrogen oxide emissions by as much as 20 per cent. Nitrogen oxide emissions cause urban smog. A ban on MMT could have the equivalent effect of adding one million cars to Canadian roads by the year 2000 if we do not have an equivalent replacement.
If a replacement for MMT is not identified, its removal from gasoline will prove to be more environmentally detrimental than leaving it there in the first place. This should be of concern because it appears that environment department officials do not know what will replace MMT. This bill only allows six months for its ban to be effective. Six months does not allow enough time for industry to adjust.
Canadians should also be concerned about the cost of the legislation on the individual consumer. It is estimated that taking MMT out of gasoline will cost an estimated $109 million in capital costs and tens of millions of dollars for operating costs. These costs will be dumped on the consumer which will mean an increase in gas prices.
Several provinces have voiced their opposition to this bill. I wonder how the government justifies the restriction of import and interprovincial trade of MMT with Bill C-88 which proposes to remove interprovincial barriers to trade. Again it does not fit.
The spirit and intent of Bill C-94 represents a unilateral interference into provincial affairs. The province of Alberta has stated that Bill C-94 contradicts the energy chapter of the agreement on internal trade. Article 1209, section 1 states that
no party shall restrict, prohibit or hinder access to its petroleum markets or its petroleum products markets.
Alberta has questioned the environmental benefits of removing MMT and has demanded a fair and timely process to resolve the dispute. Saskatchewan's deputy minister of environment has stated the MVMA has not convinced Saskatchewan and the majority of provinces that there is any evidence to show MMT has an adverse effect on the on board diagnostic systems.
Why is the Minister of the Environment ignoring these concerns shared by Alberta, Saskatchewan, Nova Scotia and New Brunswick? Could it be that perhaps she is in the pocket of the auto industry?
I am also concerned that the environment minister's actions directly contradict what is currently taking place in the United States. The Americans have recently overturned the Motor Vehicle Manufacturers Association's evidence, the same evidence on which the proposed legislation is based.
Let me repeat that because it is important. The Americans have recently overturned the MVMA evidence, the same evidence on which the proposed legislation is based. The 19-year prohibition of MMT was recently lifted by an U.S. appeals court because the evidence of its effect on the environment has been shown to be inconclusive. Last week the United States district court of appeals issued its mandate ordering the Environmental Protection Agency to grant a waiver to permit the use of MMT in unleaded gasoline in the United States.
This reaffirms the findings that MMT does not cause or contribute to the failure of any emission control system or damage the environment. The order to grant a waiver follows from extensive program testing of the fuel additive.
I am concerned that the minister is jumping the gun with the bill. It appears that MMT will probably be reintroduced into the United States this fall. At the same time, the minister is taking action to ban the product in Canada. It simply does not make any sense.
Actions in the United States put a large question mark on the efforts of the environment minister to ban MMT in Canada. We have to ask again, why?
In conclusion, I would like to make it clear that I do not support this legislation. I do not support legislation based on lobbying and threats, and I do not support legislation that fails to obtain a fair and independent technical review of the facts.
If this legislation is to go forward, I agree with my colleague that it must go to the environment committee. Extensive witnesses from both sides should be called. The only way that this can be solved is a clear third party independent study to find out what are the basics.