House of Commons Hansard #215 of the 35th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was vehicles.

Topics

Alternative Fuels ActPrivate Members' Business

2:40 p.m.

Reform

Ken Epp Reform Elk Island, AB

Mr. Speaker, it is my privilege to rise to speak to this issue today. You can tell by looking at me that I am a person who believes in great efficiency.

We ought to do everything possible to utilize our available fuel sources in the most efficient manner and to conserve our environment. They are two very worthy goals and probably there is no debate from anyone on that point. There should be no difference. I believe all Canadians in general would agree.

If the goals in terms of moving people and materials in a transportation system are the most efficient use of limited resources and the elimination or reduction as much as possible of pollution of the air, ground and water environments, how should those goals be accomplished?

Once again we have an example of a government thinking that unless it legislates it, it will not happen. I reject that hypothesis forthwith. I am sure people who come up with ideas to pass these laws are well motivated. There is no doubt about that but when one thinks of producing a law such as the one we are looking at today, it does start out with the assumption that if this law were not passed nothing would happen.

That is not true. By and large Canadians are becoming more aware of their environmental responsibilities and simply because of that they are beginning to make adjustments in their lifestyles. Members of my family and I have been doing this for a long time. We used alternate fuels to the day many years ago. When it was possible we rode our bicycles.

Maybe what the government should do is say everybody in the federal civil service instead of having a vehicle should have a bicycle. Maybe we should ask our Prime Minister who has gone from his Cadillac, Lincoln or whatever he had before to the Chevy to get a bicycle built for two. His assistant could help him provide the power. He would come toddling down Sussex Drive to the Hill every day.

Alternative Fuels ActPrivate Members' Business

2:45 p.m.

Reform

Jim Abbott Reform Kootenay East, BC

He rode a bike in Beijing.

Alternative Fuels ActPrivate Members' Business

2:45 p.m.

Reform

Ken Epp Reform Elk Island, AB

He has proven he is athletically oriented and that would be a wonderful statement of government leadership in how to move passengers in an efficient way.

Members may know if they have ever read Scientific American that of all the modes of transportation the one requiring the least amount of energy per kilometre is the bicycle; the clear winner over every other form of transportation. If we want to reduce costs and pollution we ought to be pushing bicycles.

Bill S-7 specifies we should go for alternate fuels. One of the things that disturbs me or causes me the most amount of concern is here again we have the push toward quotas and legislative requirements. I know it is good to set goals. There is nothing wrong with that. There is nothing wrong with saying we ought to set a goal but the error in this bill is instead of using the legislation to set a performance goal we are using the legislation to set a method goal.

In other words, we are not saying we want to have vehicles run with better and cheaper fuel that pollute the atmosphere less. We are saying we require a certain quota of vehicles converted for alternate fuel.

I noticed in scanning the bill there is an internal contradiction. It states that by a 2001 the goal is to have 75 per cent of vehicles on alternate fuels. If 75 per cent of the vehicles are on a certain type of fuel, the other ones are the alternate because these are now in the majority. If we did that our definitions would have to be changed. That is a moot point but it is one where we need to be careful in what we say.

Most important, is it really cost effective? We know that to convert vehicles manufactured for one type of fuel is a costly activity. The return economically on that conversion is only there if the vehicle is driven a sufficient distance per year. For most of these conversion costs the fuel source is also less expensive and so there is a financial gain to be had. However, unless one drives the vehicle a sufficient distance it is not economical.

Approximately 70 per cent of vehicles owned by the federal government or its agencies are driven a distance less than the critical point at which it is economical to do the conversion. We need to go back one step and say that instead of converting existing vehicles we need to produce vehicles in the first place with the ability to handle current or alternate fuels.

Here again we have a great problem because it is impossible to predict with accuracy the future. It could well be because of certain economic or environmental disasters or things beyond our control that certain types of fuels will become unavailable in sufficient quantity. As the hon. member for Edmonton Southwest mentioned, there have been examples of vehicles designed to run on one kind of fuel suddenly being parked because no fuel is available. It is wise to have dual fuel vehicles not only for the availability of the fuel but also in the event it goes out of the range of the alternate fuel station.

There are many dual vehicles. I have been a passenger in a vehicle in which there is a switch on the dash. It drives along on propane and as soon as the propane is gone and the propane station is out of range, the driver can flip a switch and the vehicle will resume running on gasoline as it was originally intended. That is a cost item. Vehicles which run on two fuels require a greater cost in manufacturing if it is done at the manufacturing level and certainly involves a cost if done at the conversion level.

Another factor is what proportion of the cost is the actual cost of producing the fuel and what proportion is the taxation. Provinces and certainly the federal government have fuel taxes. There has been a bit of publicity given to the latest fuel tax the government had the audacity to introduce in the last budget. It was a nominal 1.5 per cent per litre. Many Canadians do not realize that figure is not accurate; it is a new tax of 1.605 cents per litre since GST is paid on the tax as well. The government is not happy unless it is taxing the taxes.

Propane, compressed natural gas and normal gasoline, as we call it, have different taxation levels. It is no secret, at least in Alberta, that one of the main reasons propane is economical is simply that the government is not taxing it. At the manufacturing or refinery level the cost of the two fuels was not that much different. The tax differentiated them.

Perhaps we should simply change the tax structure to give a slight advantage to one fuel if it can be proven advantageous to the environment. Here again I express caution because we are now intruding in the marketplace and what we ought to be doing is setting performance standards, not method standards. In other words, we do not care how the goal is achieved; rather we do care the stated environmental goal is achieved.

I can think of specific examples in which governments have tried to encourage good environmental practices. I remember the $100 tax on air conditioning. That was really a very bad tax, because there were a lot of vehicles that were much more efficient with air conditioning than without.

I would simply urge the government to think very carefully about passing bills of this nature, which are so coercive and are not clearly defined in terms of objectives to be met.

Alternative Fuels ActPrivate Members' Business

2:55 p.m.

Reform

Jim Abbott Reform Kootenay East, BC

Mr. Speaker, there is an old saying for the Liberals: "If it moves, regulate it; if it does not, tax it". It seems to me that this bill is yet another one of them that is being supported. I recognize that it came originally from the other place of great rest. We took a look at it and we are wondering what we should be doing about it. Then when the Liberals took it under their wing as if it were one of their own, we really started to take a look at it and we realized that it fit the principle of "if it moves, regulate it".

One of the biggest problems we have in Canada today, whether it is this bill or anything else, is the constant, never-ending interference of all levels of government in everything we could possibly imagine: if it is interaction between people, let us legislate it and get it made right by legislation; if it is interaction between people relative to commerce then we have to make sure we have that absolutely airtight.

What do we have motor pool managers for? Why do we have departments in the government and crown corporations that look after matters like this? What is their job? If their job is not to manage, if their job is not to make good sound judgments that can be based strictly on economics or can be based on a combination of economics and environment or can be made strictly for the purpose of environment, what are they there for? The government desires to consistently interfere and get into the faces, get into the lives, get into the wallets, get into the back pockets of every Canadian. It is a piece of work.

In doing a little research for this, I reviewed a document called "Comparative Analysis of Alternative Transportation Fuels", put out by Clean Fuels Consulting Inc. in Toronto with branches in the States. I was interested in page 5 of the document which relates directly to my question of what do we have motor pool managers for, why are they there, do they not have any level of expertise. I do not profess to have any expertise so I went to the source.

As an example: "High alcohol fuels have problems with cold starts because the fuel does not vaporize easily. This problem does not exist for compressed natural gas and propane, where the fuel is already in the vapour phase to begin with. However,

these gases have a high ignition temperature and a high ignition delay, which could cause some cold start problems."

Rather than taking the time of the House to read more of this documentation, I just cite that as one example of the little bit of research that even a novice like myself can do to come across the fact that there are some serious problems that professional motor pool managers, people in the whole business of moving vehicles, moving people or materials in those vehicles, should be able to have a handle on. I would bow to their wisdom before I would bow to the wisdom of any member of the House, unless they had equal understanding, background, and schooling.

For example, in talking about gasoline, another piece of research that came to me is that emission controls are working. In the past 15 years, unburned hydrocarbon emissions have been reduced by 98 per cent, nitrous oxides by 90 per cent, and carbon monoxide by 96 per cent.

Again, I do not cite these numbers to in any way infer that I am an expert on this topic. I am merely asking, other than any members in the House who by pure coincidence happen to be experts, why are we as members of Parliament coming forward with this kind of legislation that will give quotas?

I go back to the fact the government seems to have a thing about quotas for everything. If the country does not have enough of this kind of person in this kind of industry, then we will have a quota. We have seen what the people of Ontario thought about that kind of legislation last night.

The government just does not get it. It does not understand there is such a thing as a free market that actually drives the economy, that brings us to a norm, to a proper level.

This morning I received a letter from a gentleman from Superior Propane in Unionville, Ontario via fax. I appreciated receiving the letter. He was trying to suggest to me reasons why this is a good bill and should be passed. His concluding sentence is: "I look forward to the record of the vote showing your endorsement of this valuable bill".

I am prepared to listen to the debate on this bill and make a determination which way I will be voting at the conclusion of the debate but it is pretty obvious which direction I am leaning at this point.

He says: "I am contacting you regarding S-7, an important piece of legislation awaiting third reading in the House". Then he explains five benefits of passing the bill like "industrial benefits resulting from increased private sector investment of $40 million to $50 million".

With government mandating certain things through legislation we are going to be generating $40 million to $50 million worth of private sector investment. The question I have is, if we were not mandating this would that private sector investment be happening? In other words, I want to get a balance between those things.

His second point is diversification of transportation energy, thus increasing competition among transportation fuel suppliers and economies to consumers. His third point is expanded markets for canola farmers. His fourth point is diversification of the western economy.

It raises this question in my mind. If we have literally millions of vehicles that roll up and down the road, whether private vehicles, cars, trucks or whatever, or if we have vehicles that are not in the private sector but are owned by government, what is the comparison?

The number of government vehicles is in the tens of thousands whereas the number of vehicles that are actually on the road are in the many millions. It then begs the question: Why are we doing this? We are talking about expanded markets for canola farmers. Surely converting the tens of thousands of vehicles that are owned by the federal government is not going to make a significant difference to canola farmers, and diversification of the western economies is, with all due respect to this gentleman, something of a stretch.

However, in his fifth point he suggests the savings to the taxpayers resulting from reduced operating costs in the federal fleet are estimated at $4 million to $6 million annually. It then begs the question: If savings of $4 million to $6 million annually could be had by making these conversions, and if the government presently is trying to watch every dollar it is presently spending, why is it necessary to pass legislation? If the motor pool managers and the people who are in charge of these fleets cannot see there is a $4 million to $6 million annual savings and they are not prepared to do it, maybe they should be fired.

I go back to page 13 of my research on this comparative analysis of alternative transportation fuels. I refer to what my colleague from Edmonton Southwest was mentioning about the situation in Brazil and I will recall one sentence. From 1989 to early 1990 there was an acute shortage of ethanol and consumers with dedicated ethanol vehicles waited in long fuel lines.

We have seen with this and also with the artificial level of taxation on propane that the government has a tremendous ability to manipulate the private sector. Within the bill there consistently appears the phrase "where it is cost effective and operationally feasible". I am suggesting, is this legislation actually necessary? Are there not some other ways of achieving exactly the same thing? Surely we can reduce the amount of legislation that is currently on our slate. It seems to be pushing the government to all of these wonderful hours of time allocation and extended hours. Perhaps we could just dispose of this bill.

Alternative Fuels ActPrivate Members' Business

3:05 p.m.

The Acting Speaker (Mr. Kilger)

I remind the House that at 3.10 p.m. I will put the question.

Alternative Fuels ActPrivate Members' Business

3:05 p.m.

Reform

Jake Hoeppner Reform Lisgar—Marquette, MB

Mr. Speaker, I will just make a few remarks.

My hon. friend from Elk Island mentioned perhaps buying bicycles and saving some energy that way. I would suggest perhaps we should match the speed of our vehicles to the speed that the government moves. It would mean that we would go back to the horse and buggy days.

Putting horses on the Hill might have a double advantage. We could collect the methane produced by these animals and run the little green buses. In that way we could really save energy. It would help tremendously environmentally and also help non-renewable resources.

When I heard the member for Kingston and the Islands this afternoon there was so much hot air coming from that side of the House it led me to think we could do away with the airlines and travel by hot air balloons. That would really help us conserve energy in the air industry. We have good ideas around here, if we could just get the government to move fast enough to implement them.

I have mentioned before but I will mention again that over the last two years we have been backtracking grain from the west to Thunder Bay. As we heard today, we then take it from Thunder Bay to California. If we had changed our attitude and gone the shortest route we could have probably saved enough energy for the House and crown corporations to operate their vehicles on regular fuel and still be gallons and gallons ahead as far as energy consumption is concerned.

It is always a matter of using the most reliable and most efficient system. Back in the 1940s and early 1950s a big move was on toward propane in the farm industry, especially for tractors and some other vehicles. Very soon it was realized the value of the energy was not there. It slowed down machinery and the conversions that were done quickly faded away. It was just a matter of wasted money.

One of the members pointed out that the RCMP would look very foolish with a propane car. That is probably what would happen. Substitutions would be made. Vehicles would be switched over to different fuels and because of taxes or inefficiencies of that system they would be done away with and vehicles would return to the regular energy.

I appreciate these few minutes. I hope that some day I do see the horses and buggies back on the Hill, because it will sure speed up things the way this government is moving on some of this stuff.

Alternative Fuels ActPrivate Members' Business

3:05 p.m.

The Acting Speaker (Mr. Kilger)

Colleagues, I might have inadvertently misled you when in my exuberance and it being Friday and wanting to get to other duties I said I would put the question. It was in fact the wrong technical term.

The time provided for the consideration of private members' business has now expired. Pursuant to Standing Order 93, the order is dropped to the bottom of the order of precedence on the Order Paper.

It being 3.10 p.m., this House stands adjourned until Monday next at 11 a.m., pursuant to Standing Order 24.

(The House adjourned at 3.11 p.m.)