Mr. Speaker, as the hon. member is aware, on May 13, 1996 the director of investigation and research commenced an inquiry under the Competition Act into allegations of conspiracy by gasoline producers and marketers. This inquiry was commenced after the initiation of a six resident application for an inquiry under the Competition Act by the member for Ottawa Centre. If evidence of a criminal offence is uncovered, I am sure appropriate measures will be taken by the director.
Some people are suggesting that prices should be regulated. The authority to regulate gasoline prices falls within the jurisdiction of the provinces. It is not a federal matter. In the member's province
of Saskatchewan it is for the NDP government to take action if it feels that gasoline prices should be regulated.
As a matter of general principle, the best regulator of gasoline prices is a competitive market. Prices set by government usually result in higher prices to consumers. This is in addition to the cost that taxpayers must bear to set up and administer a regulatory regime. The decision in July 1991 by the province of Nova Scotia to discontinue its gasoline pricing regime reflected in part a recognition that such decisions should be left to the competitive market forces.
Regulation would also remove the incentive for petroleum suppliers to be more efficient. Price controls weaken the stimulus for firms to either swiftly adapt themselves to change in demand or to develop more efficient methods of distribution. It is easier to ask the regulatory body to increase the controlled price than to attempt to lessen their operating costs.
In conclusion, it remains my view that the best interests of Canadians will continue to be served if gasoline prices are set in the competitive marketplace. As I indicated at the outset, unlawful anti-competitive behaviour will be appropriately addressed under the Competition Act.
Recently my colleague, the minister responsible for FORD-Q, discussed the issue of gasoline prices with his provincial and territorial counterparts.