Madam Speaker, Bill C-29 the this government is set to pass exemplifies its ad hoc approach to environmental management. Indeed, Bill C-29 has been introduced at a time when nothing has been clearly established, when the so-called scientific opinion is divided.
As we know, the scientific approach is based on rigour, critical thinking, analysis, precision and objectivity. The least we can say in this case is that Bill C-29 is based on considerations of interest instead of reason.
What is this bill all about? Bill C-29 prohibits the commercial use of MMT, which is, as we know, a manganese-based substance added to unleaded gasoline to increase its octane level, thereby making car engines more efficient. The bill also regulates the interprovincial trade in and importation for commercial purposes of certain manganese-based substances.
At this stage of the debate, we must recognize that there is water in the gas line. Opinions are in fact mixed on the relevance of prohibiting or allowing the use of MMT. Some, like the Minister of the Environment and his predecessor, are for banning manganese-based products because they suspect MMT of being a health risk and impairing the operation emission control systems on cars.
At the time of this bill's tabling, they also wanted this bill passed to harmonize Canadian legislation with that of other countries, the U.S. in particular. As for Ethyl Corporation, the only company producing and exporting MMT to Canada, it believes that, on the contrary, the use of MMT results in a decrease of up to 20 per cent of emissions of nitrogen oxides harmful to the environment. These emissions are responsible for urban smog.
As for auto makers, they claim manganese adversely affects the smooth functioning of new antipollution devices in cars. To this, those who support the use of MMT reply that the findings of scientific studies on this issue are contradictory and that the problems are due primarily to other factors.
Oil companies now support the use of additives. According to them, manganese reduces the consumption of crude oil, increases the octane levels in gasoline, improves engine performance and reduces polluting emissions. We also know that ethanol could become a substitute for manganese. The ethanol industry is located in western Canada and in Ontario, primarily in the region represented by the Deputy Prime Minister, which would therefore benefit from another market.
This is where the problem lies. Remember the announcement made last year by the former environment minister and Deputy Prime Minister about a $70 million investment program to develop ethanol. We are going full speed with nothing to guide us, except the interests of some. Beyond the diverging opinions and studies, some facts remain.
In 1994, the health department conducted a review of these issues. The conclusions reached by Health Canada stress that exposure to manganese does not pose a threat to the health of Canadians and Quebecers. In fact, had the results been different and had MMT been proven to be toxic, Health Canada would have prohibited its use. And, given the Canadian Environmental Protection Act, we would not be here debating Bill C-29. Everything would have been just fine.
Second, everyone, including those who oppose the use of MMT, agree that this product helps reduce emissions of nitrogen oxides, even though results of studies may vary. Some talk about a 20 per cent reduction, while others say it is 5 per cent. According to others still, prohibiting the use of MMT could trigger an increase in emissions of nitrogen oxides equivalent to having one million additional cars on the road by the year 2000. Who is right? Which of these estimates is correct? We still do not know.
Third, this bill will generate costs of several million dollars. It will, among others, result in enormous costs to the oil industry, which will have to start making gasoline free of MMT. Once again, consumers and taxpayers will be footing most of the bill.
Finally, there is another factor of no small importance concerning the development of the situation in the United States. A November 1995 ruling by the District of Columbia Court of Appeal recognized that MMT was not harmful to health or to antipollution systems in vehicles. Because of this ruling, MMT can be reintroduced in the United States.
The Minister of the Environment and his predecessor have thus been deprived of one of their main arguments, harmonization with U.S. policy. Now that MMT has been authorized in the United States, Bill C-29, prohibiting its importation, will constitute a unjustified protectionist measure, contrary to the free circulation of goods, the cornerstone of NAFTA. For it is indeed the importation of and interprovincial trade in MMT that is the focus of Bill C-29.
Thus, Bill C-29 will allow national production of MMT and its sale and use within a province. If this product is as harmful as the government claims, why authorize it? The policy is obviously inconsistent.
By prohibiting international and domestic trade, the government is contravening NAFTA and once again trampling on provincial jurisdiction. Despite the Minister for International Trade's warning to the Minister of the Environment last February, the latter is pushing ahead with Bill C-29. The result is that, last September 10, Ethyl Corporation in the United States issued a notice of its intention to file a complaint under the Free Trade Agreement and to seek compensation from the Canadian government of, get ready, almost $300 million, money that may be thrown out the window because of the pigheadedness we are seeing.
While the Liberal government is slashing budgets as never before, it is knowingly gambling with the public purse. This is not right. At the very least, government members should think about what they are doing and put a bit of manganese or ethanol into their arguments, in order to boost their credibility rating.
I would also like to comment on another aspect of this bill. Unintentionally, I imagine, the member for York-Simcoe, in a speech in November 1995, gave the Bloc Quebecois another reason to be critical of the inflexibility of Canadian federalism.
Commenting on an American court ruling in favour of MMT, the member for York-Simcoe said, and I quote: "30 per cent of the United States will continue with the ban on the use of MMT in fuel".
In Canada, the federal government alone decides what additives will be allowed in gasoline. Despite strong opposition by six provinces to Bill C-29, the Minister of the Environment has his mind made up and is refusing to listen to his provincial counterparts. In a country that claims to be the most decentralized in the world and in light of the supposedly new flexible federalism-Plan C, you never know-this attitude is astonishing.
The reasons given by the environment minister for banning the importation of MMT no longer stand up. Whether for reasons of health, damage to antipollution systems, environmental issues, or harmonization of Canadian and U.S. policies, Bill C-29 fails on all counts.
The current debate proves that there are a number of questions outstanding. But the federal government is charging full steam ahead, preferring expediency to any serious logic. There is no doubt that this government is running on empty.