Mr. Speaker, I would like to participate again in the debate on Bill C-29, an act to regulate interprovincial trade in and the importation for commercial purposes of certain manganese-based substances. Its purpose is to ban the use of manganese-base substances, including MMT.
This is a highly controversial bill, even among ministers and government Mps. The cabinet is not unanimously in favour of it. The majority of provinces are also opposed. As well, it involves a serious conflict between two major industrial sectors: the automo-
tive manufacturers and the oil industry. The former maintain that MMT is harmful to their products, and forces them to adopt mechanisms and practices which could result in purchasers having to pay more for their vehicles. The latter are opposed to the banning of manganese in unleaded gasoline, and contest the legitimacy of the arguments used by the other group.
I object to the way automotive manufacturers are blackmailing the government and the consumer, with their threat of a $3,000 hike in price and restricted warranties if this bill is passed.
The petroleum industry claims MMT reduces nitrous oxide emissions by as much as 20 per cent. Moreover, a study commissioned by the Council of Ministers of Environment, Canada, estimates that the refineries would require $115 million in capital and $50 million yearly in additional operating costs to get rid of MMT in Canada. This would also mean a hike in gasoline prices. In addition, results of tests by the Ethyl Company in the USA contradict the arguments of the automobile manufacturers.
In my opinion, the proposal to ban MMT has no environmental, economic or legal justification.
This bill is not in line with Canada's obligations under trade agreements such as NAFTA and those relating to interprovincial trade. This past September, the U.S. Ethyl Corporation indicated its intention to lodge a complaint calling for $200 million U.S. in damages from Canada under the appropriate sections of NAFTA for the damages sustained by its Canadian subsidiary. This multinational also claims that its reputation has been tarnished by the comments of the Minister of the Environment on MMT.
As for interprovincial trade, by prohibiting the marketing of manganese-based substances, this bill violates federal-provincial trade agreements. It also constitutes an unacceptable intrusion by the federal government in this area. In fact, almost all provinces are opposed to this bill. Last May, even the Quebec National Assembly passed a unanimous resolution, supported by the opposition, asking the government to postpone the passage of this bill.
So it is hard to understand why the government insists on sending this bill through the House, a bill that, by the way, was criticized by the Minister for International Trade. In a letter sent to the environment minister seven months ago, the Minister for International Trade maintained that banning the importation of MMT would be contrary to Canada's obligations as a member of the World Trade Organization and NAFTA. There was no justification for health or environmental reasons, considering the scientific evidence available. He went on to say, and rightly so, that he was afraid this would lead to another trade dispute with the United States.
Premier Romanow of Saskatchewan sent a letter to the Prime Minister of Canada on September 16, in which he said that the legislation was in no way justified at this time. He added that, according to the scientific data available on MMT, there was no indication that environmental benefits would accrue as result of this legislation, and they found it difficult to let the refineries or consumers foot the bill.
At the present time, there is very little justification for banning the addition of MMT to unleaded gas. I may remind the House that from the economic point of view, this bill is a costly one, especially in terms of jobs lost, if we consider the threat to the viability of many refineries, including some refineries in Quebec.
This is in addition to the economic problems arising from the resulting violations of trade agreements with North America and the Canadian provinces. This bill contains a number of legal shortcomings, which may have major consequences for Canada's reputation and economy. How can we expect American businesses to be interested in penetrating the Canadian market, when the Government of Canada interferes with the way they do business or fails to observe its trade agreements by passing bills like C-29?
As far as the environment is concerned, the evidence has shown that removing MMT does not increase air pollution, nor is this substance harmful to public health.
A research program funded by the Quebec Department of National Resources, the Natural Sciences and Engineering Research Council of Canada and the Canadian Petroleum Products Institute has made it clear that the contribution of manganese from MMT sources is negligible, compared with other industrial and natural sources; highway traffic only has an indirect effect on the percentage of manganese in the atmosphere by recirculating dust particles near roads and streets.
In conclusion, there is every reason to object vehemently to Bill C-29, which creates problems from the economic, environmental, social, commercial and legal points of view. For all of these reasons, I am very much opposed to Bill C-29.