Mr. Speaker, I thank the member for his question.
I also want to thank the auditor general for bringing these issues to our attention.
I would first point out that in the year after the government took office, lost revenues due to smuggling decreased by two-thirds. That is a result of government initiatives. It is a big $1 billion decrease.
During the time that the audit resources were reallocated into the anti-smuggling situation, all of the large industries were monitored. The department has recently completed several large oil company audits and the results confirm our risk assessments. The rate of compliance was excellent. It was in excess of 95 per cent.