moved that Bill C-235, an act to amend the Competition Act (protection of those who purchase products from vertically integrated suppliers who compete with them at retail), be read the second time and referred to a committee.
Madam Speaker, I am very pleased to be here to speak to this bill. The bill was initially introduced in the House of Commons last year but, because of the election and time constraints, we did not have an opportunity to get back to it. on the order paper, but Bill C-235 is from the 36th Parliament.
This bill becomes even more important when we consider the recent tactics by a number of industries but specifically the gas industry. We have witnessed across the country some very disturbing trends occurring with respect to retailing of gasoline products.
The problem is really something I think we can see occurring in other areas such as the travel industry with respect to reservations. A number of travel agents have spoken to members of parliament about the problems there. We have also heard rumours recently about the impending actions taken by the U.S. government perhaps at some point down the road with respect to Microsoft.
The problem that exists here is really one of predatory pricing and price discrimination. For the purpose of this bill we want to deal specifically with what it does. It would provide for the enforcement of fair pricing between a manufacturer who sells a product at retail, either directly or through an affiliate, and who also supplies product to a customer who competes with the supplier at the retail level. This bill provides a supplier's customer with a fair opportunity to make a similar profit as the supplier at the retail level in a given market area.
Just last week in Toronto and in many regions across the country a number of independent gasoline retailers told me and expressed to other members of parliament how difficult it really is to stay in business when the supplier you are competing against is the very person who is determining the cost at which you are going to receive the supply. If that supplier deems it is important to increase market share at your expense, then it will not be very long before predictably you will be out of business.
The Liberal committee on gasoline pricing has crisscrossed the country. It has come up with a number of ideas that it will eventually bring forward.
The bill speaks for itself. In the view of many in this House, there is a very clear indication that there is a shortcoming in the act.
In 1986 the restrictive trade practices commission came to the conclusion that there was a need far from what the provinces are doing today to enforce and to strengthen legislation in the Competition Act as it relates to section 50.
We realize this is the first hour of debate and I am honoured we have had an opportunity to look at this. I am equally delighted that the Subcommittee on Private Members' Business had the fortitude and the quite common quite sense to deem this bill votable.
Current measures in the federal Competition Act dealing with predatory pricing and price discrimination clearly have proven to be insufficient in combating these activities and in providing adequate protection for those in the industry. It is fair to say that the cumulative effect of legislation is not to bring about restriction in price or governance of price. The idea is to ensure that legislation exists so that there are effective ground rules and more important, that legislation in this country ensures and fosters a free market and at the end of the day adequate supply and demand. When it comes to predatory pricing, it is clear to many that we need change and that change should happen as soon as possible.
Thousands of mom and pop type gas station owners across this country are watching this bill very intently. It is not because it is something that would allow them to line their pockets, not because it would allow them to make a profit at the expense of the consumer, but it is because their survival hinges on our ability here this evening to provide legislation that adequately protects them against the practice of below cost selling. This is occurring at an alarming rate. We only have to go to the major centres across the country to know that.
When we tear away at this country's small businesses, or through neglect of our obligation here in terms of legislation we allow these people to die on the vine by a thousand cuts, we effectively have surrendered our obligation to protect people who want nothing more than to be competitive and to be efficient and at the end of the day to provide a product that every consumer needs. This bill is designed to protect certain people who have to compete against their own suppliers, but at the end of the day this bill is designed to protect consumers.
It is very clear in regions of this country where there has been the ultimate demise of many independent retailers of gasoline product, where they have been eliminated, such as in Newfoundland or New Brunswick, there has been a corresponding trebling in the cost of gasoline. It has nothing to do with taxes. It has nothing to do with competition. It has to do with the fact that we are seeing in this industry the emergence of an oligopoly which is dangerous in its very essence and is certainly dangerous to the interests of consumers.
I encourage members of parliament to look at the legislation, to look at what the Competition Bureau said in 1986 in the Bertrand report.
I want to thank each and every colleague for making this a votable bill. Let us not fail small business in this country. Let us make sure we continue to make competition viable in Canada.