Mr. Speaker, I want to return to my question of February 24 to the Minister of Natural Resources on the issue of energy costs.
In February gasoline, diesel and home heating fuel prices skyrocketed to record levels for two reasons: OPEC cut back oil production, and a bitterly cold winter in the northeast U.S. hiked the demand for crude just at the minute it reached over $30 U.S. per barrel.
Canada is a net exporter of oil. That means we produce more oil than we consume and, therefore, we export the difference. These reasons which were given to us back in February, which are now still affecting our price of energy, are very unacceptable. There is no information which can prove that is driving up the prices. I think it is a result of unjustified price increases by oil companies.
Canadians were badly hurt by the resulting record price increase, in particular those on the east coast and truckers who already struggle with very thin cost margins.
I raised this issue many times in the House to almost nothing but blank stares from the Liberal government. It was as if the Liberals were completely unaware that Canadians were hurting, completely oblivious that Canadians were hopping mad. This is another example of how little the Liberal government is in touch with Canadians.
I guess that is what happens when we give cabinet ministers a government car and a government driver. They have no idea what the price of gas is any more.
Meanwhile, south of the border, the U.S. administration was convening energy summits in the northeast with refineries, trucking associations, suppliers, consumer groups and industrial users. President Clinton said that his administration found the problem “deeply troubling” and was monitoring it daily. He announced a 17 point plan to help consumers, truckers and business people get through the crisis. He defended his economy and dispatched his energy secretary, Bill Richardson, to meet with OPEC ministers around the world.
By the way, a New York Times story some weeks later pointed out that Bill Richardson, the energy secretary I mentioned, earned very high marks for his decisive action on this file and is now a leading contender for the vice-presidential candidacy on the Democratic ticket. This is a lesson on how to listen to people and take their concerns seriously, one the Liberals could learn a lot from.
Back in Canada, the provinces and territories were not having much more luck with the government than we in the opposition were, as it turns out. They tried to convince the federal government that it was only reasonable, if it was going to conduct a credible study on gasoline retailing, to do it with someone other than just the integrated oil companies. They finally agreed to go in on a study with the federal government, but then the feds let the contract out and it wound up going to the same contractor that the big oil companies use, M. J. Ervin, so half of the provinces, plus the independent gas retailers pulled out again.
This was the moment at which I put my question to the Minister of Natural Resources. Would he finally call an energy summit of affected parties to consider urgent assistance measures and consider some long term preventive measures to ensure such price spikes and supply problems do not threaten our economy again?
The minister indicated that he would canvass his provincial colleagues. I would like to know tonight what the result of that canvass was, fully three months after the question.
Moreover, the federal government has subsequently announced a new study of the oil industry. Initially I thought that if it contributed some independent data and had some real teeth, it might be worthwhile in terms of contributing to the debate, but then I learned that the price tag was $750,000. That is outrageous, since the study is going back to the same consulting firm which the big oil companies use, M. J. Ervin, which the provinces and the independent gas retailers raised concerns about previously and rejected.
Most of the cost is not going to research. Most of it, 60%, is going to public relations. I quote from the terms of reference for the study: “A highly structured/facilitated session of only invited stakeholders to conduct a dialogue on the intransigence of the public's perception on gas prices”. They are going to Calgary, Toronto and Montreal. They should go to Whitehorse, Regina and St. John's, Newfoundland instead and let the doors be open wide.
The entire premise of the study by the Conference Board is that the issue has been studied to death but the public just does not understand the research.
In summary, I think we have a different problem in this country. First, the refineries have a monopoly. Second, the Liberals rely on the integrated oil companies for campaign contributions. Third, the public is paying higher prices at the pump now when crude is at $26 a barrel than it was during the gulf war when crude hit $35 U.S. a barrel. What is the answer?