Mr. Speaker, I will say a few words on the motion by the Liberal member from across the way.
I certainly agree with him that we should have more explicit pricing of energy costs and should have the taxes listed. The intent of the bill is probably quite honourable.
I will throw out a couple of other ideas that we might want to consider.
When I look at oil companies today I see them making tremendous profits, higher profits than they have made in many years. I think the time has come for the federal parliament to look at the idea of a surtax on those excessive profits and of using the surtax to reinvest in renewable energy resources. We should start looking for alternatives to the internal combustion engine, such as wind and solar energy and other renewables that are clean. I think we could do that if we had more money to invest in those technologies.
I want to lay before the House today a couple of statistics that show we have room to put an excess profit tax or special surtax on the price of energy.
I have some numbers from Statistics Canada on the profitability of the energy sector: the oil, gas and coal industries. If one looks back at 1999, the after tax net profit was $3.1 billion. In the third quarter of 2000 it more than doubled to $7.1 billion. In other words, there is an awful lot of money, an awful lot of cash, in that industry.
The Alberta government does not seem to be putting much of a tax on the oil and gas companies in that province. A study was recently conducted by a university group in Alberta, the University of Alberta's Parkland Institute, in November of this year. It said that the Klein government had basically been giving away Alberta's oil wells.
Taxes now in Alberta are a lot lower on oil companies than they were during the days of Conservative Premier Peter Lougheed. Taxes are a lot lower in Alberta than in two other very oil rich jurisdictions in the world, Norway and Alaska.
The institute did the study before the increase in energy prices and before the huge spike in profits of the gas and oil companies. The study was done between 1992 and 1997. Between those years, if the Alberta government had taxed the oil companies as much as Peter Lougheed and the Conservatives did a number of years ago, it would have collected an extra $3.78 billion. The Alberta government would have collected $3.78 billion in extra money if it had had the same taxing regime, the same royalty regime, as Peter Lougheed, the Conservative premier of Alberta back in the 1970s.
If we compare a more modern regime in the world in terms of taxes to Alberta, let us use Alaska. Alaska is part of the United States. It is not exactly a socialistic country in terms of taxation regimes. Between 1992 and 1997, if taxes in Alberta had been the same as taxes in Alaska, there would have been an extra $2 billion for the people of Alberta in terms of revenue from the oil industry.
The tax regime is even higher in Norway. If Alberta taxes had been the same as the taxes in Norway, there would have been an extra $5.7 billion per year. I should make it clear that I am talking per year. If the same regime as the one in Alaska had been applied in Alberta it would have an extra $2 billion per year. If the same taxation regime as Peter Lougheed's it would have an extra $3.78 billion per year.
There is tremendous room for a tax increase on the oil industry in Canada. These numbers are from 1992 to 1997. Since then prices and profits have skyrocketed. The time has come for the federal government to act by putting a surtax on the excessive profits of oil companies and using those profits to invest in renewable resources.
Some oil companies in Alberta will scream and holler, but we have the jurisdiction as the federal parliament to impose a surtax. It has been done to banks and to other companies in the past. Let us take the leadership and do it in terms of oil companies and make sure the excess money is used for the ordinary people of Canada.
My old friend from Souris—Moose Mountain lives in oil country. I am sure he will agree that the profits are excessive and much too high. I am sure he will agree that the great Conservative leader Peter Lougheed taxed them at a fair rate back in the seventies and that the same thing should be done today. If Ralph Klein will not do it then we will do it in the Parliament of Canada for the benefit of all Canadians, for more money in renewable resources.
I say that as a westerner and I know there will be some people who will say that it is none of Ottawa's business to impose an excess profit tax on the oil companies. We can do it to banks; we can do it to other companies; but we must stay off big oil. That belongs to Alberta. That oil belongs in part to all people in the country as well as the excess profit they are gouging from consumers.
They are gouging the consumers when they go to the gas pumps. Some of that excess profit should be used to invest in renewable energy. They are gouging consumers in Regina, Macoun, Estevan, Weyburn, Montreal, Vancouver and even in Bengough. In Newfoundland it is about 80 cents a litre for gasoline. Big oil is bloated with humongous profits.
Let us put a special surcharge, an excess profit surcharge on these big oil companies and make sure that money is used on behalf of Canadians. I believe that is what should be done.
I am sure that all these right wingers in the Reform Party and my friend from Souris—Moose Mountain will get up and agree with that. As a matter of fact, if we did that we could lessen the tax burden from Ottawa on ordinary citizens, have a fair taxation system and collect the money on the basis of the ability to pay. I believe that is what should be done.
If we do that, I am sure about 95% of the Canadian people would agree that we are going in the right direction. Even my good friends in the Reform Party that come from the oil patch, the alliance reform or reform alliance party, would grudgingly agree that is not a bad idea whatsoever.
The last point I would like to make is that my good friend John Solomon, a member of parliament from 1993 to 2000, used to recommend an energy review commission to review energy prices and make sure consumers are not gouged. It is an idea we should look at once again.
I say to my Liberal friends that the Liberal premier of Newfoundland was on television at 5 o'clock this afternoon talking about how the Newfoundland government will control the price of gasoline in the province of Newfoundland. It will be tied to the world price. If the world price goes up, the price in Newfoundland will go up; if the world price goes down, the price in Newfoundland will go down.
Prince Edward Island does a similar thing. It is a little different in terms of how the price is set there. It is a little more arbitrary in Prince Edward Island, but at least it is the same principle and the same idea.
Maybe, as a federal parliament, we should be directing our government to try to co-ordinate efforts across the board, to have some regulations in terms of oil and gas prices.
These are just a couple of ideas. As I said, John Solomon often used to speak in the House of Commons about the need for an energy commission and doing what is now being done in Newfoundland and Prince Edward Island. Perhaps the federal government should lead in that direction.
In my last minute I once again recommend an excess profit tax and surtax on big oil. Let us have big oil pay its fair share. Ordinary citizens pay their fair share; in fact they pay too much in terms of taxes. How about big oil paying its fair share and using that money, the extra hundreds of billions of dollars to invest in renewable energy? Each and every one of us and the environment would be much better off. I am sure those words are supported enthusiastically by my friend from the alliance reform party from Souris—Moose Mountain.