I thank my colleague. I am glad to see I have so much support from the Liberals, although it is kind of strange.
What is important is the real price we have to pay, and that is a different debate in itself. Should we always post the price with tax? Consumers know full well that they are going to have to pay the GST, the PST and the excise tax. They might not always know the exact amount of tax they are going to pay, but they know the goods they are buying are taxed. The excise tax comes to 10 cents a litre and the provincial tax varies in Quebec between 10 and 15.5 cents depending on the region.
Taxes are high, but we already know that. Consumers are more interested in finding out what improvements can be made to the business practices in the oil industry. How can we improve the situation in the short, medium and long term?
In the short term, we could give consumers a break by reducing or suspending the excise tax for a while. We are being realistic and we know that oil products are under the control of countries which are big producers and which were therefore able to reduce the oil supply so that the price of a barrel of oil is very high. This is part of the explanation for the increase. We know that and we are being realistic.
However one thing still puzzles us. Why is it that, when the price of gasoline at the pump increases, it is suddenly increasing everywhere instantly? There could be three or four different stations at an intersection, and they all suddenly show the same new price. As far as prices are concerned, there is incredible harmony among people who should be fierce competitors.
I studied economics. I try to understand how this is possible without some form of collusion. Of course, this is very difficult to prove. But it is something to consider. Should we not change the Competition Act to make the burden of proof less demanding in cases of anticompetitive behaviour? Oil companies should be held accountable.
There is an area where we could do something. A very interesting study was made a few years ago by Liberal members. It suggested that the average price of gas in Canada was about 4 to 5 cents higher because there is not enough competition in the industry. Why was there no follow-up on this report, why is it gathering dust on the shelves? The government is just playing for time by referring the issue to the conference board in the hope that the problem will just go away. It will not.
Every time the oil companies publish their quarterly results, we realize that record profits are piling up. Their production activities have much to do in that regard but I am convinced they do not lose much in retail marketing. Logically, the oil companies should have a hard time in retailing when prices go up, but they do not, because they control the process from refining to retail marketing.
We go even further than that by looking at what is being done in six American states. They have decided that companies will not be allowed to be refiner, distributor and retail marketer all at once. I will very candidly admit that this was first brought to my attention by a working paper prepared by Liberal members describing this situation. They wrote that in the United States, some states have a legislation called a divorce act, to keep companies from being involved both in retail marketing and in refining. We have checked and there are six of them.
This is an interesting notion which prevents too great a concentration within the industry. I believe it is a way to improve competition in the industry, and we should look into it.
Also, we should not lose track of another element, namely the long term. We must invest massively in the research and development of alternative energies. The way we use gasoline today has consequences for the environment. It is in our best interest to invest massively in the development of alternative energies.
The oil industry has no interest in doing so because it stands to profit from the current situation. Governments will therefore have to be major players in supporting and developing alternative energies.
Before I conclude, I would like to get back to the member for Abitibi—Baie-James—Nunavik. I know he goes around the regions pretending to care about gas prices. It was his choice to have this motion debated today.
There is another motion in his name, requesting that the government considerably lower its taxes on gas. He could have chosen that one because it is not his motion that was drawn, but his name. He is the one who decided which motion would be debated. He chose this one even though he had another one asking for lower taxes, which could have been votable. He cannot say whatever he likes. If he really wants lower taxes, he should say so and act accordingly and introduce real motions.
In conclusion I will say that this bill does not deal with the problem. Posting the price, before or after taxes, does not matter. What matters is the price we pay. We must look for real solutions to the real problems consumers are facing, and that is what we are doing.
We will have the opportunity to get back to this in the next few days when the Conference Board's study is made public. We will put forward our solutions once again.