Mr. Speaker, I am pleased to rise on behalf of the constituents of Surrey Central to participate in the debate on the Canadian Alliance motion concerning gas taxes and infrastructure development needs.
In recent years I have witnessed the burden of gas taxes on my constituents. As oil prices have soared so has the government's take in gasoline taxes.
On average, taxes account for 42% of the total consumer price. To add insult to injury or fuel to the fire, the Liberal government collects GST on gasoline taxes. That is charging taxes on taxes. Taxes are neither goods nor services. How can the government charge GST on taxes? This practice is shameful.
In 2001 and again last year I moved a motion in the House calling upon the government to at least stop charging GST on federal and provincial gasoline taxes. Unfortunately, the Liberals have not shown any interest in that idea. The government continues to collect about 2¢, depending upon the province, on every litre of gasoline sold in Canada.
Every day B.C. motorists battle traffic congestion to get to work, daycare, shopping, school and so on. As the population of the Lower Mainland continues to swell, the need for roads and bridges becomes ever more apparent.
Last year the B.C. transportation minister estimated that the province's transportation infrastructure required $10 billion worth of investment by the year 2012. That figure is well beyond the government's present ability to pay. Premier Campbell launched a $600 million program for much needed improvements to roads in February, paid for in part by an additional 3.5¢ per litre gasoline tax. However, there is no room to add even one single extra penny at the pumps. Gas prices are already too high. The money to fund transportation improvements must come from somewhere else.
Hence, the B.C. government is soliciting bids for a 55 year lease of the Coquihalla Highway to a private firm in exchange for a one time payment of roughly $500 million. The firm would initially be allowed to charge private autos $13, up from the current $10 per vehicle, and increase the amount over time.
The city of Surrey has immediate plans for road improvements, repaving and new traffic lights. However, these needed improvements come with a hefty price tag. While the city usually spends $15 million annually on its streets and highways, this year the budget has almost doubled. Work will progress on the Fraser Highway which is going to be turned into four lanes, with sidewalks, a median and more traffic lights. In Surrey, 88th Avenue and 80th Avenue will be repaved.
Provinces and municipalities have a crying need for more money to cover transportation infrastructure costs. This is especially true in urban areas which continue to grow. Transportation infrastructure is handling more traffic than it was designed for and the public is paying the price.
Look at how much time is wasted on the roads. It is almost criminal that the federal government continues to rake in millions of dollars in gas taxes while sending practically nothing back to the provinces.
The Liberals rake in $4.7 billion in fuel tax revenue every year. In addition, they collect $2.25 billion in GST on gasoline. The federal gas tax, including GST, cost an average Canadian $221 last year. In 2001-02 the Liberals transferred a minuscule $118 million to the provinces for highway and road development. That is 1.7% of the gross they have taken from the provinces.
In comparison, the U.S. government spends 84% of its gasoline revenues on road-related infrastructure. Our provinces even do better, spending 91% of the money they collect in gas taxes on transport-related infrastructure projects. Of the little money the Liberals do spend on transportation infrastructure, 99% of that small amount goes to provinces east of Ontario. Does the government not realize that there are roads outside of Quebec and Ontario?
Last November the Prime Minister's caucus task force on urban issues, after an 18 month study, rejected the idea of sharing fuel tax revenues as it was too complicated. While acknowledging cities needed more infrastructure cash, the task force claimed Ottawa needed the money more than the provinces. Can anyone imagine? Would it be that the government needed to use that money for more billion dollar gun registries? Or maybe more sponsorship contracts for Liberal friends? I cannot understand that.
The former finance minister, the member for LaSalle—Émard, claims that if he becomes Prime Minister he will share the federal gasoline tax with the cities. Call me a cynic, but why did the hon. member not deliver cash strapped cities a share of the gas tax during his nine year tenure as finance minister? Where was he for those nine years?
Members will recall that this is the same finance minister who in 1995 raised the gas tax from 8.5¢ per litre to 10¢ per litre as a deficit fighting measure. He then conveniently forgot to reverse the increase once the deficit was brought under control with the efforts of the official opposition. In 2001-02 alone this 1.5¢ per litre deficit fighting tax took $705 million out of the pockets of hard-working Canadians.
The Canadian Alliance believes that taxes which are imposed for a specific purpose, like this deficit fighting tax, should be used for that purpose alone and removed when no longer required, as in this case. The former finance minister obviously does not subscribe to that view.
Even though the price of gas has fallen in recent months, it is still much too high. Retail prices this week were between 75¢ and 79.9¢ per litre in Vancouver. Canadians are spending considerably more to fill up their cars than a year ago. Yesterday's news does not bode well for the future. Oil prices surged to $32.36 U.S. a barrel, the highest close on the New York Stock Exchange since mid-March, a 63¢ increase per day.
What will the government do? Nothing. If we were to drive around, we would see gas prices at 55¢ per litre at 8 o'clock in the morning. At 10 o'clock, if we were to drive by, no new truck had come to provide new inventory for the gas station, but the price would go up. Oil companies are colluding and the government is doing nothing.
In closing, the government must do something about this. It must eliminate the deficit fighting tax and reduce taxes on gasoline. The government has no right to charge GST on taxes.