Mr. Speaker, I am pleased to address the question about retail gasoline prices raised by my colleague, the member for Peterborough, on May 6.
Like many of the items that he raises, he seems to be ahead of the curve in terms of the issues that are important to Canadians. He and I served on the task force on gasoline pricing. I want to congratulate my colleague, the member for Pickering--Ajax--Uxbridge, for his work there. It certainly provided us with a very thorough grounding on exactly what was happening in the area of gasoline prices.
All of us are concerned with the recent increase in gas prices in Canada and its impact on consumers and businesses. We want to ensure that these prices are a proper reflection of supply and demand. It is therefore important for all Canadians to know why prices have increased.
On May 4, the Competition Bureau, an independent law enforcement agency responsible for the administration of the Competition Act, began a national inquiry regarding gasoline prices. It is examining whether the recent increases in gas prices have resulted from anti-competitive practices in the industry, such as a conspiracy among oil companies to fix or co-ordinate prices, or whether there is some other explanation such as a worldwide or North American supply and demand change.
To examine the issue, the bureau is obtaining data to track pricing trends and will obtain and analyze information from industry experts and participants from all sectors of the petroleum industry to determine whether there has been any breach of the act. More specifically, the bureau is studying refiner margins, crude oil and retail price indices, and other industry data to determine if the recent rapid rise in the price of gas is due to anti-competitive conduct or to other factors.
I can assure hon. members that where the Competition Bureau finds that companies or individuals have engaged in anti-competitive conduct, it does not hesitate to take immediate and appropriate action under the Competition Act. Under the criminal provisions of the act, wrongdoers risk fines of up to $10 million for each count and five years in prison.
If anyone has evidence that prices of petroleum products are being set by agreement among competitors and not by market forces, I encourage them to bring the evidence to the Competition Bureau. All information given to the bureau is done so in strictest confidence. There are whistleblowing provisions in the act which protect employees who provide evidence. The bureau also has an immunity program which protects companies from prosecutions and individuals who come forward with information.
Retail gasoline prices around the world reached very high levels last week. This is a worldwide problem. Even so, the latest available data from the International Energy Agency, an autonomous agency linked with the OECD, showed that in March 2004 Canada had lower gasoline prices than most of the other industrialized countries studied.
In May 2003 the Standing Committee on Industry, Science and Technology held hearings to explore possible causes of the February-March 2003 increases in the price of gasoline. The committee tabled its report on November 7, 2003, and concluded that price increases in the February-March period were the result of industry participants, competitive reactions to a series of international crises. The report stated that there was no basis to conclude that there was a conspiracy to raise and fix prices.
The member is absolutely right. Federal taxes on gas are generally lower than the provincial portion, and the excise portion of federal tax is on a per litre basis, so it does not increase when the price increases.
While I realize this is little comfort to consumers who had to pay more to fill their gas tanks, I must remind the hon. members that the Government of Canada does not have the authority to directly regulate retail gasoline prices except in emergency situations. Under the Constitution, the decision whether or not to regulate retail prices rests with the provinces. I should point out that some provinces have used this authority with very mixed results.