Mr. Speaker, it is an honour today to rise to speak to Motion No. 165. This is a motion that concerns all Canadians and one that constantly grabs the headlines in our national newspapers, as it does affect every Canadian in their pocketbook.
The motion is about gas pricing and what the government an do to discourage and prevent price fixing. The motion requires that the government should take action with respect to gasoline prices by:
--setting up petroleum monitoring agency responsible for preparing an annual report on all aspects of the industry, including how prices are set and competition issues, whose director would be...appointed for a three-year term after consultation with sector representatives and the Standing Committee on Industry, Natural Resources, Science and Technology...and by bringing forward amendments to strengthen the Competition Act, including measures to ensure that the Competition Commissioner has the power to launch investigations, summon witnesses and ensure confidentiality.
In essence it is to set up an agency to monitor and report on pricing and to strengthen the Competition Act.
The Standing Committee on Industry, Science and Technology recommended legislation that did not go as far as this motion. The government has still not acted on any of these recommendations.
The Conservative Party does not support the motion as we believe it is the first step to regulating gas prices in the country which would ultimately hurt consumers and taxpayers.
On Thursday, March 30, the federal Competition Bureau ruled, “Low inventories of gasoline in North America and worldwide increases the prices of crude oil”. This led to the increase in retail gasoline prices in 2004 and indeed it was found that there was no evidence of collusion among gasoline companies.
This industry in Canada has been investigated by the Competition Bureau for collusion more times than any other industry, in fact 19 to 20 times. All these investigations have found no evidence of collusion among gasoline companies.
The Conservative Party of Canada does not support the idea of regulating gas prices. We believe competition is the right road to follow. We believe supply and demand in a free market economy is the best regulator of prices for consumers.
However, we must encourage those through legislation the ease of entry of other players into the market to keep prices fair without unconscionable profits by oil and gas companies. The Conservative Party recognizes, however, that there is a problem of perception or consumers in Canada. That perception is that there is price fixing, but there is no evidence of that so far. High prices are seen equally at every gas station.
We support further efforts by the industry itself and we also support further efforts by non-governmental organizations and by the federal natural resources department to provide more information to Canadians on the price of gasoline. Information is the key to beat any perception.
In short, the Conservative Party believes that the price of gas is an important consumer issue and that the government and industry should do more to explain to consumers: first, how the price of gas is set; second, why it fluctuates so greatly; and third, to ensure regulations are in place to promote a competitive environment and a competitive pricing environment that eliminates all forms of collusion in the industry.
This recommendation would go a long way to help Canadians' perceptions about the oil and gas industry itself with regard to the issue of price fixing.
In November 2003 the Conservative Party called on the government to immediately contact the oil and gas industry to encourage the industry to fund and appoint a petroleum information commissioner to provide information to all Canadians and help address consumer concerns.
Quite simply, gasoline is one of the most heavily taxed products in Canada, with taxes reaching approximately 40% to 50% of the retail price. If we take out the tax component, Canada ranks in the lowest percentile of all countries in the world as far as gas prices.
The leader of the official opposition has repeatedly demanded that the Liberal government take immediate action on the soaring gas prices by using its tax power to lower prices at the pump through tax reduction. Canada's gas prices have reached record highs and prices have nearly doubled since the Liberal government took power in 1993.
The fastest and the easiest way to give Canadians relief at the pump is for the federal government to stop charging GST on top of gasoline excise taxes. It is time to axe the tax on the tax.
Industry analysts estimate that for every 1¢ increase in gas prices per litre federal reserves swell by $32 million per year. Tax. Tax. Tax. That is the Liberal way.
The rapid changes in prices are a sign of healthy competition, not a sign of collusion, with the exception of course of the percentage of taxes levied by the Liberal government. Taxes are, indeed, the fastest growing component of the final price of gasoline.
Some other recommendations from the Conservative Party, other than tax reductions include: first, that the Competition Bureau should be provided with the resources necessary to ensure the effective enforcement of the Competition Act; and second, that the government should bring forward amendments to strengthen the Competition Act, but not for the sole purpose of regulating gas prices.
Due to the healthy competition of oil and gas prices, infrastructure developments in Canada by oil and gas companies and the government are part of everyday life. We are looking forward to, in my riding of Fort McMurray--Athabasca, some investment in infrastructure from a reduction in taxes and from the gas tax rebate.
I would like to give some examples of recent developments in my riding due to the fact that the government does not regulate gas pricing. Unfortunately, because the amount of investment in our infrastructure requirements in northern Alberta is, quite frankly, so pathetic, given our fast growth of 15% to 20% per year, there are no examples I can give of this type of investment.
We in northern Alberta continue to wait for investment for our infrastructure needs to replace our collapsing water and sewer systems, to replace our dangerous roads, and to fund our overtaxed municipalities. There is no question that a deregulated, competitive oil and gas sector would give us lower pricing, and would create more and better infrastructure in my region.
I am giving notice now, though, that I am not going to hold my breath and wait for the Liberal government to provide that type of investment. I am wondering however if the Liberal government would be prepared to hold its breath until we receive a fair return in northern Alberta for what we invest in Canada every year.