Mr. Speaker, I am very happy to speak to this motion introduced by my colleague from Abitibi—Baie-James—Nunavik—Eeyou. He has particular reasons for wanting this motion adopted. Living in a outlying region, he is more aware than anyone of the impact on regional economies of increases in the price of gasoline.
He is therefore proceeding with an idea that had been suggested in the Standing Committee on Industry, National Resources, Science and Technology, namely creating a petroleum monitoring agency. It is not a question of controlling prices but simply of having an agency that can report to the House for three consecutive years on market developments.
Another recommendation had to do with strengthening the Competition Act to enable the Commissioner of Competition to conduct investigations. It was the current Commissioner's predecessor, Mr. Finckenstein, who proposed this, claiming that the act did not give him the necessary powers and that he absolutely had to prove collusion before he could do anything else.
We do not mean to say by this motion that there is collusion. We do say, though, that there are unacceptable increases now in the price of gasoline on the market and that this has harmful effects on the economy. Our position was greatly strengthened at the end of last week. The G7 finance ministers, including Canada's, agreed on one of the main elements, and I quote one of the sentences from their press release:
The group of seven countries endorsed more timely and accurate information about the oil market, which officials said could help control price fluctuations and make companies more willing to expand production.
In other words, the G-7 finance ministers have said that the rise in gasoline prices has negative impacts on the economy and that some way absolutely must be found, not to control prices, but to gain a better understanding of the situation so that it will not recur, as it is at present.
So there are some major consequences for the economy. I might add that the U.S Secretary of the Treasury—and I do not believe the Republican party in power there can be accused of any leftist leanings—has said that the purpose of the press release is to indicate to the financial community that the G-7 is handling the situation. The proposal on the table is the outcome of an in-depth study in the Standing Committee on Industry, Natural Resources, Science and Technology.
What we in the Bloc Québécois emphasized was that the committee ought to call in the oil companies, hear what they have to say, and hear the other experts, and that was done. This was followed by an analysis and a four part recommendation. The Alliance, as it was at the time, was opposed, because it was particularly representative of western Canadian interests. We were surprised that the petroleum products institute was in favour of the creation of the petroleum monitoring agency, because they too are totally fed up with having to justify price increases every six months, year in and year out.
How then today could we not adopt a motion relating to the creation of that very monitoring agency? It is important, because this agency is needed in the immediate future in order to ensure there is no sudden price fluctuation, which would have a very negative impact on the economy. In an economy such as ours, where trade is so important and there are more and more international exchanges, it is very important for gas prices not to reduce the efficiency of our economy. There can be major consequences; we need think only of the airlines and the trucking industries.
At present, the Government of Canada has more or less washed its hands of the situation. They tell us gas price data can be obtained from the private sector and that there is the Department of Energy, which does analyses., but there is insufficient transparency. The intent of this motion is to ensure that there is in fact transparency and that the committee can make recommendations to the House of Commons so that the appropriate changes may be made.
There is a major problem. Earlier the government member told us that the Competition Commissioner had said the problem is due to low inventories of gasoline in North America. This is the tip of the iceberg. Why are inventories low in North America? Because in recent years, refinery capacities have shrunk considerably. When a person has a well and a set of one or more strictly controlled taps, it is easy to set the pump price. Profits increase at the refinery stage and are out of step with the market, according to the way it should work. So, this situation needs to be analyzed and solutions found.
The G-7 release also refers to it. North American refining capacity must be increased. At the moment it is operating at the bare minimum. Whenever a refinery in Canada or the United States is experiencing difficulties, even technical ones, the price can go up. No market should be in this situation. In a typical capitalist market, some people perform better, businesses disappear and others appear. There are always people to meet the demand. In the current system, in terms of gasoline prices, refining capacity was reduced considerably. Now this gives those controlling the refining market a powerful hold. It has a negative effect on the whole economy.
Now that the G-7, the largest representation of politicians representing the largest economies in the world, wants this situation to be addressed, why does Canada not take a leadership role in all this? Why not set up this petroleum monitoring agency, not to control prices, but to collect and distribute, during a three-year mandate, data on the price of crude oil, refined petroleum products, and retail gasoline in all North American markets?
The director should be appointed by the federal government upon consultation with the oil industry, individuals and consumer groups. An annual report should also be prepared on the competitive aspects and there should be a parliamentary review of the report by the committee for the duration of the three-year mandate. We are not creating an eternal bureaucracy. We want this to be in place for the next few years in order to determine what steps to take to correct the situation.
The second part of the motion refers to the fact that the Competition Act is currently lacking teeth. The committee made recommendations to amend the legislation. The government kept only the sections regarding fines. It is positive, but a major portion was set aside and there is no solution.
The government may not want to do anything about the Competition Act, but it should at least agree to set up the petroleum monitoring agency. I think the two tools are important in ensuring better management of this market. It is not a matter of controlling prices, but of structuring the market in a way to prevent the current situation from happening again.
In addition to the overall economic impact, there is the personal, humanitarian impact. Renters are seeing heating oil prices increase dramatically. These are often people who need every penny and have not planned for such increases in their monthly budgets. There is no relief program in Canada to offset this reality.
The United States created a relief program to ensure that energy prices correspond to reality and, on the other hand, that a specific program creates a balance. There is no such program in Canada. There should be. Representatives of the energy industry, who appeared before the Standing Committee on Industry, Sciences and Technology, made this recommendation. It suggests not manipulating the rules governing energy prices, but rather ensuring that low-income earners can make ends meet. Ultimately, when these people can pay their bills, their money drives the economy. So I think that this is an appropriate initiative.
So I invite the members of the House to re-read the text of the motion itself. We must not simply argue about whether we are moving toward price control. We are not talking about that or trying to find a way to circumvent the issue. That is why I am asking the members of the House to vote in favour of the motion. This recommendation was made by the Standing Committee on Industry, Sciences and Technology and is now consistent with a desire by the G-7 countries to better monitor energy prices so as to minimize sudden economic change. That is what the Bloc Québécois is asking this House to do.