Mr. Speaker, I want to thank the minister, the member for Beauce, for an excellent speech. I also want to thank Quebeckers for sending individuals like the minister we just heard, a new member of Parliament and a cabinet minister, to this House. His constituents should be very proud of him. People across the country are recognizing the minister. He has a very bright future as he continues to represent his constituents, his province and his country.
I appreciate the opportunity to speak to the motion which calls for action to be taken in response to the negative effects of gas price increases. This is an issue Canadians are dealing with. Canada is a very large country geographically and we do a great deal of travelling. Many people depend on their vehicles. We need fuel for our businesses. We need it for our families. Sudden increases in the cost of fuel and energy make our lives more difficult.
Many of the constituents in Crowfoot make their living in the agricultural sector. I am also involved in that sector. Our input costs are high. The input cost of fuel is high. The cost of fertilizer is high. For example the cost of fertilizer which was $10 to $15 an acre 10 years ago is now $30 to $35 an acre and a lot of it goes back to the cost of energy.
There are many different factors that affect gas prices. Our government is concerned about higher gas prices. We know that hard-working Canadian taxpayers who are trying to raise their families are being challenged by these prices. The retail price of gasoline reflects the record cost of crude oil on the global markets. There is strong demand growth not only here in Canada and the United States but in developing Asian countries. That combined with tight supply conditions has led to significantly higher prices of energy commodities and also industrial metals over recent years.
On the one hand higher commodity prices boost incomes and ultimately lead to higher investment, higher levels of employment and higher levels of output in the commodity sector. The commodity sector is a very significant and important contributor to Canada's strong economy.
On the other hand, petroleum and its derivative products are also primary inputs in Canada's sizeable manufacturing, chemical and pharmaceutical industries, for example. As a primary input, fuel costs force an increase in the cost of production and reduce margins and exacerbate competitive pressures.
These are challenges that all governments in every part of the world must come to grips with. In Canada we are a net exporter of these valuable commodities. The point is that in considering all of the foregoing factors, the effects of oil markets are wide ranging and have a profound impact on many fronts.
We have some of the lowest levels of taxes on gasoline prices compared with our major industrialized competitors.
What has our new government done to help Canadians with the recent jump in gas prices? All Canadians recognize that we are reducing taxes. Competitive business taxes are a cornerstone of a strong economy which is necessary to generate the revenues the government needs to fund the social programs that Canadians need and want.
As a government, we know that an efficient and competitive business tax system is critical to encourage investment that improves productivity, that generates economic activity and that creates well paying jobs for young Canadians, for Canadian families, for all Canadians. Countries around the world recognize the importance of competitive business taxes and have been reducing their taxes, as our country has tried to do as well.
Our recent budget creates an environment for jobs and growth by doing a number of things. It reduces the general corporate income tax rate. Our budget creates an environment for jobs and growth by eliminating the federal capital tax. Our recent budget creates an environment for growth and jobs by eliminating the corporate surtax. Our budget even commits to establishing a meaningful advantage over the United States in the overall business tax burden on investment, which brings me back to the motion we are discussing today.
The motion suggests that as part of a plan to counteract the effects of increases in gas prices, the government should implement a surtax on the profits of major oil companies. I cannot support that. I do not think Canadians want that, and here is why.
Canada's oil companies are significant contributors to the strength of the Canadian economy. They provide jobs to tens of thousands of Canadians. As a proud Albertan, I can say that this is evident not only in Fort McMurray and Calgary but in places like Stettler, Hanna, Oyen, Camrose and Three Hills, all throughout the riding of Crowfoot.
Those companies contribute significantly to provincial and, to a lesser degree, federal revenues. These revenues support the health and social services that Canadians expect from their governments. Unlike the provinces, the federal government receives virtually no resource royalties for oil and gas. For production in the provinces these revenues are off limits to the federal government under the Canadian Constitution.
Corporate income tax revenues from the oil and gas sector are higher, reflecting rising profits. They pay higher taxes when profitability goes up. That is how our income tax system works. That is how our income tax system is intended to operate.
A recent study by ARC Financial Corporation estimates that the oil and gas industry will pay some $5.1 billion in federal corporate income tax for 2005. What is important to note is that the study estimates that provinces will be the major benefactor. They are expected to receive some $21.5 billion in income taxes, royalties and exploration fees.
It seems odd to me that the Bloc's motion would work toward reducing the tax revenues for the provinces and for Quebec. Yet, according to the study of tax revenues, that would be one of the major results of this Bloc motion. Good luck selling that one at home. Good luck selling that in Quebec, in Alberta, anywhere.
Our government has a different approach. Unlike our predecessors, our approach is to promote growth. Our approach is to create jobs. Our approach is to reduce taxes, not introduce new ones. We need a system that encourages investment, not one that discourages it. Our government is encouraging investment and growth in all sectors, traditional sectors like oil and gas, as well as emerging sectors like renewable and alternative energies. Therefore, our tax system encourages investment in energy efficiency and renewable energy projects.
We even have an excise tax exemption for ethanol and methanol in blended automotive fuel and for biodiesel. In fact, to further promote alternative fuels, the Minister of the Environment and the Minister of Natural Resources have recently launched a new process for a national biofuels strategy. They have initiated discussions with their provincial and territorial colleagues to establish a minimum of 5% biofuels content by 2010. This will reduce emissions from an environmental perspective and ensure that the agricultural producers participate in this growing economy.
I thank the Bloc for bringing forward this motion, because it shows that the Bloc is missing the mark on how fuel prices are adjusted or how Canadians are affected by--