Mr. Speaker, it gives me great pleasure to speak on this Bloc Québécois opposition day. The motion we have introduced today concerns a very serious problem: the rise in gas prices. We must not forget that this has wide-reaching effects and is often very harmful to our economy. For example, the increase has a direct impact on the manufacturing industry, which is a major employer in my regional county municipality, in the county where I work and throughout Quebec. I hardly need remind this House that this industry is already in serious trouble.
Higher gas prices are driving up production costs and driving down badly needed investments in modernizing our manufacturing plants.
While our manufacturing sector is crumbling, our oil companies are continuing to post record profits, and greenhouse gas emissions are still rising. The combined net profits of the six largest integrated oil companies in Canada reached $12 billion in 2006. This is a $5 billion increase over 2004. Proportionally, profits are 70% higher than in 2004. We understand now that these figures are creating monstrous inflation in Quebec and across Canada.
What is the government doing to address these issues that are so vital to our economy? In both cases, it is using the same logic, which is simply to do nothing. We know that doctrinaire Conservatives believe that the free market can take care of everything and that any government intervention will only prevent the market from generating benefits. Unlike the Conservative government, we believe that it is possible to limit gas price increases, at least partially, which is why the member for Joliette has introduced this motion asking the government to amend the Competition Act so that the Competition Bureau can conduct investigations into the price of gas and the role of refining margins in determining gas prices.
Obviously, we are discussing gas prices today because they have jumped in recent days and weeks. Last week, the price of regular gas at the pump was $1.15 on average. Fluctuations aside, the price of gas is rising steadily in Quebec. In 2004, the average price of regular gas was 85.7¢. In 2005, it reached 96.7¢.
Why has the price of gas gone up? The price at the pump is made up of four main factors: the price of crude oil, which has gone up, taxes, the retailer mark-up and the refining margin.
A thorough analysis of the causes of gas price hikes reveals that the retailer mark-up has remained stable. Taxes have also remained stable. The rising price of crude explains the rising price at the pump to a certain extent, but it is clear that major increases are due in large part to the rising cost of refining oil, which is where big oil companies' outrageous profit margins have increased the most lately.
According to the Association québécoise des indépendants du pétrole, a reasonable profit margin at the refining stage is between 4¢ and 7¢ per litre. In April 2006, that profit margin was 19.5¢, and last Wednesday, it was up to a record-setting 27¢ per litre, the highest ever except for a short period following hurricane Katrina.
To understand this situation, we must remember that in 1990, oil companies downsized their North American refining operations. To cut costs, they closed several refineries.
As a result, supply soon matched demand. Therefore, when technical or weather-related incidents affect refining operations, price hikes are inevitable. That is not all. Slight increases in demand, such as during long weekends, often spur price hikes. For consumers, long weekends and summer vacations are not unexpected events. However, oddly enough, big oil companies never seem to be able to predict these periods and to prepare for them accordingly. They have nothing in reserve, and they tell us that the price increase is due to scarcity. We have seen this happen for years now.
The refining industry's inability—deliberate or otherwise—to respond to unexpected events raises a lot of questions. It is clear to us that the current structure of the oil industry leads to price hikes and market abuses. Although the industry is trying to persuade consumers that they are being treated fairly, consumers are, understandably, not convinced.
In short, one problem remains: there is lack of transparency, hence the importance of the Bloc Québécois motion being presented today. We have to discipline the industry and ensure that no middlemen, the refineries for instance, take advantage of the circumstances. To do so, we propose giving the Competition Act more muscle. For a number of years now we have been calling for this legislation to be changed in order to give the Competition Bureau real investigative power. This bureau could initiate investigations and call witnesses. It could also ensure their protection and study all aspects of the oil industry and propose solutions.
We also propose the creation of a real petroleum monitoring agency. This agency would be responsible for overseeing the industry by collecting and disseminating price data on refined petroleum products for all North American markets, and drafting annual reports on the competitive aspects. To date, the federal government has always refused to do this. These measures I have just listed are solutions that could be applied in the short term.
In the longer term, Quebec needs to take measures to reduce its dependence on oil. All the oil Quebec consumes is imported. In 2006, Quebec imported $13 billion worth of oil, which is up $7 billion in three years. At the same time, Quebec went from a trade surplus to a $7 billion deficit in 2006. The increase in the price of oil alone plunged Quebec into a trade deficit. Oil is making Quebec poorer. In the long term we have to invest in true alternative energies and launch a real initiative to reduce our consumption of oil for transportation, heating and industry.
Finally, I know that the Conservatives will not like these proposals but, in order to stop the oil industry from making us poorer as a society, we must redistribute resources and repeal the accelerated capital cost allowance for investments in the oil sands immediately when the price of crude exceeds a threshold of somewhere between $40 and $50. The government announced this measure in its last budget, but it will not come into effect for another three years.
We have to make the oil companies pay for the environmental damage they cause. Refusing to stick to the Kyoto protocol is not going to solve these problems.
On all these matters we have to take action as quickly as possible, in order to save our jobs, our regions and our environment. Most of all, we have to leave room in society for future generations.