Mr. Speaker, I will be splitting my time with the hon. member for Langley.
I am pleased to rise today to take part in the debate on the opposition motion with respect to gasoline prices.
I have heard the comments of my colleagues during their speeches. Both as a member of Parliament and as a consumer, I too share their concerns about high prices, whether for gasoline or any other product.
I certainly understand the impact of high gasoline prices on individuals and businesses, particularly small businesses. No one wants to pay any more than they have to for anything.
The matter we have before us today, however, is whether the proposal put forward by the Bloc is appropriate.
I understand the reaction of Canadian consumers to recent price increases. They are frustrated and they are angry. They are looking to the government to do something to stop the increases in gasoline prices. The frustration goes even further when average Canadians hear of a petroleum company's announcement of record profits.
However, gasoline prices are a complex issue. Many different factors come into play in determining the price Canadian consumers pay at the pump. Some of these factors are international, national, regional and even local in nature. As we have seen the last couple of years, events halfway around the world can impact the price of gasoline right here in Canada.
The question we have to ask is whether the Bloc's motion will actually accomplish anything. I submit that it would not.
In the Canadian economy businesses are generally free to set their own prices, dictated by market forces. Sometimes prices go up; sometimes they go down. The setting of prices is dictated by the market forces of supply and demand. For example, rising prices are often an indication of low inventory.
The Bloc's motion seeks to amend the Competition Act to give the Competition Bureau the power to initiate investigations into the price of gas. The Competition Bureau has already investigated the price of gas numerous times since 1990. While I know some of this has already been discussed, I believe the following bears repeating.
The Competition Act ensures that Canada has a competitive marketplace and that all Canadians enjoy the benefits of competitive prices and product choices, including a convenient and ample supply of quality products that respond to consumers' preferences.
When it comes to high prices, the Competition Bureau will be concerned only when they are the result of anti-competitive conduct contrary to the Competition Act.
The Competition Act includes provisions against price fixing, price maintenance, and abusive behaviour by a dominant firm resulting in the lessening of competition. The act applies to gasoline and other petroleum product markets as well as every other sector in the Canadian economy.
Pursuant to the Competition Act, if the Commissioner of Competition has reason to believe that an offence has been committed or that a company has abused its dominant position in a market, the commissioner can either refer matters for prosecution or seek a remedial order by the Competition Tribunal respectively.
Over the years the Competition Bureau has been very active in matters relating to gasoline and other petroleum products, including prosecution and merger reviews. In addition, the bureau has commissioned expert reports on an array of issues related to the sector. Documents related to these activities are available on the bureau's website. I would encourage all hon. members to go to the bureau's website and see for themselves.
When examinations of the petroleum industry yielded evidence of conduct contrary to the act, the bureau has initiated enforcement action. Since 1972, 13 inquiries relating to gasoline or heating oil prices have led to trials. Eight of these cases concluded with convictions.
Since 1990 the Competition Bureau has conducted six major investigations related to the gasoline industry. In each case it found no evidence to suggest that periodic price increases resulted from a national conspiracy to limit competition in gasoline supply or from abusive behaviour by dominant firms in the market. Instead, market forces such as supply and demand, and rising crude oil prices were found to have caused the price increases.
Last year the Competition Bureau concluded its examination of high gasoline prices following hurricane Katrina. The bureau found no evidence of a national conspiracy to fix gasoline prices. The dramatic reduction in supply resulting from severe damage to the North American refining capacity caused the spike in gasoline prices.
It is also important to mention that the Competition Bureau monitors gasoline prices to ensure that they are the result of market forces and not the result of anti-competitive acts which would be contrary to the act.
Gasoline prices across Canada have risen lately due to increases in the world price of crude oil, the major cost component in a litre of gasoline, as well as low inventories. Nothing in what I have just reviewed indicates that there is any need to amend the Competition Act.
In considering this motion, I urge all hon. members to recall that the Competition Bureau exists to promote and maintain competition in all sectors of the economy, including the petroleum industry by educating businesses and consumers, promoting compliance with the Competition Act and taking enforcement action when necessary.
In conclusion, increases in gasoline prices resulting from anti-competitive behaviour are already dealt with through existing provisions in the Competition Act. Therefore, I see no need for this motion.