Mr. Speaker, I am pleased to take part in this debate. I remind my colleagues who may not know this that oil companies, except Ultramar of Quebec, are in my riding.
Citizens know the difference between oil companies and the price they have to pay to drive, to earn a living, such as taxi drivers and truckers, or simply to drive their children to daycare, to school or to the hockey game.
I want to repeat the motion because it seems to me that this is important for my colleagues opposite, in government.
That, in the opinion of the House, the government should move an amendment to the Competition Act so that the Commissioner of Competition have the power to initiate investigations of the price of gas and the role of refining margins in the determination of the said price.
Could this result in lower prices? It is possible that, realizing that prices are unfair or higher than the outcome of a market mechanism, governments will be able to act. However, this must be determined. That is what the motion says.
Otherwise, we are being told that nothing can be done. However, this is difficult to accept, because prices are skyrocketing. Refining margins are three times too high and, consequently, profits of oil companies are indecent.
Last week, the price at the pump for regular gas was, on average, $1.15 in Quebec and the average refining margin reached 23¢ a litre, a record. That is three times too much when we know—there have been debates on this subject—that a profit of 5¢ to 7¢ is enough for the oil companies to make a reasonable refining profit.
The price of oil products is likely, in any case, to remain high throughout the summer, especially because crude oil is continuing to rise in price for other reasons that we know, given that it is an exchange. It is the oil companies that are filling their pockets. They earned record profits of almost $12 billion in 2006. That is a lot of money. It is an increase of 25% over 2005 and 70% compared to 2004.
Is there collusion? It is impossible to say, but there is a real need to give the Commissioner of Competition the power to investigate on her own initiative, without waiting for complaints from the public. Indeed, that is what the Bloc wants—and I hope the House also wants that—because the oil sector needs to be controlled. It is a sector that we cannot feel sorry for. It is an industry that has made investments, but in light of the enormous profits, we have to ask questions and we need the means to obtain answers.
Yes, the Bloc believes that it is possible, in part at least, to limit the increases in the price of gas and other petroleum products. What has happened in the past few years, with the record profits by the oil companies, is that there has been a transfer of wealth. There are people who are broke and who need gas to earn their living. They are the ones who are being forced to deprive themselves further, to change their buying habits, perhaps even the way they feed their families, because the price of gas is rising and we believe it is increasing unfairly. It is important to investigate that.
All those politicians, the men and women in politics who say they want to act on behalf of families, young people, the needy, should want to know whether this mind-boggling price increase is justified or not.
This is extremely important.
The Bloc is asking for the support of the House concerning this measure that affects everyone. We know that Quebec is not an oil producer; other provinces are. Since Quebec imports all the oil it uses, it is obvious that higher prices are making it poorer. This price increase means that in terms of exports, we had a surplus in 2005 and a deficit of $7 billion in 2006. We went from a trade surplus to a deficit of $7 billion. That is exactly the amount of the increase in the price of oil for the same year, an increase of $7 billion.
This is important, because it means not only that this increase in the price of oil is having an impact on everyone’s wallet but that it is affecting the little man most. It is not only affecting the average person’s pocket book, but it is also affecting the entire economy for a variety of reasons. Since companies are having to buy more oil, there is a significant difference between the previous trade surplus and the current deficit of $7 billion.
In fact, last year, every Quebecker—we know that the averages are wrong, especially in this sector—consumed $1,000 more than he produced. Oil is making us poor. What do we want? We want to redistribute resources—and wealth in a way—so that the oil sector stops impoverishing society. Imposition of a surtax of $500 million on the profits of the oil companies would be one way of doing so. They are certainly capable of paying it. The accelerated capital cost allowance for tar sands must also be stopped when the price of crude goes beyond a threshold of somewhere between $40 and $50.
The government announced this measure, but it does not intend to implement it for three years, while oil production from the tar sands continues to grow. This involves making changes to the tax system applicable to natural resources that enables the oil companies to reduce their payments by another $250 million a year, and having them pay for environmental damage.
This is the bare minimum. We have just learned from the federal government’s latest statement that the government will favour the oil companies. The focus on oil in this country is costing the little people a lot and is making some provinces richer, but quite clearly it is impoverishing Quebec, whose trade surplus fell by the same amount as gas prices rose.
Since I only have a minute left, I will add that I hope that the Bloc will have the support of the House to at least shed some light on this issue. There is not a member in this House who cannot wish to shed some light on this content or this explanation of the oil companies’ price rises, especially in the refining margin, which is three times higher than it should be.