Mr. Speaker, I thank the House for this opportunity to join the debate on Bill C-454. I would also like to thank my colleague from the Bloc Québécois for identifying some important concerns we share about the shortcomings of the Competition Act as it stands today.
The current act fails to defend consumers in a number of significant ways. My colleague is seeking to address those failures with the introduction of this bill. I too will be introducing a private member's bill in the following days on the subject of the Competition Act, because I believe there is a growing consensus here in the House of Commons that the act as we know it today has serious shortcomings.
I think most Canadians would agree that our free market economy is not in fact a free market. It is manipulated in many ways that are detrimental to the consumer and ordinary Canadians. The Competition Act and the Competition Bureau, which holds the tribunals when we believe there is no free competition, are supposed to be of some comfort to Canadians. They are supposed to assure us that somebody is watching out for our well-being and that we have somebody in our corner representing our views in increasingly complex industrial sectors.
Canadians have an instinctive gut feeling that they are getting hosed by some industry sectors. Perhaps the most pointed example is the daily reminder, irritant and frustration of the appalling and irrational price fixing associated with gas at the gas pumps. It is critically important that Canadians have a champion for their cause.
Competition tribunals have been struck about five or six times under the Competition Act to try to determine if there is price fixing in the gas and oil sector. They have been unable to do so every time. Canadians get optimistic and tell the government to go for it and defend them and make sure they are not being hosed, but the tribunals have failed. Canadians want comprehensive investigations done, but the limitations of the Competition Act are such that the tribunals, no matter how well meaning, have failed to satisfy their frustrations.
I note in the private member's bill put forward by my colleague in the Bloc Québécois, Bill C-454, that a comprehensive rewrite of the Competition Act would be done to hopefully give greater ability to the tribunals to give some satisfaction to Canadians.
I note that the bill would repeal all the provisions dealing specifically with the airline industry, another area in which there has been some frustration and irritation felt by users.
Bill C-454 proposes to eliminate the criminal provisions and replace them with new ones dealing with predatory pricing and geographic price discrimination. This is a regional frustration in a country as vast as Canada. We do not really know sometimes if shipping and handling is being used as an excuse to jack up prices or to fix prices, et cetera.
Another irritant that brings this to the top of mind for a lot of Canadians is the price of cars in regard to those in the United States. Even though our dollar is now at parity with the American dollar, and was even higher for a period of time, the price of cars has not dropped in any corresponding way.
This seems to be right across the board with all car dealerships. None of them reacted to the reality that the Canadian dollar actually purchased more. There was no justification for a price differential of $5,000, $6,000 or even $7,000 for a Chevy sold in Detroit and a Chevy sold in Windsor. It is this kind of thing from which we want our watchdogs to protect us and to defend our best interests in the most aggressive way possible.
The amendment that I will be introducing in my private member's bill would I think complement my Bloc colleague's bill. I believe it should be up to Canadians to invoke an investigation by a competition tribunal. It should not be left solely to government. My bill would trigger an investigation by a tribunal if 100 or more Canadians were of the opinion that an arrangement or relationship in any sector might constitute an offence under the Competition Act.
I say it is complementary because I notice in my Bloc colleague's bill that the investigation would not necessarily be limited to an individual company. Part of the reason we have not had satisfaction from the competition tribunal investigations is that the tribunal's hands are tied in the sense that it depends so much on the question put to it. If we are accusing two oil companies of price-fixing, the investigation is very narrow in investigating those two companies.
It is almost impossible to prove collusion. I am not accusing anyone here, but if there were some kind of informal arrangement whereby one oil company phoned the other, fixed the price for that day and undermined the competition, how could we prove that beyond any doubt and then apply any kind of punitive measures?
We would like the competition tribunal investigative body to be able to expand the scope of its investigation to look at the sector as a whole, even to be proactive in its investigation, to follow the money, as it were. We would like it to go from the narrow complaint, which may have dealt with two individual companies, to looking in a more general sense at the sector as a whole and then to trying to put some reason and logic to the inexplicable fluctuation in oil and gas prices, and I do mean inexplicable. The best minds in the country have tried to figure this out. The conclusion that most Canadians come to is that we do get gouged and we do get screwed.
The Canadian government does not even track gas prices any more, never mind trying to regulate or to make sure that we are getting fair pricing, never mind fixed pricing. The only consultant in the country the government members ever go to is this M.J. Ervin guy, the self-professed authority, the self-professed expert, who is actually a consultant to the oil companies. It is a fox in a henhouse situation. He never seems to see anything wrong with anything the oil and gas companies do. That is his meal ticket. I am critical of that.
We would like to think that there is somebody in our corner to make sure we are getting fair pricing even if we fall short of the burden of proof, of proving absolutely that there was price-fixing between two companies. If there is no defensible reason for the price to be jacked up arbitrarily, that is predatory pricing, and that is the language my colleague from the Bloc uses in this bill, where he notes that evidence of “predatory pricing” is required. Predatory pricing means taking advantage of people.
I have an elderly aunt who wanted to have four rooms painted in her little 600 square foot house. The guy charged her $10,000. We took it to court. Sure enough, the court ruled that the person had misrepresented the value of the service rendered. He painted the rooms, but he misrepresented the value. That is the kind of logic we would like extrapolated to industry sectors.
Canadians do not mind paying the real prices of things even if they are going up due to world forces or domestic forces, but they do not like being gouged. They like being able to trace and track how the pricing was arrived at so that they know the real value of the product they are buying. Nowhere is this more self-evident, I believe, than in oil and gas.
Let me give one more example in the minute I have left. When Colin Powell announced the invasion of Iraq, with the shock and awe campaign about to start, the price of gas went up 10¢ a litre within one hour. No one can tell me that was for gas the companies bought at a higher price. The market anticipated a problem with the flow of oil and gouged consumers an extra 10¢ in anticipation of problems that companies did not even know would happen.
That is the kind of thing we need protection from as consumers. That is why we are going to see a flurry of private members' bills coming forward along the lines of improving and enhancing the authority of the competition tribunals, underpinned by a new and reformed Competition Act. I support this bill. I wish my colleague well in its success.