Mr. Speaker, I am pleased to speak to Bill C-454. This is not the first time such a bill has been tabled. If my colleague does not understand why this was necessary, he should take a look at the other similar bills that have been introduced.
They were introduced because gas prices have been going up year after year. Everyone, from consumers to those working in the transportation sector—including rail transportation—is affected by this explosion in gas prices. The explosion in gas prices has led to an increase in the price of consumer goods. When gas costs more, the consumer price index will surely rise as well.
This issue has an important impact. The government always has the same response. The member who spoke before me once again said that there was nothing to be done because the Competition Bureau had concluded that there was no agreement among the oil companies to fix prices, so therefore there was no problem.
However, the Competition Bureau has never conducted a formal inquiry into this issue. All it has done is study how the industry operates. When the Competition Bureau conducts a study, it has almost no power, because it does not have the power of inquiry. It can examine how the industry operates in general, but it cannot discipline the industry.
What factors are behind the increase in gas prices? There are four: the price of crude oil, the refining margin, taxes and the retail margin. What everyone in my riding and in every riding in Canada wants to know is why gas prices are going up so much. Why is gasoline so expensive? What has happened to cause another increase in gas prices?
Absolutely nothing has happened. The retailers' profit margin fluctuates between 3¢ and 6¢ a litre. It stays about the same from one year to the next. The retail margin is always the same. Things have to be done differently.
Looking at the four factors, we have to assume that the oil well operator has a profit margin on the price of crude oil.
In my opinion, companies make money from the refining margin. A company makes billions and billions of dollars from refining. The price of crude oil is fixed and even listed on the stock exchange, and it varies very little. Of course, the “blueprints” determine the price of supply and demand. The taxes are relatively unchanged. The GST is 5% and applies to the price of gas before the QST. The QST is 7.5% and applies to the price of gas after the GST. This is unchanged.
As I said earlier, the taxes are still the same, and retailers still have the same flexibility. Only the GST and QST increase with the price of gas, but they account for only a small portion of the price increase. The taxes are essentially fixed. They are not making gas prices go up; the oil companies are making gas prices go up.
During the 2004 election campaign, the Conservatives presented a bizarre plan to fight gas price increases. Their proposal did not target oil companies; they proposed to decrease gas taxes. We do not believe this to be a wise course of action. If taxes are lowered, the price charged by the industry may rise and absorb the difference. The state needs the taxes to fund expenditures, namely to reduce our dependence on oil. The state does not make money when the price increases. It actually loses because it is a large consumer of gas.
With regard to refining, North American oil companies significantly streamlined refining operations in the 1990s.
As you are signalling that I only have one minute left, I will present the Bloc Québécois' three-pronged approach.
The first thing would be to discipline the industry. That is the goal of Bill C-454, which strengthens the Competition Act. We should set up a monitoring agency for the oil sector.
The second would be to have the industry make a contribution in light of the soaring cost of energy and oil company profits. The economy as a whole is suffering while the oil companies are profiting. The least we can do to limit the devastating effects is to ensure that they pay their fair share of taxes.
The third thing would be to decrease our dependence on oil. Quebec does not produce oil and every drop of this viscous liquid consumed by Quebeckers impoverishes Quebec and contributes to global warming.
Therefore, Quebec is proposing to reduce dependence on oil.