Mr. Speaker, I am glad to have the opportunity to speak to Bill C-14, the so-called fairness at the pumps act. To paraphrase the Bard, the bill is full of sound and fury, or should I say full of a certain amount of self-righteousness, signifying nothing or very little.
The issue of gasoline pricing has been at the top of the minds of Canadians for many years. However, it appears to be an issue the Government of Canada has largely forgotten about. Bill C-14 proposes to amend the rules regarding retail gasoline pump calibration, such that retailers will be legally required to have their pumps inspected regularly.
This is the response, two years after the Prime Minister made an election promise to help Canadians with higher fuel prices. As all hon. members are aware, during the 2008 election, gasoline prices spiked in some cities by more than 12¢ per litre, and then the Prime Minister was forced to make an off-the-cuff policy announcement. Back then the government promised to crack down on inaccurate pumps. It took almost two years to finally get action from the government.
This delay begs the question, how important are consumers to the government? With all the pomp and circumstance of a major government announcement, the Minister of Industry suggested that the government was coming to the aid of Canadians all across the country who were being ripped off by greedy gasoline retailers. Then the minister went on to explain that only 6% of pumps were actually inaccurate, and in 2% of the 6%, they actually favoured the consumer.
Is this the best that we can expect from the government? If the government were truly concerned with helping Canadians at the pumps, it could turn its attention to any number of issues, including automatic temperature compensation, refinery closures, and the anemic state of competition at the refinery level.
I would like to take a moment to speak specifically about Bill C-14. Bill C-14 will attempt to solve the problem of inaccurate gasoline pumps by shifting the onus of inspection from the government to individual retailers. The bill will also create an administrative monetary policy regime as a means to enforce these new regulations. The bill will also codify the practice of licensing private inspectors for the purposes of performing these inspections.
The Liberal Party has a number of concerns with the bill. First, most gasoline retailers are small, independent businesses, which in fact operate on very small margins, as we know. The additional cost of these inspections may very well hurt their bottom line and force some of them out of business.
We also have concerns with the private inspector regime. Right now, Measurement Canada uses a blend of both private licensed inspectors and government employed inspectors. This allows retailers to have their pumps checked by accredited inspectors, while allowing Measurement Canada to continue verifying the calibration of pumps on its own.
In switching the onus of inspection to the retailer, the demand for private inspectors will increase drastically. I and many of my Liberal colleagues are concerned that retailers in northern and rural communities may not have access to the private inspectors required to ensure that they can stay within the letter and the spirit of the law. This is a critical point.
Pumps in rural and remote communities are often not the newest, best pumps. These are the pumps that are most likely to lose calibration. Can we really expect private inspectors to set up shop in these communities to ensure that these pumps are inspected regularly when the market would be so small, or would these retailers face much higher costs to bring in non-government inspectors?
There is another concern with this new provision of the Weights and Measures Act. The amendments made to section 15 of the Weights and Measures Act do not just apply to gasoline retailers. In fact, they apply to “every trader who uses a device in trade”.
This means that everyone from gasoline retailers to a local deli will be affected by these new regulations. Without seeing these proposed regulations, we have no concept of what burden is being placed on thousands of other retailers and businesses across the country.
If one stops to think about the number of scales or pumps we encounter in trade, it quickly becomes apparent how much commercial and industrial activity will be affected by these legislative changes. All of this to correct a problem that by the minister's own numbers affects only 6% of pumps in Canada.
Anyone who has spoken to gasoline retailers will say that gasoline pumps are very hard to tamper with. In fact, the tight inventory control regimes that these retailers utilize make it very difficult for these retailers to even consider tampering with their pumps. They actually check their pumps often. It is in their best interest to do so.
The government is also not being honest about how long it will take for this bill to have any effect on the ground. With the summer break approaching, I think it is fair to assume that this bill will not receive royal assent until fall at the earliest. On top of that, the government will have to bring forward the associated regulations, which will take months as well. Even after all that effort, there will still be a phase-in period. It will take time to train and accredit enough inspectors to enforce the law.
This means that it will take years before this regime is up and running. The Liberal Party believes firmly in consumer protection and any measure that will ensure gasoline pump accuracy is a good measure in principle. However, I fear that this bill is designed to be nothing more than political cover. Let us be perfectly clear. This bill does nothing to help lower gasoline prices or to encourage competition in the gasoline industry in Canada.
In fact, when it comes to higher gasoline prices, the Prime Minister himself has said that there is nothing the government can do to help Canadians. In the three elections since the Prime Minister has been leader of the Conservative Party, he has made no less than three specific commitments to help Canadians with ever-increasing fuel prices. This is the first that the government has followed through on.
In 2004, lest we forget, the Conservatives promised to eliminate the GST on gasoline prices above 85 ¢ a litre when they came to power. I do not think that happened. In 2008 they promised to lower the diesel excise tax. I do not believe that happened either. I think the real reason behind this legislation being introduced right now is so that the government can pretend to be helping consumers while they complain that prices are rising.
A government interested in helping Canadians combat high gasoline prices would be examining the Competition Act and the state of competition at the refinery level in this country, among other things. Even as prices rise and the industry claims that supply is down, refineries continue to be closed. This is a problem for the industry.
A government concerned about high fuel prices would examine automated temperature compensation so that its full implications to consumers could be explored. Automated temperature compensation means that the volume of gasoline pumped is automatically compensated as if the outside temperature was 15°C. This makes no sense in a country where the average annual temperature is only 6°C.
If the government were serious about helping Canadians, it would be looking at these issues and not parading around legislation that is going to do nothing to help Canadians burdened by high fuel prices. I also have serious concerns with some of the unintended effects that this bill may have on other industries.
For these reasons, I am looking forward to the opportunity to examine and amend the bill at committee and to hear from a variety of witnesses about how we can ensure we protect consumers without putting an excessive burden on Canadian industry.
However, I have concerns that yet again the government is using consumer protection legislation to try and change the channel or as political cover. We have seen this time and time again with legislation designed to protect consumers, for example, the Consumer Products Safety Act, which died on the order paper when the Prime Minister prorogued Parliament last December. None of this legislation has been seen all the way through to assent. Unfortunately, a fairly common pattern with the Conservative government.
In conclusion, I would like to emphasize that the Liberal Party is not against measures designed to protect consumers. However, we have serious concerns with this bill, its unintended effects, and the very real possibility that the government is using this to obscure the real issues related to fuel pricing in Canada.