Mr. Speaker, I thank the industry minister for trying to answer my question about gas prices but the time available in question period was not enough for either of us to fully express ourselves. I look forward to a more complete response from the parliamentary secretary.
This is a matter that I and other MPs from eastern Ontario have raised before. For years we have received calls about oil companies jerking around consumers. People notice that prices go up before weekends, especially long weekends. This is important in a tourist area like eastern Ontario. Prices go up suddenly but they come down slowly over a period of days. Prices seem to rise and fall at all gas stations at the same time. People want to know how it is that gas, which is already in the tanks at the station, can change in price like that. My constituents see excess profit taking, price gouging and collusion in these patterns.
I have raised my constituents concerns on such matters in the House before. The Liberal member for Pickering—Ajax—Uxbridge and the Liberal committee on gas pricing in Canada worked hard to hold oil companies accountable. We pushed for public inquiries but they invariably showed no collusion and the pricing practices continued.
People want to know why we do not compensate for the excessive gas price hikes by lower federal taxes. I point out that the federal share of taxes is lower than the provincial share and that the federal excise tax is fixed; it does not go up with the price. The GST portion of the tax does increase with price but there are rebates for low income people, farmers, school bus operators, truckers, municipalities and others. We successfully lobbied for a home heating rebate a few years ago.
However the trick here is to lower taxes without providing a windfall profit for oil companies. Gas selling for 90¢ this week can be sold for the same price next week with or without tax. How do we prevent the tax difference going to the oil companies?
Also, it has been pointed out to us federal MPs that price control is a provincial jurisdiction and that the few provinces that have tried gas price control have seen negative effects on their economies.
However Canada is a major oil producer and net exporter of oil. Taxpayer money has been used and is being used to stimulate and support that industry.
While I can see that Canadian consumers do not need protection when world prices are reasonable, surely there is something we can do to protect them from sudden and unreasonable price changes. We are told that the current price increase is driven by a huge surge in world prices resulting from the Iraq war and troubled times in the Middle East. Most Canadians can accept that, but the member for Pickering—Ajax—Uxbridge calculates that the current world price for oil should have resulted in prices in the 80¢ per litre range not the $1 per litre range that is being experienced in various parts of the country.
Why should Canadians who have invested in their domestic oil industry be subjected to price gouging like this?
I look forward to the parliamentary secretary's reply on behalf of the minister with great interest.