Mr. Speaker, I would like to inform the House that I will be splitting my time with the member for Madawaska—Restigouche.
Clearly, Canadians are facing difficult times because of rising fuel prices. They want to see accountability from the Government of Canada, the provinces and the oil companies. The price of crude oil has gone up significantly since 2002, from roughly $20 U.S. a barrel to just over $60 U.S. a barrel. Part of that is because of increase in demand from countries like India and China. Although they only account for 10% of the world demand, they in fact represent over a third of the growth in demand.
The federal government does not constitutionally control the price and distribution of most goods and services in Canada, including the price of gasoline. We do not have that constitutional authority, so if people suggest that the Government of Canada somehow should deal with the price today, then they only need to look at the provinces. They need to look at provinces like Prince Edward Island which has a regulated regime, or Nova Scotia and New Brunswick to a degree.
In Ontario, in 1975 there was going to be a 5¢ a gallon increase and the Conservative government of the day decided to put a freeze on it for 90 days. It had that constitutional authority. If the issue is to deal with prices, it can either freeze the price today or it can roll the price back. It has that constitutional authority. Whether it wants to act of course is a different issue, but the reality is that on the issue of prices it is in the purview of the provincial government.
The federal government deals with the issue with the Competition Bureau. In 1998, I and 46 other colleagues on this side of the House dealt with this issue when we set up a Liberal caucus committee dealing with the whole issue of the oil industry. We made a series of recommendations, some of which were adopted by the government of the day, in order to deal with the issue of prices soaring at any one moment in time and then taking forever, it seems, to come down.
We called all the major oil company executives before our committee. If I were to tell members that they told us they do not make a lot of money on oil but they make it on selling potato chips, dry cleaning and ATMs, they might chuckle, but that was what they told us. I would suggest that if we called them today, we would see that in fact part of the reason why they are making significant dollars is that there is a lack of competition in the marketplace, particularly among independents. The Competition Bureau can and has stepped in, in the past, when one major oil company takes over a certain part of the market in which it will affect others. That happened in the province of Quebec with Petro-Canada at one time.
The authority to deal with anti-competitive measures is with the Government of Canada. I personally believe that the Competition Bureau needs to be strengthened. We need to look at ways to deal with that. Some have suggested there is collusion in the market, and I would suggest that trying to find a smoking gun is very difficult.
There have been at least 11 or 12 prosecutions with convictions over the last dozen years or so, but it is to find that smoking gun. Everyone says that the oil companies are in collusion but again we have to have evidence in order to prosecute and that is a difficult thing. However, when the Competition Bureau has evidence, it does take action. Obviously we cannot have anti-competitive behaviour in the marketplace.
There may be a solution. I listened to the Bloc this evening talking about some kind of agency. Maybe we could say to the oil companies that if they are going to raise the price of gasoline by more than 1¢ there needs to be a 30 day notification. Maybe there needs to be some mechanism, but clearly the bureau needs to have those tools. It is high time for a very rigorous review of the powers of the Competition Bureau and what it can and cannot do.
The issue of taxes, which we have heard a lot about tonight, is not the issue. In 1992 the province of New Brunswick reduced the tax by 2%. The consumer did not see that because the oil companies immediately filled the void and raised the price. Cutting the excise tax by 3¢ would have very doubtful results because unless there is a regulatory regime in place that is going to clearly monitor and check that the 3¢ reduction is passed on to consumers, it will not make much difference.
I would point out that when I was parliamentary secretary to the Minister of Finance back in 2002 during that particular oil situation, the Government of Canada and the Minister of Finance of the day suggested that he would stop collecting the tax if the provinces followed suit. Maybe one province actually responded to that. The provincial taxes ranged from 15¢, 16¢ or 10¢ a litre, and they were not prepared to give that up.
The issue really cannot centre on taxes because the issue is whether or not there is competition. The issue is how to make sure, if we want to regulate this industry and obviously some would suggest in this House that we regulate it, that in fact if we are prepared to do that then we need to have the kind of regime in place that has the power to do so.
We need to have accountability from the oil companies. If one had been through the experience that I and others were, one would not believe some of things that we heard from oil company executives. They basically said that there is no question that there is a world demand. There is the impact that it has here, but it still does not account for the fact that prices spike significantly one day by 20¢ or 30¢ and then take forever to come down.
The Government of Canada has indicated through the Minister of Finance and through the Prime Minister that we are looking at ways to help assist Canadians during this difficult period. There is no question that fuel has the biggest impact on everything, whether it is in making pizzas, delivering them or getting the ingredients for those pizzas, or anything else. Fuel has an impact.
With whatever regime, if in fact we want to go ahead and put it in place, we have to remind ourselves that it will have to be there for a very long time. But if the price of hydro goes up or heating oil, again one has to look to the provinces. In terms of pricing, it is a provincial jurisdiction. I have not heard a lot about that tonight because that is their domain. It is not our domain and even if we wanted to, the only time I think we could ever become involved is in an emergency situation such as in a time of war. We would certainly hear howling from the provinces if we intruded on a jurisdiction which obviously some of them are not prepared to even exercise at this point.
The issue that I hear from some members relates to taxes. Again, there is no guarantee of savings and in fact, whether the price is 80¢ a litre or $1.30 a litre, the federal tax does not change. What does change is the fact that the government has taken an aggressive stand on renewable energies. It did so in the budget of 2005 which some did not support.
This is the government pushing ahead on ethanol as an example. This is a government that is clearly committed to higher fuel standards for vehicles and is committed to all sorts of renewables. But those are clearly more down the road.
There is an immediate impact on families who are suffering today. The action the government will take will obviously have to be one that will not create a bureaucratic situation. We did try to assist in 2002 with rising costs in the area of heating oil and we were accused of giving cheques to dead people. People did die, even though they were on the list, after the cheques had gone out, or some went to jail.
I do not know whether we want to go down that road again, but I think we need to have a monitoring agency that has the proper tools, through the Competition Bureau, to call for accountability from the oil companies, to say that within 30 days if they are going to increase the price by 1¢ a litre they would have to report and would not be able to raise it until the time was up. There has to be some surety in the marketplace if in fact this is what members want to do. While I think all members seem to agree that they want to take action, the question is what kind of action should we take.
Constitutionally, if we want to freeze the price of gas or roll it back, we have to phone our members of the provincial legislatures because they have that constitutional authority. We will deal with the Competition Bureau which I think the House should really be looking at by giving it the proper tools. Let us move ahead and assist Canadians in this difficult time that they are all facing.