Debates of August 15, 2007 (day 10)

Mr. Speaker, I have a return to written question asked by Mr. Hawkins on May 10, 2007, regarding consumer protection on gas prices.

Neither the GNWT nor the federal government regulate the price of fuel.

The GNWT relies on the active market created by buyers and sellers to set prices for goods and services in the NWT. Reviewing the price differential between Yellowknife and Edmonton since June 2001 shows a trend where the price differential is diminishing, going from about 26 cents per litre in 2001 to a recent 18 cents per litre.

Some jurisdictions have attempted to place controls on the price of fuel. When market differences such as taxes and transportation costs are removed, the price of fuel in jurisdictions with controls is not significantly different from other jurisdictions.

Price fixing and other anti-competitive activities are illegal under the federal Competition Act.

The Competition Bureau is an independent law enforcement agency responsible for the administration of the Competition Act, which includes provisions against price fixing, price maintenance and abusive behaviour by a dominant firm resulting in a lessening of competition. All of its provisions apply to gasoline and other markets for petroleum products. The bureau's role is to protect competition in the marketplace so that Canadians can benefit from competitive prices, product choice and quality service. Each year, the bureau receives numerous complaints about gasoline prices. Complaints are examined to determine whether the provisions of the Competition Act have been violated.

The fact that retailers may charge similar prices, or that prices change, does not constitute an offence under the Competition Act. There must be evidence that competitors have made an illegal agreement to set those prices.

Franchise retailers who sell gas on consignment often change their prices on instructions from their head offices. This is not illegal under the Competition Act.

The Information Centre of the Competition Bureau will receive any evidence of improper communications, illegal agreements among competitors, or evidence of the impact of the alleged anti-competitive conduct.

The GNWT, through its Consumer Protection Act, provides the framework for which buyers and sellers transact business in the NWT. The GNWT responds to all complaints under the act received from consumers. A review of complaints filed under the act failed to uncover any complaints relating to fuel price gouging.