Debates of May 11, 2007 (day 5)

Thank you, Mr. Speaker. Mr. Speaker, following up on my Member’s statement, I’d like to just ask the Minister of Finance what is his explanation for the gas prices in Yellowknife stations going from $1.19 to $1.25 when he knows that we have no bridge and unless they flew the gas in, which I don’t think they did, it’s the same stock. So if he could try his best to answer to start with. Thank you, Mr. Speaker.

Thank you, Ms. Lee. The honourable Minister responsible for Finance, Mr. Roland.

Return To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. Mr. Speaker, I guess I want to be clear that in responding to this question I’m not defending big oil and the way they set their prices. However, from the work from the Department of Finance, nothing has changed in the way we deal with the fuel price in the Northwest Territories or from the fuel tax that we have on fuel in the Northwest Territories. So the prices that are changed are as a result of what we were told when we raised this issue with industry, is rack price adjustments that happen throughout Canada. For example, when this issue was raised in my constituency of Inuvik, I made some calls to find out what was happening, so I’m going on that response that I got because the changes aren’t as a result of what we’re doing. It’s a result of the rack price changes and how fuel is stored and then sold as it leaves that storage facility into trucks and service stations. Thank you.

Thank you, Mr. Roland. Supplementary, Ms. Lee.

Supplementary To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. I think we can establish there have not been new tax increases from the GNWT. The Minister is saying rack price adjustment but what we see is, and we can tell, that the gas they were selling last week is the gas they would have gotten at least before the ice bridge went out and chances are it’s been there for months. We can’t think of any increased costs, so I think another word for rack gas pricing adjustment is gouging. So I’d like to ask the Minister, if someone is selling the same…This product doesn’t change; they didn’t bake it fresh that day; it’s the same stock and the price goes up. So would the Minister agree that this may be gouging? Thank you.

Thank you, Ms. Lee. Mr. Roland.

Further Return To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. I guess many in the Northwest Territories may term it or state that it’s a form of gouging, but the practice has been throughout industry that -- and I’ll use an example -- again, my community when the prices started going up, we know, for example, in communities that don’t have highway systems or barge, for example, Inuvik gets its fuel supply by barges and we know that that barge delivery happens in early summer and it’s put into storage facilities within Inuvik under one of the larger companies. It isn’t until that gas leaves that storage facility, is put into a truck for delivery that the price is set. So the rack price on the market-of-the-day is what it’s spotted at and charged at that rate. So that’s, when I talk about rack price, the way it happens. In the large companies, the large suppliers, as the fuel leaves its facility into the delivery truck, the price is set at that time. Thank you.

Thank you, Mr. Roland. Supplementary, Ms. Lee.

Supplementary To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. Mr. Speaker, none of that explains why the gas price went up by six cents in Yellowknife when we have no permanent bridge. There is no new supply coming in; it’s the same old stuff. I mean that explanation may work for southern communities, but we are cut off from the rest of the world because we have no bridge. They’re using the same stuff and the price went up and the only variable was that the prices were…

Do you have a question, Ms. Lee?

…it went up because it went up down south. So could I ask the Minister to make a commitment to review the prices of gas at the gas stations in Yellowknife over the last three weeks and provide us with the information from the industry as to why they raised those prices? Thank you.

Thank you, Ms. Lee. Mr. Roland.

Further Return To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. First and foremost, we have to make it clear that within the Department of Finance we have no control over what the industry does in this area. The only place our government has an impact is in POL, or petroleum products division within Public Works and Services where we supply to communities where there is no private sector. Here in the North, the rest of the communities, the only impact we have is on the fuel tax side. That hasn’t changed, but I will request the department go back and look at the changes and then we’ll have to send an inquiry into some of the bulk dealers throughout the Territories. Thank you.

Thank you, Mr. Roland. Final, short supplementary, Ms. Lee.

Supplementary To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. My request is very narrow and it’s not anything to do with the POL; I’m asking the Minister of Finance, as a public interest question -- and he can refer it to the Minister responsible for consumer protection, if they have any -- but I’d like to know if the Minister would report back to the Members as soon as possible within this month. Thank you.

Thank you, Ms. Lee. Mr. Roland.

Further Return To Question 56-15(6): Increase To Yellowknife Gasoline Prices

Thank you, Mr. Speaker. Yes, we will go back and look at some of the price changes and request information and then forward that on to Members. Thank you.