Thank you very much, Mr. Speaker. Earlier today I did a Member’s statement on the increase of fuel prices in the small, remote communities that is delivered by the petroleum products division, so I would like to ask the Minister of Public Works and Services questions on the increase of fuel prices.
I’d like to ask the Minister, how are the fuel prices determined in all our small and remote communities? Thank you.
Thank you, Mr. Menicoche. Mr. Beaulieu.
Mahsi cho, Mr. Speaker. The fuel prices include the cost of the actual product being purchased, the transportation cost to get the product to the community, there’s a sales commission for the sales within the community and the O and M expenses, evaporation loss and taxes. Thank you.
I know it can be argued that the transportation cost to the remote communities is additional tax to these communities.
Has the department looked at not applying a transport tax so that we can lower the fuel prices into our small and remote communities? Thank you.
Mr. Speaker, petroleum products operate through a revolving fund. There’s a Revolving Fund Act, which means that the fund itself is self-funding. So the only way that we’re able to deliver fuel to these communities is by charging what it costs to deliver fuel to the communities.
If we were to subsidize one community, which we are allowed to do up to 95 percent of the cost, we would have to take it from another community. We’re allowed to charge up to 105 percent of the cost of delivering fuel to a community.
We try to keep it fairly balanced and do it at the true cost, 100 percent of the cost. So the actual transportation cost is what we use. Thank you.
I’d like to thank the Minister for that explanation. To a normal person, I guess it wouldn’t make sense.
I’d just like to pursue another angle. Government is providing these services in the communities and we’re charging a commission fee.
Can our government provide this service for free, instead of charging it back to the smaller communities? They’re small populations. They’re the ones that get the brunt of it. I think my colleague from Mackenzie Delta has the highest fuel prices as a result of the petroleum products division, at $2.01.
Can they look at the government providing the service without a commission charge? Thank you.
Mr. Speaker, the sales commission is paid to individuals in the communities that sell the fuel, so we would be asking the individuals who are selling the fuel in the communities to do it for no fee if we were to eliminate the sales commission from the price structure of the fuel. Thank you.
Thank you, Mr. Beaulieu. Final, short supplementary, Mr. Menicoche.
Thank you very much, Mr. Speaker. I guess what I’m asking is if Public Works and Services would review how we can deliver fuel, how we can drive down the cost of living. In fact, I think nationally one of the big moves is to lobby the federal government to drop the GST for gasoline and heating fuels in remote communities.
Is that something that the Minister is willing to look at as well? Thank you.
Mr. Speaker, if that is internationally to lower the cost across the board, then our government is prepared to look at that particular tax for fuel into small communities that we’re delivering ourselves. Thank you.
Thank you, Mr. Beaulieu. Member for Mackenzie Delta, Mr. Blake.
