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Report from Parliament's Hill: June 7th

By Prince George - Peace River M.P. Jay Hill

Thursday, June 07, 2007 03:44 AM

    Green Party Plan a ‘Gas’ Problem for Canadians

Like most Canadians, I’m frustrated by high gas prices when I fill up my truck. 

So I was astounded this week when Green Party Leader Elizabeth May proudly announced that the Green Party would impose a 12-cent carbon tax on every litre of gas sold in Canada!

She also promised to cancel all Pacific Gateway funding and end all programs for the coal and oil and gas industries in order to phase out these sources of power completely. 

Meanwhile, according to Liberal Leader Stéphane Dion, “High gas prices are actually good for Canada in the medium and long term.”  A Liberal private member’s bill Mr. Dion supports, Bill C-288, would allow the price of gas to rise to between $1.60 and $2.00 per litre.

Both the Liberals and the NDP are also suggesting our Conservative Government reverse our GST cut which reduced gas prices. 

As for regulation, only the provinces and territories have the authority to regulate gas prices. Currently, Prince Edward Island, Newfoundland, New Brunswick, Nova Scotia and Quebec have chosen to regulate prices in some manner.  Most evidence suggests that while regulation leads to more stable prices, it does not lead to lower prices.

Many different international, national, regional and local factors affect gas prices.  There’s little we can do about these supply-and-demand issues.  However, the federal Competition Bureau continues to monitor gasoline prices to ensure they are the result of market forces and not the result of anti-competitive acts, such as price fixing, price maintenance, and abusive behaviour by any petroleum firm.

Since 1990 the Competition Bureau has conducted six major investigations related to the gasoline industry. In each case it found no evidence that periodic price increases resulted from a national conspiracy to limit competition or from abusive behaviour by dominant firms in the market.  

At the root of the opposition parties’ calls for higher gas prices is their belief that all Canadians can simply and radically cut their gasoline consumption.

I wholeheartedly support federal fuel-efficiency programs, including initiatives by our Conservative Government to encourage Canadians, specifically those living in large metropolitan areas like Toronto and Vancouver, to give up their SUVs or to shun their vehicles in favour of public transit.  Yet we all know that the reality is different here in northern BC.

In our predominantly rural northern riding, road and weather conditions, and the concentration of employment in the natural resource and construction industries, dictate our use of larger, more rugged, but less fuel-efficient vehicles.  In other words, a ‘smart car’ may not be a ‘smart choice’ in the rural north!

Our local municipalities are always working to enhance public transit services, but the limited population base here and the far-flung geography don’t provide optimum circumstances under which more sophisticated transit systems can be offered.

After two consecutive and cantankerous minority parliaments, political cynicism has, understandably, prompted many Canadians to look at the “new kid on the block”, the Green Party.  While many of their environmental policies are well-intentioned and stimulate worthwhile debate, the Green Party’s 12-cent-per-litre price tag is one that few Canadians can afford!

    


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Comments


High gas prices good for Canada?
The high prices are good for government for tax revenue, good for oil exploration, oil companies and certainly helps the oil sands. For an individual Canadian, I dont think so.
The price of a gallon of gas in Iraq is approx 35 cents a gallon, yes a gallon not a liter.

The idea of a 12-cent carbon tax on every litre of gas sold in Canada, thats ridiculous and adds up to another gouge on the consumer.
Why not use some of the GST and subsidize the high fuel cost, how did our goverment ever make out without this added tax before.

Reducing carbon emissions etc.
Well if the government was really serious in this and reducing energy consumption. Perhaps there would be a larger incentive for Canadians to purchase other sources of energy such as wind driven turbines, solar etc.
A tax for carbon emmisions, give your head a shake, think about what you said.
Consider the fact that China will soon have more vehicles on the road than the US and Canada.

Here is an idea for you. When an individual goes to purchase a vehicle such as a large truck. They should prove that they have a use for it, a buisness or farm for example. Oh sorry, too much like a dictator eh.

Now lets further condider cars and fuel consumptiont. Do you really believe that the little cars you see are really that fuel efficient?
They use less fuel because they are small. If you compare mass to fuel consumed you may find that the larger vehicle is more fuel efficient. Im not saying everyone should buy a large vehicle, its just ridiculous to say I drive a fuel efficient vehicle when its not.

If the auto manufactures and government were really serious about Hybrid vehicles they would have done so years ago.
The hybrids will need to be more equal in cost to the gas powered vehicle or a serious incentive to buy one. Who will pay 5-10,000 more for a hybrid, it would take some time to make up the difference in savings. After 5 years batteries need replacement, an added cost.

I dont see why someone living in the city say Ottawa would need a gas vehicle. Electric would be fine, transit etc.


Have a nice day.


"After two consecutive and cantankerous minority parliaments,..."

Don't we just love those Conservative Party American/George Bush style attack ads on TV ?

Talk about political cynicism and being cantankerous...the pot calling the kettle black!
"In our predominantly rural northern riding, road and weather conditions, and the concentration of employment in the natural resource and construction industries, dictate our use of larger, more rugged, but less fuel-efficient vehicles."

So true when the feds don't maintain federal highways to the standards of the east and the province does not maintain their higways to the standards of the south, and the cities do not maintain their roads to the standards in the rest of Canada which gets snow, unlike Victoria.

Maintain the roads equitably throughour Canada and there would be no need to drive a different kind of vehicle.

Besides, remember the famous ad: How does the man who drives the snowplow drive to the snowplow? - a VW.

http://www.old-ads.com/2007/05/vw_rabbit_ad.html

Be a bit more forward thinking Mr. Jay!!!
"High gas prices good for Canada?
The high prices are good for government for tax revenue, good for oil exploration, oil companies and certainly helps the oil sands. For an individual Canadian, I dont think so. The price of a gallon of gas in Iraq is approx 35 cents a gallon, yes a gallon not a liter."

If the price of gas is an indicator of how well a country is doing, one would quickly come to the conclusion that in most cases the higher the price of gasoline the better off economically the country is.

Iraq at less than 10cents a litre? Who wants to move there?

Norway - 1.42 euros/litre (C$ 2.02)
Belgium - 1.30 euros/litre
Ireland - 1.14 euros/litre (C$1.62)
Australia - 0.78 euros/litre
Canada - 0.69 euros/litre (C$0.98)
USA - 0.60 euros/litre (C$0.86)
Afghanistan - 0.51 euros/litre
Vietnam - 0.45 euros/litre
Bolivia - 0.37 euros/litre
Egypt - 0.28 euros/litre
Moldova - 0.25 euros/litre
Lithuania - 0.23 euros/litre
Syria - 0.19 euros/litre
Iran - 0.09 euros/litre
Saudi Arabia - 0.09 euros/litre
Venezuela - 0.04 euros/litre (C$0.06)


http://gasoline-germany.com/international.phtml?changeto=EN

Irland and Norway, at and near the high priced heap are oil rich countries, as is Venuzuela, at low priced bottom of the heap.

As we should all know by now, gasoline prices deal more with identifying where true costs lie and government policies of how to pay for those costs which pay for the transportation system. Perhaps we should lower the price of gasoline, and introduce toll roads, bridges, etc. and higher taxes on the purchase of vehicles.
The prices shown above are averaged from reports posted by travellers and can be from posts a few months old.

Current pice in Germany?

1.35 euros/litre and going up while supplier prices are going down. Sound familiar? Supply side is doing great. Demand is too high or expected to be too high. Summer coming. Sound anything like economics 101? Anyone surprised? You know the olde theory - make hay while u can?

If you want a feel good time whenever you think prices are too high here, click on this link and be glad u do not live in Europe.

:-)
http://gasoline-germany.com/statistik.phtml
"While many of their environmental policies are well-intentioned and stimulate worthwhile debate, the Green Party’s 12-cent-per-litre price tag is one that few Canadians can afford!"

So, we will simply pay in another fashion. Again, money is not being burned. It is being used for something. Of course, if the Conservatives wish to tax the rich more directly to cover the costs associated with driving large cars with one person in them, then I am okay with that too.

;-)

The dangers of telling half the story Mr. Jay. Talk about the public costs of private vehicle transportation, then talk about how you access the money to pay for those public costs. How does your mixed bag approach differ from the mixed bag of other parties? The end cost is the same in all cases. It is the system of collecting moneys to pay for those costs which differs. Gasoline tax is only one part of everyone's mixed bag. That is why prices vary so much accross the world. They all have made at home solutions.
Gas Economics 101:
1. Price of gas has been falsely based on supply and demand.

2. Gas demand is a relatively fixed variable. This results in prices that have/will rise regardless of supply. Honestly, how long do you hold off on buying gas when the prices are "too high". We all make do, and pull the money from another expense. When the local gas station runs out of gas, we all make do until the gas station has gas again.

3. If gas demand were reduced by any significant amount, gas companies have enough flexibility to reduce the supply and still make record profits.

4. As a consumer, the only way to pay less for gas is to use less of it.

The gas companies realized this gas economic paradigm-shift after prices surpassed $1.00/ltr, and they have been raking it in ever since.

How to use less gas:
1. Stop subsidizing oil companies that are earning billions already.

2. Effectively encourage drivers to buy less gas through tax shifting (less income tax for all, but a significant tax on gas guzzlers)

3. Use the surplus tax revenue to conditionally subsidies car companies to dramatically increase fuel efficiency for all vehicles (including trucks & SUVs).

This all leads to drivers buying less gas, and more fuel efficient vehicles on the road, which should lead right back to another hike in the gas tax... and so on...and so on...
Gas Economics 101:
1. Price of gas has been falsely based on supply and demand.

2. Gas demand is a relatively fixed variable. This results in prices that have/will rise regardless of supply. Honestly, how long do you hold off on buying gas when the prices are "too high". We all make do, and pull the money from another expense. When the local gas station runs out of gas, we all make do until the gas station has gas again.

3. If gas demand were reduced by any significant amount, gas companies have enough flexibility to reduce the supply and still make record profits.

4. As a consumer, the only way to pay less for gas is to use less of it.

The gas companies realized this gas economic paradigm-shift after prices surpassed $1.00/ltr, and they have been raking it in ever since.

How to use less gas:
1. Stop subsidizing oil companies that are earning billions already.

2. Effectively encourage drivers to buy less gas through tax shifting (less income tax for all, but a significant tax on gas guzzlers)

3. Use the surplus tax revenue to conditionally subsidies car companies to dramatically increase fuel efficiency for all vehicles (including trucks & SUVs).

This all leads to drivers buying less gas, and more fuel efficient vehicles on the road, which should lead right back to another hike in the gas tax... and so on...and so on...
In Germany the higher taxes on fuel have been used to build super highways, better secondary highways and provide comfortable, fast and on-time train travel to practically anywhere at any time.

As a result, hundreds of thousands of people have gotten rid of their vehicles altogether and switched to public transportation.

Many German vacationers put their cars or RVs on special trains, which take them and their vehicles to their holiday destination where they have the use of their vehicles.

Here we are still fighting the federal government to get all the money back that was collected at the pump in taxes, which we badly need to rebuilt our poor infrastructure such as roads and bridges.

The Greens in Germany want the gas prizes doubled (by higher taxation) and thereby reduce consumption/emissions and force the development of more high mileage vehicles, like the new Smart car which uses 3.3 liters/100km of diesel fuel.

It has a 3 cylinder 45 hp diesel engine with a 799cc displacement.


Shame on Jay Hill for going against everything he preached and was elected on about the rights of an elected representative to a free vote when it comes to representing their interests of their riding. Kicking the Atlantic conservative MP out of parliament was a slap in the face to the principle of reform, and a slap in the face for all who voted for Jay Hill as a reform MP.

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IMO Jay Hill misses the point that the North needs infrastructure investments if we are to have any chance at generating fuel efficiency contributions to our carbon output. Turning his back on previous promises to reduce taxes on fuel and ensure a return of all fuel taxes to their intended investments in infrastructure looks now to be nothing more than another broken promise to get elected.

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Sadly IMO Jay Hill is turning into a huge partisan where his loyalty is based on partisan politics and not values he purported to support in order to get elected.
"Gas demand is a relatively fixed variable"

Remember that gasoline comes from oil. Read this about oil demand, as well as supply based on dropping or sluggish demand:

https://www.bernstein.com/CmsObjectPC/pdfs/BJ_Win06_1_Oil.pdf

"On the heels of a 1.9% gain in 2003,
world oil consumption leaped 4.0% in 2004
(Display 3), a gain far bigger than the 1.5%annual average increase over the previous 20 years. The compound annual growth rate has been very strong over the last three years; oil demand has continued to increase even in the face of high oil prices."

Obviously the authors do not know what they are talking about. It is also obvious they have not taken Gas Economics 101.

;-)