44th Parl. 1st Sess.
December 11, 2023 11:00AM
Madam Speaker, to be honest, the hon. member's question is key. The first thing we have to do is really get a firm grasp about what is causing prices to be so high. Hon. members would point to the carbon tax, but there was a report out of the University of Calgary that said, no, that was not really it.
We would point to the war between Ukraine and Russia, with Ukraine's exports of grains being greatly reduced because of the conflict, which has had a chilling effect on the availability of food around the world that then had an effect on prices. However, it is anti-competitive behaviour at a time when all of the major grocery chains are recording record profits that suggests there is something not working properly in the free market system. That, I think, is the purpose of the Competition Act amendments.
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Madam Speaker, let us talk about hypocrisy, then, for a minute. Here are the mergers that have been approved by the Competition Bureau since the Trudeau government has been in power: Air Canada was approved to buy—
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Madam Speaker, my colleague spoke at length about one of the two aspects of the current debate on Bill C-56, which amends the Competition Act, among other things. We agree; it is not going to solve every problem.
The other aspect this bill addresses is housing, in particular the GST on rental housing. It touches on this other problem that we have heard a lot about and that is a real scourge this year: housing.
What my colleague did not mention is that the only solution his party has proposed so far on the housing issue is a bill introduced by his leader, a bill that is essentially designed to show cities some tough love and tell them that funding will be cut if they do not meet their targets.
That is not what cities, particularly those in my riding, need to successfully address the housing issue. I would like to know what my colleague thinks about this.
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Madam Speaker, this is the first time in two years that I have gotten the unanimous consent of the House, and I am proud of it. Before beginning my speech, I would like to make one thing clear. This is not a case of the Bloc, the NDP and the Liberal Party standing together. It is the Conservatives that stand alone. That is not the same thing.
Today we will be discussing Bill C-56, an act to amend the Excise Tax Act and the Competition Act. I will be talking mostly about that last part of the bill, in terms of both its technical points and its rationale. Before we begin, though, we always need to establish what we are talking about. What is competition? It means coming together and converging on the same point. That is what competition is. It is not necessarily a bad thing. However, what is the motivation for coming together? What is the purpose? Is it good or bad? As members of Parliament, our objective must be commendable, because we obviously have the public interest at heart.
In one amendment, the bill would increase the maximum monetary penalty for abuse of a dominant position to $25 million for the first offence and $35 million for subsequent offences. The aim is to give the law teeth, to make sure that it will not be taken lightly, that people will not think that they can get away with a slap on the wrist. This provision also makes Canadian law more comparable to U.S. law, of course.
The second important amendment in the part on competition would allow the Competition Bureau to conduct market study inquiries if the minister responsible for the act or the commissioner of competition so recommends, and would require the minister to consult the commissioner before doing so.
The Competition Bureau already has significant powers, but it cannot demand certain things from the people it is investigating. It cannot request a search unless there is a clear offence. It cannot request a search just to look around. It cannot make assumptions. All of us here know that groceries are expensive and that we pay the highest cellphone fees in the OECD. It does not take a genius to realize that the commissioner might want to investigate these things.
When it conducts a study, the bureau will have to determine whether there is adequate competition in a market or industry. Right now, it does not have that power in every industry. What the Competition Bureau can do at present is all right, but it is not necessarily the best thing right now. It may have been sufficient at the time, but now it needs to be enhanced.
In its report on the state of competition in the grocery sector, published in June, the bureau noted that the grocery chains did not really co-operate with its study. I like that euphemism: “did not really co-operate”. They said no, which is not the same thing, and the Competition Bureau, with its current powers, could not make them say yes. They refused to provide the documents the bureau asked for, and they refused to answer certain questions. My colleagues will no doubt agree that there are many shades of meaning between “did not really co-operate” and “refused to answer”. The aim of Bill C-56 is to solve this problem by granting the Competition Bureau the power to conduct inquiries where applicable.
Lastly, the bill would revise the legal test for abuse of a dominant position prohibition order to be sufficiently met if the tribunal finds that a dominant player has engaged in either a practice of anti-competitive acts or conduct that is having or is likely to have the effect of preventing competition. That is the technical part of the bill. However, when someone drafts a bill, they need to think about why they are doing it, what they are trying to accomplish.
The purpose of the Competition Act is to ensure that Quebec and Canadian consumers have freedom of choice. We sometimes talk about monopolies. What is a monopoly? It is an exclusive right. What does “exclusive” mean? It means doing everything possible to keep others out. It means restricting, refusing, blocking, rejecting. Exclusivity means limiting access. It is almost like a secret agreement.
The bill also seeks to prevent stakeholders from abusing a dominant market position. To dominate means to master, to control. In the past minute, I have talked about refusing, blocking, mastering, controlling, exclusive rights. All of this goes against the free market that this country promises, that it says it has, but that is sometimes, in reality, only an illusion.
Essentially, the drafters of the bill wanted the Competition Bureau to have more power, the power to provide us with freedom of choice, the power to investigate where appropriate until it is satisfied that it can make this possible.
As I said at the beginning of my speech, competition means getting together and converging on the same point. If that is not possible, if certain players dominating a market prevent that from happening, we are being deprived of our freedom of choice. It is a sort of manipulation. It is a sort of lie.
Without calling anyone a liar, we can still talk about what a lie is, here in the House of Commons. A lie from someone in a dominant position may prevent someone else from doing something they would have done had they known the truth. Lies imply secrecy. Monopolies imply secrecy. It is this secrecy that this bill seeks to eliminate so that everyone can exercise freedom.
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Madam Speaker, all the legislation in the world and all the regulations in the world will not help us make our environment and economy more competitive if we do not have a government that has the backbone to say no to anti-competitive mergers. There have been a lot of mergers over the last eight years that the Liberal government has approved, and those mergers have reduced competition in the marketplace here in Canada.
Has the Bloc supported those mergers or does it support a more cautious approach to making sure Canadians have full competition, so the price of groceries and the price of housing go down in this country?
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Madam Speaker, competition is for oil companies too. Funny how the price of gas never goes down, only up.
Regulation is not always a cure-all, but it is the right solution in this case because the players are not trustworthy. If they were, we might be inclined to let them self-regulate, but they have shown that that was not good enough, particularly when they refused to answer questions from the Competition Bureau.
I think that the proposed legislation seeks to restore consumer confidence in the bureau's services. I do not believe that there will be a loss of efficiency. I think that we will see increased efficiency, because the players will have no other choice.
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Mr. Speaker, I see no reason for this to have been brought up for discussion. I came to the House prepared to debate Bill C-56. I have my own views on the competition clause in that particular bill. I had certain suggestions to make for the bill, such as how to improve competition while not allowing 100% foreign ownership in the Canadian banking sector, as well as how we can use the regulatory tools that are available to give credit guidance to the bank to increase competition within the banking sector. This would lead to economic advancement and economic prosperity, for the growth of the manufacturing sector in Canada.
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