January 25, 2006
Paying the price for energy this winter

When a poor man came in sight,
Gathering winter fuel.
                                    - Good King Wenceslas

Surging energy prices were the story of the year in 2005.  Given prices at the pump, escalating electricity charges, and recent natural gas hikes, it looks like more of the same for 2006.

We are not the only ones pinched by the energy crunch. Oil and natural gas prices were already near historic highs internationally when hurricanes in the Gulf of Mexico sent oil to a record $70.85 (U.S.) per barrel.

The fact that over 40 per cent of the pump price is paid directly to the provincial and federal government as taxes, doesn’t help. Last year, the federal government collected more than $6 billion in gas taxes alone. As I’ve pointed out before, a good first step towards gas-price sanity is for the federal government to stop charging the 7 per cent goods and services tax (GST) on top of all gas taxes. This is a tax on a tax that has seen Ottawa reaping an additional $40 million every time a litre of gas goes up one cent!

On the provincial side of the coin, while in Opposition, the McGuinty Liberals tabled four private members bills on gas prices:

• On May 2, 2001, Liberal MPP Rick Bartolucci put forth Bill 32 – to freeze the price of gas for 90 days.
• ‘Gas Price Watchdog’ legislation was introduced by now Cabinet Minister Mike Colle in May 2001 and by MPP Michael Gravelle in May 2003.
•  On May 27, 2003, Liberal MPP Bruce Crozier put forth Bill 58 – calling gasoline retailers to advertise gas price changes 72 hours before changing the price.

Today, we hear nothing from these MPPs who advocated so strongly for provincial action when they were on the other side of the floor. As they say that was then and this is now. Meanwhile, for much of the past year, I’ve been gathering names on a petition to “stop gouging consumers at the pump” through differential pricing between areas.
Meantime, the price of natural gas continues to rise as further demands dig deeper into what many experts cite as a rapidly dwindling supply. The growing demand on natural gas for electricity production only serves to exacerbate the situation – especially in the winter when the resource is required to heat many of our homes. This relationship further brings into question government plans to close down Nanticoke and all coal-fired electricity in Ontario – 25 per cent of our domestic power supply – to be replaced, at least in part, by natural gas facilities.

I’m sure this will be a pressing issue as the provincial Finance Committee that I serve pulls into Atikokan for pre-budget hearings. McGuinty’s coal plant closure means shut-downs and further unemployment for Atikokan residents who don’t need the hit of even higher energy costs.

Once the Finance Committee hearings are complete I look forward to the visit of the Justice Policy Committee to Simcoe on February 7th to hear public input on Bill 21 – the Energy Conservation Responsibility Act. Those interested in presenting to this Committee on energy policy are asked to contact the Committee Clerk by Tuesday, January 31, 2006 at 5:00 p.m. at (416) 325-3526.