by arthur Weinreb, associate Editor,
October 4, 2004
as the world price of crude oil hit $50 U.S. a barrel last week, Ontario Energy Minister Dwight Duncan was quick off the mark to advise Ontarians that there was nothing that his government could do to help them with future price increases of gasoline, fuel oil and other forms of energy. Duncan said, "I cannot shield consumers from these prices. The federal government cannot shield consumers from these prices."
There are a couple of aspects of Duncan's remarks that are disconcerting. For those Canadians who resent interference into their lives by all levels of government, Duncan's statement is more proof of the nanny attitude of Ontario's Liberal government. From the right to eat junk food to the right to pay for medical services, it seems that there is no aspect of an individual's life that the government doesn't think that it should control. The increase in gas prices is worldwide, caused by fierce fighting in oil rich Nigeria, damage in areas that have been hard hit by hurricanes, problems with Russia's major oil company and fighting in the oil fields of Iraq. Yet the Ontario government ends up apologizing for not being able to protect residents from the influence of world conditions. It is ironic to say the least that while Duncan is apologizing for not being able to save Ontarians from world market conditions, his government thinks it's just hunky dory to out and out lie to the voters. Breaking promises and lies don't bring any apologies--Premier McGuinty just whines that it's the fault of the previous conservative government while justifying his lies and broken promises as being for the greater good.
Of course, the Liberal government has no wish to lower prices of gasoline or any other form of energy. The higher prices help the province's agenda of conservation. Dwight Duncan also pointed out that Canadians' consumption of energy is the second highest in the world in average consumption of energy and there must be more conservation.
The government has no wish to either lower the price or increase the supply. The prime directive is to have us freeze in winter and roast in summer in order to conserve. Duncan in effect has apologized for not being able to do something that he lacks the political will to do. The government is happy to interfere with our desired use of energy, for the greater good of course.
There is another aspect to Duncan's statement that is more disheartening. In keeping with the tradition of his boss, his statement about his government and the feds having no power to reduce prices of energy is simply not true. It is another Fiberal lie. Dwight's looseness with the truth about not being able to control the price of energy will undoubtedly make his boss proud.
at the time of this writing, gasoline prices in the Toronto area are about 85 cents a litre. Of that amount, 10 cents is made of federal tax and 14.7 cents represents provincial tax. and since we are Canadians and taxation is our national pastime, our federal government not only taxes products and services but taxes taxes as well. The 24.7 cents in provincial and federal taxes on a litre of gasoline is also subject to the GST.
While neither the Canadian government nor the government of Ontario can influence the world price of oil, they could reduce the amount of tax that the oil and other forms of energy are subjected to. Consumers would welcome a reduction in energy prices and wouldn't care whether a lower price was a result of a drop in world prices or a drop in taxes. Both levels of government, could, if they had the political will, reduce the price of gasoline by one or two cents per litre but do not have the political will to do so.
Dwight Duncan's agenda is to force consumers to reduce their energy consumption while maximizing their taxes. He shouldn't pretend that he would like to see energy prices drop but there is nothing that the government can do. It's totally disingenuous.