The federal government should create a new watchdog with the teeth to investigate price gouging by oil companies, says New Democrat MP Jack Harris.

Harris said the government should also immediately ask the competition bureau to investigate the latest spike in gas prices.

“What we’ve got happening, of course in Canada, is a bonanza for the oil companies when the world price goes up and it’s serving to increase their profits at a time when the only government response and the policy of Mr. Harper’s government is to reward them with even greater profits by reducing the corporate tax rate,” said Harris as he called for the creation of a gas price ombudsman.

Harris said Industry Minister Tony Clement’s call for parliamentary hearings into gas pricing is an inadequate response and a repeat of hearings that were already held in 2007.

“On a scale of one to 10, this is probably a No. 1 in terms of the level of response that you could have to what consumers are regarding as a very serious problem. It really does show a lack of concern by the government for what consumers are facing.”

Harris’s comments came after Clement called for top oil industry executives to be hauled before Parliament’s industry committee to explain just how they set their prices.

Speaking to reporters in Toronto, Clement said he has the power to ask the competition bureau to investigate the way gas prices are being set, but he prefers to start with asking oil refiners, distributors and retailers to explain their pricing system to MPs.

“We are listening to the questions and concerns of Canadians with respect to fluctuations of gas prices. Canadians want and deserve answers, particularly at this time where household budgets are already tight.”

However, it could be weeks before those hearings take place. Parliament must first resume sitting, which may not take place before the end of May. The industry committee then has to be reconstituted and members from each party named. The committee will then have to elect a chairman, the committee will have to decide its priorities and then witnesses will have to be called.

The current Parliamentary calendar calls for the House of Commons to recess for the summer on June 23.

Harris said he doubts the industry committee will be able to hold hearings before the House rises.

Clement’s announcement come as gas prices across Canada have soared in recent days, hitting record prices. It also comes only a day after outgoing Liberal MP Dan McTeague called on the government to get tough on speculators who he blames for driving up oil prices.

Clement said the government has already taken action in the past on gas prices such as adopting the Fairness at the Pumps Act to ensure that consumers get what they pay for and expanding the powers of the competition commissioner who broke up a price-fixing cartel in Quebec last year.

Clement said he, like other Canadians, does’t understand the current price at the pumps.

“It’s very clear that for most Canadians, including this Canadian, how they come about their pricing is not very transparent, it’s opaque. Last year we were at something like $140 a barrel and the pricing was around $1.37 or $1.35. Now, we’re well below $98 a barrel and we had prices yesterday of $1.41 in some parts of the country.”

“So no one can explain to me how this is, how they arrive at these prices. What are the factors. What are the domestic factors, what are the international factors. The first step towards understanding and perhaps helping is to get answers to these questions.”

Clement said the industry committee hearings will help the government better understand the situation and decide on a course of action.

“If a magic wand could solve this problem, it would all have been solved by now. The fact of the matter is that these are complex issues and the first stage of understanding what can be done is to ask the right questions and allow Canadians through your parliamentarians to ask the right questions.”

Clement ruled out any question of raising taxes and dismissed suggestions he was stalling for time.

“I know you’re anxious for me to do the ready, fire, aim. I’m not a ready, fire, aim kind of guy.”

The president of Canadian Petroleum Products Institute said he understands the frustration of Canadians with fluctuating fuel prices and welcomed the opportunity to explain the dynamics of the petroleum market to MPs.

“We have done this in the past and we will do it again,” CPPI president Peter Boag said in a statement. “CPPI members conduct their business ethically, professionally and in full compliance with the Competition Act. CPPI welcomes the opportunity to discuss the factors behind current market volatility.”

“Global crude markets, the North American wholesale market for refined petroleum products and local retail market dynamics all contribute to the price Canadians pay at the pump.”

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