Comrade Marcel
1st June 2004, 05:57
PRESS RELEASE - May 31, 2004
Build an Effective Opposition to the Oil and Gas Monopolies!
The Marxist-Leninist Party of Canada (MLPC) calls on the Canadian working class and people to join the movement to restrict monopoly right in an organized and effective way. The campaign for a national energy policy is part of a renewed Canadian effort to restrict the oil and gas monopolies and reverse the annexation of Canada. Without an effective public presence in the energy sector, the oil and gas monopolies will continue to siphon money and natural wealth from Canadians leaving destruction, poverty and pollution in their wake.
The MLPC opposes the sale of the federal government's remaining shares in Petro-Canada and the closure of its gas refinery in Oakville. It supports the campaign of the Communications, Energy and Paperworkers Union of Canada (CEP) and the Council of Canadians (CofC) to stop the final sale of Petro-Canada and CEP's campaign against the closure of the Oakville refinery. People can learn details of events on these issues by visiting the CEP or CofC Web sites or their local offices. The MLPC also supports other struggles for a national energy policy to stop the wrecking of Canada.
No significant progress can be made on climate change, alternate energy or the price of gasoline without a national energy policy that has effective mechanisms to restrict the oil and gas monopolies and reverse the annexation of the Canadian economy.
- 30 -
ELABORATION
The Price of Gasoline and the Federal Election
The price for a litre of gasoline is hovering near the one-dollar mark in many places across the country. The recent spike in the price of gasoline will transfer millions of dollars from the public to the oil and gas monopolies. The manipulation of prices in such a monopolized sector of the economy is part of the anti-social offensive directed by the monopolies. Oil companies and their allies in the mass media brandish every manner of bogus international or domestic excuse to gouge people at the pumps. Effective opposition must be organized to restrict the oil and gas monopolies.
It is not enough to complain about high gas prices; something concrete and effective must be organized to restrict the monopolies and their anti-social campaign to transfer greater and greater quantities of aggregate social product into their coffers and steal the natural resources of the country.
The nature of the economy and culture forces Canadians to use gasoline and other fossil fuels as a way of life. For many individuals and small businesses an increase in the price of gasoline means a dramatic reduction in available revenue for other purchases. For some businesses, the recent increases may result in bankruptcy.
The prices for fossil fuels are of paramount importance for the Canadian economy and the well-being of the people. To be concerned about the price means to be concerned about sovereignty. If the nation is under the domination of a big power, it cannot exercise control over the prices of fossil fuel. If the people are not sovereign in their own country, they cannot exercise any control over the prices of fossil fuel.
The price of fuel in Canada has two aspects: the basic price charged by the handful of energy monopolies, and the sales taxes applied to gasoline by the federal and provincial governments. The price at the pump bears no relation at all with the price of production.
The price charged by the monopolies is completely unscientific. The price bears no relation at all with the actual value of the commodity, which is the labour time required to explore, drill, pump, refine and ship it to the gas stations. The price somewhat reflects the international wholesale price of crude oil but only marginally. When the international price goes up, the gas monopolies use that as an excuse to raise prices. When the international price goes down, it takes a long time for gas prices to follow.
The sales taxes applied by the federal and provincial governments are crude taxation methods that unfairly affect the working class, poor and small businesses. The basic price of gasoline plus the sales taxes act as levers to transfer wealth from the people to the monopolies. Both seriously weaken the economy.
Some argue that the price plus tax must be high to discourage gasoline consumption. This is a false argument in the face of the lack of sovereign control over the economy by the nation and the people. The people have no say over the way in which revenue from gas sales is used and the way in which tax revenue is used. The Canadian people have no say or control over the energy monopolies or over the issue of protection of the environment from the burning of fossil fuels or the way the cities are organised. The Liberal Party is proposing to sell the remaining public shares in Petro-Canada after the federal election. The few remaining shares in Petro-Canada represent the last hurrah of Trudeau's national energy policy. Monopoly right to determine Canada's energy policy and prices of fossil fuel is almost absolute. It is monopoly right that must be challenged if Canadians are going to have any say in the price and use of fossil fuels and the broader issues of humanizing the social and natural environments.
In the current election the Liberal Party, the Conservative Party and the NDP talk about the price of gas in the context of taxes. Those three parties do not broach the issue of monopoly right to dictate Canada's national energy policy or monopoly right to set prices. They do not discuss gas prices in the context of national sovereignty over Canada's natural resources and economy or the sovereign right of the Canadian people to have a say over national energy policy and the prices of fossil fuels.
The Liberals and NDP seem to favour the status quo on prices. They differ only slightly on the issue of where the federal sales tax revenue should go. The Liberals plan to transfer a portion of the sales tax revenue to the municipal level of government. The NDP propose the same thing but at a faster pace.
The Conservative Party proposes to limit somewhat the size of the federal sales tax according to the following formula:
Eliminate the 7% GST that is charged on top of provincial and federal excise taxes, and eliminate the GST on any portion of gas prices above 85 cents per litre.
An excise tax is a sales tax on a specific commodity such as gasoline or cigarettes. Sales taxes are paid by the consumer as an add-on to the price. Sales taxes do not come out of the added value of the commodity but are simply added on to the retail price and borne completely by the consumer. In this sense they are very regressive, as they do not affect Canadians equally but according to their ability to pay. Sales taxes at all levels transfer wealth from the working class, poor and middle strata to the rich and monopolies.
The three current sales taxes on gasoline are the following:
1. Federal excise tax across the country: 10 cents a litre
2. The provincial excise tax is set by each province and ranges from 9 cents to 17 cents a litre: Example – Ontario tax is 14.7 cents a litre
3. The 7% Goods and Services Tax (GST) on the sale price at the pump. The GST is charged on the total price, which includes the previously applied provincial and federal excise taxes.
Ontario example: 24.7 cents a litre in excise taxes, plus 7% GST on the total price. The GST has the distinction of being a tax on tax as the final price includes at least an extra 7% of the 24.7 cents excise taxes or 1.73 cents a litre.
The Conservative proposal calls for eliminating the tax on tax or 1.73 cents a litre, which is about 87 cents on a 50 litre fill-up.
The second measure proposed by the Conservatives would eliminate the 7% GST on the portion of gas sold above 85 cents a litre.
Example: If gas prices were at 95 cents a litre, this measure would save a consumer 35 cents on a 50-litre $47.50 fill-up.
The total savings from the Conservative plan are minimal at best. Example: With an Ontario price of 90 cents a litre for gas, consumers would pay $1.04 less in taxes for a 45 dollar, 50-litre fill-up. This breaks down to 87 cents from eliminating the "tax-on-tax" and 17.5 cents from eliminating the GST on the portion of gas above 85 cents a litre.
Also, the Conservative plan contains no guarantee that the tax reductions will be reflected in the price at the pump, as the government has no control over prices.
The Marxist-Leninist Party of Canada (MLPC) brings the following proposals forward for discussion. The MLPC proposes to radically alter the tax system to begin to eliminate its regressive quality. The 7% GST must be eliminated immediately on all goods and services. The GST is a source of great inequality and even corruption. The 10 cent a litre federal excise tax should be scrapped as well.
Oil is a strategic resource that must be under sovereign Canadian control. The entire economy requires a stable supply of fuel at prices that do not disrupt production and distribution. As a large northern country, the people require fuel for transportation and heat. For the well-being of the people and their economy, the federal government must control the wholesale and retail prices of all fossil fuels. Mechanisms must be introduced to bring the people into the process of setting prices for strategic products such as fossil fuels.
Monopoly right to dictate Canada's national energy policy must be restricted. If Canadians are to humanize the social and natural environment they must have some say over energy policy and how fossil fuels are used in the country and at what cost. The energy monopolies must pay a substantial royalty on all fossil fuels extracted from Canadian territory. By controlling the wholesale price, the Canadian government will be able to stop the monopolies from passing on the royalty fee in the wholesale price.
The federal government must abandon any plan to sell off its remaining shares in Petro-Canada. Arrangements must be made to reassert full government control over Petro-Canada as a primary vehicle for research on alternative fuels and exploration.
The Kyoto Protocol must be fully supported and implemented nationally. The export of fossil fuel from Canada must reflect this country's commitment to the implementation of the Kyoto Protocol. Any country that refuses to uphold the international arrangements contained in the Kyoto Protocol should face substantially higher prices for Canadian fossil fuels as a deterrent to their misuse.
Build an Effective Opposition to the Oil and Gas Monopolies!
The Marxist-Leninist Party of Canada (MLPC) calls on the Canadian working class and people to join the movement to restrict monopoly right in an organized and effective way. The campaign for a national energy policy is part of a renewed Canadian effort to restrict the oil and gas monopolies and reverse the annexation of Canada. Without an effective public presence in the energy sector, the oil and gas monopolies will continue to siphon money and natural wealth from Canadians leaving destruction, poverty and pollution in their wake.
The MLPC opposes the sale of the federal government's remaining shares in Petro-Canada and the closure of its gas refinery in Oakville. It supports the campaign of the Communications, Energy and Paperworkers Union of Canada (CEP) and the Council of Canadians (CofC) to stop the final sale of Petro-Canada and CEP's campaign against the closure of the Oakville refinery. People can learn details of events on these issues by visiting the CEP or CofC Web sites or their local offices. The MLPC also supports other struggles for a national energy policy to stop the wrecking of Canada.
No significant progress can be made on climate change, alternate energy or the price of gasoline without a national energy policy that has effective mechanisms to restrict the oil and gas monopolies and reverse the annexation of the Canadian economy.
- 30 -
ELABORATION
The Price of Gasoline and the Federal Election
The price for a litre of gasoline is hovering near the one-dollar mark in many places across the country. The recent spike in the price of gasoline will transfer millions of dollars from the public to the oil and gas monopolies. The manipulation of prices in such a monopolized sector of the economy is part of the anti-social offensive directed by the monopolies. Oil companies and their allies in the mass media brandish every manner of bogus international or domestic excuse to gouge people at the pumps. Effective opposition must be organized to restrict the oil and gas monopolies.
It is not enough to complain about high gas prices; something concrete and effective must be organized to restrict the monopolies and their anti-social campaign to transfer greater and greater quantities of aggregate social product into their coffers and steal the natural resources of the country.
The nature of the economy and culture forces Canadians to use gasoline and other fossil fuels as a way of life. For many individuals and small businesses an increase in the price of gasoline means a dramatic reduction in available revenue for other purchases. For some businesses, the recent increases may result in bankruptcy.
The prices for fossil fuels are of paramount importance for the Canadian economy and the well-being of the people. To be concerned about the price means to be concerned about sovereignty. If the nation is under the domination of a big power, it cannot exercise control over the prices of fossil fuel. If the people are not sovereign in their own country, they cannot exercise any control over the prices of fossil fuel.
The price of fuel in Canada has two aspects: the basic price charged by the handful of energy monopolies, and the sales taxes applied to gasoline by the federal and provincial governments. The price at the pump bears no relation at all with the price of production.
The price charged by the monopolies is completely unscientific. The price bears no relation at all with the actual value of the commodity, which is the labour time required to explore, drill, pump, refine and ship it to the gas stations. The price somewhat reflects the international wholesale price of crude oil but only marginally. When the international price goes up, the gas monopolies use that as an excuse to raise prices. When the international price goes down, it takes a long time for gas prices to follow.
The sales taxes applied by the federal and provincial governments are crude taxation methods that unfairly affect the working class, poor and small businesses. The basic price of gasoline plus the sales taxes act as levers to transfer wealth from the people to the monopolies. Both seriously weaken the economy.
Some argue that the price plus tax must be high to discourage gasoline consumption. This is a false argument in the face of the lack of sovereign control over the economy by the nation and the people. The people have no say over the way in which revenue from gas sales is used and the way in which tax revenue is used. The Canadian people have no say or control over the energy monopolies or over the issue of protection of the environment from the burning of fossil fuels or the way the cities are organised. The Liberal Party is proposing to sell the remaining public shares in Petro-Canada after the federal election. The few remaining shares in Petro-Canada represent the last hurrah of Trudeau's national energy policy. Monopoly right to determine Canada's energy policy and prices of fossil fuel is almost absolute. It is monopoly right that must be challenged if Canadians are going to have any say in the price and use of fossil fuels and the broader issues of humanizing the social and natural environments.
In the current election the Liberal Party, the Conservative Party and the NDP talk about the price of gas in the context of taxes. Those three parties do not broach the issue of monopoly right to dictate Canada's national energy policy or monopoly right to set prices. They do not discuss gas prices in the context of national sovereignty over Canada's natural resources and economy or the sovereign right of the Canadian people to have a say over national energy policy and the prices of fossil fuels.
The Liberals and NDP seem to favour the status quo on prices. They differ only slightly on the issue of where the federal sales tax revenue should go. The Liberals plan to transfer a portion of the sales tax revenue to the municipal level of government. The NDP propose the same thing but at a faster pace.
The Conservative Party proposes to limit somewhat the size of the federal sales tax according to the following formula:
Eliminate the 7% GST that is charged on top of provincial and federal excise taxes, and eliminate the GST on any portion of gas prices above 85 cents per litre.
An excise tax is a sales tax on a specific commodity such as gasoline or cigarettes. Sales taxes are paid by the consumer as an add-on to the price. Sales taxes do not come out of the added value of the commodity but are simply added on to the retail price and borne completely by the consumer. In this sense they are very regressive, as they do not affect Canadians equally but according to their ability to pay. Sales taxes at all levels transfer wealth from the working class, poor and middle strata to the rich and monopolies.
The three current sales taxes on gasoline are the following:
1. Federal excise tax across the country: 10 cents a litre
2. The provincial excise tax is set by each province and ranges from 9 cents to 17 cents a litre: Example – Ontario tax is 14.7 cents a litre
3. The 7% Goods and Services Tax (GST) on the sale price at the pump. The GST is charged on the total price, which includes the previously applied provincial and federal excise taxes.
Ontario example: 24.7 cents a litre in excise taxes, plus 7% GST on the total price. The GST has the distinction of being a tax on tax as the final price includes at least an extra 7% of the 24.7 cents excise taxes or 1.73 cents a litre.
The Conservative proposal calls for eliminating the tax on tax or 1.73 cents a litre, which is about 87 cents on a 50 litre fill-up.
The second measure proposed by the Conservatives would eliminate the 7% GST on the portion of gas sold above 85 cents a litre.
Example: If gas prices were at 95 cents a litre, this measure would save a consumer 35 cents on a 50-litre $47.50 fill-up.
The total savings from the Conservative plan are minimal at best. Example: With an Ontario price of 90 cents a litre for gas, consumers would pay $1.04 less in taxes for a 45 dollar, 50-litre fill-up. This breaks down to 87 cents from eliminating the "tax-on-tax" and 17.5 cents from eliminating the GST on the portion of gas above 85 cents a litre.
Also, the Conservative plan contains no guarantee that the tax reductions will be reflected in the price at the pump, as the government has no control over prices.
The Marxist-Leninist Party of Canada (MLPC) brings the following proposals forward for discussion. The MLPC proposes to radically alter the tax system to begin to eliminate its regressive quality. The 7% GST must be eliminated immediately on all goods and services. The GST is a source of great inequality and even corruption. The 10 cent a litre federal excise tax should be scrapped as well.
Oil is a strategic resource that must be under sovereign Canadian control. The entire economy requires a stable supply of fuel at prices that do not disrupt production and distribution. As a large northern country, the people require fuel for transportation and heat. For the well-being of the people and their economy, the federal government must control the wholesale and retail prices of all fossil fuels. Mechanisms must be introduced to bring the people into the process of setting prices for strategic products such as fossil fuels.
Monopoly right to dictate Canada's national energy policy must be restricted. If Canadians are to humanize the social and natural environment they must have some say over energy policy and how fossil fuels are used in the country and at what cost. The energy monopolies must pay a substantial royalty on all fossil fuels extracted from Canadian territory. By controlling the wholesale price, the Canadian government will be able to stop the monopolies from passing on the royalty fee in the wholesale price.
The federal government must abandon any plan to sell off its remaining shares in Petro-Canada. Arrangements must be made to reassert full government control over Petro-Canada as a primary vehicle for research on alternative fuels and exploration.
The Kyoto Protocol must be fully supported and implemented nationally. The export of fossil fuel from Canada must reflect this country's commitment to the implementation of the Kyoto Protocol. Any country that refuses to uphold the international arrangements contained in the Kyoto Protocol should face substantially higher prices for Canadian fossil fuels as a deterrent to their misuse.