Remarks to the Standing Committee on Industry, Science and Technology

CIPMA is pleased to welcome Mike Newman and his team at NOCO Energy Corporation to our Association.  NOCO owns and operates a diverse group of businesses primarily focused on the sale and distribution of energy and petroleum products. For over 75 years, NOCO has provided quality energy products and services to a wide variety of residential and commercial customers in New York State.
CIPMA welcomes US independent fuel marketing companies as members.

Independent Gas Retailers Do Not Benefit From Higher Gas Prices

The Board of Directors of the Canadian Independent Petroleum Marketers Association (CIPMA) is pleased to announce the appointment of Tricia Anderson as President and CEO effective March 21, 2011.

Ms. Anderson is a seasoned professional with over 25 years experience in the downstream petroleum products industry. With background in Retail Fuel Marketing, Government and Public Relations and a range of relevant management skills, Tricia is well positioned to build on CIPMA’s past successes and to drive new initiatives to maximize member company value.

John Nunziata, Government Relations Consultant,  and Lesley Griffin, Manager Operations will continue in their current roles.

Coincident with this appointment, the CIPMA Board of Directors thanks Jane Savage, President and CEO for over 8 years of contributions and wishes her the very best in her new  career at Parkland Fuel Corporation in Calgary.

CIPMA BOARD of DIRECTORS:

• Allan MacEwen- Chair of the Board
• Darren McDougall – Past Chair
• Rod Clarke – Vice-Chair
• Dave Collins – Director
• Bob Espey – Director
• Vic Holdsworth – Director

CIPMA is pleased to announce that Imperial Oil Ltd. has joined CIPMA as an Associate (Suppllier) Member. We welcome Simon Smith and his team to CIPMA.

Today, Bill C-14, an amendment to the Weights and Measures Act, requiring mandatory inspections of measuring devices in 40 sectors including retail gasoline, retail food and electricity, passed third Reading in the Senate.

The Bill is now awaiting Royal Assent at which time it will be passed into law. Following Royal Assent, Measurement Canada will commence an extensive consultation with industry stakeholders to develop regulations.

CIPMA will be active in this period and will solicit input from members and industry experts.

The Canadian Independent Petroleum Marketing Association (CIPMA) applauds the significant announcement this morning by Canada’s Competition Bureau. http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/03325.html

The Bureau has filed an application with the Competition Tribunal to strike down restrictive and anti-competitive rules imposed on merchants who accept Visa and MasterCard credit cards.

The Bureau argues that anti-competitive restraints on merchants increase consumer prices. Canada has some of the highest merchant acceptance fees in the world.

CIPMA has taken an active role with the Competition Bureau in bringing evidence of anti-competitive behavior forward. CIPMA has been working with other retail trade associations to bring the issue of increasing and unfair credit card merchant fees to the attention of Ottawa policy makers.

Independent fuel marketers and independently operated gasoline stations are particularly vulnerable to increasing credit card fees due to the high variability in fuel prices.

Independent fuel marketers’ profits drop when gas prices rise- because of higher credit card costs.

For further information,

Jane Savage
CIPMA
416-691-929

Evidence is mounting that Canada’s payments system is in need of further oversight. Recent failures by VISA and CIBC to adhere to the Voluntary Code of Conduct combined with continually rising merchant fees, is alarming.

“There is…an out-of-balance system where credit card companies are competing for new customers using my money.” says Dave Collins, Vice President of Halifax-based Wilson Fuels in testimony to the Senate Banking Committee on November 24, 2010. “We are concerned about dues and fees and our lack of ability to negotiate with the banks.”

The lack of negotiating power has been a key issue for merchants faced with everincreasing  fees and unclear statements.  The 2010 Voluntary Code was touted as a good first step by CIPMA and other organizations.

But Visa and CIBC have recently showcased practices which bring the effectiveness of the Code into question.

This helps make the case for further intervention. David Wilkes, President of the  Canadian Council of Grocery Distributors – another witness at the Senate Banking Committee, reiterated “The Code of Conduct certainly goes a long way…

However, because of that inherent imbalance in the competitive framework of this market, which is unique I would argue, I do not believe that you can get there without a regulated solution…”.

CIPMA continues to work with other retailer trade associations towards a  framework which will right the  imbalance in the Canadian  payments industry  such that  merchants have a meaningful role in determining the fees they pay for card services.