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Premier Brian Tobin, along with the Minister of Government Services and Lands, Ernest McLean, and Anna Thistle, MHA - Grand Falls- Buchans, today announced that government has appointed a consumer advocate to investigate variations in the retail prices of gasoline in different parts of the Province.

Dennis Browne Q.C., a St. John's lawyer, has been appointed as consumer advocate for purposes of this review. Premier Tobin said: "Dennis Browne was the consumer advocate appointed to intervene in last year's Newfoundland Power rate increase application. He did a superb job on behalf of both consumers and government, and I am pleased he has accepted this assignment."

Mr. McLean explained: "One reason for our gasoline prices is the level of taxation that is needed to pay for things like hospitals and schools. Beyond that, there can be significant differences in what consumers pay for gasoline in different parts of the province. The consumer advocate will look into concerns that have been raised about prices and determine why they can be so different depending on where you live. This will assist consumers and government to understand the issue better, and what should be done about it."

Ms. Thistle added: "During the past year, concerns have been expressed by residents throughout the Province - especially in central Newfoundland - about price differences for petroleum products. I am delighted that government is responding to these concerns and that this action is being taken now."

The terms of reference for Mr. Browne's assignment direct him to:

- examine the reasons for the differences in the price of gasoline in various parts of the province;

- determine whether regulation of gasoline prices would be in the public interest, and if so;

- what the options are, given the experience in other jurisdictions.

Mr. Browne will hold consultations with consumers, the petroleum retail industry, and other interested parties in all regions of the province as a part of his review. He will report to government by the end of the year. The announcement was made at Cabinet meetings in Grand Falls-Windsor.

Contact: Rick Callahan, (709) 729-4860.

TERMS OF REFERENCE
FOR A STUDY ON GASOLINE PRICES

Dennis Browne, Q.C. will serve as a consumer advocate to investigate and report on gasoline prices in the province. In carrying out this study, Mr. Browne will:

• (1) examine the reasons for differences in the price of gasoline in various parts of the province;

  (2) whether regulation of gasoline prices would be in the public interest, and, if so;

  (3) what the options are, given the experience in other jurisdictions.

In carrying out the study, Mr. Browne will meet with interested consumers and sellers of gasoline throughout the province. He will report to the Minister of Government Services and lands by the end of 1997.