McGuinty comes down on underground construction

OTTAWA -The Ontario Liberal government is set to target the underground construction economy by locating unregistered homebuilders through a new joint initiative between the Ministry of Labour (MOL) and Toronto’s Tarion Warranty Corporation

“The underground economy in Ontario’s construction sector affects everyone,” said Labour Minster Steve Peters. “It hurts our economy, quality of construction, competitiveness of legitimate construction contractors, and the health and safety of those who work in this vital sector.”

The underground economy in Ontario’s construction sector is estimated to cost between $1 to $2 billion per year in lost revenue to all levels of government through unpaid taxes, premiums, and other fees that legitimate businesses pay.

The initiative will allow the exchange of information on the location of suspected unregistered residential construction contractors. This information will help MOL and Tarion inspectors ensure contractors comply with provincial legislation on workplace health and safety. Tarion, a non-profit corporation that administers the Ontario New Home Warranties Plan Act, will verify contractors are properly registered builders.

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