From a consumer protection perspective, the answer is clear – end the Tarion monopoly and move to a multi-provider warranty model. Consumers and some industry insiders have demanded this for decades now.

When BC and Alberta were looking at changing its new home warranty legislation, Tarion put itself out there as THE way to go. But BC and Alberta rejected the monopoly model. Justice Cunningham, in his Tarion Review, recommended the multi-provider model for strong consumer protection in 2016. The PCs liked Justice Cunningham’s recommendations when they were in Opposition. And Doug Ford, before he became Premier, said that he was against monopolies.

But, now in power, the Ford Government has changed its tune. Many have been scratching their heads – what has happened? Minister Thompson points to research that she says has been conducted by the Ford Government, but she still hasn’t released that research. Why the secrecy?

A clue came in Minister Thompson's Bill 159 itself which says the bill is:  “..promoting the protection of the public interest, and consumers in particular..”. That seems odd for a consumer protection bill. Justice Cunningham recommended in his Tarion Review that new legislation be clearly focused on strong consumer protection. But "public interest" includes builder protection.

Minister Thompson (the Ontario minister responsible for consumer protection) raised the issue about small builder costs with the Globe and Mail when responding about why the monopoly model is being retained. And MPP Kusendova raised it as a member of the Standing Committee on Justice Policy on Jan. 22, 2020 to homeowner Dave Myatt:

“..But what if “private insurers consider small and/or less experienced builders risky and deny coverage” and “as a result they may not be able to build homes..” (MPP Kusendova, Hansard transcript).

Mr. Myatt responded to MPP Kusendova:  “..Well, all I can say is, I have a small builder, and we have Tarion, and it didn’t work under that model…I have a small builder who has walked away from his responsibilities….Somebody else could fall in and be a victim. So if he can’t afford this, maybe that would be a good thing. Maybe I wouldn’t be in the situation that I’m in today if he wasn’t a builder…” (Hansard transcript).  

We understand the importance of small business to our economy.  But the multi-provider warranty model, which is the best option for consumer protection, must not be abandoned because of this. It's time for Ontario to catch up with provinces like BC and Alberta and provide a multi-warranty provider model. The purchase of a home is the largest purchase most consumers make and needs strong consumer protection.

We need your help. Please telephone Premier Ford’s office this week and tell him that the Tarion monopoly needs to go.  Please tell him to find other ways to help these small businesses.  It could be you, or your child, or your mother/father next who purchases a newly built home without adequate consumer protection.  Here’s Premier Ford’s number:  416.325.1941.