End Tarion’s new home warranty monopoly NOW: Give Ontario's new home buyers a choice!
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Ontario's Premier Kathleen Wynne said the time for monopolies is over (National Post, Apr. 17, 2015). We think she’s absolutely right! Monopolies are notoriously inefficient and ineffective - the prices are too high and the production is too low - and they can "capture" the political and regulatory processes (CBS Money Watch, Sept. 18, 2014).
And now Justice Cunningham has recommended ending Tarion's monopoly as a result of his Tarion Review! "...I am recommending the introduction of a competitive multi-provider model for warranty protection. Introducing competition should encourage continuous improvement and innovation. This in turn can lead to better consumer outcomes such as enhancements in warranty protection beyond minimum amounts..." (Justice Douglas Cunningham, Tarion Review Final Report, Dec. 16, 2016).
But the Wynne Government has not yet accepted Justice Cunningham's recommendation to end Tarion's monopoly.
Tarion is a private corporation created as a monopoly by the Government of Ontario to provide warranty protection to new home buyers and to regulate builders. The legislation was established in 1976 – 41 years ago – and many agree that it has never worked properly.
Numerous media reports show that there are many serious problems resulting from the legislation and how Tarion is administering the legislation - and now Justice Cunningham has agreed!
The following summarizes the situation in three other provinces – and then in Ontario:
Prov 2015 Housing starts # of Warr Providers Avg #
Alberta 37,282 7 5,326
BC 31,446 5 6,289
Manitoba 5,501 5** 1,100
Ontario 70,156 1 70,156
This means that Alberta, BC and Manitoba offer a CHOICE of warranty providers AND, on average, the warranty providers in those provinces have a much more reasonable number of homes to service than Tarion.
Sign this petition to ask Premier Wynne to end Tarion’s monopoly and offer a number of warranty providers in Ontario -- like Justice Cunningham recommended -- and like other Canadian provinces are doing. It's time for Ontario to catch up!
* Statistics Canada
- Premier of Ontario
- NDP Leader Andrea Horwath
- PC Leader Patrick Brown
- Deputy Premier Deborah Matthews
- Parliamentary Assistant to Min. of Gov't & Consumer Services
MPP Vic Dhillon
- Minister of Gov't & Consumer Services
Minister Tracy MacCharles
End Tarion’s new home warranty monopoly NOW: Give home buyers a choice!
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