Well-respected lawyer, media professor, and columnist Alan Shanoff weighs in on Tarion. See below his recent article published in the Law Times (March 30, 2015):
He explains why Tarion, an arms-length monopoly of government with a public trust function “protecting new home buyers” NEEDS accountability and transparency legislation, now.
The only ones turning a blind eye to this problem are those able to fix it : Premier Wynne and her Liberal MPPs.
The current Ontario government seems to have a vested interest in keeping the powerful building industry Goliaths happy. And they’re happy as long as no legislation can check out exactly what’s going on at Tarion Warranty Corporation. They appear to be content with the arms-length staus quo. Ontario’s new home and condo buyers continue to suffer the lack of adequate protection for new home construction defects, which they’ve paid for via a mandatory fee.
See reasons why Premier Wynne and her Liberal majority MPPs need to vote for Bill 60:
One response to “Without accountability and transparency, no one knows if this Government monopoly provides value for money. FIX THIS NOW!”
To start to understand the magnitude of this problem, all one has to do is look at Tarion’s financial statements:
Total Revenue – $71 million, with the majority ($35 million) coming from Investment Income — and $34 million in home enrollment fees (from consumers)
Salaries of about $ 25 million, but Homeowner Claims of only $3.5 million
Approx $32 million SURPLUS in 2013 for a non-profit organization!
Then on the Statement of Financial Position
– more than $5 million for “Employee future benefits liabilities”
– $449 million in investments
Other key expenses, such as the amount Tarion spends on legal fees fighting consumers at the LAT and other courts are not disclosed in Tarion’s financials.
How can Premier Wynne and the Government of Ontario let this continue for a mandatory, monopoly with virtually no oversight or accountability? Bill 60, the Tarion Accountability and Oversight Act is urgently needed.