OTTAWA - The Ontario Labour Ministry is teaming up with a private firm to clamp down on the underground economy in the construction sector.
The Ministry will work with Tarion Warranty Corp. to locate unregistered homebuilding sites in the province.
Labour Minster Steve Peters says the government would advise Tarion of potential violators and Tarion will send one of its inspectors to investigate.
A ministry inspector would then take over the case.
The Tarion Warranty Corp. is a private, not-for-profit corporation which acts as a guarantor of builders' warranties for new homes and condos. All residential builders in Ontario must be registered with Tarion.
Peters said today in Ottawa that the underground economy in the construction sector costs up to $2 billion per year in lost revenue through unpaid taxes, premiums and other fees.
