WHEREAS the construction industry is a major economic driver, providing jobs for more than 400,000 Ontario workers, accounting for 6.4% of overall employment; and
WHEREAS all contractors, including subcontractors, are frequently hindered in their ability to create jobs, contribute to apprenticeship growth, meet payroll, tax, WSIB, pension, employer health tax, and health and welfare benefit obligations, and stimulate the Ontario economy by slow or delinquent payments, in many cases by several months and more than double than any other sector; and
WHEREAS hundreds of thousands of Ontario construction workers rely on being paid promptly in order to meet their own financial obligations; and
WHEREAS no other industry anywhere in Canada tolerates this type of delinquent payment practice; and
WHEREAS the United Kingdom, Ireland, European Union, Australia, New Zealand, 31 US states for private sector projects and 49 US states for public sector projects all have prompt payment legislation in place for the construction industry;
WE the undersigned petition the Legislative Assembly of Ontario as follows:
To pass into law the Prompt Payment Act, 2013, otherwise known as Bill 69, immediately.
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The status quo is not working. It is time for government to fix the problem.The Need for Prompt Payment Legislation in the Construction Industry, March 2013 by Prism Economics and Analysis
An excerpt from the report above outlines some of the many challenges faced by our industry due to lack of proper legislation:
This report describes the need for a Prompt Payment Act in Ontario to establish minimum norms for payment schedules in the construction industry. The report recommends a statutory model for prompt payment that is based on other jurisdictions and on a consensus agreement between the National Trade Contractors Coalition of Canada and the Ontario General Contractors Association.
Late payment practices are widespread in the Ontario construction industry. These practices have serious, negative consequences for the construction industry and for the broader economy, including:
- reduced employment in the construction industry,
- less investment in apprenticeship,
- greater use of 'independent operators',
- less investment in machinery and equipment and hence lower productivity, and
- higher construction costs because of the need to factor in late payment risk.
Tuesday May 21, 2013
MPP Steven Del Duca's proposed legislation, Prompt Payment Act 2013, was debated on Thursday afternoon and passed unanimously with support from all three parties.
The bill now heads to the Standing Committee on Regulations and Private Bills where it will undergo a public consultation process. The committee stage is an important final step before a bill can be called to third and final reading.