Examples of initiatives taken by CPBH with Minister Phillips:

Response from Minister Phillips

Status

Nov. 19, 2005 – Registered Letter regarding ongoing problems with Tarion (Ontario’s mandatory home warranty program), as well as concerns regarding the lack of other adequate consumer protection for purchasers of newly built homes.

This letter also noted that in Aug. 2005 the President of the Consumers Council of Canada advised CPBH that it also has concerns about protection for new home buyers, and that the Consumers Council of Canada also raised this matter with Minister Phillips.

Requested a meeting with the Minister.

Letter received from the Minister that said that he had noted the issues raised by CPBH, but he is unable to meet.

Jan. 22, 2007 letter from Minister Phillips advised that he requested that Tarion review delayed closing provisions in the Act. 

Inadequate response from
Minister Phillips
– many additional
areas of new legislation
are required,
such as those outlined
in the Mar. 7, 2007
CPBH News Release.

Apr. 6, 2006 – E-mail regarding the need for changes relating to occupancy permits to enhance consumer protection.

Requested a response.

Letter dated Nov. 30, 2006 received Dec. 6 from Minister Phillips.  He advised that he had not received this e-mail and requested that it be resent.

(Faxed to Minister Phillips on Dec. 6, 2006.)

Inadequate response from
Minister Phillips
– legislation required

June 17, 2006 – Registered Letter again expressing concerns about the lack of consumer protection relating to newly built homes.  As well, expressed concerns that Ontario’s Ombudsman has no jurisdiction over Tarion.

Requested:

• A copy of Tarion’s annual report for the past three years;
• A copy of Tarion’s audited financial statements for the past three years;
• Details relating to the role and responsibilities of the “consumer representatives” on the Tarion board;
• A meeting with the Minister.

Letter dated July 12, 2006 received from Minister Phillips.  He advised how to obtain copies of Tarion’s annual reports, which include Tarion’s financial statements.

• Reiterated that he is committed to protecting consumers who are in the process of buying new homes in Ontario. 
• He did not provide details regarding the role and responsibilities of the “consumer representatives” on the Tarion board;
• He advised that he was unable to meet with CPBH representatives, but assured CPBH that he had reviewed the information that had been provided;
• Advised that he had forwarded CPBH’s June 17, 2006 letter to Ontario’s Ombudsman.

Letter dated January 22, 2007 received from Minister Phillips:

• Reiterated that he is “strongly committed to the protection of prospective homeowners purchasing homes in Ontario”.
• Advised that if there are concerns regarding specific employees or board members at Tarion, they should be shared with Mr. Robert Wade, Chair of the Tarion board of Directors. 
• Note:  Another letter (dated Feb. 3, 2007) was sent to Minister Phillips advising him that two letters have been sent to Mr. Wade, but Mr. Wade has not answered the questions.  Therefore, again requested that the Minister respond.

Inadequate response from
Minister Phillips
- except for having received
Tarion’s annual reports and audited
financial statements
– legislation required

Aug. 22, 2006 – Letter expressing concern regarding the lack of adequate consumer protection for newly built homes.  As well, the following specific issues were raised:

• No information on his Ministry’s web-site about newly built homes.
• The lack of consumer protection enhancements relating to newly built homes in the 2005 consumer protection legislation that was introduced,
• Concerns regarding consumers having no access to objective, reliable information about builders’ past performance.

Requested a copy of Tarion’s board member code of conduct and by-laws.

Continued to urge the Minister to meet with representatives of CPBH.

Letter dated Sept. 21, 2006 received from the Minister. 

• He did not respond to the issues raised, but simply reiterated that he is committed to protecting consumers who buy new homes in Ontario. 
• Advised that he forwarded the Aug. 22, 2006 letter from CPBH to Tarion.

Letter dated Jan. 22, 2007 received from the Minister in which he advised:

• that it is up to Tarion to decide if it can or wishes to provide its corporate documents to the public and
• “…I will take your recommendation regarding the Ombudsman under consideration…..”

Inadequate response from
Minister Phillips
- legislation required

Aug. 23, 2006 – Letter requesting that the Ministry mediate Tarion’s refusal to provide information relating to Tarion’s increase in cap to $300,000.  (The Ministry’s web-site says that it provides mediation services.)

Letter dated Nov. 30, 2006 received Dec. 6 from Minister Phillips.  He advised that he had not received this letter and requested that it be resent.

(Faxed a copy of the Aug. 23, 2006 letter to Minister Phillips on Dec. 6, 2006.)

Jan. 22, 2007 letter from Minister Phillips advised “…I regret to inform you that Consumer Protection Bureau only handles complaints that fall within the jurisdiction of the legislation that the ministry itself  administers through ministry staff.  That legislation includes the Consumer Protection Act, 2002, the Cemeteries Act, and the Collection Agencies Act, to name a few.  Tarion does have a customer centre that can handle complaints about the corporation.”

Inadequate response from
Minister Phillips
– legislation required

Sept. 29, 2006 - Letter relating to Tarion’s “unsatisfactory record” with the Better Business Bureau serving Eastern Ontario and Northern Ontario

Requested a response relating to this issue.

Letter dated Nov. 30, 2006 received Dec. 6 from Minister Phillips.  He advised that ministry staff contacted Tarion to discuss this issue with Tarion, and that he was advised that Tarion is continuing its consultation with the BBB and that they are working together to resolve all of the unresolved complaints.

He also advised that he has forwarded our Sept. 29, 2006 letter to Tarion representatives.

Jan. 22, 2007 letter from the Minister advised that “progress” is being made.

Inadequate response from
Minister Phillips

Consumer complaints to the BBB about Tarion were not resolved.   

Why is Minister Phillips not very concerned that consumers can no longer take their complaints about Tarion to the BBB?

A Feb. 19, 2007 letter from the Better
Business Bureau serving Eastern and
Northern Ontario and the Outaouais,
which says:  “It is the
BBB’s understanding that the
Government mandated program which
Tarion administers, expressly provides
its own dispute process. As such,
consumers are encouraged to use
the proper channels, namely the Tarion
dispute resolution services or the
government administrative tribunal
called the Licence Appeal Tribunal
 (LAT) when appealing a decision
rendered by Tarion.  Subsequent
to further consideration, the BBB will
no longer be handling disputes against
Tarion, however, we will endeavor to
forward any consumer requests to the
appropriate resource…”  

Oct. 3, 2006 – letter to the Minister about 54 newly built homes in Windsor that have faulty roofs.  These homes are primarily owned by seniors.  CPBH urged the Minister to take immediate action to assist these homeowners.  CPBH requested a response from the Minister about this issue.

Note:  CPBH received copies of letters sent by many of these homeowners to Minister Phillips asking him for help.

Jan. 22, 2007 – letter from Minister Phillips suggested that CPBH contact homeowners directly regarding the status of their cases, and that he sincerely hopes that they have reached a satisfactory resolution.

CLOSED – Jan. 2007 Windsor
homeowner advised that they have
reached an agreement with their
builder.  This homeowner attributed
the main reason for this success to
advice and guidance received from
Canadians for Properly Built Homes.
 

Nov. 1, 2006 – Letter requesting information relating to Tarion’s board of directors (in relation to Tarion’s by-laws), i.e., for the 2005/2006 and the 2006/07 boards,  which stakeholder group each of the Tarion board members represents, and for those representing consumers, which consumer organizations they represent.

Feb. 7, 2007 Letter to Minister Phillips advising him that the branch of  Government Services suggested by the Minister in his Jan. 22, 2007 letter advised that they do not provide this information.  Mr. MacFarlane, and that Tarion’s Corporate Secretary has not
provided this information despite having been requested to do so on Feb. 6, 2007.  Also advised in this letter that corporate governance is a matter of great importance to many organizations today.  Also provided the Minister with copies of two letters that have been sent to Mr. Wade, the Chair of Tarion’s board, dated Sept. 29, 2006 and Nov. 8, 2006, as well as Mr. Wade’s letter dated Oct. 31, 2006.  Mr. Wade still has not answered the questions raised of him regarding who Tarion’s directors represent, according to Tarion’s by-laws.

Letter dated Nov. 30, 2006 received Dec. 6 from Minister Phillips.  He advised that he had not received this letter and requested that it be resent.

(Faxed a copy of the Nov. 1, 2006 letter to Minister Phillips on Dec. 6, 2006.)

January 22, 2007 response from Minister Phillips provided a copy of Tarion’s 2005 Annual Report.  The Minister also suggested that we could contact a branch of the Ministry of Government Services, and/or contact Tarion’s Corporate Secretary, Mr. MacFarlane.

Inadequate response from
Minister Phillips
– legislation required

Nov. 3, 2006 – Letter regarding ongoing issues related to the lack of adequate consumer protection for newly built homes, including Tarion.  Advised the Minister that consumers are looking for action and accountability from the Minister.

Requested:

• (Again) a copy of Tarion’s board member code of conduct and by-laws;
• Details regarding the Minister’s specific responsibilities relating to Tarion; and
• Information regarding what specific actions relating to newly built homes that the Minister has taken since becoming the Minister responsible for consumer protection and Tarion.

Again, urged the Minister to meet with representatives of CPBH.

Jan. 22, 2007 letter from the Minister advised that:

• he cannot provide a copy of Tarion’s board member code of conduct and by-laws;
• “Tarion and the ministry have a consultation and information-sharing process.  For example, the exchange of quarterly reporting data that is operational in nature, the recommendation of 25 percent of public board members, and, as an additional accountability measure, the statutory requirement to table the corporation’s annual report in the legislature.  That said, the relationship does not relate to the handling or intervention in individual cases; these are exclusively under Tarion’s regulatory jurisdiction….”
• he requested that Tarion review delayed closing provisions in the Act;
• at that time his schedule does not permit meeting with representatives of CPBH. 

Feb. 15, 2007 letter from Minister Phillips that advised if we require any further explanation about the relationship between the ministry and Tarion, to contact Barry Goodwin, Acting Assistant Deputy Minister, Policy and Consumer Protection Services Division.

Inadequate response from
Minister Phillips
- legislation required
 

Nov. 11, 2006 – Letter requesting that the Minister advise if Tarion is in compliance with its own by-laws in relation to the composition of the 2005-2006 board of directors.

As well, a second request for information regarding which stakeholder group each member of the 2005-2006 and 2006-2007 Tarion board member represents.

Letter from Minister Phillips dated Jan. 22, 2007 in which he advised that if there are concerns regarding specific employees or board members at Tarion, they should be shared with Mr. Robert Wade, Chair of the Tarion board of Directors. 

Minister Phillips did not respond to the question regarding whether Tarion is operating within its own by-laws.

Inadequate response from
Minister Phillips
– legislation required.

Note:  Another letter dated Feb. 7, 2007
was sent to Minister Phillips by CPBH
advising him that two letters have been
sent to Mr. Wade (Sept. 29, 2006 and
Nov. 8, 2006), but that Mr. Wade has not
answered the questions.  Therefore, again
requested that the Minister respond

Dec. 5, 2006 – Letter related to:

• issues raised about Tarion by owners of 14 newly built homes in Barrie;
• specific requests for help from the Minister from the owners of two of these homes;
• concerns regarding “patch and run” – reselling the home without disclosing the construction defects to the next owner;
• the need for new consumer protection legislation.

Feb. 15, 2007 letter from Minister Phillips that again advised that he cannot intervene in individual homebuyer concerns.

Inadequate response from
Minister Phillips
– legislation required

Dec. 6, 2006 – Letter related to:

• the Better Business Bureau of Eastern Ontario’s rating of Tarion as an “unsatisfactory record”
• raised the issue of the Minister simply sending consumers’ complaints about Tarion to Tarion.  (Some consumers have objected directly to the Minister about their private information being sent by Minister Phillips to Tarion – an organization over which the Minister claims to have no authority.)

Jan. 22, 2007 letter from the Minister advised that:

• progress is being made in relation to the BBB
• in regards to referring certain matters to Tarion:  “…where a member of the public requests my assistance, I would like you to know that as a minister of the Crown, I endeavour to help in any way that I am able.  We will continue to review our practices to ensure that our efforts are consistent with the expectations of members of the public who contact me..”

Inadequate response from
Minister Phillips

Feb. 19, 2007 letter from the Better
Business Bureau serving Eastern and
Northern Ontario and the Outaouais,
which says:  “It is the
BBB’s understanding that the
Government mandated program which
Tarion administers, expressly provides
its own dispute process. As such,
consumers are encouraged to use
the proper channels, namely the Tarion
dispute resolution services or the
government administrative tribunal
called the Licence Appeal Tribunal
 (LAT) when appealing a decision
rendered by Tarion.  Subsequent
to further consideration, the BBB will
no longer be handling disputes against
Tarion, however, we will endeavor to
forward any consumer requests to the
appropriate resource…”

Dec. 8, 2006 – Letter related to potential issues with the lack of consumer representation on the Ontario government’s Building Advisory Council (BAC).

Letter dated January 26, 2007 received from Minister Phillips – seemed to imply that it was never intended that consumer representatives would participate on the BAC.

Feb. 6, 2007 - CPBH sent another letter to Minister Phillips indicating that the BAC terms of reference indicate that consumers are supposed to be represented on the BAC.  Provided a copy of the terms of reference for the BAC to the Minister.  Requested:

• clarification from the Minister and
• support from the Minister for CPBH to represent consumers on the BAC.

Inadequate response from
Minister Phillips

Jan. 3, 2007 – Letter that requested:

• enhanced consumer protection for purchasers of newly built homes.  (Provided a copy of published article relating to “patch and run”.)
• better information on Ministry of Government Services’ web-site in relation to (potential) issues with newly built homes
• information about why complaints against Tarion have not been registered in the “consumer beware list” on the Ministry of Government Services’ web-site.

Feb. 15, 2007 letter from the Minister advised that “…the Consumer Protection Bureau (CPB) handles complaints that fall within the jurisdiction of the legislation that the ministry itself administers.  Accordingly only complaints that fall under the purview of the CPB will appear on the consumer beware list.”

Inadequate response from Minister Phillips
– legislation required

Jan. 22, 2007 – Letter that requested information relating to:

• Tarion’s board of directors (in relation to Tarion’s by-laws), i.e., for the 2005/2006 and the 2006/07 boards,  which stakeholder group each of the Tarion board members represents, and for those representing consumers, which consumer organizations they represent (third request of the Minister for this basic information);

• How Tarion’s two “consumer representatives” (Ms. Pitt and Mr. Spiteri) obtain views of the consumer stakeholder group;
• What Tarion’s two consumer representatives have done in their two years on Tarion’s board that has been of benefit to Ontario consumers;
• What Tarion’s board members receive as compensation for participating on the Tarion board.

Requested a prompt response.

Letter from Minister Phillips dated Jan. 22, 2007 in which he advised that if there are concerns regarding specific employees or board members at Tarion, they should be shared with Mr. Robert Wade, Chair of the Tarion board of Directors. 

Note:  Another letter dated Feb. 7, 2007 was sent to Minister Phillips by CPBH advising him that two letters have been sent to Mr. Wade (Sept. 29, 2006 and Nov. 8, 2006), but that Mr. Wade has not answered the questions.  Therefore, again requested that the Minister respond.

Inadequate response from
Minister Phillips
– legislation required

Feb. 7, 2007 – Further to the letter dated Jan. 22, 2007 from Minister Phillips, letter from CPBH to Minister Phillips that requested:

• Information regarding why the Minister appears to now have only responsibility to recommend 25% of public board members to Tarion’s board (compared to his predecessor’s [Minister Watson] 2005 response that the Minister appoints 50% of the nominating committee and appoints four members to the Board of Tarion) and
• Information regarding what mechanism outlines the Minister’s involvement in the Tarion Warranty Corporation, e.g., legislation, written agreement, verbal agreement, and copies of any related documents.

No response

Inadequate response from
Minister Phillips
 – legislation required

March 7, 2007 – e-mail sent relating to the CPBH News Release issued at Queen’s Park highlighting changes in legislation required in relation to Ontario’s new home warranty.

No response

Inadequate response from
Minister Phillips
- legislation required

March 18, 2007 – letter to Minister Phillips, asking if he made certain comments to Toronto Star columnist Bob Aaron regarding never considering the option of the Ombudsman and not having evidence that it (Tarion) is not working; and, if he did make these comments, a number of questions were raised including:

• Why would Minister Phillips advise Mr. Aaron in March 2007 that the Ombudsman option is “simply not on the table”… and that he has “never considered” it? Minister Phillips advised CPBH in a Jan. 22, 2007 letter that:  “….I will take your recommendation regarding the Ombudsman under consideration…”
• In relation to the comment about no evidence it’s not working, what sort of evidence does he require, given the number of complaints, and other information that have already been sent to him? 
• Why he would ask the Tarion board to organize a homeowner satisfaction survey given the serious questions raised about Tarion’s governance -- particularly when there is such strong builder representation on this board, and no true consumer representation on this board?
• Who will develop the scope and methodology to be used for this homeowner satisfaction survey?
•  Will CPBH and other consumer organizations have an opportunity to review and provide input to the scope and methodology, as well as any other parameters included in the Terms of Reference, prior to finalization?

No response

Inadequate response from
Minister Phillips