PAGE A2 – June 2009 – The GTA Construction Report
Editor’s
Publisher’s
column
viewpoint
Matthew Desrosiers
By Chase
It is hard to believe I am already planning Last up for me this month is exploration into
If you’re not sick of reading about the harmonized sales tax yet, then by
my editorial coverage for August and Septem- membership of some new local associations
all means, keep reading.
ber and we have just entered into the start of and weighing the benefits of remaining a mem-
By now, it seems everyone has resigned themselves to the fact the HST
is coming, and there’s not much we can do to stop it.
June. The one thing about working in the pub- ber of others. Like many companies we are
Some have even suggested the Liberals have been so slick with the im-
lishing business is you are often forced to plan evaluating our marketing spending to ensure we
plementation of this tax, the general public are barely aware the changes are
well ahead of time and sometimes you miss get the most out of it. Our marketing dollars go
coming and how they will be affected.
what is happening right around you. towards memberships of the local construction
Well, one industry that has definitely not rolled over yet is residential
This summer I plan to tack in as much as associations where we provide news coverage.
construction. These guys are upset and screaming from any mountain they
possible and my construction social calendar is In a way I will be evaluating the associations
can find about the disastrous effect this tax will have on their industry. filling up fast. First up is a trip to Barrie for the much like you would when you look at where
You can’t blame them, either. Barrie Construction Associations Golf Tourna- to spend money on sponsorship or advertising,
The HST is set to make new housing very unaffordable for consumers.
ment on June 5. This year as a director for the I need to see what the return on investment is.
And you might think if homes under $400,000 are exempt, then only the
association I find myself attending more events I will have to make my mind up by October and
people with money who can afford big homes are going to be affected, but
this isn’t the case.
and trying to meet new people. Next up is the our annual planning session on what to do,
It’s the big cities like Toronto and Ottawa that are going to be hit hardest
Niagara Construction Association’s (NCA) oddly enough October is the month I have read
by this tax. The average price of homes in these cities are naturally higher
Members Day Event on June 17. The event is a a lot of articles about where the economy is
than the rest of the province. If you add to these the rising cost of develop-
great BBQ lunch which allows members to supposed to recover, stay tuned.
ment charges, you can see the home builders’ case taking shape.
connect after a long winter season. The last big Chase is the Director of Marketing and Client
And even if I somehow come into some money, how does it make sense event I will be attending this summer is their Relations for the Construction News and Report
that upgrading from a $400,000 home to a $500,000 home should cost me Annual Golf Tournament where we are spon- Group as well as the Associate Publisher for the
an additional $32,000 in taxes, whereas an upgrade from $500,000 to
soring two holes this year. The event takes place GTA Construction Report and Ontario Construc-
$600,000 only costs an additional $8,000? Luckily for my pocket book, I’m
on August 19 at Legends of Niagara. The NCA tion Report. Chase also serves on the Board of Di-
easily satisfied with a small home, one car, etc. But for larger families or
has taken great strides the past year in providing rectors for the Barrie Construction Association
people who live in these cities, or any city in the province for that matter,
who want to move up to a larger home, the HST really keeps them grounded.
more value to its members with the introduction and on several committees for the Niagara Home
There are more issues for builders with relation to the HST, but you can
of the Christmas Luncheon – Food Drive for Builders and Construction Associations. If you
read about those in the HST Update article elsewhere in this paper
Community Care in December, and the launch have any recommendations or suggestions on
.
What I will take the time to mention, however, is the impact on renova-
of the Annual Awards Dinner in February. More changes you would like to make for the papers
tions.
events are planned and I will keep you posted please contact him toll free at 1-888-432-3555 ext
For years now, renovators in Ontario have been fighting against the un as the summer progresses. 211 or email him chase@cnrgp.com or visit us on--
derground economy. For those who don’t know, this underground economy line at www.cnrgp.com
is essentially a large number of renovators who work ‘under the table’. The
problem for ‘above board’ renovators is these other guys can undercut their
prices because they don’t bother with WSIB, building permits, etc. The prob-
lem for consumers is there’s no way to guarantee the workmanship.
So why does it exist? Because renovators can make much more money
under the table then they can above board, due to all the mandatory costs in
the province. And the HST, which will increase costs even further, is going
to make things worse. Where underground renovators can maintain their cur-
rent prices, above board renovators, aka the good guys, will have to increase
their prices by the full eight per cent (the PST portion of the new tax).
I don’t pretend to be an economist, but after speaking with all parties in-
volved (ie. chamber of commerce, Dwight Duncan’s office, home builders,
etc), I can see the ups and downs of this tax.
Will it benefit business? Sure it will. It should bring investments into the
The GTA Construction Report is published monthly by Mekomedia Enterprises Inc., Suite 202,
province, and that’s good for everyone. But it almost seems to me that in
1 Cleopatra Drive, Ottawa, Ontario K2G 3M9. The GTA Construction Report is available free at
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their rush to benefit business, they didn’t necessarily stop to consider the
401/Warden Exit. You can subscribe to GTA Construction Report for $37.50 per year plus GST.
ramifications.
To change your address or cancel a subscription, please email subscriptions@cnrgp.com or fax
And let’s face it, you can bring people into this province, but if you de- your request to 888-370-8745. If you would like to request a new (paid) subscription, you can
stroy the residential market, where are they going to live? The only homes e-mail or fax us, or if you prefer, phone toll free 888-432-3555.
available in the re-sale market will be gobbled up (if the HST has the desired
We welcome your news about upcoming projects, company anniversaries and special events.
effect), and so you have to wonder how far ahead the province planned.
Fax your news releases to 613-224-1076. Daily update data on upcoming projects, including
Currently, the Liberals are consulting with the home builders’ associa-
contact names and phone numbers, is available from F.W. Dodge. For more information, phone
tions, both at the provincial and municipal levels. Even the Canadian asso-
613-727-4900 ext 4902 or 493.
ciation (CHBA) is getting involved.
I hope the government takes the time to hear what these guys are saying,
because really, what’s the point of bringing in new business if you’re just
President: Mark Buckshon
going to kill one of the biggest economic drivers the province already has?
Publisher: Chase
Editor: Matthew Desrosiers 888-432-3555 ext 111
Director of Sales and Advertising, GTA:
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