MPP Lisa MacLeod, Nepean-Carleton, and Ontario PC Critic for Revenue and Government Accountability was in London today to highlight how Dalton McGuinty's greedy $3 billion HST tax grab will fuel black-market home renovations. According to an Altus Economic Consulting Group Report, the HST "shifts more activity into the "underground economy," with implications on government tax revenue, renovation quality and homeowner liability."

The Altus report says 37 per cent of residential renovations are through the "underground or cash economy" representing $5.2 billion in unreported economic activity. A 1998 study found the GST was the principle driver in the underground renovation economy in Ontario and the HST threatens to do the same.

The HST is just the latest in a string of broken Dalton McGuinty promises not to increase taxes. Ontario families' budgets are already stretched to the brink with the McGuinty Liberals increased health taxes, taxes on computers, TVs, and iPods, electricity taxes, taxes on tires, plastic bags, and small business taxes.

QUOTES:

"Not only will the HST punish the family budget, it will also severely damage the $20 billion home renovation business in Ontario."

-- Lisa MacLeod, MPP Nepean-Carleton, Ontario PC Critic for Revenue and Government Accountability

"The renovations sector represents 195,000 real jobs in Ontario. The HST threatens those jobs by increasing costs for homeowners who will either use the underground economy or not bother with the renovations at all."

-- Lisa MacLeod, MPP Nepean-Carleton, Ontario PC Critic for Revenue and Government Accountability

QUICK FACTS:

• "It's going to be like throwing gasoline on a fire in fuelling a boom in the black market renovations."

-- James Bazley, President of the Ontario Home Builders Association, The Toronto Star, Nov. 14, 2009.

• The residential renovation sector accounts for $20.3 billion in investment activity in Ontario with approx $14 billion in contractor renovations and some $6 billion in the "do it yourself sector." It supports 195,000 legitimate jobs in Ontario.