Proposed act would hurt municipalities, business

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The enactment of Bill 69, The Prompt Payment Act, would create a lot of problems for municipalities, say members of Kincardine council.

 

Mayor Larry Kraemer told council that not much thought has gone into this legislation, although the bill has passed second reading in the Ontario Legislature.

 

The bill would prohibit all holdbacks on a construction project. Deputy mayor Annie Eadie said she could not understand why a municipality would not be able to hold back payments until a contractor finished a job to the municipality’s satisfaction.

 

That eliminates the municipality’s control, she said.

 

The bill is weighted on the side of the contractor, added councillor Randy Roppel.

 

 It’s a terrible piece of legislation, said Kraemer, and it will affect private businesses as well as municipalities.

 

Council decided to write a letter to a multi-party committee studying the issue, asking that the committee send a reply as soon as possible. Council will have Team Kincardine sign its letter of concern as well.