News release

Sub-contract reporting to be focus of consultations

OTTAWA, February 25, 1998.... The Honourable Herb Dhaliwal, Minister of National Revenue and M.P. (Vancouver South-Burnaby), announced today that Revenue Canada will be consulting with construction industry associations and unions on the implementation of the sub-contracting reporting initiative announced by the Honourable Paul Martin in the Budget tabled yesterday in the House of Commons.

Mr. Dhaliwal highlighted the importance of addressing underground economic activity in the construction industry. "We need to ensure that there is a level playing field for business, but at the same time we recognize that there is a critical need to minimize compliance costs, especially for small and medium-sized businesses," the Minister said.

Revenue Canada will be working with industry and union representatives over the next few months to determine how best to implement sub-contractor reporting, including examining alternative ways in which the information can be provided.

"This consultation process is extremely important," said Mr. Dhaliwal. "We will make every effort to ensure that the concerns of small and medium-sized businesses are heard and addressed."

Mr. Dhaliwal also pointed out that the Government is resuming the reporting of payments to all federal government service contractors. Reporting begins in 1998 for federal departments and agencies, and in 1999 for federal Crown Corporations. This initiative complements measures taken by provinces such as New Brunswick and Newfoundland who report similar information.

"By working in partnership with our key stakeholders and doing our part to report payments to contractors, the Government is demonstrating its commitment to addressing the underground economy," the Minister said.

Mr. Dhaliwal said that the consultations with the construction industry on the most effective approach for sub-contractor reporting will be concluded by the end of the summer.

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