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Crown corporation

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In Canada, Crown corporations (French: Société de la Couronne)[1] are organizations that are structured like private companies, but are directly and wholly owned by the Canadian federal government or a Canadian provincial government.[2][3]

Crown corporations are created to advance government policy objectives, and have a long-standing presence in Canada. Often they provide services to the public that are not economically viable for a private enterprise, or that do not fit exactly within the scope of any ministry.[4] They represent a form of state-owned enterprise.[5][6][4]

Crown corporations are established by an act of parliament or an act of a provincial legislature. They report to the relevant minister in Cabinet, though they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments."[7][3]

As of 2022, there were 47 federal Crown corporations in Canada.[8] Provinces operate their own Crown corporations independently of the federal government.[4]

Structure

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Ownership and accountability

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In Canada, Crown corporations are directly owned by the government as the enterprise's sole legal shareholder.[5][6][4] (Governments in Canada are sometimes referred to as "the Crown".[2]) Established by an act of parliament, each Crown corporation is ultimately accountable for the conduct of its affairs to the federal parliament or a provincial legislature through the relevant minister.[7]

Although Crown corporations are owned by the government, they are operated with much greater managerial autonomy than government departments. They generally enjoy greater freedom from direct political control than government departments since they are "shielded from constant government intervention and legislative oversight".[3] The government can, however, have the minister responsible issue a directive to the board of directors ordering them to take a specific action; and the government carries out periodic mandate reviews to assess crown corporations' performance and cost-effectiveness.[4]

Crown corporations differ from "departmental corporations" (such as the Canada Revenue Agency and the Canadian Food Inspection Agency) which have no commercial purpose and perform only administrative, research, advisory, or regulatory functions.[4][3] In the federal sphere, certain Crown corporations can be an agent or non-agent of the government. One with agent status is entitled to the same constitutional prerogatives, privileges, and immunities held by the government and can bind the government by its acts. The government is not liable for Crown corporations with non-agent status, except for actions of that corporation carried out on instruction from the government, though there may be "moral obligations" on the part of the government in other circumstances.[9]

Function

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Crown corporations are generally formed to fill a need that the federal or provincial government deems in the public or national interest, and that may not be profitable for private industry to provide.[4] Some Crown corporations are expected to be profitable organizations, while others are non-commercial and rely entirely on public funds to operate.[5]

Provincial Crown corporations

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Provincial Crown corporations function similarly to their federal counterparts in that they are accountable to the provincial government, and their directors are appointed by the provincial cabinet.[4] Areas in which provincial Crown corporations have traditionally been involved include utilities (ie, Hydro-Québec), liquor stores and gaming (ie, Alcohol and Gaming Commission of Ontario), telecommunications (ie, SaskTel), and auto insurance (ie, Insurance Corporation of British Columbia).

History

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Crown corporations have been created to provide important services in Canada - a large, sparsely-populated country - usually because the private sector was unable or unwilling to provide such services.[3] The first Canadian Crown corporation was the Board of Works, established in 1841 by the Province of Canada to construct shipping canals.[3] Many of the most significant crown corporations created in the 20th century were designed to meet transportation needs.[3] These include the Canadian National Railway Company (CN), created in 1922 from more than 200 companies, Air Canada, and the St. Lawrence Seaway Authority.[4]

The Bank of Canada, originally privately owned, became a Crown corporation in 1938.[4][10] After the Second World War, federal crown corporations were created to provide loans and financial services to groups whose needs were not always met by private institutions, such as farmers (Farm Credit Corporation), small businesses (Business Development Bank of Canada), and exporters (Export Development Canada).[3]

Crown corporations have been most common in transport, telecommunications, utilities, and power generation, but they have also been involved in alcohol sales, gaming, finance, insurance, agriculture, culture and other industries.[4] Significant crown corporations include Petro-Canada, which was founded in 1975 to create a national oil Crown corporation; and Canada Post Corporation, which in 1981 replaced the federal Post Office Department.

In the 1970s, a debate emerged about the role and effectiveness of crown corporations, and whether they had become too prominent in the economy.[3] Inspired by Margaret Thatcher's sell-off of state assets in Britain in the 1980s, Canadian Prime Minister Brian Mulroney privatized many of Canada's Crown corporations, including Air Canada, Petro-Canada, and Canadair.[3] Sectors that were once dominated by Crown corporations, such as telecommunications, were almost fully privatized. For example, most provinces sold off their phone companies in the 1990s.[4] British Columbia sold off parts of BC Hydro, Saskatchewan privatized PotashCorp, the world's largest producer of fertilizer, and Nova Scotia privatized its electricity company Nova Scotia Power.[4] Alberta privatized its liquor stores in 1996, although in this case, most other provinces did not follow suit.[4] Nevertheless, some new crown corporations have since been created, such as the Canadian Air Transport Security Authority (CATSA) which was formed in response to the 11 September 2001 attacks to provide passenger and baggage screening at airports (rather than leave it to airlines).[3]

List of federal Crown corporations

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Current federal Crown corporations, as of May 2021[11][3]
Name Ministry responsible
Atlantic Pilotage Authority Transport
Atomic Energy of Canada Ltd. Natural Resources
Bank of Canada Finance
Business Development Bank of Canada Industry
Canada Council for the Arts Canadian Heritage
Canada Deposit Insurance Corporation Finance
Canada Development Investment Corporation Finance
Canada Lands Company Public Works and Government Services
Canada Mortgage and Housing Corporation Human Resources
Canada Pension Plan Investment Board Finance
Canada Post Corporation Public Services and Procurement
Canadian Air Transport Security Authority (CATSA) Transport
Canadian Broadcasting Corporation (CBC) Canadian Heritage
Canadian Commercial Corporation Global Affairs
Canadian Dairy Commission Agriculture and Agri-Food
Canadian Museum of History[12] Canadian Heritage
Canadian Museum for Human Rights Canadian Heritage
Canadian Museum of Immigration at Pier 21 Canadian Heritage
Canadian Museum of Nature Canadian Heritage
Canadian Race Relations Foundation Canadian Heritage
Canadian Tourism Commission Industry
Corporation for the Mitigation of Mackenzie Gas Project Impacts Crown–Indigenous Relations and Northern Affairs Canada
Defence Construction Ltd. Public Works and Government Services
Enterprise Cape Breton Corporation Atlantic Canada Opportunities Agency
Export Development Canada Global Affairs
Farm Credit Canada Agriculture and Agri-Food
Federal Bridge Corporation Ltd Transport
Freshwater Fish Marketing Corporation Fisheries and Oceans
Great Lakes Pilotage Authority Transport
Ingenium Canadian Heritage
International Development Research Centre Global Affairs
Laurentian Pilotage Authority Transport
Marine Atlantic Transport
National Arts Centre Corporation Canadian Heritage
National Capital Commission Global Affairs
National Gallery of Canada Canadian Heritage
Old Port of Montreal Corporation Public Works and Government Services
Pacific Pilotage Authority Transport
Parc Downsview Park Inc. Public Works and Government Services
Public Sector Pension Investment Board Treasury Board
Royal Canadian Mint Finance
Standards Council of Canada Industry
Telefilm Canada Canadian Heritage
VIA Rail Canada Inc. Transport
Windsor–Detroit Bridge Authority Infrastructure

List of provincial Crown corporations

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Alberta

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In Alberta, the term public agency is used to describe "boards, commissions, tribunals or other organizations established by government, but not part of a government department."[13]

British Columbia

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Main article: List of crown corporations in British Columbia

Manitoba

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Crown corporations in Manitoba are supported by Manitoba Crown Services.[15]

New Brunswick

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Newfoundland and Labrador

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Nova Scotia

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Ontario

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Crown corporations in Ontario are referred to as Crown agencies. A Crown agency includes any board, commission, railway, public utility, university, factory, company or agency that is established or operated by the King in Right of Ontario or the Government of Ontario, or under the authority of the Legislature or the Lieutenant Governor-in-Council.[18]

Prince Edward Island

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Saskatchewan

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List of territorial Crown corporations

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Northwest Territories

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Nunavut

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Yukon

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Former Crown corporations

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See also: Category:Former Crown corporations of Canada and List of privatizations

Several private Canadian companies were once Crown corporations, while others have gone defunct.[4]

Former Crown corporations, privatized or defunct
Company[4] Privatized/defunct (year) Former jurisdiction Notes
Air Canada privatized (1988) federal
Alberta Government Telephones / BCTel privatized AB; BC now Telus Communications
BC Ferries restructured (2003)[21] BC restructured in 2003 as an independently-managed corporation, though the provincial government still indirectly owns BC Ferries through the BC Ferry Authority.
BC Rail most operations leased to Canadian National Railway between 2004 and 2064 BC
BC Rail Communications privatized (1993) BC formed in 1972 and sold in 1993 as Westel
Blue Water Bridge Authority defunct (2015 federal amalgamated with St. Mary's River Bridge Company to form the Federal Bridge Corporation Limited,
British Columbia Electric Railway privatized BC private company from 1891 to 1961, when it was nationalized and formed into BC Hydro before the rail portion was sold in 1989
British Columbia Resources Investment Corporation defunct (1997) BC
Canada Employment Insurance Financing Board (CEIFB)
Canadair privatized (1946; 1986) federal formed as a Crown corporation in 1944; privatized in 1946 (sold to Electric Boat Company); re-acquired by government in 1976; privatized in 1986 (sold to Bombardier Inc. and merged into Bombardier Aerospace in 1989)
Canadian National Railway privatized (1995) federal
Cape Breton Growth Fund Corporation
Clairtone Sound Corporation Limited defunct NS
CTV Two Alberta privatized (1995) AB formed in 1973; formerly Access TV and Alberta Educational Communications Corporation
de Havilland Canada privatized (1986) federal formed as a private company in 1928, nationalized during World War II, then privatized in 1986
Eldorado Nuclear Limited (previously Eldorado Resources) privatized federal merged with the Saskatchewan Mining Development Corporation and privatized into Cameco Corporation
Enterprise Cape Breton Corporation
Hydro One privatized (2016) ON
Industrial Estates Limited NS
Intercolonial Railway defunct (1918) merged into the Canadian National Railway
Manitoba Telephone System privatized (1996) MB now Bell MTS; formerly MTS and MTS Allstream
Northern Transportation Company Limited federal
Nova Scotia Agricultural College NS now merged into Dalhousie University
Nova Scotia Power 1992 NS formed in 1918
Ontario Highway 407 1999 ON
Petro-Canada privatized (1991) federal
Polymer Corporation
Potash Corporation of Saskatchewan (PCS) privatized (1989) SK
PPP Canada 2018 federal
Ridley Terminals privatized (2019) BC privatized in 2019. Company name change in 2022 to Trigon Pacific Terminals
Saskatchewan Communications Network SK
Saskatchewan Government Airways SK
Saskatchewan Minerals SK
Saskatchewan Mining Development Corporation privatized SK merged with the federally-owned Eldorado Nuclear Limited (formerly Eldorado Mining and Refining) and privatized into Cameco Corporation
Saskatchewan Oil & Gas Corporation SK
SPUDCO
Sydney Steel Corporation dormant NS dormant; remediation and redevelopment of former SYSCO estates now conducted by NSLI and HCPI.[22]
Teleglobe 1987 formed in 1950; privatized in 1987 (to Memotec, later to BCE and finally VSNL) and absorbed into Tata operations in Canada
Telesat
Tourism British Columbia BC formed in 1997
Trade Centre Limited NS succeeded by Halifax Convention Centre Corporation
TrentonWorks NS sold to Daewoo
Wascana Energy

See also

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References

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  1. ^ "Liste des sociétés d'État". Canada.ca (in French). May 15, 2007. Retrieved August 26, 2023.
  2. ^ a b "Overview of federal organizations and interests". Treasury Board of Canada Secretariat. September 28, 2012. Archived from the original on February 3, 2017. Retrieved May 19, 2021.
  3. ^ a b c d e f g h i j k l Tupper, Allan (January 22, 2025). "Crown Corporation". The Canadian Encyclopedia.
  4. ^ a b c d e f g h i j k l m n o p Stastna, Kazi. "What are Crown corporations and why do they exist?". CBC. Archived from the original on April 2, 2012. Retrieved May 19, 2021.
  5. ^ a b c Aboriginal Affairs and Northern Development Canada. "Aboriginal Peoples and Communities > Governance > Tools for Governance > Governance Tools for Institutions > Establishing and Operating as a Federal Crown Corporation – The DIAND Experience". Queen's Printer for Canada. Archived from the original on October 15, 2012. Retrieved December 5, 2012.
  6. ^ a b Canada Development Investment Corporation (2008), Annual Report 2008 (PDF), Ottawa: Queen's Printer for Canada, p. 13, archived from the original (PDF) on August 6, 2010, retrieved April 21, 2010, Canada Development Investment Corporation... is wholly-owned by Her Majesty in Right of Canada
  7. ^ a b "Directors of Crown corporations: an introductory guide to their roles and responsibilities – What is a Crown Corporation". Treasury Board of Canada Secretariat. December 20, 2002. Archived from the original on April 19, 2019. Retrieved June 7, 2020.
  8. ^ Secretariat, Treasury Board of Canada (May 15, 2007). "List of Crown corporations". canada.ca. Retrieved March 22, 2022.
  9. ^ Treasury Board of Canada Secretariat (May 31, 2007). "Government Operations Sector > Governance > Agent Status and Crown Corporations". Queen's Printer for Canada. Archived from the original on May 30, 2013. Retrieved December 5, 2012.
  10. ^ Meeting the Expectations of Canadians: Review of the Governance Framework for Canada's Crown Corporations (PDF) (Report). Treasury Board of Canada Secretariat. 2005. p. 9. ISBN 0-662-68755-8. Retrieved October 8, 2023.
  11. ^ "List of Crown corporations". Treasury Board of Canada Secretariat. March 29, 2021. Archived from the original on April 1, 2020. Retrieved May 19, 2021.
  12. ^ "About | Canadian Museum of History". Retrieved May 19, 2021.
  13. ^ "How the Alberta government works". Government of Alberta. Retrieved March 6, 2020.
  14. ^ BC Pavilion Corporation Official website
  15. ^ "Crown Services | Province of Manitoba". Province of Manitoba – Crown Services. Retrieved May 19, 2021.
  16. ^ "Manitoba Agricultural Services Corporation (MASC)". www.masc.mb.ca. Retrieved May 19, 2021.
  17. ^ Financial and Consumer Services Commission
  18. ^ Crown Agency Act, R.S.O. 1990, c. 48.
  19. ^ "About Infrastructure Ontario".
  20. ^ "Owen Sound Transportation Company Limited 2018/19 Annual Report" (PDF). ontarioferries.com. Retrieved June 23, 2024.
  21. ^ "Bill 18 – 2003: Coastal Ferry Act". Legislative Assembly of British Columbia. March 26, 2003. Retrieved March 17, 2023.
  22. ^ "Sydney Steel Corporation Business Plan 2011–2012" (PDF). Sydney Steel Corporation. Retrieved April 15, 2014. The plan for Sysco during the 2011–2012 fiscal year is to continue to wind up activities and have the corporation remain dormant.

Further reading

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