InCanada,Crown corporations (French:Société de la Couronne)[1] are government organizations with a mixture ofcommercial andpublic-policy objectives.[2][3] They are directly and wholly owned bythe Crown (i.e., the Canadian federal government or the provincial governments).[2]
Crown corporations represent a specific form ofstate-owned enterprise.[4][5][6] Each corporation is ultimately accountable to (federal or provincial)Parliament through a relevantminister for the conduct of its affairs.[7] They are established by anAct of Parliament and report to that body via the relevant minister inCabinet, though they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments."[3]
Crown corporations are distinct from "departmental corporations" such as theCanada Revenue Agency.[2][6]
Crown corporations have a long-standing presence in the country and have been instrumental in its formation. They can provide services required by the public that otherwise would not be economically viable as aprivate enterprise or that do not fit exactly within the scope of any ministry.[6] They are involved in everything from the distribution, use, and price of certain goods and services to energy development, resource extraction, public transportation, cultural promotion, andproperty management.
As of 2022[update], there were 47 federal Crown corporations in Canada.[8] Provinces and territories operate their own Crown corporations independently of the federal government.
In Canada, Crown corporations within either the federal or provincial level are owned by the Crown as the institution's sole legalshareholder.[4][5][6] This follows the legal premise that themonarch, as thepersonification of Canada, owns all state property.
Established by anAct of Parliament, each corporation is ultimately accountable to (federal or provincial)Parliament through a relevantminister for the conduct of its affairs.[7]
Although these corporations are owned by the Crown, they are operated with much greater managerialautonomy than government departments. While they report to Parliament via the relevant minister inCabinet, they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments."[3] Direct control over operations are only exerted over the corporation's budget and the appointment of its senior leadership throughOrders-in-Council.
Further, in the federal sphere, certain Crown corporations can be an agent or non-agent of the Crown. One with agent status is entitled to the same constitutional prerogatives, privileges, and immunities held by the Crown and can bind the Crown by its acts. The Crown is thus entirely responsible for the actions of these organizations. The Crown 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 Crown in other circumstances.[9]
Crown corporations are generally formed to fill a need that the federal or provincial government deems in thenational interest or not profitable for private industry.[6] Some Crown corporations are expected to be profitable organizations, while others are non-commercial and rely entirely on public funds to operate.[4]
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Prior to the formation of Crown corporations as presently understood, much of what later became Canada was settled and governed by a similar type of entity called achartered company. These companies were established by aroyal charter by theScottish,English, orFrench crown, but were owned by private investors. They fulfilled the dual roles of promoting government policy abroad and making a return for shareholders. Certain companies were mainly trading businesses, but some were given a mandate (by royal charter) to govern a specific territory called acharter colony, and the head of this colony, called aproprietary governor, was both a business manager and the governing authority in the area. The first colonies on the island ofNewfoundland were founded in this manner, between 1610 and 1728.
Canada's most famous and influential chartered company was theHudson's Bay Company (HBC), founded on May 2, 1670, by royal charter ofKing Charles II. The HBC became the world's largest land owner, at one point overseeing 7,770,000 km2 (3,000,000 sq mi),[10] territories that today incorporate the provinces ofManitoba,Saskatchewan andAlberta, as well asNunavut, theNorthwest Territories, andYukon. The HBC were often the point of first contact between the colonial government andFirst Nations. By the late 19th century, however, the HBC lost its monopoly overRupert's Land and became a fullyprivatized company.
The first Crown corporation was the Board of Works, established in 1841 by theProvince of Canada to construct shipping canals.[3]
The first major Canadian experience with directlystate-owned enterprises came during the early growth of therailways. The first Canadian Crown corporation after confederation was theCanadian National Railway Company, created in 1922.[6]
During the earlier part of the century, manyBritish North American colonies that now comprise the Canadian federation had Crown corporations, often in the form of railways, such as theNova Scotia Railway, since there was limited private capital available for such endeavours. When three British coloniesjoined to create the Canadian federation in 1867, these railways were transferred to the new central government. As well, the construction of theIntercolonial Railway between them was one of the terms of the new constitution. The first section of this entirely government-owned railway was completed in 1872.
Western Canada's early railways were all run by privately owned companies backed by government subsidies and loans. By the early twentieth century, however, many of these had becomebankrupt. The federal governmentnationalised several failing Western railways and combined them with its existing Intercolonial and other line in the East to createCanadian National Railways (CNR) in 1918 as atranscontinental system. The CNR was unique in that it was aconglomerate, and besides passenger and freight rail, it had inherited major business interests in shipping, hotels, and telegraphy and was able create new lines of business in broadcasting and air travel. Many of the components of this business empire were laterspun off into new Crown corporations including some the most important businesses in the mid-20th-century economy of Canada, suchAir Canada, theCanadian Broadcasting Corporation (CBC),Via Rail, andMarine Atlantic.
Provincial Crown corporations also re-emerged in the early 20th century, most notably in the selling of alcohol. Government monopolyliquor stores were seen as a compromise between the recently ended era ofProhibition in Canada and the excesses of the previous open market which had led to calls for prohibition in the first place. Virtually all the provinces used this system at one point. The largest of these government liquor businesses, theLiquor Control Board of Ontario (founded 1927), was by 2008 one of the world's largest alcohol retailers. Resource and utility crown corporations also emerged at this time, notablyOntario Hydro andAlberta Government Telephones in 1906, andSaskTel in 1908. Provincial governments also re-entered the railway business as inNorthern Alberta Railways in 1925 and what later becameBC Rail in 1918. A notable anomaly of this era is Canada's only provincially owned "bank" (though not called that for legal reasons)Alberta Treasury Branches, created in 1937.
TheBank of Canada, originally privately owned, became a Crown corporation in 1938.[6][11] New crown Corporations were also created throughout much of the mid-century.[3]
The federalPost Office Department became a Crown corporation asCanada Post Corporation in 1981, and Canada'sexport credit agency,Export Development Canada, was created in 1985. Perhaps the most controversial wasPetro-Canada, Canada's short-lived attempt to create anational oil Crown corporation, founded in 1975.
The heyday of Crown corporations ended in the late 1980s, and there has been much privatisation since that time, particularly at the federal level.[3]
Not only the federal government was involved, but also the provinces, who were in engaged in an era of "province building" (expanding the reach and importance of the provincial governments) around this time. The prototypical example isHydro-Québec, founded in 1944 and now Canada's largest electricity generator and the world's largest producer of hydro-electricity. It is widely seen as a symbol of modern Quebec, helping to create theQuiet Revolution of the 1960s where French-speakers in Quebec rose to positions of influence in the industrial economy for the first time, andQuebec nationalism emerged as a political force. This model followed bySaskPower in 1944 andBC Hydro in 1961. Other areas provinces were active in included insurance (Saskatchewan Government Insurance, 1945)
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In Alberta, the termpublic agency is used to describe "boards, commissions, tribunals or other organizations established by government, but not part of a government department."[14]
Crown corporations inManitoba are supported byManitoba Crown Services.[16]
Crown corporations inOntario are referred to asCrown agencies. ACrown agency includes any board, commission, railway, public utility, university, factory, company or agency that is established or operated by theKing in Right of Ontario or theGovernment of Ontario, or under the authority of theLegislature or theLieutenant Governor-in-Council.[19]
Several private Canadian companies were once Crown corporations, while others have gone defunct.[6]
| Company[6] | Privatized/defunct (year) | Former jurisdiction | Notes |
|---|---|---|---|
| Air Canada | privatized (1988) | federal | |
| Alberta Government Telephones /BCTel | privatized | AB; BC | nowTelus Communications |
| BC Ferries | restructured (2003)[22] | BC | restructured in 2003 as an independently-managed corporation, though the provincial government still indirectly owns BC Ferries through theBC Ferry Authority. |
| BC Rail | most operations leased toCanadian 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 theFederal Bridge Corporation Limited, |
| British Columbia Electric Railway | privatized | BC | private company from 1891 to 1961, when it was nationalized and formed intoBC 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 toElectric Boat Company); re-acquired by government in 1976; privatized in 1986 (sold toBombardier Inc. and merged intoBombardier 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 (previouslyEldorado Resources) | privatized | federal | merged with theSaskatchewan Mining Development Corporation and privatized intoCameco Corporation |
| Enterprise Cape Breton Corporation | |||
| Hydro One | privatized (2016) | ON | |
| Industrial Estates Limited | NS | ||
| Intercolonial Railway | defunct (1918) | merged into theCanadian 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 intoDalhousie 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-ownedEldorado Nuclear Limited (formerly Eldorado Mining and Refining) and privatized intoCameco 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.[23] |
| Teleglobe | 1987 | formed in 1950; privatized in 1987 (to Memotec, later toBCE and finallyVSNL) and absorbed intoTata operations in Canada | |
| Telesat | |||
| Tourism British Columbia | BC | formed in 1997 | |
| Trade Centre Limited | NS | succeeded byHalifax Convention Centre Corporation | |
| TrentonWorks | NS | sold toDaewoo | |
| Wascana Energy |
Canada Development Investment Corporation... is wholly-owned by Her Majesty in Right of Canada
The plan for Sysco during the 2011–2012 fiscal year is to continue to wind up activities and have the corporation remain dormant.
