Crown corporation#Commonwealth

{{Short description|Government enterprises in Canada}}

{{Use Canadian English|date=October 2024}}

{{Use mdy dates|date=October 2024}}

{{Monarchy of Canada sidebar|legal}}

Crown corporation ({{langx|fr|Société de la Couronne}}){{cite web |title=Liste des sociétés d'État |url=https://www.canada.ca/fr/secretariat-conseil-tresor/services/directives-pour-societes-etat/liste-societes-etat.html |website=Canada.ca |date=May 15, 2007 |access-date=26 August 2023 |language=French}}

is the term used in Canada for organizations that are structured like private companies, but are directly and wholly owned by the government.{{Cite web|last=|first=|date=2012-09-28|title=Overview of federal organizations and interests|url=https://www.canada.ca/en/treasury-board-secretariat/services/reporting-government-spending/inventory-government-organizations/overview-institutional-forms-definitions.html|url-status=live|access-date=2021-05-19|website=Treasury Board of Canada Secretariat|archive-url=https://web.archive.org/web/20170203124912/https://www.canada.ca/en/treasury-board-secretariat/services/reporting-government-spending/inventory-government-organizations/overview-institutional-forms-definitions.html |archive-date=2017-02-03 }}{{cite web | last=Tupper | first=Allan | date=22 January 2025 | url=https://www.thecanadianencyclopedia.ca/en/article/crown-corporation | publisher=The Canadian Encyclopedia | title=Crown Corporation }}

Crown corporations have a long-standing presence in the country, and have a significant economic impact, with commercial operations equivalent to 7% of Canadian GDP.

Crown corporations are created to advance government policy objectives.

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.

They represent a form of state-owned enterprise.{{cite web|last=Aboriginal Affairs and Northern Development Canada|title=Aboriginal Peoples and Communities > Governance > Tools for Governance > Governance Tools for Institutions > Establishing and Operating as a Federal Crown Corporation – The DIAND Experience|url=http://www.aadnc-aandc.gc.ca/eng/1100100013934/1100100013935|url-status=dead|archive-url=https://web.archive.org/web/20121015161946/http://www.aadnc-aandc.gc.ca/eng/1100100013934/1100100013935|archive-date=15 October 2012|access-date=5 December 2012|publisher=Queen's Printer for Canada}}{{Citation|last=Canada Development Investment Corporation|title=Annual Report 2008|url=http://www.cdiccei.ca/english/pdf/CDIC_Annual_Report_2008%20_Eng.pdf|page=13|year=2008|archive-url=https://web.archive.org/web/20100806203245/http://www.cdiccei.ca/english/pdf/CDIC_Annual_Report_2008%20_Eng.pdf|place=Ottawa|publisher=Queen's Printer for Canada|quote=Canada Development Investment Corporation... is {{sic|hide=y|wholly|-}}owned by Her Majesty in Right of Canada|access-date=21 April 2010|archive-date=6 August 2010|url-status=dead}}{{cite web|last=Stastna|first=Kazi|title=What are Crown corporations and why do they exist?|url=https://www.cbc.ca/news/canada/what-are-crown-corporations-and-why-do-they-exist-1.1135699|url-status=live|access-date=19 May 2021|publisher=CBC|archive-url=https://web.archive.org/web/20120402183048/http://www.cbc.ca/news/canada/story/2012/03/25/f-crown-corporations.html |archive-date=2012-04-02 }}

Crown corporations are established by an act of parliament or an act of a provincial legislature.

Federal government Crowns 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."{{Cite web|last=|first=|date=2002-12-20|title=Directors of Crown corporations: an introductory guide to their roles and responsibilities – What is a Crown Corporation|url=https://www.canada.ca/en/treasury-board-secretariat/services/guidance-crown-corporations/directors-crown-corporations-introductory-guide-roles-responsibilities.html#cro|url-status=live|access-date=2020-06-07|website=Treasury Board of Canada Secretariat|archive-url=https://web.archive.org/web/20190419013843/https://www.canada.ca/en/treasury-board-secretariat/services/guidance-crown-corporations/directors-crown-corporations-introductory-guide-roles-responsibilities.html |archive-date=2019-04-19 }}

{{As of|2022}}, there were 47 federal Crown corporations in Canada.{{Cite web |last=Secretariat |first=Treasury Board of Canada |date=2007-05-15 |title=List of Crown corporations |url=https://www.canada.ca/en/treasury-board-secretariat/services/guidance-crown-corporations/list-crown-corporations.html |access-date=2022-03-22 |website=canada.ca}} Provinces operate their own Crown corporations independently of the federal government.

Definition

There is no common definition of a Crown corporation among Canadian governments.{{cite web | url= https://cdhowe.org/wp-content/uploads/2024/12/Commentary_602-2.pdf | title=Finding Jewels Among the Crowns: Optimal Governance Principles for Canada's State-Owned Enterprises | first=Glen | last=Hodgson | publisher=C.D. Howe Institute | date=May 2021 }}

In its review of state-owned enterprise (SOE) governance in 54 countries, the OECD notes that in Canada, federal government SOEs are referred to as "Crown corporations."{{cite web | title=Ownership and Governance of State-Owned Enterprises: A Compendium of National Practices 2021 | url=https://www.oecd.org/corporate/ownership-and-governance-of-state-owned-enterprises-a-compendium-of-national-practices.htm | author=OECD | date=2021 }}

The Canadian federal government defines its Crown corporations as corporations that (1) are wholly-owned by the government; (2) have enabling legislation which sets out the corporation's mandate, powers, and objectives; and (3) operate at arm's length from the government, but are ultimately accountable to the government.{{rp|6}}{{cite web | title=Overview of Institutional Forms and Definitions | url=https://www.canada.ca/en/treasury-board-secretariat/services/reporting-government-spending/inventory-government-organizations/overview-institutional-forms-definitions.html }}

While the term "Crown corporation" is widely-used in Canada, the province of Ontario refers to its government-owned entities as "agencies".{{cite web | url=https://www.ontario.ca/page/agencies-boards-and-commissions | title=Agencies, boards and commissions | publisher=Ontario }}{{rp|7}}

Economic impact

Crown corporations have a considerable economic footprint, with annual commercial operations equivalent to 7% of Canadian GDP.{{cite web | first=Glen | last=Hodgson | url=https://cdhowe.org/publication/blueprint-crown-corp-governance-could-improve-performance/ | title=Blueprint for Crown Corp Governance Could Improve Performance | publisher=C.D. Howe Institute | date=27 May 2021}}

In 2023, government business enterprises had revenues of $199 billion, of which $120 was generated at the provincial and territorial level, $43 at the federal level, and $36 billion at the local level.{{cite web | author=Statistics Canada | title=Table 10-10-0023-01 Canadian government finance statistics for government business enterprises, by industry | url= https://doi.org/10.25318/1010002301-eng }}

There were 47 federal Crown corporations in 2022.

In 2025, Ontario had over 170 agencies, and British Columbia had 29 Crown corporations.{{cite web | title=Crown Corporations | date=23 June 2023 | url=https://www2.gov.bc.ca/gov/content/governments/organizational-structure/ministries-organizations/crown-corporations }}

There are hundreds of local government-owned enterprises that are sometimes referred to as Crown corporations. They provide local services such as electricity, potable and wastewater services, and public transit (ie, Metro Vancouver's public transit authority Translink).{{rp|6-7}}

Purpose

As long as Crown corporations have existed, there has been debate about their role and whether they should exist at all.

Crown corporations are generally formed to fill a need that the government deems in the public or national interest, and that may not be profitable for private industry to provide.

For example, Air Canada was created to be an active competitor in a market where competition and service was viewed as inadequate.{{rp|8}}

Some Crown corporations are expected to be profitable organizations, while others are non-commercial and rely entirely on public funds to operate.

Structure

=Ownership and accountability=

In Canada, Crown corporations are directly owned by the government as the enterprise's sole legal shareholder.

(Governments in Canada are sometimes referred to as "the Crown".)

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.

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".

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.

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.

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.{{cite web|last=Treasury Board of Canada Secretariat|title=Government Operations Sector > Governance > Agent Status and Crown Corporations| date=31 May 2007 | url=http://www.tbs-sct.gc.ca/gov-gouv/agent-mandataire/agent-mandataire-eng.asp|url-status=dead|archive-url=https://web.archive.org/web/20130530121822/http://www.tbs-sct.gc.ca/gov-gouv/agent-mandataire/agent-mandataire-eng.asp|archive-date=30 May 2013|access-date=5 December 2012|publisher=Queen's Printer for Canada}}

=Provincial Crown corporations=

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.

Areas in which provincial Crown corporations have traditionally been involved include utilities (e.g., Hydro-Québec), liquor stores and gaming (e.g., Alcohol and Gaming Commission of Ontario), telecommunications (e.g., SaskTel), and auto insurance (e.g., Insurance Corporation of British Columbia).

History

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.

The first Canadian Crown corporation was the Board of Works, established in 1841 by the Province of Canada to construct shipping canals.

Many of the most significant crown corporations created in the 20th century were designed to meet transportation needs.

These include the Canadian National Railway Company (CN), created in 1922 from more than 200 companies, Air Canada, and the St. Lawrence Seaway Authority.{{cite web | title=Report to Parliament: Meeting the Expectations of Canadians; Review of the Governance Framework for Canada's Crown Corporations | url= https://www.tbs-sct.canada.ca/report/rev-exa/gfcc-cgse-eng.pdf | date=2005 | author=President of the Treasury Board | isbn=0-662-68755-8 }}

The Bank of Canada, originally privately owned, became a Crown corporation in 1938.{{cite report |title=Meeting the Expectations of Canadians: Review of the Governance Framework for Canada's Crown Corporations |publisher=Treasury Board of Canada Secretariat |isbn=0-662-68755-8 |year=2005 |page=9 |url=https://www.tbs-sct.gc.ca/report/rev-exa/gfcc-cgse-eng.pdf |access-date=8 October 2023}}

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).

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.

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.

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.

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.

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.

Alberta privatized its liquor stores in 1996, although in this case, most other provinces did not follow suit.

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).

{{Anchor|List of Canada's Crown corporations}}List of federal Crown corporations

class="wikitable"

|+Current federal Crown corporations, {{As of|2021|May|lc=y}}{{Cite web|last=|first=|date=2021-03-29|title=List of Crown corporations|url=https://www.canada.ca/en/treasury-board-secretariat/services/guidance-crown-corporations/list-crown-corporations.html|url-status=live|access-date=2021-05-19|website=Treasury Board of Canada Secretariat|archive-url=https://web.archive.org/web/20200401203241/https://www.canada.ca/en/treasury-board-secretariat/services/guidance-crown-corporations/list-crown-corporations.html |archive-date=2020-04-01 }}

!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{{Cite web|title=About {{!}} Canadian Museum of History|url=https://www.historymuseum.ca/about/|access-date=2021-05-19|language=en-CA}}

|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

{{Expand list|date=August 2008}}

= Alberta=

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."{{cite web |title=How the Alberta government works |url=https://www.alberta.ca/how-government-works.aspx |website=Government of Alberta |access-date=6 March 2020 |language=en-CA}}

= British Columbia =

{{Main|List of British Columbia Government Agencies and Crown Corporations|l1 = List of crown corporations in British Columbia}}

= Manitoba =

Crown corporations in Manitoba are supported by Manitoba Crown Services.{{Cite web|title=Crown Services {{!}} Province of Manitoba|url=https://www.gov.mb.ca/cs/|access-date=2021-05-19|website=Province of Manitoba – Crown Services|language=en}}

= New Brunswick =

= Newfoundland and Labrador =

= Nova Scotia =

= Ontario =

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.[http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_90c48_e.htm Crown Agency Act], R.S.O. 1990, c. 48.

= Prince Edward Island =

= Saskatchewan =

List of territorial Crown corporations

= Northwest Territories =

= Nunavut =

= Yukon =

Former Crown corporations

{{See also|Category:Former Crown corporations of Canada|List of privatizations#Canada|l2=List of privatizations}}

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

class="wikitable"

|+Former Crown corporations, privatized or defunct

!Company

!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){{Cite web |date=March 26, 2003 |title=Bill 18 – 2003: Coastal Ferry Act |url=https://www.leg.bc.ca/Pages/BCLASS-Legacy.aspx#%2Fcontent%2Flegacy%2Fweb%2F37th4th%2F3rd_read%2Fgov18-3.htm |access-date=March 17, 2023 |website=Legislative Assembly of British Columbia |language=en}}

|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.{{cite web|title=Sydney Steel Corporation Business Plan 2011–2012|url=https://novascotia.ca/finance/site-finance/media/finance/budget2011/Crown_Corp_Business_Plans.pdf|access-date=15 April 2014|publisher=Sydney Steel Corporation|quote=The plan for Sysco during the 2011–2012 fiscal year is to continue to wind up activities and have the corporation remain dormant.}}

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

References

{{Reflist}}

Further reading

  • [https://web.archive.org/web/20070311060236/http://www.tbs-sct.gc.ca/report/CROWN/01/cc-se-01-4_e.asp Treasury Board of Canada Secretariat: 2001 Annual Report To Parliament – Crown Corporations and Other Corporate Interests of Canada] (archived 11 March 2007)
  • [https://web.archive.org/web/20080227200820/http://www.pch.gc.ca/pc-ch/mindep/perf/97-98/english.pdf Canadian Heritage Performance Report; March 31, 1998] (archived 27 February 2008)
  • [https://web.archive.org/web/20110611151926/http://www.tbs-sct.gc.ca/reports-rapports/cc-se/2007/cc-se-eng.pdf Treasury Board of Canada Secretariat: 2007 Annual Report to Parliament – Crown Corporations and other Corporate Interests of Canada] (archived 11 June 2011)