Crown corporations, in theory, operate on a day-to-day basis at arm's length from the political control of government. Direct control by government is exerted only over the corporation's budget and the appointment of its chairperson and directors.
In Canada, Crown corporations are operated both by provincial governments and the federal government, as a means to pursue economic and social objectives. Canadian Crown corporations are used to control everything from the distribution, use, and price of certain goods and services, to energy development, resource extraction, public transportation, cultural promotion, and property management. They are also frequently used to give governments access to financial markets to provide financing for development and capital projects.
One of the most significant Canadian Crown corporations of the 20th century in terms of its number of employees, and its far-reaching impact into the everyday lives of Canadians, was the Canadian National Railway. Other significant Crown corporations have included CBC, VIA Rail, Air Canada, and Marine Atlantic.
Crowncorporations, in theory, operate on a day-to-day basis at arm's length from the government.
In Canada, Crowncorporations are operated both by provincial governments (the Crown-in-Right-of-Ontario, for example) and the federal government (the Crown-in-Right-of-Canada), as a means to pursue economic, social and political objectives including patronage.
CanadianCrowncorporations are involved in everything from the distribution, use, and price of certain goods and services, to energy development, resource extraction, public transportation, cultural promotion, and property management.
A central rationale of crowncorporations is that the commercial activities of government, to be performed successfully, must be shielded from constant government intervention and legislative oversight.
In Canada, the reform of crowncorporations is proceeding along 2 different courses - the establishment of revised regimes of control and accountability and more controversially, "privatization." In 1984 with the passage of Bill C-24, the federal government replaced the 1951 provisions of the FAA with a new legislative framework.
A related proposition is that many crowncorporations have outlived their usefulness as policy instruments and ought to be sold to the private sector.
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