Crown Corporations In Canada

1102 Words5 Pages

Function and Practice of Crown Corporations in Canada Crown corporations have been used as solutions to regional economic developmental problems in Canada (Rice & Lavoie, 2005). Where it is more efficient and cost-effective to operate the solution in a business capacity. However, at times, commercial interests and competitive pressures contend with each other, conflicting with the original policy mandate. Crown corporations are employed most commonly in sectors of transportation, agriculture, telecommunication, utilities and power generation. They not only play a vital role in these sectors, but they also play parts in the economy, such as alcohol sales, gaming, finance, business development and culture. Crown corporations have also been …show more content…

In response to a need to provide transportation nation-wide, focusing on providing access to remote and sparsely populated areas of the country. The Bank of Canada was created as a private company through the Bank of Canada Act in 1934 and subsequently nationalized as a Crown corporation in 1938 (‘Meeting’, 2005, p.9). The essential role of the Bank, as Canada's central Bank, is to "promote the economic and financial well-being of Canada." (Bank of Canada). Therefore the Bank operates in the interest of Canada as a whole and not as an extension of the will of the government. The Canadian Dairy Commission, established in 1966; unlike other Crown corporations was established to regulate the Canadian dairy industry by setting reference prices and monitoring the supply (‘Meeting’, 2005, p.58). During the 1970s the federal government struggled to find a solution to the operational, financial and labour challenged of the postal service. Thus in 1981 saw the conversion of the Post Office Department into a Crown corporation, now knows as the Canada Post (‘Meeting’, 2005, p.36). More recently, in 2002, the Canadian Air Transport Security Authority became a Crown corporation to manage key aviation security services in Canada. These key aviation security services were previously provided by airlines, airports and other, but after the widely publicized terrorist attacks in the United States, were considered as inadequate by the public (‘Meeting’, 2005, p.9). Thus the government had a duty to step in and protect the safety of its citizens. A commonly known federal crown corporation is the Canadian Broadcasting Corporation (CBC) which serves as the nation’s public radio and television

Open Document