CBC, Old Port, could be sold off, documents show
Other crown firms also on Ottawa's list
By ANDREW MAYEDA, Canwest News ServiceJune 2, 2009
Article Link
The federal Finance Department has flagged several prominent crown corporations as "not self-sustaining," including the CBC, VIA Rail and the National Arts Centre, and has identified them as entities that could be sold as part of the government's asset review, newly released documents show.
In its fiscal update last November, the government announced that it would launch a review of its crown assets, including so-called enterprise crown corporations, real estate and "other holdings."
Finance documents, obtained by Canwest News Service under the Access to Information Act, reveal that the review will focus on enterprise crown corporations, which are not financially dependent on parliamentary subsidies. Such corporations include the Royal Canadian Mint and Old Port of Montreal Corp.
But the documents also reveal that Ottawa will consider privatizing crown corporations that require public subsidies to stay afloat.
"The reviews will also examine other holdings in which the government competes directly with private enterprises, earns income from property or performs a commercial activity," states a Finance briefing note dated Dec. 2, 2008. "It includes crown corporations that are not self-sustaining even though they are of a commercial nature."
In the briefing note, the department identifies nine crown corporations that fall in that category, including Atomic Energy of Canada Ltd., the CBC and VIA Rail.
The government announced last week that it will split AECL in two and seek private-sector investors for the crown corporation's CANDU nuclear-reactor business.
The crown asset review comes as the government struggles to contain the country's deficit, expected to top $50 billion this year. The Jan. 27 budget assumes that the government will be able to raise as much as $4 billion through asset sales by the end of March 2010.
The sale of a flagship crown asset such as the CBC would be politically controversial. After the CBC announced this spring that it would lay off hundreds of employees, opposition critics accused the government of turning a cold shoulder to the public broadcaster's struggles.
Under the Financial Administration Act, Parliament would have to approve the privatization of any crown corporation.
end
Other crown firms also on Ottawa's list
By ANDREW MAYEDA, Canwest News ServiceJune 2, 2009
Article Link
The federal Finance Department has flagged several prominent crown corporations as "not self-sustaining," including the CBC, VIA Rail and the National Arts Centre, and has identified them as entities that could be sold as part of the government's asset review, newly released documents show.
In its fiscal update last November, the government announced that it would launch a review of its crown assets, including so-called enterprise crown corporations, real estate and "other holdings."
Finance documents, obtained by Canwest News Service under the Access to Information Act, reveal that the review will focus on enterprise crown corporations, which are not financially dependent on parliamentary subsidies. Such corporations include the Royal Canadian Mint and Old Port of Montreal Corp.
But the documents also reveal that Ottawa will consider privatizing crown corporations that require public subsidies to stay afloat.
"The reviews will also examine other holdings in which the government competes directly with private enterprises, earns income from property or performs a commercial activity," states a Finance briefing note dated Dec. 2, 2008. "It includes crown corporations that are not self-sustaining even though they are of a commercial nature."
In the briefing note, the department identifies nine crown corporations that fall in that category, including Atomic Energy of Canada Ltd., the CBC and VIA Rail.
The government announced last week that it will split AECL in two and seek private-sector investors for the crown corporation's CANDU nuclear-reactor business.
The crown asset review comes as the government struggles to contain the country's deficit, expected to top $50 billion this year. The Jan. 27 budget assumes that the government will be able to raise as much as $4 billion through asset sales by the end of March 2010.
The sale of a flagship crown asset such as the CBC would be politically controversial. After the CBC announced this spring that it would lay off hundreds of employees, opposition critics accused the government of turning a cold shoulder to the public broadcaster's struggles.
Under the Financial Administration Act, Parliament would have to approve the privatization of any crown corporation.
end
