G O V E R N M E N T S  -  C R O W N  C O R P O R A T I O N S

Context

All three orders of government use Crown, or government-owned, corporations to pursue economic and social objectives. There are over 40 parent Crown corporations of the federal government; with total assets (excluding the Bank of Canada), of roughly $80 billion. Each province and territory also has Crown corporations, with a total net worth of roughly $20 billion.

Crown corporations have independent access to financial markets and can therefore complement private enterprise (for example, in transportation and housing) or operate as a monopoly (for example, in the sale of liquor, electricity, and natural gas). Governments invest in them to ensure the provision of goods and services that are too expensive or risky for the private sector to undertake alone.

Drivers

Political priorities, expressed through legislation, drive Crown corporations, determining and redefining their responsibilities, methods of service delivery and accountability. Similarly, government policy determines Crown corporation mandates, and policy changes are therefore crucial to the direction a corporation pursues at any given time.

Outlook

Privatization has transformed many Crown corporations, and called into question the future of others. For example, in September 2004, the government sold its stake in Petro-Canada (see “Public-Private Partnerships” in “Industry Sector Page”). However, the nature of the Canadian economy, and its social conscience and environmental goals indicate the continued use of this service delivery model in those situations where private enterprise is unable to deliver at acceptable standards.

Changing Client Needs

Crown corporations need help in generating revenue while meeting their mandate. They need to show government new and better ways to do conventional things. This includes effective management of tangible assets (land and buildings), incorporating market principles into their operations and leveraging their mandate through private sector involvement.

Dillon’s Approach

Dillon has been working with Crown corporations since their inception and we have a strong reputation related to the planning of new facilities and the expansion of existing facilities.

Our experience over the years has grown to include best management practices; divestment analyses and rationalization of real estate portfolios; facilities management; environmental approvals, planning approvals and land development.