According to the Canadian Encyclopaedia, crown corporations are ‘wholly owned federal or provincial organizations that are structured like private or independent companies’. Some of the most important crown corporations include: the Bank of Canada, the Canadian Broadcasting Corporation, Canada Post, VIA Rail and many others. These enterprises enjoy some freedom away from political and government control. For these reason, economists have described crown corporations as being hybrid entities between private enterprises and government bodies.

1. Crown Corporations
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According to the Canadian Encyclopaedia, crown corporations are ‘wholly owned federal or
provincial organizations that are structured like private or independent companies’. Some of the
most important crown corporations include: the Bank of Canada, the Canadian Broadcasting
Corporation, Canada Post, VIA Rail and many others. These enterprises enjoy some freedom
away from political and government control. For these reason, economists have described crown
corporations as being hybrid entities between private enterprises and government bodies.
Basically, crown corporations are created to further certain government agendas. They are
instruments used to achieve certain public policies. This however does not rule out the fact that
they are commercial entities as well. It is therefore a tricky balance trying to achieve their
financial aims as well as address issues to do with public policy. Crown corporations have to
deal with the looming competition from other players in their line of business as well this has
been known to create conflict of interest at times.
The very essence of the crown
corporations is to meet public needs
that the private sector may not be
interested in doing because of the lack
of profitability of the same. For
example, crown corporations invest in
commuter transportation business to
areas with small populations. Private
businesses cannot indulge in such

2. business because it does not promise profits. Crown corporations like the Marine Atlantic offer
ferry services between Nova Scotia and Newfoundland. All these are activities that are geared
towards meeting specific public policies.
The government also employs crown corporations to handle some tasks that they feel the private
sector will not handle as adequately. These functions may not necessarily be of the federal of
provincial departments. For example, licensing of marine pilots is done by a crown corporation
known as the Atlantic Pilotage Authority. Crown corporations can also be involved in carrying
out provincial property assessments, investing of the assets of the Canada Pension Plan among
many other activities.
Most commonly, crown corporations will operate in key sectors including:
Crown Corporations- Canadian Rail system
 Transport
 Gaming
 Alcohol sales
 Utilities
 Business development
 Power generation
 Telecommunications
 Insurance
 Gaming
 Agriculture
 Culture
The source of funding for crown corporations is mostly from government however, the
percentage varies. Some enterprises get all their funding from the government while some that
make enough money are fully self-reliant. The government collects revenue from the income
generated by the crown corporations.
The profit making crown corporation enjoy greater autonomy in comparison to other crown
corporations. The influence of the government concerning major decisions in the corporations is
not existent. They have to come up with unique strategies in order to remain relevant in their
market and to keep pace with the competition of the day. This means that they are not obligated
to deliver a comprehensive annual report like the other crown corporations.

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References:
http://www.thecanadianencyclopedia.ca/en/article/crown-corporation/
http://www.cbc.ca/news/canada/what-are-crown-corporations-and-why-do-they-exist-1.1135699
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