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Reasons For The Decline Of Crown Corporations In Canada

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The Decline of Crown Corporations in Canada

Crown Corporations are major public enterprises that are owned and ran by one entity, that assist the public's needs in issues such as distribution, price of goods and public transportation. They are formed through the legislation in the government under the federal and provincial companies, similar to the private sector companies. Crown Corporations are operated at arm's length from the government, and are only tied through budget and spending (Barker, 2008). While some Crown Corporations are profitable, most require public funds to operate, and often require financial assistance from the government, which ultimately increases overall government spending and deficit. The increase of public needs …show more content…

Reducing government deficit and spending is a major contributor to the decline of Crown Corporations because the inflow of funds from these corporations is a quick and easy way to pay down the deficit. If a corporation is costing the government and the public an excessive amount of money to operate, it would be more economically sound to cut spending and use the revenue to pay down the debt. The unique political culture of a province also plays an important role in the decline of Crown Corporations in Canada throughout the years. The unique culture of each province reflects its most beneficial policies and most efficient money making plans. The decline of Crown Corporations in Canada is also attributed to the change of modern day society. With the expansion of population, technology and society as a whole, it is the governments duty to the people to alter policies and regulations to fit modern day societies needs. All of these help to answer the question, "Why are Crown Corporations declining in Canada?" and give a better understanding of how the government makes decisions to reduce the amount of Crown Corporations. Although there are some negative externalities from removing Crown Corporations from our culture, the number of positive externalities out-weigh the negative at any given time. Soon enough, Crown Corporations will no longer

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