Crown corporation

In Canada, a Crown corporation [1] is a type of organization that is structured like a private corporation, but is directly and wholly owned by the Canadian federal government or a provincial government.[2][3] Crown corporations have a long-standing presence in the country, and have a significant economic impact, with commercial operations equivalent to 7% of Canadian GDP.

Crown corporations are created to advance government policy objectives. Often they provide services to the public that are not economically viable for a private enterprise, or that do not fit exactly within the scope of any ministry. They represent a form of state-owned enterprise.[4][5][6]

Crown corporations are established by or under an act of parliament or an act of a provincial legislature. Federal government Crowns report to the relevant minister in Cabinet, though they are "shielded from constant government intervention and legislative oversight" and thus "generally enjoy greater freedom from direct political control than government departments."[7][3]

As of 2022, there were 47 federal Crown corporations in Canada.[8] Provinces operate their own Crown corporations independently of the federal government.[6]

Definition

There is no common definition of a Crown corporation among Canadian governments.[9] In its review of state-owned enterprise (SOE) governance in 54 countries, the OECD notes that in Canada, federal government SOEs are referred to as "Crown corporations."[10]

The Canadian federal government defines its Crown corporations as corporations that (1) are wholly owned by the government; (2) have enabling legislation which sets out the corporation's mandate, powers, and objectives; and (3) operate at arm's length from the government, but are ultimately accountable to the government.[9][11]

While the term "Crown corporation" is widely used in Canada, the province of Ontario refers to its government-owned entities as "agencies".[12][9]

Economic impact

Crown corporations have a considerable economic footprint, with annual commercial operations equivalent to 7% of Canadian GDP.[13] In 2023, government business enterprises had revenues of $199 billion, of which $120 billion was generated at the provincial and territorial level, $43 billion at the federal level, and $36 billion at the local level.[14]

There were 47 federal Crown corporations in 2022.[8] In 2025, Ontario had over 170 agencies, and British Columbia had 29 Crown corporations.[12][15] There are hundreds of local government-owned enterprises that are sometimes referred to as Crown corporations. They provide local services such as electricity, potable and wastewater services, and public transit (ie, Metro Vancouver's public transit authority Translink).[9]

Purpose

As long as Crown corporations have existed, there has been debate about their role and whether they should exist at all.[3][6] Crown corporations are generally formed to fill a need that the government deems in the public or national interest, and that may not be profitable for private industry to provide.[6] For example, Air Canada was created to be an active competitor in a market where competition and service was viewed as inadequate.[9] Some Crown corporations are expected to be profitable organizations, while others are non-commercial and rely entirely on public funds to operate.[4]

Structure

History

Crown corporations have been created to provide important services in Canada - a large, sparsely populated country - usually because the private sector was unable or unwilling to provide such services.[3] The first Canadian Crown corporation was the Board of Works, established in 1841 by the Province of Canada to construct shipping canals.[3] Many of the most significant crown corporations created in the 20th century were designed to meet transportation needs.[3] These include the Canadian National Railway Company (CN), created in 1922 from more than 200 companies, Air Canada, and the St. Lawrence Seaway Authority.[6][17]

The Bank of Canada

List of federal Crown corporations

List of provincial Crown corporations

List of territorial Crown corporations

Former Crown corporations

Several private Canadian companies were once Crown corporations, while others have gone defunct.[6]

See also

• Canada Development Corporation
• Structure of the Canadian federal government
• Nationalization
• Executive agency
• Statutory corporation, a term used in many Commonwealth countries
• Crown entity, equivalent bodies in New Zealand

Further reading

• Treasury Board of Canada Secretariat: 2001 Annual Report To Parliament – Crown Corporations and Other Corporate Interests of Canada (archived 11 March 2007)
• Canadian Heritage Performance Report; March 31, 1998 (archived 27 February 2008)
• Treasury Board of Canada Secretariat: 2007 Annual Report to Parliament – Crown Corporations and other Corporate Interests of Canada (archived 11 June 2011)

External links

• List of Departments and Agencies of the Government of Canada