In Newfoundland and several other provinces, major power projects have created huge public debt
The province of Newfoundland and Labrador is staring bankruptcy in the eye, according to recent news reports. There are a variety of reasons, which are typical for provincial politics. Politicians hate to cut services, love to cut taxes and hate to increase taxes because voters react to all of those things. Politicians aren’t leaders, they’re…
Manitoba Hydro should look for ways to increase domestic demand by displacing non-renewable energy consumption
The world’s economy continues to grow every year by between two and four per cent. From when civilization began 5,000 years ago, the production of energy remains an important factor to continued growth. In these environmentally conscious times, efforts are intensifying to reduce energy consumption and switch to renewable resources. Manitoba is in a very…
This Crown corporation’s long-term future is safest in private, rather than public, hands
By Dónal Gill Research Associate Frontier Centre for Public Policy The Frontier Centre for Public Policy recently released Running Hard to Adapt in a Dangerously Fast-Changing Industry by Ian Madsen, a senior policy analyst with the centre. The paper conducts an in-depth valuation and strategic appraisal of SaskPower, using an intrinsic value method and market-based…
The risk of housing price declines piles onto the risk CMHC already takes on when insuring mortgages
Canada’s federal government will soon participate in the property bubble in a direct, equity-owning way through its new First-Time Home Buyer Incentive. But the merits of the program are questionable. Since the end of the Second World War, it’s been federal government policy to help low-income would-be home buyers via Canada Mortgage and Housing Corp.…
There’s no apparent reason why there should be any subsidization of solar installations
By Brian Ransom Former chair Manitoba Hydro On Earth Day 2016, Manitoba Hydro announced its Solar Energy Program, offering incentives and financial support for customers to adopt solar power to generate their electricity and sell excess energy to the Crown corporation. Almost three years later, the program needs a major overhaul. The program was part…
Proceeds from the sale of Canada Post can be used to offset projected federal budget deficits
By Ian Madsen and Anderson Agbugba Frontier Centre for Public Policy The digital revolution has altered Canada Post Corp.’s bottom line. The shift toward e-mail has resulted in a decline in mail volumes. Parcel volumes, however, are increasing owing to fast growing e-commerce. Canada Post is struggling to keep up with these changes and this…
ICBC represents an asset to the provincial government, which faces deficit problems
By Ian Madsen and Anderson Agbugba Frontier Centre for Public Policy The Insurance Corp. of British Columbia (ICBC) has recently suffered significant losses. These losses have been offset by transfers from its optimal business. But without transfers, the basic business capital would have fallen below the regulatory minimum. Even worse, optimal business has also suffered…
A private insurance corporation would be better suited to take on any risk, instead of leaving taxpayers to bear losses
Ian Madsen and Alexandra Burnett Frontier Centre for Public Policy Many Crown corporations created long ago are showing signs that they’re no longer appropriate for life in evolving competitive markets. Saskatchewan Government Insurance (SGI) may be one that’s outlived its purpose of providing vehicle insurance to Saskatchewan drivers. SGI is the monopoly owned by the…
To maximize the value, viability and utility of the post office, it should be permitted free rein. That may mean selling it
One new CEO opening will top most stress-filled leadership positions: Canada’s chief mail delivery officer. There are many iconic symbols of Canada but – if it ever was one – Canada Post certainly has long ceded that status. The Crown corporation predates Confederation but hasn’t endeared itself to anybody for generations. Although the Canada Post…
The job comes with significant challenges but some solutions can be found in Australia
Looking for a new job? Canada Post is looking for a president and chief executive officer. But it’s not a position anyone should consider lightly. The new CEO will face daunting challenges in managing Canada Post’s operational, financial and governance deficiencies in this digital age. And it’s a job that must be done under close public…