Centerra is being held hostage by Kyrgyzstan but, fortunately, it is no longer part of a Crown corporation so taxpayers aren't on the hook
Centerra, a mid-size Canadian gold-mining company, is engaged in a legal and political dispute with the government of Kyrgyzstan, a former Soviet republic in Central Asia with a chronically unstable and fractious political class and culture. Its main asset, the Kumtor mine, is in that troubled land and the source of roughly half of its…
Reports, studies and analyses show that the essential character of state-owned enterprises, including Canadian Crown corporations, makes it impossible for them to have true independence or real profitability. These operations have inherent goals counter to the normal private sector pursuit of profit maximization. In the private sector, return on investment rewards shareholders for the risk…
Unsurprisingly, as a government car insurance monopoly, MPI’s history is marked by politics
Manitoba Public Insurance (MPI) is in updating its computer programs and associated practices. Through an estimated multimillion-dollar effort, MPI plans to provide its customers with online services. With MPI’s long-needed revamped technology, licensed drivers and vehicle owners will be able to select insurance options and pay MPI bills without even conversing with a broker. Yet…
The policy rationale for the existence of the CBC no longer meets the reality of the modern age
The Canadian Broadcasting Corp. (CBC) should go the way of the Freshwater Fish Marketing Corp. (FFMC). In 1969, the federal government passed the Freshwater Fish Marketing Act (FFMA). It created a federal Crown corporation that acted as the sole buyer of freshwater fish caught in western Canada, northern Canada and parts of northern Ontario. The…
Our health-care budgets were already greatly strained before the COVID-19 crisis; they’re completely blown out now
Two of the major issues arising from the current medical emergency and lockdown are how much it would cost to prepare for a similar crisis and how Canadians would pay for it (as well as pay for the one we’re enduring). The N95 particulate mask is deemed necessary to ensure that neither the wearer nor…
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.…
Proceeds from the sale of Canada Post can be used to offset projected federal budget deficits
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 failure will cost Canada Post more than $1 billion by 2020.…
Centerra, a mid-size Canadian gold-mining company, is engaged in a legal and political dispute with the government of Kyrgyzstan, a former Soviet republic in Central Asia with a chronically unstable and fractious political class and culture. Its main asset, the Kumtor mine, is in that troubled land and the source of roughly half of its…
