Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site ubc-ean.CDN Path: utzoo!utcsrgv!ubc-vision!ubc-ean!robinson From: robinson@ubc-ean.CDN (Jim Robinson) Newsgroups: can.politics Subject: Crown corporations Message-ID: <740@ubc-ean.CDN> Date: Mon, 13-Aug-84 23:19:30 EDT Article-I.D.: ubc-ean.740 Posted: Mon Aug 13 23:19:30 1984 Date-Received: Tue, 14-Aug-84 03:03:14 EDT Organization: UBC EAN, Vancouver, B.C., Canada Lines: 54 Mark Hume writes > Certainly when the government acts as if it were the private sector, > that is with Crown corporations, it has the same ability to create wealth > as does the private sector. Unfortuneately, that is all the government is doing in such situations, namely acting. It is almost impossible for the government, which is not constrained by the market place ( as far as being competetive and having to have to justify their actions to sharaholders ), to operate in the private sector as if it were a private entity. They KNOW that they cannot go bankrupt, and that knowledge almost ensures that they will not be as efficient as a private sector company. If things go bad for them they merely reach a little deeper into the infinite well ( at least they think it is ) that is the taxpayers pocket. I have long come to the conclusion that the purpose of a Crown corporation is NOT to make money ( and thus create wealth ), but rather to carry out some other specific goal. e.g. Petrocan's goal is supposedly to help Canadians have some control over their oil resources and not to leave the multinationals with all the power. ( It certainly is NOT to give Canadian car drivers a break since they charge the same as the other oil companies but do not pay a cent in taxes ) An incident which examplifies (sp) very well the government's inability to operate as a private sector entity is the bonuses paid to the Canadair and De Havilland executives who helped those companies rack up incredible losses. ( I believe the government was forced to give Canadair an infusion of over a billion [ yes that's a 'b' not a 'm' ] dollars ). The justification for this obscene use of my money and yours was that the bonses were needed to keep theses executives from going into the private sector . Well, I don't know about you, but if I were involved in a company in the private sector the LAST people I would want running it would be those guys. [ As an aside note that De Havilland was purchased by the government in 1974 and was supposed to be sold when a responsible Canadian buyer could be found - guess there ain't too many responsible types out there ] At any rate if anybody out there has figures on the profits and losses of the 400 or so Crown corporations I would be very interested in seeing them. My underlying interest is in seeing how much they cost the taxpayer every year. By the way, don't forget that the post office is a Crown corporation and it sure isn't a model of efficiency. P.S. Glad to see that there are people out there. In my humble opinion, one of the problems with this country is that the people have abdicated their right to have a say in how things should be run. They are quite content to sit back and let the politicians do it, and since their main purpose in life is to be (re)elected and NOT to manage the country in a fair and efficient manner it is no surprise that Canada has got the problems it has. So let's hear it from any and all out there - the Socialists, the Capitalists, the Communists, and the Libertarians ( and anyone else ).