Budget 1995 Fact Sheets - 9
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Archived - Privatizing/Commercializing Government Operations

The government will privatize and/or commercialize government operations where feasible and appropriate. Non-essential equity holdings, assets and services will be considered for privatization, or placed on a more commercial basis, where it can be shown to improve service and reduce costs while continuing to protect the public interest.

Reasons to Privatize or Commercialize

Privatizing/commercializing operations which government no longer needs to run represents good management and common sense. This approach will help to reduce financing requirements, debt servicing costs and the deficit. It will also contribute to better economic performance through increased efficiency, competition and new private-sector investment.

Candidates

• Petro-Canada: The government will dispose of its common shares of Petro- Canada. The timing and proceeds of sale will be subject to market conditions.
• CN: The Minister of Transport will take action to sell CN. Doing so will provide the company with the freedom to make strategic operating and investment decisions quickly. It will also enable CN to seek new sources of private-sector capital in order to fund those decisions. The timing and proceeds of sale will be subject to market conditions.
• Transport Canada's Air Navigation System (ANS): The government will commercialize ANS, which comprises the air traffic control system, flight information system and electronic navigation aids. Terms and conditions of transfer and operating framework will be finalized in late 1995. Transport Canada will also commercialize other current operations, including airports, which will be transferred to local authorities.
• Canada Communication Group (CCG): The Minister of Public Works and Government Services will oversee the full or partial divestiture of CCG. Formerly the Queen's Printer, CCG provides printing, publishing and communications services to federal departments on a fee-for-service basis.

Other Opportunities

The government will seek and undertake other opportunities for privatization and commercialization. Initiatives which may be pursued include:

• The National Capital Commission will operate on a more commercial basis.
• Natural Resources Canada will reorganize its geomatics activities and move towards Special Operating Agency status.
• Environment Canada will explore alternatives for more efficient delivery of weather services, including commercialization.
• The Department of Agriculture and Agri-Food will share responsibilities and streamline arrangements with industry for inspection and regulation activities.
• The Department of Fisheries and Oceans (DFO) will seek to enter into partnerships with the fishing industry and others in the management of capacity, licensing and compliance. DFO will also divest recreational harbours to municipalities or other interested parties and rationalize commercial fishing harbours.
• The Canadian Space Agency will focus increasingly on private-sector partnerships and joint ventures for earth observation, space science and technology.
• The Department of National Defence will look at enhancing its private-sector partnerships.
• The Departments of Health, Agriculture, Fisheries and Oceans and Industry will co-operate, in consultation with the food industry and the provinces, to improve the effectiveness and cost-efficiency of the federal component of the Canadian food inspection system.

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