What are federal Crown corporations?

Federal Crown corporations are government-owned commercial enterprises and agencies that operate at arm's length from federal departments. They are established by federal statute, owned by the federal Crown, and accountable to Parliament through a designated Minister. Canada has about 47 active parent Crown corporations and another 100 to 150 subsidiaries. They employ more than 100,000 Canadians and have combined assets of more than $400 billion.

Crown corporations come in three main types. Commercial Crown corporations operate in markets and are expected to be financially self-sustaining (though not necessarily profitable). Examples include the Canadian Broadcasting Corporation (CBC, founded 1936), Canada Post (created 1981 as a Crown corporation, with origins in 1851), VIA Rail Canada (1977, the federal passenger rail corporation), the Royal Canadian Mint (1908, producing Canadian and foreign coins), Export Development Canada (EDC, 1944), the Business Development Bank of Canada (BDC, 1944), Atomic Energy of Canada Limited (AECL, 1952), and Canada Lands Company (1995, manages former federal real estate).

Non-commercial Crown corporations deliver public services and are funded by federal appropriations. Examples include the Canada Council for the Arts (1957), the International Development Research Centre (IDRC, 1970), Telefilm Canada (1967), the National Capital Commission (1959, manages federal heritage sites in the National Capital Region), the National Film Board (1939), and the Canadian Museum for Human Rights (2008). Operational Crown corporations have specialised regulatory or advisory functions; examples include the Canadian Tourism Commission, Defence Research and Development Canada, and the Canadian Commercial Corporation.

The Bank of Canada is sometimes called a Crown corporation but operates with greater independence than most. Established by the Bank of Canada Act of 1934 (opened operations March 11, 1935), the Bank issues Canadian banknotes, sets the overnight target interest rate, and manages federal debt issuance. The Governor of the Bank of Canada (currently Tiff Macklem, since June 2020) is appointed for a seven-year term and operates independently from the federal government on monetary policy. The Crown corporation governance framework, set out in Part X of the Financial Administration Act, establishes board appointments by the Governor in Council, annual reports to Parliament, mandatory five-year strategic plans, and Auditor General audits. The Privy Council Office's Senior Personnel Secretariat manages Crown corporation appointments.