There aren’t many things that can’t be bought for $21 billion. Australia’s Sydney Airport is one of those things. This week the board of directors of the privately-operated, stock exchange-listed airport turned down a AUS$22.8 billion buyout offer from a consortium of...
Crown Corporations
International Traffic Congestion Extinguished by Pandemic and Remote Work
The 2020 TomTom Traffic Index reflects a huge drop in worldwide urban traffic congestion levels. Congestion levels (rated by the percentage of additional time required for auto travel during “rush hour”) dropped in 387 urban areas while increasing in only 13. Overall,...
Centerra’s Kumtor Mine Crisis Would Have Been a Taxpayer Problem if Cameco were Still a Crown Corporation
Centerra, a mid-size 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,...
The Duel Over KCS Not a Sign of Ottawa Failure, but a Strategy to Exploit Customers’ China Aversion
Recently, a bidding war has erupted between Canada’s two mammoth and historic railways, Canadian National, ‘CN’ and archrival, Canadian Pacific, ‘CP,’ for the U.S. railroad, Kansas City Southern, ‘KCS.’ This is all about KCS’ mid-American location and its extensive...
Featured News
Timeless Wisdom – The Politics of Successful Structural Reform
It’s a well-known pattern in public policy – profligate politicians damaging their economies with out-of-control spending, massive borrowing and higher taxes – inevitably leading to fiscal crisis, sharp declines in growth and ultimately rapidly falling currency value...
Canada’s National Hysteria in the 21st Century
Mass hysteria is the spontaneous manifestation of a particular behaviour by many people. There are numerous historical examples: Middle Age nuns at a convent in France spontaneously began to meow like cats; at another convent, nuns began biting one another. In...
Divesting Hydro-Québec: Realizing Compelling Value vs. Continuing Misplaced Idolatry
Hydro-Québec, (HQ), is the electric power utility for Quebec, Canada’s largest province by area, and is owned entirely by the provincial government. It could theoretically be worth as much as $162B were it divested; or, far less if investors believe that its...
The Government Insurance ‘Utopia’ You were not Promised
Recently the Insurance Corporation of British Columbia (ICBC) has been experiencing significant losses. These losses have been offset by transfers from its optimal business. Without transfers, the basic business capital would have fallen below the regulatory minimum....
New Brunswick Taxpayers on the Hook for Huge NB Power Debt
NB Power’s debt is a problem for the province of New Brunswick and its taxpayers. As it stands, NB Power’s capital structure is over 90 percent funded by debt. This is a problem for the corporation’s ability to invest and adapt for the future. Unfortunately, it is...
Without Debt There Would Be Little Capital At All: A Valuation of NB Power
Nearly every province in Canada has its dubiously cherished government-owned power utility. Rarely in this country has there been one as hobbled by debt as NB Power, ‘NBP’. The fundamental business is relatively sound and appears to be resilient. However, its capital...
The Utility Company Pushing For Higher Costs For Its Customers: New Brunswick Power
NB Power is a Crown corporation wholly owned by the province of New Brunswick and is run by a board of directors. It was officially formed by the New Brunswick legislature in 1920, but it’s roots trace back as far as the 1880’s. Recently, the Energy and Utilities...
“Private” Liquor Stores Replacing SLGA Stores in Saskatchewan
Private liquor stores are popping up all over Saskatchewan. Almost all of Saskatchewan’s liquor stores have been converted to private liquor stores, except for a few remaining SLGA stores that will soon be turned private. However, these stores are still regulated by...
The Crown Corporation That Regulates Private Liquor Stores: Saskatchewan Liquor & Gaming Association
Saskatchewan Liquor and Gaming Authority (SLGA) is a provincially-owned Crown corporation. SLGA is responsible for the regulation and distribution of liquor, gaming, and as of recently, cannabis products in Saskatchewan. SLGA is responsible for managing most of the...
No Easy Way to Pay the Ferryman: A Valuation of Marine Atlantic
The Frontier Centre for Public Policy has just released No Easy Way to Pay the Ferryman: A Valuation of Marine Atlantic by Ian Madsen, a senior policy analyst with the Frontier Centre for Public Policy. The paper conducts an in depth valuation of the alternative...
More Debt for the Next Farm Bankruptcy Debacle – A Valuation of Farm Credit Canada
In addition to the various banks, non-bank financial institutions, alternative lending firms, and credit unions that Canadian farmers, food processors and agri-business firms may choose from, there is also a federal government Crown corporation they can borrow from:...