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2001 Annual Report To Parliament - Crown Corporations and Other Corporate Interests of Canada
The President's message
I am pleased to table the 2001 Annual Report to Parliament on Crown Corporations and Other Corporate Interests of Canada, in accordance with the provisions of the Financial Administration Act.
This report is a unique source of information for parliamentarians and for Canadians on the Government of Canada's corporate holdings. It provides comprehensive information on the activities of all Crown corporations and their wholly owned subsidiaries, as well as Canada's other corporate interests. Information on the performance of a number of Crown corporations is also highlighted in the report.
In keeping with the government's commitment to achieve concrete results for Canadians, the government undertook a number of legislative initiatives during 2000-2001 to enhance the effectiveness and performance of the corporations. Consistent with these goals, the Canadian Tourism Commission (the Commission) became a new Crown corporation on January 2, 2001 with a mandate to promote Canada as a four-season tourist destination. The Commission is a unique public/private sector partnership that provides an innovative approach to tourism.
On June 18, 2001, Parliament approved Bill C-25, to amend the Farm Credit Corporation Act, which changed the name of the Farm Credit Corporation to Farm Credit Canada, which better reflects its federal identity and demonstrates the federal government's commitment to rural Canada. In addition, the new legislation will allow Farm Credit Canada to provide financial services to any farm-related businesses on the input or output side of primary production, offer equity financing directly and in partnership with other equity investors, and provide both financial and business management services to producers and farm-related business.
Throughout various periods in our history, Crown corporations have acted as engines of industrial development, provided key goods and services, and assisted and strengthened the cultural fabric of the country. Today, they continue to play important roles in Canada's development and contribute significantly to the creation and preservation of our national identity.
The paper version was signed by Lucienne Robillard, President of the Treasury
Board
December 2001
Introduction
The 2001 Annual Report to Parliament on Crown Corporations and Other Corporate Interests of Canada is prepared in response to sections 151 and 152 of the Financial Administration Act, which require that the President of the Treasury Board table annually the following documents in Parliament:
- a consolidated report on the businesses and activities of all parent Crown corporations, including information on all Crown corporations and other corporate interests of Canada; and
- a report indicating when annual reports and corporate plan and budget summaries were to be laid before each House (for the period ending on July 31), and when they were actually laid before that House.
This report comprises the following chapters:
- Overview highlights new developments with regard to Crown corporations and presents examples of corporations that reported on their governance activities during the year under review. It also provides consolidated financial and employment information by ministerial portfolio.
- Crown Corporations' Corporate Holdings presents a listing of parent Crown corporations and their subsidiaries, legal partnerships and associates as of August 31, 2001.
- Other Corporate Interests of Canada provides information about the various joint and mixed enterprises, international organizations and shared-governance corporations in which the Government of Canada has a stake.
- List of Crown Corporations and Other Corporate Interests of Canada is a compilation of all the organizations that have been referred to in this report, including parent Crown corporations and their subsidiaries, legal partnerships and associates, joint and mixed enterprises, international organizations and shared-governance corporations in which the Government of Canada has an interest. The list is presented both by ministerial portfolio and alphabetically.
- Tabling of Reports in Parliament presents a record of annual reports and summaries of the corporate plans and budgets tabled in Parliament by the responsible ministers.
- Corporate Abstracts provides information on the mandate and corporate profile of each parent Crown corporation. It may also present selected information on performance during the year under review. Principal financial information is shown in the summary exhibits at the end of the Overview chapter.
Although not included as part of this report, a compilation of the audited financial statements of the parent Crown corporations included in this annual report is available upon request.
Overview
There are 41 parent Crown corporations and two wholly owned subsidiaries which have been directed 1to report as parent Crown corporations for the purposes of the Financial Administration Act.
Every parent Crown corporation is a legally distinct entity wholly owned by the Crown and managed by a board of directors. The enabling legislation for each parent Crown corporation, whether by a special Act of Parliament or by articles of incorporation under the Canada Business Corporations Act, sets out the corporation's mandate, powers and objectives.
The current portfolio is highly diversified, with corporations operating in many sectors of the Canadian economy. The corporations vary in size and in their demands on the government for financial assistance. Each has its unique purpose in public policy.
Exhibit 1 presents the parent Crown corporations grouped according to the portfolio of the minister through whom they are accountable to Parliament.
Exhibit 1:Parent Crown Corporations
Grouped by Ministerial Portfolio
(as of their financial year-ends
prior to July 31, 2001)
Structural Changes During the Year in Review
The Cape Breton Growth Fund Corporation was created as a subsidiary of the Enterprise Cape Breton Corporation on August 25, 2000, and deemed a parent Crown corporation pursuant to the Financial Administration Act. It is serving as the vehicle to distribute $61 million in federal and $12 million in provincial funding over two years to Cape Breton Island, to offset the impact of the closure of the coal mines operated by the Cape Breton Development Corporation, which is slated for windup.
The Canada Ports Corporation was dissolved on November 1, 2000, and its wholly owned subsidiary, Ridley Terminals Inc., became a parent Crown corporation on the same day.
The Canadian Tourism Commission became a new Crown corporation on January 2, 2001, with a mandate to promote Canada as a four-season tourist destination; to support a co-operative relationship between the private sector and the governments of Canada, the provinces and the territories with respect to Canadian tourism; and to provide information about Canadian tourism to the private sector and to the federal, provincial and territorial governments. The Commission is a unique public/private sector partnership to provide an innovative approach to tourism.
On April 23, 2000, the Minister of Finance approved a recommendation of the board of directors of Petro-Canada Limited to dissolve the Corporation in accordance with the Petro-Canada Limited Public Participation Act during fiscal 2000. Petro-Canada Limited was officially dissolved on February 5, 2001.
On June 18, 2001, Parliament approved Bill C-25, which amended the Farm Credit Corporation Act. The name of the Corporation was changed to Farm Credit Canada to better reflect its federal identity and to demonstrate the federal government's commitment to rural Canada. The new legislation will allow Farm Credit Canada to provide financial services to any farm-related businesses on the input or output side of primary production, to offer equity financing directly and in partnership with other equity investors, and to provide both financial and business management services to producers and farm-related business.
Shared-governance Corporations
Bill C-4, an Act to create the Canada Foundation for Sustainable Development Technology received Royal Assent on June 14, 2001. The Foundation will operate as a not-for-profit shared-governance corporation, with the federal government appointing a minority of the board of directors. The Foundation has a mandate to fund projects to develop and demonstrate new technologies that will promote sustainable development, including technologies that address issues of climate change and air quality.
Privatization
In January 2000 the Cape Breton Development Corporation Divestiture and Dissolution Act was proclaimed. This Act provides for the sale of assets, winding up of the affairs of the Corporation and preparing for its eventual dissolution. On May 16, 2001, the Government of Canada announced that it accepted the recommendation of the Cape Breton Development Corporation Board of Directors to begin immediately an orderly closure of the Prince mine while efforts to sell the surface operations would continue. The Board recommended the orderly closure of the mine after considering the financial outlook for an ongoing operation and unsuccessful attempts by the Corporation to conclude a sale of the mine.
Ridley Terminals Inc. (RTI) is an advanced bulk terminal located on land leased from the Prince Rupert Port Authority on Ridley Island in Prince Rupert, British Columbia. RTI was established in 1981 to provide a marine terminal to support the development of coalmines in Northeastern British Columbia. At the time of construction, it was expected that the demand for and the price of coal would continue to increase such that the initial investment in RTI could be easily recovered. In 2000, RTI's largest client, the Quintette mine, as well as two mines in Alberta, closed. The Bullmoose mine, RTI's largest remaining customer, is expected to close in 2003. In light of the mine closures and the resultant decrease in cash flow and profitability, the government is exploring options for RTI's future.
Mandate Reviews and Follow-up
To determine its future direction, the Canada Lands Company Limited (Canada Lands) underwent a planned mandate review in 2000, at the end of its first five years of operation. The review focused primarily on the activities of Canada Lands' core real estate subsidiary, Canada Lands Company CLC Limited (CLC).
As part of the review, an independent outside organization was contracted to benchmark CLC against the top real estate development companies in the industry. Concurrent with this mandate review, Canada Lands underwent a Special Examination by the Auditor General, as routinely required under the Financial Administration Act. The key issue raised in the Special Examination was the issue of future Crown surplus property transfers to CLC from the Government of Canada. The examiners expressed some concern over Canada Lands' ability to achieve its mandate of disposing of surplus properties, in light of the various process constraints involved in transferring surplus property from the government to Canada Lands.
Canada Lands continues to review the governance relationship between itself and its subsidiaries, Parc Downsview Park Inc. (PDP) and the Old Port of Montreal Corporation Inc. (OPM). Recommendations regarding PDP will be made to the Minister of Public Works and Government Services Canada to ensure an appropriate governance relationship, within the mandate and authority given to Canada Lands as the parent corporation. OPM is currently undergoing a mandate review of its own, and the issue of its governance (reporting directly to Parliament as if it were a parent Crown corporation) is being reviewed as part of this process.
The Canadian Commercial Corporation (CCC) reported that its board of directors examined and proposed a long-term direction for the Corporation to the shareholder. Following the appointment of a full-time president in 1999, the board authorized a series of external studies and consultations to review CCC's role and mandate, and to identify implementation requirements.
During 2000 the Canadian Race Relations Foundation was fully engaged in the fourth-year review of its operations as required by the Canadian Race Relations Foundation Act. The Minister of Canadian Heritage, who is responsible for the Foundation, must table the resulting report in Parliament.
On September 20, 2001, the Minister for International Trade tabled a bill in Parliament (C-31) to update the Export Development Act. A principal change is a new legal requirement for the environmental review of projects that the Export Development Corporation has been asked to support. Other amendments include changing the Corporation's legal name to Export Development Canada, as well as measures to update governance and administrative practices. Bill C-31 received second reading in the House of Commons on October 2, 2001.
Corporate Governance
Crown corporations are firmly committing themselves to effective practices of corporate governance in order to fulfil their various mandates. Many of them have responded to the 1996 Guidelines for Corporate Governance in Crown Corporations and Other Public Enterprises issued by the President of the Treasury Board and the Minister of Finance. The guidelines recommend that Crown corporations report annually on their corporate governance policies and practices in relation to the guidelines.
The December volume of the Auditor General's 2000 Report included a chapter on the governance of Crown corporations. The Auditor General remarked that the management of Crown corporations has improved since the Financial Administration Act was amended in 1984 to strengthen the control and accountability framework for these corporations. The report, however, indicated that further improvement is needed in such areas as strategic and corporate planning, and the measurement and reporting of performance. The report also noted the importance of improving the governance of Crown corporations if the corporations are to meet future demands for performance.
In June 2001 the Privy Council Office and the Treasury Board of Canada Secretariat sponsored a round table discussion on corporate governance for the chairs of Crown corporations. Topics discussed at the session included the relationships of Crown corporations to their responsible ministers; portfolio management; the development of a guide book for Crown corporation chairs, directors and chief executive officers (CEOs); an update on the findings and recommendations of the Advisory Committee on Senior Level Retention and Compensation; CEO performance management; and the Governor-in-Council appointment process and the importance of board-of-director profiles.
During the year under review many Crown corporations reported on their governance activities. Examples of the activities are discussed below under the following headings: Approaches to Governance, Assessment and Renewal of the Board, Education of Directors, Board Compensation, Conflict of Interest, Board and Management Relations, Evaluating the CEO's Performance, Communication with Stakeholders, Succession Planning and Risk Management.
Approaches to Governance
The Atlantic Pilotage Authority noted that policies regarding the stewardship of the Authority, working with management, and the functioning of the Authority's board are under continual review and, where necessary, changes are being implemented.
The Business Development Bank of Canada reported that its board members participated in a strategic session whereby they reviewed the Bank's mission, vision and strategic priorities.
The Canada Deposit Insurance Corporation reported that it commissioned an outside review of its board of directors' governance practices to highlight any areas that might require improvement or change. An outcome of the review is that its board of directors will devote a full session each year to strategic planning and direction-setting for the Corporation. The board also created an ad hoc committee with a mandate to review all of the recommendations resulting from the above-mentioned review, to weigh the applicable recommendations of the Report of the Auditor General of Canada to the House of Commons and to review the Department of Finance and Treasury Board of Canada Secretariat's Guidelines for Corporate Governance in Crown Corporations and Other Public Enterprises.
The Canada Lands Company Limited noted that during 2000-01 the governance committee of the Park Downsview Parc Inc. board reviewed the terms of reference of the various committees of the board, board responsibilities and the role of the board, the need for an executive committee, corporate policies and the proposed future evaluation of the chair and directors.
The Canada Pension Plan Investment Board reported that the work of the board is assigned to committees, with recommendations referred to the full board for approval. The investment committee, which consists of the full board, reviewed and approved management's strategy to diversify risk and enhance returns by moving from passive to active investing. The committee also reviewed with management an enterprise-wide risk management framework that identified risks, established policies and procedures to mitigate them, and clarified the responsibilities of board committees and the management of risk. The audit committee also reviewed financial reporting and internal control policies and practices. The board measures its policies and procedures against legislation, regulations and external guidelines. It complies with all the applicable governance guidelines of the Toronto Stock Exchange (TSE) for public companies; the applicable governance principles developed by a task force of the Association of Canadian Pension Management, the Pension Investment Association of Canada and the Office of the Superintendent of Financial Institutions.
The Canadian Museum of Civilization noted that during the year the board of trustees had seven committees to help expedite its business. These committees met regularly before board meetings in person and by teleconference, and reported their recommendations to the meetings of the full board.
The Public Sector Pension Investment Board has established four committees to assist in fulfilling its obligations.
Assessment and Renewal of the Board
The Business Development Bank of Canada reported that, in recognition of the importance of feedback to the governance process, it implemented an annual evaluation procedure to assess the performance of the board and its committees.
The Canada Pension Plan Investment Board noted that its board of directors has a process for self-evaluation and is exploring the benefits and effectiveness of a peer-review process.
The Export Development Corporation's board of directors reviewed and evaluated its actions with respect to corporate governance, and assessed its compliance with the 1996 corporate governance guidelines of the Department of Finance and Treasury Board of Canada Secretariat.
The Public Sector Pension Investment Board approved a performance evaluation policy in February 2001 that focuses on procedures and on frank and confidential discussions between the chair and individual directors.
The Royal Canadian Mint reported that its board of directors approved an evaluation framework for measuring its own performance.
Education of Directors
The Canada Lands Company Limited noted that new directors are given an orientation session and a manual, and are encouraged to participate in educational seminars on corporate governance.
The Freshwater Fish Marketing Corporation noted that its board of directors' meeting in April 2001 included a half-day information session on Crown corporation governance conducted by the Treasury Board of Canada Secretariat and the Privy Council Office.
Board Compensation
The Public Sector Pension Investment Board adopted a policy of compensating directors on a basis similar to the median compensation received by directors of companies listed in the TSE 300 index. As a result, each director receives a $12,000 annual retainer. Chairs of committees are paid an additional $3,000 retainer. A $900 per diem fee is paid for each meeting of the board and of board committees. Only a single fee is paid, however, when board and investment committee meetings occur on the same day.
Conflict of Interest
The Canada Pension Plan Investment Board reported that its directors, officers and employees annually acknowledge in writing the Investment Board's codes of conduct that are designed to create a corporate culture of trust, honesty and integrity. The Investment Board maintains strict conflict-of-interest procedures for directors, officers and employees to avoid potential conflicts between their private and business interests and those of the Investment Board. Officers and employees file quarterly with the Board's external auditor a statement of the investments they hold and a report on transactions. Before making a trade during restricted trading periods, they notify the Board's compliance officer to determine whether the securities in question are on its restricted list of securities. Officers and employees disclose the identity of their investment agents, companies of which they are a director or employee, and trusts of which they are a trustee. Directors complete and submit an annual disclosure-of-interest report for review by the governance committee and must notify the chair before accepting a directorship or any position of authority in an entity that might benefit from the Investment Board, or be in conflict with it.
The Public Sector Pension Investment Board indicated it has developed detailed procedures to identify circumstances where the potential for a conflict of interest exists and to guide directors in dealing with such situations. The purpose of this is to ensure that directors have a full understanding and appreciation of the Investment Board's principles and values to help them determine appropriate business practices and behaviour.
Board and Management Relations
The Freshwater Fish Marketing Corporation reported that the majority of its board of directors attended the October 2000 Western Commercial Fisheries Conference in Winnipeg, where a panel, comprised of the Corporation's previous chair, the Corporation's president and senior management, made a formal presentation of the Corporation's strategic directions and other corporate activities. Also, the Minister of Fisheries and Oceans met with the board at its August 2000 meeting, which included a presentation of the Corporation's strategic plan.
The Royal Canadian Mint noted that its board of directors enjoyed a sound working relationship with senior management; both groups continued their dialogue on strategic directions for the Mint to take following the conclusion of the Millennium coin program.
Evaluating the CEO's Performance
The Bank of Canada reported that the chair of its human resources and compensation committee of the board of directors met with the Governor and Senior Deputy Governor to review their performance and discussed objectives for the coming year.
The Canada Pension Plan Investment Board reported that its human resources and compensation committee completed an evaluation of the performance of the President and Chief Executive Officer (CEO), and continues to monitor succession planning and organizational structure.
The board of directors of the Canadian Commercial Corporation established a compensation subcommittee to review the CEO's performance and recommend compensation adjustments to the minister responsible for the Corporation. These adjustments were to be related to performance and to the recommendations of the government's Advisory Committee on Senior Level Retention and Compensation on CEO salary scales in Crown corporations.
Communication with Stakeholders
The Freshwater Fish Marketing Corporation reported that its board of directors exercised its liaison role with all levels of government and fisher-association stakeholders by attending numerous private and public meetings, conferences and information sessions in the provinces and communities it represents.
Succession Planning
The Export Development Corporation (EDC) reported that the board of directors was satisfied that an appropriate leadership development program for managers had been implemented within the Corporation. This program will ensure the identification and staffing of critical leadership positions, examine the ongoing relevance of the Corporation's structure to its strategic imperatives and begin to assess EDC's current talent against future requirements.
Risk Management
Though the Business Development Bank of Canada has been practising effective risk management for many years, the Bank's board and management placed greater emphasis this year on integrated risk management. The Bank's risks were assessed, together with actions being taken to manage these risks successfully. As well, an effective ongoing process was put into place to identify, measure and manage potential risks proactively.
The Canadian Commercial Corporation reported that its audit committee worked with management throughout the year to develop a risk management framework for countries in which the Corporation has a concentration of business, in light of its intention to take a more proactive approach to building a larger portfolio of business in certain countries.
The board of directors of the Export Development Corporation (EDC) approved a plan directed towards the development and implementation of a comprehensive Enterprise Risk Management Framework, together with all supporting policies and processes for managing credit, market and operational risks, by the end of 2004. The board also agreed on the key development areas to be pursued in 2000 under the Credit Risk Management Framework approved in December 1999 as the foundation for Enterprise Risk Management at EDC, and at the end of the year noted the achievement of these objectives.
Excellence in Reporting
The Auditor General of Canada's Award for Excellence in Annual Reporting by Crown Corporations was launched in 1994. Although the initiative was originally intended as a five-year program, it has since been extended for an additional five years to 2004. The main purpose of these annual awards is to promote improved disclosure of information on corporate performance by recognizing Crown corporations that do an outstanding job in this respect. In 2000, the Export Development Corporation and the National Capital Commission won the Awards. The Canada Deposit Insurance Corporation, Defence Construction (1951) Limited and Farm Credit Canada were also nominated for the awards.
Measuring Performance
Selected information on performance is presented in many of the corporate abstracts included in this report. Sources for this information include the corporation's most recently tabled annual report, as well as the summary of the corporate plan approved for the year under review.
Overall Crown Corporation Performance
The Financial Administration Act requires that the current report include employment and financial data, including aggregate borrowings of parent Crown corporations.
Accordingly this section of the Overview provides a summary of overall performance by Crown corporations, including the following data:
- employment;
- assets;
- budgetary appropriations; and
- debt obligations.
At the end of this section, two exhibits provide a summary view of all Crown corporations:
- Exhibit 8 shows each corporation's employment and financial position; and
- Exhibit 9 provides information about each corporation's operating results and financing.
Exhibits 8 and 9 are also structured according to the portfolio grouping shown in Exhibit 1. Note that information provided in this section excludes financial data for:
- the Bank of Canada, the Canada Pension Plan Investment Board, and the Public Sector Pension Investment Board because of the unique nature of their operations; and
- the Canadian Film Development Corporation, Petro-Canada Limited, the Cape Breton Growth Fund Corporation, the Enterprise Cape Breton Corporation, and The Federal Bridge Corporation Limited, since their 2000-01 annual reports had not been tabled in Parliament as of October 5, 2001.
In order to present information on a comparative basis, financial data for previous years were adjusted to exclude data for the above Crown corporations. Available employment data for these corporations are included, however. Specific information about individual Crown corporations may be found in the Corporate Abstracts chapter of this report, as well as in the respective annual reports of the Crown corporations.
A glossary of the financial and employment terms used in this report is provided at the end of this section.
To ensure the greatest possible accuracy, the exhibits presented in this report, as well as all calculations, are based on a computer database of actual figures. Results of the calculations are rounded for ease of presentation.
Where Crown corporations have re-stated financial data for previous years, readers should be aware that the data in this report reflect only those changes that correct errors from previous years. Amendments have been made by some corporations as a result of changes in their accounting policies that have been applied retroactively to financial statements from previous years. This report, and the database of financial information on which it is based, do not reflect these amendments.
For Crown corporations with fiscal years ending on or after July 31, 2001, this report shows their financial data for the fiscal year ending in 2000. Accordingly, for the Canadian Dairy Commission and the National Arts Centre Corporation, this report covers the period ending July 31, 2000 and August 31, 2000 respectively. All of the other corporations' data are for their respective 2000 or 2000-01 fiscal years.
Employment
In 2000-01, the total number of full-time employees of Crown corporations increased to 70,986, ending the downward trend reflected throughout the 1990s. The addition of 551 employees, from a total of 70,435 in 1999-2000, represents a 0.8-per-cent increase from the previous year compared to a 1.0-per-cent decrease in the number of employees between the previous two years.
While the Cape Breton Development Corporation saw a reduction of 737 employees during the fiscal year as a result of closing the Phalen Colliery, and the dissolution of the Canada Ports Corporation accounted for a reduction of 102 employees, the Canada Post Corporation (CPC) increased its workforce by 1,472. This represents a 3.3-per-cent increase from 1999-2000, bringing its workforce to 45,621.
Under the terms of the present collective agreement between CPC and the Canadian Union of Postal Workers, the Corporation is committed to increasing its full-time positions and relying less upon part-time and casual workers. The commitment in 2000-01 was to achieve a ratio of 76 per cent of full-time/total hours paid. As well, CPC was obliged to convert some Community Mail Box delivery to letter-carrier and this involved the conversion of 150 full-time positions.
Increases in employment at the Business Development Bank of Canada (110) and the Export Development Corporation (101) were offset by a decrease of 334 employees at the Canadian Broadcasting Corporation.
Exhibit 2 shows the changing trend over the last five years.
Exhibit 2: Employment in Crown Corporations, 1996-97 to 2000-01
Assets
The total assets of Crown corporations resumed their increasing trend after showing a decrease in 1999-2000 (mainly as a result of the conversion of the seven local port corporations and The Canadian Wheat Board into shared-governance corporations). The $5.13 billion increase during the year under review brought total assets to $68.24 billion in 2000-01.
Significant year-over-year increases reported by the Export Development Corporation (EDC) and the Canada Mortgage and Housing Corporation (CMHC) accounted for more than half of the net 8.1-per-cent increase in the total assets of Crown corporations.
Five Crown corporations accounted for 90 per cent of the total assets: CMHC, EDC, Farm Credit Canada, the Business Development Bank of Canada and the Canada Post Corporation.
Exhibit 3 demonstrates the fluctuations in the value of Crown corporations' assets over the last five years.
Exhibit 3: Total Assets of Crown Corporations, 1996-97 to 2000-01
Budgetary Appropriations
An increase in parliamentary funding for capital and operating purposes brought total budgetary appropriations for Crown corporations to $4,174 million in 2000-01. The additional $303.8 million represents a 7.85-per-cent increase from the previous year.
Canada Post Corporation (CPC), which received budgetary appropriations of $22.2 million in 1999-2000, accounted for about three quarters of the total increase in appropriation funding for the year under review. The 2000-2001 Main Estimates show funding through budgetary appropriations to CPC of $257.2 million for payments related to public policy programs (Parliamentary Free Mail and Literature for the Blind) and transitional support for the implementation of the Canada Post Corporation Pension Plan(s).
Marine Atlantic Inc. also reported a significant increase in the amount of budgetary appropriations received: from $23.3 million in 1999 to $89.0 million in 2000. The Corporation received authority during 2000 to purchase a ferry at a cost of up to $86.3 million. The Government of Canada financed the cost of acquiring this vessel.
Total budgetary appropriations for the five-year period from 1996-97 to 2000-01 are shown in Exhibit 4.
Exhibit 4: Total Budgetary Appropriations, 1996-97 to 2000-01
Of the 20 Crown corporations that received appropriations in 2000-01, six accounted for 85 per cent of the total funding from Canada. These were the Canada Mortgage and Housing Corporation (CMHC), the Canadian Broadcasting Corporation, the Canada Post Corporation, VIA Rail Canada Inc., the Canada Council and Atomic Energy of Canada Limited. For CMHC, which was the largest recipient, 99 per cent of the appropriations flow to households-in-need under long-term subsidy commitments.
Exhibit 5 provides a summary view of the 2000-01 recipients of budgetary appropriations.
Exhibit 5: Recipients of 2000-01 Budgetary Appropriations
|
 |
Canada Mortgage and Housing Corporation (CMHC) Canadian Broadcasting Corporation (CBC) Canada Post Corporation (CanPost) VIA Rail Canada Inc. (VIA Rail) Canada Council (CanCouncil) Atomic Energy of Canada Limited (AECL) |
Debt Obligations
Total debt obligations, consisting of debts payable to Canada and to the private sector, increased by 4 per cent, to $46.8 billion in 2000-01 from $45.0 billion in the previous year. Crown corporations continued to replace borrowings from Canada (which decreased by 7 per cent) with borrowings from private sector lenders (which increased by 6 per cent). Exhibit 6 shows the debt payable to Canada, the debt incurred in private sector markets as well as the total debt obligations over the last five years.
Exhibit 6: Total Debt Obligations of Crown Corporations, 1996-97 to 2000-01
The four largest debtors in 2000-01 were the Export Development Corporation (EDC), the Canada Mortgage and Housing Corporation (CMHC), Farm Credit Canada (FCC) and the Business Development Bank of Canada (BDC). These same Crown corporations were also the four largest debtors in 1999-2000.
Exhibit 7 presents the respective debt loads of the four largest debtors in 2000-01 compared to 1996-97.
Exhibit 7: Comparison of Largest Debtors in 2000-01 with 1996-97
Glossary of Financial and Employment Terms Used in This Report
All financial data are extracted from the Crown corporations' audited financial statements for the recent fiscal year. Certain values are adjusted to apply consistently the definitions that follow. Items are listed in the order in which they appear in the summary exhibits.
Total assets represents all assets reported by the corporation in its audited financial statements.
Equity represents the equity of Canada. For some corporations, the excess of assets over liabilities is not deemed to be equity of Canada because of the nature of their operations (e.g. marketing boards).
Employment represents the number of full-time employees obtained from sources such as an annual report, financial statements or a corporate plan, and are as at the fiscal year-end of the Crown corporation. The figure includes the full-time staff, and others employed outside of Canada by the parent corporation and its wholly owned subsidiaries. The exceptions are data for the Canada Development Investment Corporation, which relate to the parent corporation only, and data for the four pilotage authorities, which include contract pilots.
Net income represents after-tax income, where applicable, and any extraordinary items. It includes parliamentary appropriations where the corporation has included these in the computation of net income. In some cases, net income is the "excess of parliamentary appropriations over cost of operations" or "excess of proceeds over expenditures." A negative net income (i.e. a net loss) is shown in parentheses.
Borrowings from the private sector include short- and long-term borrowings, capital leases and any other debt-like instruments. For the marketing corporations (Canadian Dairy Commission and Freshwater Fish Marketing Corporation), loans may include payments accruing to dairy producers and fishers.
Borrowings from Canada include short- and long-term borrowings, advances from the Government of Canada for working capital or other purposes, and other debt-like instruments.
Budgetary appropriations refers to parliamentary funding for capital and operating purposes. The amounts exclude grants and contributions paid to Crown corporations where they qualify as members of a general class of recipients. Budgetary appropriations increase the expenditures of Canada and thus have a direct impact on the amount of the government's surplus or deficit.
Dividends represents those declared by the corporation during its fiscal year. This figure includes cash recoveries by Canada (where applicable) and other types of payments or contributions made to Canada (excluding repayments of debt-like instruments). Dividends may be paid by the corporation to the Government of Canada before or after the corporation's year-end.
Exhibit 8: Employment and Financial Position Grouped by
Ministerial Portfolio
(as of year-ends before July 31, 2001; $ million)
|
Financial Position |
|||||||
|
Corporation by Ministerial Portfolio |
Total Assets |
Current Liabilities |
Long-term Liabilities |
Equity1 |
Employment |
||
|
Canadian Dairy Commission |
105.7 |
105.7 |
0.0 |
0.0 |
65 |
||
| Farm Credit Canada |
7,181.8 |
3,434.3 |
2,914.9 |
832.6 |
900 | ||
| Total Agriculture and Agri-Food |
7,287.6 |
3,540.1 |
2,914.9 |
|
|||
|
Canada Council |
326.3 |
21.0 |
7.9 |
216.6 |
180 |
||
|
Canadian Broadcasting Corporation |
1,494.0 |
268.6 |
1,116.7 |
108.7 |
6,737 |
||
|
Canadian Film Development Corporation 2 |
-- |
-- |
-- |
-- |
164 |
||
|
Canadian Museum of Civilization |
51.2 |
7.9 |
22.9 |
20.3 |
421 |
||
|
Canadian Museum of Nature |
44.6 |
4.8 |
39.8 |
(0.3) |
169 |
||
|
Canadian Race Relations Foundation |
27.3 |
0.6 |
0.0 |
26.7 |
10 |
||
|
National Arts Centre Corporation |
31.6 |
12.3 |
18.4 |
0.9 |
242 |
||
|
National Capital Commission |
545.0 |
20.1 |
40.7 |
484.2 |
429 |
||
|
National Gallery of Canada |
22.7 |
6.4 |
13.8 |
2.4 |
249 |
||
|
National Museum of Science and |
|
|
|
|
|
||
|
Total Canadian Heritage |
2,558.1 |
343.9 |
1,271.9 |
8,836 |
|||
|
Bank of Canada 3 |
39,548.1 |
36,775.3 |
0.0 |
30.0 |
1,289 |
||
|
Canada Deposit Insurance Corporation |
904.1 |
6.1 |
443.0 |
455.0 |
86 |
||
|
Canada Development Investment |
|
|
|
|
|
||
|
Canada Pension Plan Investment Board 3 |
7,156.3 |
2.2 |
0.0 |
0.0 |
15 |
||
|
Petro-Canada Limited 2 |
-- |
-- |
-- |
-- |
0 |
||
|
Total Finance |
1,008.0 |
22.0 |
445.0 |
1,390 |
|||
|
Freshwater Fish Marketing Corporation |
26.9 |
22.7 |
0.0 |
4.2 |
45 |
||
|
Total Fisheries and Oceans |
26.9 |
22.7 |
0.0 |
45 |
|||
|
International Development Research Centre |
64.4 |
51.5 |
12.7 |
0.2 |
333 |
||
|
Total Foreign Affairs |
64.4 |
51.5 |
12.7 |
333 |
|||
|
Business Development Bank of Canada |
6,225.5 |
2,812.7 |
2,489.5 |
923.3 |
1,257 |
||
|
Canadian Tourism Commission 4 |
0.0 |
0.0 |
0.0 |
0.0 |
0 |
||
|
-- |
-- |
-- |
-- |
5 |
|||
|
Enterprise Cape Breton Corporation 2 |
-- |
-- |
-- |
-- |
50 |
||
|
Standards Council of Canada |
4.5 |
1.8 |
1.1 |
1.6 |
69 |
||
|
Total Industry |
6,230.0 |
2,814.5 |
2,490.6 |
1,381 |
|||
|
Canadian Commercial Corporation |
573.5 |
542.3 |
6.0 |
25.1 |
90 |
||
|
Export Development Corporation |
20,990.0 |
6,680.0 |
12,318.0 |
1,992.0 |
873 |
||
|
Total International Trade |
21,563.5 |
7,222.3 |
12,324.0 |
963 |
|||
|
Atomic Energy of Canada Limited |
820.7 |
215.2 |
522.5 |
83.0 |
3,306 |
||
|
Cape Breton Development Corporation |
71.5 |
60.8 |
465.8 |
(455.1) |
575 |
||
|
Total Natural Resources |
892.2 |
276.0 |
988.3 |
3,881 |
|||
|
Canada Lands Company Limited |
394.6 |
107.6 |
50.4 |
236.5 |
110 |
||
|
Canada Mortgage and Housing Corporation |
1,815 |
||||||
|
Insurance and Guarantee Funds |
5,497.0 |
55.0 |
4,568.0 |
874.0 |
|||
|
Corporate Account |
17,824.0 |
3,921.0 |
13,858.0 |
45.0 |
|||
|
Minister's Account |
0.0 |
0.0 |
0.0 |
0.0 |
|||
|
Canada Post Corporation |
3,653.0 |
1,159.0 |
1,660.0 |
834.0 |
45,621 |
||
|
Defence Construction (1951) Limited |
7.7 |
2.5 |
2.6 |
2.6 |
286 |
||
|
Old Port of Montreal Corporation Inc.6 |
15.5 |
10.8 |
4.7 |
0.0 |
114 |
||
|
Queens Quay West Land Corporation |
11.3 |
9.7 |
45.8 |
(44.2) |
0 |
||
|
Royal Canadian Mint |
182.6 |
45.0 |
41.4 |
96.2 |
698 |
||
|
Total Public Works and Government Services |
|
|
|
|
|
||
|
Atlantic Pilotage Authority |
6.4 |
1.2 |
0.7 |
4.6 |
78 |
||
|
Canada Ports Corporation |
67.9 |
8.2 |
64.0 |
(4.3) |
0 |
||
|
Federal Bridge Corporation Limited, The2 |
-- |
-- |
-- |
-- |
80 |
||
|
Great Lakes Pilotage Authority |
13.9 |
5.7 |
2.8 |
5.5 |
88 |
||
|
Laurentian Pilotage Authority |
10.4 |
11.2 |
1.1 |
(1.9) |
226 |
||
|
Marine Atlantic Inc. |
285.9 |
20.7 |
263.2 |
2.0 |
895 |
||
|
Pacific Pilotage Authority |
8.4 |
3.6 |
0.9 |
3.9 |
168 |
||
|
Ridley Terminals Inc.7 |
0.0 |
0.0 |
0.0 |
0.0 |
53 |
||
|
VIA Rail Canada Inc. |
631.5 |
93.4 |
504.1 |
34.0 |
2,958 |
||
|
Total Transport |
1,024.5 |
143.9 |
836.8 |
4,546 |
|||
|
Public Sector Pension Investment Board 3 |
2 |
||||||
|
Public Service Pension Plan Account |
1,790.0 |
0.5 |
0.0 |
0.0 |
|||
|
Canadian Forces Pension Plan Account |
532.7 |
0.3 |
0.0 |
0.0 |
|||
|
Royal Canadian Mounted Police |
|
|
|
|
|||
|
Total Treasury Board |
0.0 |
0.0 |
0.0 |
2 |
|||
|
Grand Total |
68,240.8 |
19,747.8 |
41,515.1 |
70,986 |
|||
Exhibit 9: Operating Results and Financing Grouped by
Ministerial Portfolio
(as of year-ends before July 31, 2001; $ million)
|
Financing |
|||||||
|
Changes to Net |
|||||||
|
Corporation by Ministerial Portfolio |
Net Income1 |
Private Sector |
|
Budgetary Appropriations |
|
||
|
Canadian Dairy Commission |
8.3 |
(0.6) |
(6.4) |
86.3 |
0.0 |
||
|
Farm Credit Canada |
31.6 |
621.1 |
(237.0) |
0.0 |
0.0 |
||
|
Total Agriculture and Agri-Food |
|
620.5 |
(243.3) |
86.3 |
0.0 |
||
|
Canada Council |
13.7 |
0.0 |
0.0 |
127.4 |
0.0 |
||
|
Canadian Broadcasting Corporation |
147.9 |
(4.5) |
0.0 |
907.1 |
0.0 |
||
|
Canadian Film Development Corporation 2 |
-- |
-- |
-- |
-- |
-- |
||
|
Canadian Museum of Civilization |
(44.1) |
0.0 |
0.0 |
52.1 |
0.0 |
||
|
Canadian Museum of Nature |
(23.5) |
(0.2) |
0.0 |
24.2 |
0.0 |
||
|
Canadian Race Relations Foundation |
(0.1) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
National Arts Centre Corporation |
(25.6) |
0.0 |
0.0 |
26.1 |
0.0 |
||
|
National Capital Commission |
7.7 |
0.0 |
0.0 |
97.3 |
0.0 |
||
|
National Gallery of Canada |
(36.3) |
0.0 |
0.0 |
36.5 |
0.0 |
||
|
National Museum of Science and |
|
|
|
|
|
||
|
Total Canadian Heritage |
|
(4.6) |
0.0 |
1,293.3 |
0.0 |
||
|
Bank of Canada 3 |
1,992.4 |
(333.5) |
0.0 |
0.0 |
1,992.4 |
||
|
Canada Deposit Insurance Corporation |
157.3 |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Canada Development Investment Corporation |
(1.0) |
0.0 |
0.0 |
0.0 |
5.0 |
||
|
Canada Pension Plan Investment Board 3 |
(851.6) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Petro-Canada Limited 2 |
-- |
-- |
-- |
-- |
-- |
||
|
Total Finance |
|
0.0 |
0.0 |
0.0 |
5.0 |
||
|
Freshwater Fish Marketing Corporation |
0.0 |
3.7 |
0.0 |
0.0 |
0.0 |
||
|
Total Fisheries and Oceans |
|
3.7 |
0.0 |
0.0 |
0.0 |
||
|
International Development Research Centre |
(1.7) |
0.0 |
0.0 |
90.3 |
0.0 |
||
|
Total Foreign Affairs |
|
0.0 |
0.0 |
90.3 |
0.0 |
||
|
Business Development Bank of Canada |
88.3 |
378.4 |
0.0 |
0.0 |
13.8 |
||
|
Canadian Tourism Commission 4 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
-- |
-- |
-- |
-- |
-- |
|||
|
Enterprise Cape Breton Corporation 2 |
-- |
-- |
-- |
-- |
-- |
||
|
Standards Council of Canada |
(0.0) |
0.0 |
0.0 |
5.4 |
0.0 |
||
|
Total Industry |
|
378.4 |
0.0 |
5.4 |
13.8 |
||
|
Canadian Commercial Corporation |
1.8 |
0.0 |
0.0 |
13.9 |
0.0 |
||
|
Export Development Corporation |
194.0 |
1,355.0 |
0.0 |
0.0 |
0.0 |
||
|
Total International Trade |
1,355.0 |
0.0 |
13.9 |
0.0 |
|||
|
Atomic Energy of Canada Limited |
11.8 |
0.0 |
(1.0) |
121.9 |
0.0 |
||
|
Cape Breton Development Corporation |
28.8 |
0.0 |
0.0 |
64.9 |
0.0 |
||
|
Total Natural Resources |
0.0 |
(1.0) |
186.8 |
0.0 |
|||
|
Canada Lands Company Limited |
5.3 |
28.2 |
(7.9) |
0.0 |
0.0 |
||
|
Canada Mortgage and Housing Corporation |
|
|
|
|
|
||
|
Insurance and Guarantee Funds |
366.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Corporate Account |
9.0 |
95.0 |
(297.0) |
0.0 |
0.0 |
||
|
Minister's Account |
0.0 |
0.0 |
0.0 |
1,920.0 |
0.0 |
||
|
Canada Post Corporation |
84.0 |
(95.0) |
0.0 |
257.2 |
19.0 |
||
|
Defence Construction (1951) Limited |
(0.6) |
0.0 |
0.0 |
0.0 |
0.6 |
||
|
Old Port of Montreal Corporation Inc. 6 |
(12.6) |
0.0 |
0.0 |
12.6 |
0.0 |
||
|
Queens Quay West Land Corporation |
0.0 |
0.0 |
0.0 |
3.0 |
0.0 |
||
|
Royal Canadian Mint |
5.6 |
(3.5) |
0.0 |
0.0 |
0.0 |
||
|
Total Public Works and Government Services |
24.7 |
(304.9) |
2,192.8 |
19.6 |
|||
|
Atlantic Pilotage Authority |
0.7 |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Canada Ports Corporation |
(0.0) |
(4.7) |
0.0 |
0.0 |
0.1 |
||
|
Federal Bridge Corporation Limited, The 2 |
-- |
-- |
-- |
-- |
-- |
||
|
Great Lakes Pilotage Authority |
(1.1) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Laurentian Pilotage Authority |
(0.4) |
(1.0) |
0.0 |
0.0 |
0.0 |
||
|
Marine Atlantic Inc. |
4.7 |
0.0 |
0.0 |
89.0 |
0.0 |
||
|
Pacific Pilotage Authority |
(0.4) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Ridley Terminals Inc. 7 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
VIA Rail Canada Inc. |
60.9 |
0.0 |
0.0 |
216.2 |
0.0 |
||
|
Total Transport |
(5.7) |
0.0 |
305.2 |
0.1 |
|||
|
Public Sector Pension Investment Board 3 |
|||||||
|
Public Service Pension Plan Account |
(164.2) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Canadian Forces Pension Plan Account |
(48.6) |
0.0 |
0.0 |
0.0 |
0.0 |
||
|
Royal Canadian Mounted Police |
|
|
|
|
|
||
|
Total Treasury Board |
0.0 |
0.0 |
0.0 |
0.0 |
|||
|
Grand Total |
2,372.0 |
(549.2) |
4,174.1 |
38.6 |
|||
______________________________
1This column is not totaled because the information is not reported in a consistent manner.
2 Financial data are excluded for the Canadian Film Development Corporation, Petro-Canada Limited, the Cape Breton Growth Fund Corporation, the Enterprise Cape Breton Corporation and The Federal Bridge Corporation Limited, since their 2000-01 annual reports had not been tabled in Parliament as of October 5, 2001.
3 Financial data for the Bank of Canada, the Canada Pension Plan Investment Board and the Public Sector Pension Investment Board are provided for information, but are not included in the totals due to the unique nature of their operations.
4 The Canadian Tourism Commission's first year-end will occur on December 31, 2001.
5 The Cape Breton Growth Fund Corporation, a wholly owned subsidiary of the Enterprise Cape Breton Corporation, has been directed to report as a parent Crown corporation.
6 The Old Port of Montreal Corporation Inc., a wholly owned subsidiary of the Canada Lands Company Limited, has been directed to report as a parent Crown corporation.
7 Ridley Terminals Inc. became a parent Crown corporation on November 1, 2000 upon dissolution of the Canada Ports Corporation.
Footnote
1 The wholly owned subsidiaries, Old Port of Montreal Corporation Inc. and the Cape Breton Growth Fund Corporation, were directed to report as parent Crown corporations for the purposes of the Financial Administration Act in 1987 and on August 25, 2000, respectively.
