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CBC, Old Port, could be sold off, documents show

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CBC, Old Port, could be sold off, documents show
Other crown firms also on Ottawa's list
By ANDREW MAYEDA, Canwest News ServiceJune 2, 2009
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The federal Finance Department has flagged several prominent crown corporations as "not self-sustaining," including the CBC, VIA Rail and the National Arts Centre, and has identified them as entities that could be sold as part of the government's asset review, newly released documents show.

In its fiscal update last November, the government announced that it would launch a review of its crown assets, including so-called enterprise crown corporations, real estate and "other holdings."

Finance documents, obtained by Canwest News Service under the Access to Information Act, reveal that the review will focus on enterprise crown corporations, which are not financially dependent on parliamentary subsidies. Such corporations include the Royal Canadian Mint and Old Port of Montreal Corp.

But the documents also reveal that Ottawa will consider privatizing crown corporations that require public subsidies to stay afloat.

"The reviews will also examine other holdings in which the government competes directly with private enterprises, earns income from property or performs a commercial activity," states a Finance briefing note dated Dec. 2, 2008. "It includes crown corporations that are not self-sustaining even though they are of a commercial nature."

In the briefing note, the department identifies nine crown corporations that fall in that category, including Atomic Energy of Canada Ltd., the CBC and VIA Rail.

The government announced last week that it will split AECL in two and seek private-sector investors for the crown corporation's CANDU nuclear-reactor business.

The crown asset review comes as the government struggles to contain the country's deficit, expected to top $50 billion this year. The Jan. 27 budget assumes that the government will be able to raise as much as $4 billion through asset sales by the end of March 2010.

The sale of a flagship crown asset such as the CBC would be politically controversial. After the CBC announced this spring that it would lay off hundreds of employees, opposition critics accused the government of turning a cold shoulder to the public broadcaster's struggles.

Under the Financial Administration Act, Parliament would have to approve the privatization of any crown corporation.
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Someone should tell the government that they would probably get a better deal at a "pawn shop". 4 billion is a spit in the bucket. They must be getting pretty desperate if their rumaging through the basement looking for anything of value to pawn.

Sorry chumps, hocking that DVD player and broken down TV isn't going to get you out of this one, "we are....again". Once again we are being afflicted with the "empty pocket" disease. Picking taxing "our" pockets to pay of their foolish spending habits. Tax increases coming your way in the near future.

Whats next, take out a second mortgage on the Parliament buildings?

All I've been hearing from shorty over the past year is "our fundamentals are sound". If there so sound, then how come we're 50 big ones and counting in the hole?

Conservatives, Liberals or NDP, their all the same. The three amigo's are in a race to see who can break the bank first and then pawn of crown assets at bargain basement prices to pay of the ballooning national charge card bill. ::)
(Emphasis on sarcasm)
 
well, if Via Rail and the CBC, etc can't turn a profit while competing against competitors that can, you have two options, raze the management and start over, or wash your hands of the albtross around your neck...

personally I think the CBC doesn't float cause it's filled with liberal cronies who have see the broadcaster bailed out every few years so they don't even try, and Via Rail has people running it that think you can charge the same price as an airline for a seat, and cruize ship cabin prices for a sleeper.

when gas gets up to 2+ bucks a liter rail is going to be a feasible mode of travel again, but who knows if anyone will capitalize on that or not.
 
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