Thursday, February 19, 2009

Major Canadian Government Assets could be sold.

This is the same crap that was in the original economic update that got Harper in so much trouble that he had to prorogue parliament to stay in power over the holidays. Now he is at it again but there is hardly a peep from the opposition. The opposition did ask for a list of the assets that might be sold. Now this article makes clear what some of them are. Where is the outcry?
The government is supposed to fund a multi-billion dollar bailout but owning something that might make some money to fund social programs that is heretical.
Even if it did make sense to sell some government assets now is the worst time because they will be bought only at fire sale prices. This government is not even interested in making a good deal. All it wants is to sell out the people's property to corporations friendly to the Harper govt.

Major Canadian government assets could be sold

By Andrew Mayeda, Canwest News ServiceFebruary 17, 2009

The Harper government is pressing ahead with a review that may lead to the sale or privatization of several well-known Crown corporations, including Via Rail.

OTTAWA — The Harper government, under pressure to prevent the federal deficit from ballooning, is pressing ahead with an asset review that could lead to the sale or privatization of several well-known Crown corporations, including Canada Post, Via Rail, the Royal Canadian Mint and the agency that oversees security at Canada's airports.
The government signalled its intent to sell Crown assets last fall, but it was only in the federal budget that it identified the four ministerial portfolios to be reviewed first: Finance, Indian and Northern Affairs, Natural Resources, and Transport and Infrastructure.
Some of the Crown corporations that fall under the authority of those departments have been known to be on the block for some time, such as Atomic Energy of Canada Ltd.
But the review also will cover some names likely to raise eyebrows, especially in the Transport portfolio, which includes Canada Post, Via Rail, the mint, and the Canadian Air Transport Security Authority.
In the next few months, Finance Department officials will ask each of the four departments to identify assets that could be sold, including any real estate in their portfolios. Although the process is still at a preliminary stage, Finance officials have not ruled out any Crown corporations from the review.
"The corporate asset review is proceeding as planned," Mike Storeshaw, a spokesman for Finance Minister Jim Flaherty, said in an e-mail. "Departmental officials will be working over the coming year to analyze the relevance of specific assets to the government's core responsibilities."
The budget states that Finance officials could conclude that "selling an asset to a private-sector entity may generate more economic activity and deliver greater value to taxpayers."
The challenge for the government is that its budget forecast is based on the aggressive assumption that officials will be able to raise as much as $4 billion through sales or privatizations by the end of March 2010.
Flaherty started musing publicly about selling Crown assets in November, but department officials only formally launched the review process after the budget was introduced on Jan. 27. That gives the government about 14 months to oversee a large-scale divestiture of assets, a complex process that will involve numerous layers of bureaucracy, might require major legislative amendments, and could create serious political headaches for the Harper cabinet.
If officials can't find enough assets to sell, the government could be forced to revise its forecast to show a bigger deficit for 2009-10, when the deficit is already expected to hit $34 billion.
In a recent analysis, Parliamentary Budget Officer Kevin Page warned of a "significant risk" that the government might not climb out of deficit as quickly as projected, because of several assumptions that might not pan out, including a quick recovery in tax revenue and expected savings from spending cuts and asset sales.
Don Drummond, chief economist for TD Bank Financial, said the review should be a useful exercise for assessing the value of the government's holdings, but he recommended waiting until asset values recover to close any deals.
"If you're not getting good value for them, or if there's a more efficient way of delivering the public service they're providing, I think you should always be looking at selling them," Drummond said in an interview. "That said, asset values are depressed right now, and, if you try to unload them, now might not be a great time to do it."
In deciding which assets to put on the short list, Finance officials will consider a number of criteria, including whether Crown corporations are still meeting their stated policy objectives, whether assets can be sold within the tight time frame set by the budget, and how best to maximize returns for taxpayers.
"The government will only proceed with transactions that realize fair value for taxpayers and make economic sense," said Storeshaw.
Eventually, the review will be expanded to include all government departments. The review of the Canadian Heritage portfolio, which includes the CBC and the Canada Council for the Arts, could be a political minefield.
Another option for the government will be to expedite the transfer of surplus real estate from departments to Canada Lands Co., a Crown corporation that sells rezoned federal lands to private developers.
"We have had calls from different people in the government who know our work and respect us and wanted to know . . . whether we thought we'd be able to take on more properties," said Canada Lands vice-president Gordon McIvor, adding that the company plans to sell numerous assets this year, including a residential development on a former military base in Calgary and parts of a harbour-front redevelopment in Montreal. "We've said, 'Absolutely, we're ready and able and willing.'"
© Copyright (c) Canwest News Service

No comments: