The School of Public Policy Releases Two Papers that Prove the Benefits
CALGARY, Feb. 2, 2012 /CNW/ - Today, The School of Public Policy
released two papers that contain intensive and deep reviews of the
history, costs and benefits of the privatization of government owned
One paper, authored by John Nellis, examines privatization from an
international perspective; the other, authored by Anthony Boardman and
Aidan Vining, takes a strictly Canadian perspective. Both arrive at a
common conclusion: the overall impacts of privatization have been
Boardman and Vining look at examples of Canadian firms that have been
privatized and quantify the impacts on those firms' operating
performance. They conclude "that the privatization of entities
operating in competitive markets has been social welfare-improving.
Indeed, our major policy conclusion is that this kind of privatization
is a no-brainer."
Nellis targets international privatization and also identifies net
economic benefits. "Privatization increases efficiency, rewards the new
owners, generally improves the fiscal position of the selling
government and increases societal net resources." The author does
concede that privatization is a "tough political sell" because of
potential job losses associated with the acquired firm looking to
increase efficiency and fears over price increases.
There are numerous ripe potential targets for privatization in Canada.
Federally, these include the CBC, Canada Post and ViaRail. In Ontario
the LCBO, Ontario Power Generation and Hydro One stand out. The list in
Saskatchewan is the longest of any province, including SaskTel,
SaskEnergy and SaskPower. Even Alberta holds potential for
privatization with examples like Alberta Treasury Branches, Enmax, and
The study can be found online at www.policyschool.ucalgary.ca/publications
SOURCE University of Calgary - School of Public Policy
For further information:
The School of Public Policy
University of Calgary