Thank you.
I am a director in the Economic Development and Corporate Finance Branch at Finance Canada. I am here today to speak to the review of corporate assets that was first announced in the 2008 fall update and discussed further in Budget 2009.
The Corporate Asset Management Review is an ongoing review mechanism that expands the expenditure management system to the ownership and mandate of corporate assets and complements the strategic reviews of departments. Corporate assets include enterprise crown corporations, real property and other holdings. Other holdings include interests where the government competes directly with private enterprises, earns income from property or performs a commercial activity; it includes crown corporations that are not self-sustaining even though they are of a commercial nature, as well as similar holdings that are not currently structured as a crown corporation.
Budget 2009 indicates that in its first year, the Corporate Asset Management Review will focus on selected assets in the portfolios of the Minister of Finance, the Minister of Indian and Northern Affairs, the Minister of Natural Resources and the Minister of Transport, Infrastructure and Communities. Over time, all corporate assets will be reviewed.
Departments subject to the review, in collaboration with the Department of Finance, are developing a comprehensive inventory of corporate assets in their ministers' portfolios. Working from this inventory, early in the new fiscal year, a short list of corporate assets will be identified for a detailed review based on their potential to improve the efficiency and effectiveness of the government's use of its resources, or to contribute to achieving government policy priorities.
Detailed reviews of specific corporate assets will be initiated in the first half of the fiscal year. This work will involve a policy and technical analysis of the asset, including the current relevance of the asset to the government's core responsibilities; an assessment of options for the structure and ownership of the asset.
In some cases additional work will be undertaken to assess an asset's value under different scenarios, likely informed by third-party expert advice on financial forecasts, value and marketability. The Minister of Finance will lead the reviews, in close collaboration with the minister responsible for the assets under review. The Minister of Finance and the minister responsible for the asset will consider the various options for the future of the asset and will decide on a course of action that ensures that taxpayer resources are effectively deployed and allocated to Canadians' top priorities.
There is a range of potential outcomes in the review of specific assets. These outcomes could include the status quo, with no change to the structure or ownership of the asset. They could also include a reorganization of the corporate structure, and the adoption of alternative governance structures.
In some cases, the analysis could lead to a recommendation regarding the sale of an asset. All appropriate authorities to implement the chosen option, including parliamentary authorities, will be sought as required. The timing of any asset sale will take into consideration its marketability and the condition of markets.
No decisions have yet been taken on the sale of any particular assets.
Thank you.