I fully agree with you and share your concern about the privatization of this government responsibility.
to gather up or collect security data,
and to do security analyses and policing.
I think Transport Canada created the list so that when airlines get a message from the ministry about a security threat, they can immediately transfer the file to Transport Canada. I think this is an excellent process.
I think governments see these data as an opportunity to do more surveillance, so I think you're right to be suspicious. I think the government should own up and take its own job, as it were.