Canada needs to shift more assets to private control.
Canada has an addiction to government control, an addiction that is hampering our country at a time when a strong and adaptive private sector is necessary to generate rapid growth and innovation to offset the hostile anti-trade policy of the Trump Administration.
In a sign that the government is looking at breaking that addiction – at least partially – there are reports that Canada’s airports may be privatized:
“The federal government is in the “early stages” of talks on whether Canada’s airports will be privatized, Transport Minister Steven MacKinnon told reporters on Wednesday.
When asked if the government was considering privatizing airports and if so, how many, MacKinnon told reporters that the government was talking with airport authorities.
“We’re in the early stages of a process with airport authorities and other partners to determine the best way forward. The ultimate goal, of course, is to improve the passenger experience, to improve the efficiency of our air transport system,” MacKinnon said.
The government is working with NAV Canada and the Canadian Air Transport Security Authority to finalize the plan, he said, although he did not say whether this included handing over airport land entirely to private players or plans to have public-private partnerships.
“Indeed, they are a public good and I don’t think that spirit or that philosophy will change,” he said.”
The spring economic update featured a few lines hinting at privatization:
“The government is also assessing opportunities to unlock the full value of airports in support of investments in Canada’s long-term growth, including through alternative models of ownership, the spring economic update says. This work will be advanced with the input of the airport authorities and other stakeholders including airlines and local governments.”
A Strong Canada requires a Strong Private Sector
There are areas where the government should take the lead, but those areas are limited. At the federal level, the focus should be on national defence, the court system, and national infrastructure. When a government tries to do too much, particularly beyond its core functions, those core functions suffer, as we have seen with the chronic underfunding of the Canadian Armed Forces, something that is now being addressed but which has left us more vulnerable than we should be. As the government focuses more on core objectives, it should shift more assets into private sector control.
And that includes airports. While federal regulations would remain in place, shifting airport ownership to the private sector makes sense, as the private sector is more efficient and innovative than the government, and Canada needs much more of both. A stronger private sector and a greater respect for and embrace of private property will help ensure Canada can be a haven of economic freedom that contrasts with the rigid, state-centric authoritarianism pushed by people like Donald Trump. With that in mind, privatizing Canada’s airports is a good idea, and further privatizations should follow to help get Canada’s economic engine moving.
Spencer Fernando
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