Abstract
This chapter makes some initial observations about municipally owned corporations (MOCs) in Canada. The use of MOCs is mainly confined to a subset of 12 local services and there is considerable variation in their use among municipalities. Provincial requirements and path dependency can explain a lot of the reasons for their existence. The largest municipalities tend to employ more MOCs; however, even among this group, the use of purely discretionary MOCs is limited. The relationship between MOCs and their municipalities is often structured through a combination of provincial legislation and municipal by-laws. As long as MOCs abide by their mandate, they can expect to operate mostly free of undue political interference. Municipal politicians are common features on the boards of MOCs, but administrators are appointed based on merit rather than patronage. In short, both provincial and municipal governments in Canada find MOCs to be a useful way to deliver a sub-set of local services. Apart from certain functional areas like economic development and tourism, the use of MOCs in Canada is not a new innovation. It would, therefore, be difficult to place Canada among the list of other jurisdictions seeing a marked increase in their usage.
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Notes
- 1.
Some provincial governments have more than one Act respecting different aspects of municipal activities, such as a general Municipal Act as well as others governing municipal elections, municipal finance or municipal law. For more information on the Canadian municipal system, see Sancton (2021).
- 2.
In this chapter, we are focusing only on municipalities in Canada’s provinces. We are excluding Canada’s North, which consists of the territories of Nunavut, Northwest Territories, and Yukon Territory. The territories are geographically vast but sparsely populated and do not have the same degree of constitutional authority as provincial governments. Only a small percentage of the land in the territories is organised municipally. Municipalities in Canada’s North tend to have very small populations and are separated from each other by large geographical distances.
- 3.
As of September 2021, the Calgary Parking Authority will be integrated into the municipal structure such that it may no longer qualify as a Type 2 MOC moving forward (The City of Calgary Newsroom 2021).
- 4.
See for example Municipal Act, 2001, s. 4 regarding the term of the appointment for board members, or s. 23.2, which provides some restrictions on which powers municipal councils can delegate.
- 5.
Similar legislative provisions also establish Boards of Health, Planning Boards, Police Services Boards and Public Libraries Act as “bodies corporate”.
- 6.
Electricity generation is primarily a provincial function in Ontario, but significant portions of electricity transmission are performed by local distribution companies (LDCs), which are often owned by local municipalities.
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Acknowledgements
The authors would like to thank Andrew Sancton and Sandra Breux for their assistance with identifying MOCs for Montreal, Quebec. We retain responsibility for any errors or omissions.
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Lyons, J., Spicer, Z., Taylor, D. (2023). Municipally Owned Corporations in Canada. In: Van Genugten, M., Voorn, B., Andrews, R., Papenfuß, U., Torsteinsen, H. (eds) Corporatisation in Local Government. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-09982-3_2
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