Privatizing Existing Public Assets in Canada, is Illegal, Unconstitutional, and Not Economic. Then Why?

The Citizens of Canada Paid for Infrastructure and Public Institutions. 

The Government Should Not Sell Them to Private Capital.

It is Illegal, Unconstitutional, and Not Economic.

Moses Solemon

Chairman and CEO, Canada Business Holdings Inc

According to Statistics Canada, the value of Canada's non-financial public sector assets (which includes tangible assets such as infrastructure and buildings, as well as intangible assets such as intellectual property) was approximately CAD 4.5 trillion as of March 31, 2019. Such value went down to $3.7 trillion CAD in 2021. Such change in value may have been caused by depreciation, new asset acquisitions, and maintenance costs, and changes in market values.

Such assets include hospitals, schools, roads, bridges, airports, and other public infrastructure that are owned and maintained by federal, provincial, and municipal governments.

Privatization Rights:

The right or not to sell public assets to private entities depends on the specific circumstances of the assets, the reasons for the sale, and the potential consequences of the sale. It is important to carefully consider these factors and involve all stakeholders in the decision-making process to ensure that the best interests of the public are served. The government should not take the privatization of assets without full consent of the public who pay for such assets with their money and through the “Tax System”. Privatization in Canada under democracy should be a “Public Right” and not solely a “Government Right” without public wide consent and engagement.

Privatization Decision:

The decision to sell public assets to private entities is a complex issue that involves many economic, political, and social factors. On one hand, privatization of public assets can lead to increased efficiency, innovation, and investment in the assets, as private companies are motivated by profit and competition. 

Selling public assets can generate revenue for the government that can be used to invest in other areas such as education, healthcare, or infrastructure. The key anticipated goals of privatization of public assets would be to increase efficiency, innovation, and investment in the assets, as private companies are motivated by profit and competition.

However, privatization can also have negative consequences, such as reduced public access to essential services or resources, increased costs, and reduced accountability to the public. One of the greatest risks of selling public assets is that the private companies often prioritize short-term gains over long-term benefits to the public.

In Canada, all public assets were built by taxes collected from Canadian citizens. It is legitimate to argue strongly that these assets belong to the public and should be managed in the best interests of the public. 

Typically, a Canadian citizen would pay 40 to 45 per cent of his income in taxation to the government, to build infrastructure and to provide public services. As such, any decision to sell these assets to private entities should involve a careful examination of the potential benefits and drawbacks and should prioritize the best interests of the public.

What Are the Objectives of a Tax System in The Canadian Democratic System?

The main objectives of the tax system in a country are:

1.    To generate revenue for the government: The primary objective of the tax system is to provide a source of revenue for the government to fund public goods and services such as infrastructure, education, healthcare, defense, and social welfare programs. In Canada such revenue is used to finance federal, provincial, and territorial public services such as healthcare, education, and social programs.

2.    To promote economic growth: Taxes can be used to incentivize certain economic behaviors such as investment, entrepreneurship, and innovation. For example, tax breaks or incentives for research and development can encourage businesses to invest in new technologies and create jobs. Canada provides incentives and tax breaks also to businesses and individuals.

3.    To redistribute wealth: Tax systems can be designed to promote social justice by redistributing wealth from the wealthy to the less well-off. This can be done through progressive taxation where those with higher incomes pay a higher percentage of their income in taxes. In Canada, the government ensure fairness and equity by collecting taxes based on ability to pay, and by providing tax credits and deductions to help lower-income individuals and families.

4.    To regulate certain behaviors: Taxes can be used to regulate certain behaviors such as consumption of tobacco, alcohol, and other harmful substances. Taxes on these products can discourage consumption and generate revenue at the same time. The Canadian tax policies have programmes such as the carbon taxes and implement social programs like the Canada Child Benefit.

5.    To promote social and environmental objectives: Tax systems can be used to encourage socially responsible behavior and protect the environment. For example, taxes on carbon emissions can be used to encourage companies to reduce their carbon footprint and promote clean energy alternatives.

6.    To promote international trade and investment by negotiating tax treaties with other countries and avoiding double taxation.

Overall, the tax system in Canada is designed to balance between the budget for government revenue with the need for fairness, economic growth, and social and environmental responsibility to serve the citizens of Canada. 

Health Canada:

Health Canada is a government agency responsible for regulating and promoting public health in Canada, and therefore, it is not a commodity that can be bought or sold like a business entity. The agency's value lies in its critical role in ensuring the safety and efficacy of drugs, medical devices, and other health products used by Canadians.

Doug Ford the Premier of Ontario, had been suffocating the health care system for years. His goal is to make people complain and offer them the only solution: "Privatization". There is so much money available in his custody that he hid almost 22 billion Canadian dollars from the auditors. Therefore, it is not a matter of budget. However, there is greed involved. Insurance, bankers, and foreign funds collaborating to make Canadians die young and broke like is the US health system. Canada must keep a healthcare system where people get fair medical service when they show the health card, not the credit card.

18 January 2024

rewritten from 10 March 2023

Ottawa, Canada