When Crown Corporations Forget Their Purpose

Two of Canada’s most visible Crown corporations, Canada Post and VIA Rail, seem to have lost their way. Both were created to knit together a vast and sparsely populated country, ensuring that every Canadian, no matter how remote, had access to essential services. Yet today, both have turned their gaze inward toward big-city markets, downgrading or abandoning the rural, northern, and remote communities they were meant to serve.

The problem is not simply poor management. It is a deeper contradiction in how we think about these federal institutions. Are they public services, funded and guaranteed by the government for the benefit of all? Or are they commercial enterprises expected to operate like businesses, focusing on profitability and efficiency?

Canada Post was once the backbone of national communication. Its universal service obligation was understood as a cornerstone of Canadian citizenship: every town and hamlet deserved a post office, and every address would receive mail. But with letter volumes collapsing and courier giants competing for parcels, Canada Post has shifted its focus to the most profitable markets. Rural post offices are shuttered or reduced to part-time counters in retail stores, and delivery standards in remote regions are steadily eroded.

VIA Rail’s story follows the same pattern. Founded in the late 1970s to preserve passenger trains when private railways abandoned them, it was meant to provide Canadians with a reliable and accessible alternative to highways and airlines. Instead, successive governments have treated VIA as a subsidy-dependent business rather than a national service. The Québec–Windsor corridor receives ever more investment, while iconic transcontinental and regional services limp along on political life support. Communities once promised rail access now watch the trains roll past them, or disappear entirely.

This retreat from universal service runs against the spirit of equality that Canadians expect from their public institutions. The Charter of Rights may not explicitly guarantee access to mail or transportation, but the principle of equal citizenship surely demands more than a market-driven approach that privileges Toronto and Montréal while ignoring Thompson or Whitehorse.

What’s going wrong is simple: Crown corporations are being managed as if they were private companies, not public trusts. Efficiency metrics and financial self-sufficiency dominate decision-making. National obligations are left vague, unenforced, or quietly abandoned. Governments praise the rhetoric of service while starving these corporations of the dedicated funding that would allow them to fulfill it.

Canada is not a compact, densely settled country where commercial logic alone can sustain public goods. It is a nation stitched together across vast geography by institutions that recognize service as a right, not a privilege. If we want Canada Post and VIA Rail to serve all Canadians, we need to stop pretending they can behave like for-profit businesses and still fulfill their mandates.

That choice is ultimately political. Parliament must decide: either redefine these corporations as genuine public services with modern mandates and stable funding, or admit that rural and northern Canadians will always be left behind.

Until then, our Crown corporations will continue to forget their purpose, and with it, a piece of the Canadian promise.

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