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.

VIA Rail Misses the Train on Serving Canadians

VIA Rail recently trumpeted a new “pilot project” meant to shave half an hour off the Montréal–Toronto run. The idea was to run nonstop trains between the two big cities, bypassing Cornwall, Brockville, Kingston, and Belleville. The announcement was pitched as a bold experiment in “efficiency,” a nod to the 70 percent of surveyed passengers who supposedly wanted quicker travel between downtown cores.

But almost immediately, the wheels came off. Citing “operational constraints” with their partner CN, VIA Rail suspended the project before it even left the station. On paper, this looks like a technical hiccup, another example of Canada’s fragile rail system bending to the priorities of freight traffic. But in reality, the plan itself was the problem. It was never about serving Canadians, it was about copying European or Japanese rail gloss without any of the context, backbone, or infrastructure investment those systems require.

For decades, communities along the corridor have depended on trains as lifelines. Students in Kingston, retirees in Belleville, families in Cornwall – these aren’t “optional” stops. They’re the heart of what passenger rail is supposed to do: connect Canadians, not just shuttle executives between two large metro centres. The whole point of a public Crown corporation like VIA Rail is to balance speed with accessibility, ensuring that smaller communities aren’t stranded in the name of shaving 30 minutes off a trip for a select few.

Even politicians, often slow to notice transit tweaks, raised red flags. Brockville’s mayor called the nonstop plan “concerning” and Conservative MP Michel Barrett branded it “unacceptable.” They weren’t wrong. Stripping out regional stops would have meant sidelining thousands of riders, effectively telling entire towns they were expendable in the rush to serve big-city commuters.

The irony is that the project was marketed as modernization. But modernization, in a Canadian context, should mean strengthening regional ties, upgrading track infrastructure, and finally breaking free of freight’s stranglehold on passenger rail, not copying a TGV fantasy while underfunding the very communities that give the corridor its economic and social weight.

Instead, VIA Rail now looks like it tried to leap forward without noticing the tracks were missing. Worse, its apology to passengers rings hollow. The real apology is owed to the communities it dismissed as speed bumps, to the Canadians who still believe public transportation is about more than corporate surveys and flashy PR lines.

In the end, the scrapped nonstop pilot is a lesson: if VIA Rail wants to serve Canadians, it needs to remember who those Canadians are. They’re not just the 70 percent who want to get to Bay Street faster. They’re also the people in eastern Ontario whose taxes help keep VIA afloat, and who deserve not to be treated as collateral damage in a misguided chase for efficiency.

Sometimes slowing down isn’t failure, it’s service. VIA Rail might want to remember that before the next “pilot project” takes off.