THE MUDDLING CROWN: VIA RAIL AND THE FEDERAL GOVERNMENT

Malcolm G. Bird

Annals of Public and Cooperative Economics, 2015, vol. 86, issue 4, 585-600

Abstract: This article is an analysis of VIA Rail and its relationship with the federal government. Canada's publicly-owned intercity passenger rail service is in a state of slow and steady decline, best illustrated by its small and falling user rates, and despite receiving significant subsidies, the federal government is indifferent to the needs of this transportation provider. Unlike other Canadian state-owned enterprises, or Crown corporations, VIA Rail has been neither privatized nor modernized and, instead, is languishing as a publicly-owned firm. While the current Conservative government of Stephen Harper favors a smaller role for the state, and it has both set about modernizing and eliminating other Crowns, it has not followed such a course with VIA Rail. Drawing on John Kingdon's (1984) multiple streams model to outline the empirical data as well as to illustrate how this firm interacts with its political superior, it will argue that the indifference towards this firm is due to both the specific characteristics of VIA Rail and the highly centralized decision-making structure of Canada's Westminster Parliamentary system. Unless the federal government decides to implement fundamental organizational and governance changes at this firm, Canadians will continue to be served by a marginal rail service provider.

Date: 2015
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