Can the Crown corporation Marine Atlantic pick up the slack? Food shortage in Newfoundland and Oceanex Inc. needs a bailout! – April 13, 2020,
So as per usual in Canada, one Crown Corporation protects another, so CBC writes an article and only gives the reader a part of the story, actually I doubt readers would even care to know. Well, Newfoundland might be facing a food shortage, primarily because Oceanex Inc. has for years had a Crown Corporation undermining its profitability.
A lot of small and medium-size business owners in Canada are actually fabulous people who are willing to go into debt simply to serve their fellow countrymen. It happens in Alberta, B.C, Saskatchewan, Quebec, Ontario, Manitoba, Newfoundland, everywhere in Canada you have fantastic small medium-sized business people who simply want to serve and take ver slim margins because they don’t want to come across as greedy.
But, you see these slim margins or this deficit spending going on with Canadian businesses, never takes into account the unexpected. Well in the case of Oceanex Inc. they were kind of forced into a bad situation, you see there’s a Federal Crown Corporation called the Marine Atlantic which has been distorting prices in this market for quite some time it’s such a problem that Oceanex Inc. filed an application for judicial review of Marine Atlantic’s rates for commercial freight services in 2017.
I haven’t had time to review what happened with it because Oceanex Inc. isn’t a public company and I just didn’t have the time. But it was interesting to read how much under the water they are. This is really, really sad. What’s worst about this situation is that Marine Atlantic as a Crown Corporation would distort prices even further if Oceanex Inc. goes bankrupt.
It’s kind of hard to explain to people who aren’t in business who bad State Owned Corporations mess u the Canadian economy. If the market can set prices and prices are instead created from the price Crown Corporations thin prices should be based on their costs, all sorts of price distortions start to make their way through the economy and your entire province can have inflated and deflated numbers which introduce a plethora of different problems.
As an example, the State of New York is very Liberal, but because Ontario has a Crown Corporation called the LCBO which stands for the Liquor Control Board of Ontario, Ontario has to put artificially high tariffs at the U.S-Ontario border to prevent the UNIONIZED LCBO from going BANKRUPT!
Imagine a unionized crown corporation decided the price of liquor, well it’s a similar problem that will happen if Oceanex Inc. goes bankrupt and Newfoundland becomes reliant on the government to deliver their food. There could be more or less to this story I’m not sure, what I do know is that Canadians should prepare themselves accordingly because I don’t think Canadians are understanding how bad things might get!
Newfoundland faces possible food shortage as pandemic hammers key shipping company | CBC
Interesting times ahead!