個案資料

Canada’s current weakness in commodity prices raises the possibility that public investment in private Canadian enterprises, absent in recent years, could make a dramatic return. But that isn’t necessarily a good thing. This article looks at the creation of two heavy-oil upgraders in Saskatchewan that were built to stimulate development of the local oil industry while creating jobs and maximizing royalty income. In both cases, the financial viability of the province was threatened along with the existence of the companies that partnered with government. For business, Saskatchewan’s two heavy oil upgraders show that government can be a risky, duplicitous and opportunistic partner — one with powers that most commercial partners lack. Even if government strives to be a good partner, its presence can politicize operations and increase media scrutiny. Further, people can assume they have privileges that they’d never dream of asserting without government participation. <br><br> If seeking or accepting government as a partner can be avoided, that advice is usually sound. However, government can raise large amounts of capital through non-commercial mechanisms, and can assume risks and provide funds for public policy reasons without regard for commercial targets. If a company has a project that will be solid in the long term, but cannot raise the money on the commercial market, then government can step in. But the author urges companies in this position to a) make sure the project is worth the risk, b) ensure that government partners avoid duplicity when structuring public-sector involvement, and c) make sure that the government has money in the venture first.

• Government partnerships
• Partner of last resort
• Saskatchewan oil sector
• Lessons from Canada's oil sector