Translation of "Crown Corporations Borrowing Authority Increase Act " (English → French) :

Crown Corporations Dissolution Authorization Act [ An Act to authorize procurement of the dissolution of certain Crown corporations and to amend or repeal other Acts in consequence thereof ]

Crown Corporations Dissolution or Transfer Authorization Act [ An Act to provide for the dissolution or transfer of certain Crown corporations and to amend certain Acts in consequence thereof ]

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Treasury Board, pursuant to subsections 93(2), 99(4), 108(3), 114(4) and 127(4) of the Financial Administration Act, is pleased hereby to repeal the Crown Corporation Borrowing Regulations, made by Order in Council P.C. 1984-3093 of August 31, 1984Footnote , and the Crown Corporation General Regulations, made by Order in Council P.C. 1984-3094 of August 31, 1984Footnote , and to make the annexed Regulations respecting restricted transactions, disposal of property, remuneration, by-laws, deemed transactions to borrow money and exemptio ...[+++]ns from a provision of the Financial Administration Act in respect of borrowing transactions for Crown corporations, in substitution therefor.

. greater transparency and accountability about the government's borrowing activities while increasing flexibility to meet future borrowing needs, particularly with respect to the consolidation of Crown corporation borrowing.

According to TNT, the transfer into the escrow account by the UK authorities acts as a guarantee towards the pension trust, of which the benefit to Royal Mail would be that it is able to recover the deficit over a longer funding period and to use their own funds to strengthen their business. If Royal Mail had had to fund the deficit at once, depending on whether the pension liability in the balance sheet would already have reflected such deficit, they would have been confronted with a substantial loss and reduction of equity and, perhaps more importantly, a reduction of funds. In normal market ...[+++]conditions, if a company needs funds, it can borrow from the debt market or raise additional capital in the equity markets. In Royal Mail’s case, it appeared there was third possibility, namely, agreeing to a more lenient price cap in its price control with the regulator. Prices could increase by a substantial level without reaching abusively high levels. As Royal Mail’s consent was required to give effect to the price control, this was a matter within the power of Royal Mail and an option which was known to its shareholder.

As presented in the budget on March 19, 2007, a key motivation for changing the borrowing authority framework at that time was to streamline and modernize the process and increase flexibility to meet future borrowing needs, particularly with respect to the consolidation of Crown corporation borrowings.