The Federal Court of Appeal has ruled that Crown corporations have the legal authority to keep certain records confidential under the Access To Information Act, a decision closely watched by multiple government agencies.
Blacklock's Reporter says in a key case on disclosure, the court sided with Export Development Canada (EDC) after the agency withheld details of financial transactions with private businesses in response to a 2019 information request.
An unidentified applicant had sought a summary of financial assistance exceeding $50,000 provided by EDC to Canadian companies operating in Honduras from 2009 to 2019, including company names, loan terms, and repayment dates.
EDC released limited details regarding insurance policies but withheld full records under two sections of the Act. Section 18 allows for the concealment of trade secrets and commercially valuable information belonging to the government, while Section 24 permits withholding customer-related data obtained by the agency.
Justice Judith Woods, writing for the court, upheld EDC’s decision, stating that the Crown bank was justified in protecting client confidentiality.
“Just as there is an implied term of confidentiality in a banking arrangement, confidentiality should similarly be implied in respect of a transaction undertaken by a financial institution like Export Development Canada,” the ruling stated.
Canada Post and the Public Sector Pension Investment Board intervened in the case, highlighting its significance for other Crown agencies.
A lower court and the Commissioner of Information had previously pushed for broader disclosure.
Parliament expanded the Access To Information Act in 2006 to cover Crown corporations, but numerous exemptions remain, including provisions designed to protect Canada’s economic interests.
