I have a couple of things, if I may. This follows on our last commentary relative to the prior discussion.
First, just as a standard comment, could I suggest that, at a minimum, when we talk about five days—as we know, we have a weekend between now and the next five days—I don't want to overly presume, but do we mean business days? If so, can we make that part of our standard comments? There is obviously a difference with a weekend involved. That would be point number one.
I am mindful that much of this information is based on annual reporting from late spring, June, through September. I am not sure how much is available, so I will bring up the question again with regard to preparation, and that is as it relates to five days. Again, it's a popular mantra around here, and I understand it talks to the urgency, which I truly get, but I'm not sure if it speaks to the reality or the practicality.
There are two things. If we mean business days, can we say that, at least? Then, second, how practical and realistic, notwithstanding the urgency, is five days with the huge amount of information that is here? I am not even going to get into the cost, but in the event that it's all in French right now, which it may well be, and all I want to do is have the English translation as well—and I'm not even being clever on this--it just strikes me, is that fair and reasonable?
I defer to the committee's wisdom on this.
:
Thank you very much, Chair.
I have about five minutes' worth of opening remarks. I will introduce my colleagues who are here with me today as I give those remarks. I will begin with a short opening statement just to provide members with an overview of government advertising and to start to identify the respective roles that my colleagues and I play in the advertising process.
The current process for the allocation and management of advertising expenditures was established in 2004. It has three objectives. The first is to ensure that advertising campaigns are aligned to government priorities; the second is to ensure that they comply with government policies, procedures, and legislation; and the third is to ensure that they address the information needs of Canadians.
[Translation]
The respective roles and responsibilities of institutions in advertising have been established at all stages in the process, including in the planning of advertising, in its execution and also, importantly, in its evaluation.
[English]
These are set out in Treasury Board's communications policy and in its procedures for advertising. My colleague Monique Lebel-Ducharme, of the Treasury Board Secretariat, will be pleased, of course, to answer any questions you may have on the policy framework for advertising.
Generally, the bulk of government advertising campaigns in any given year are funded by what they call a “set-side” in the fiscal framework in the amount of $65.4 million per year. That amount was established in 2004. Examples of advertising campaigns funded by the set-aside this fiscal year include those on Canadian Forces and RCMP recruitment, protecting the health and safety of Canadians, victims of crime, jobs, and tax cuts.
I should also note, however, that this is not the only source of funding. Departments can obtain funding for advertising through policy memoranda to cabinet. An example would be the advertisements you may have seen discouraging drug use by youth, which were funded as part of the national anti-drug strategy.
Finally, departments can also fund advertising from their operating budgets. An example of a campaign this year that was funded by a department was a campaign on new employment insurance measures for the self-employed.
There are also many public notices in a given year. Typically, public notices provide basic local information on, for example, the construction of a federal road, job opportunities for on-reserve nurses, or other important information on a program that may affect local residents or for which a consultative process is required. Departments invest approximately $5 million annually--that's the total amount--on these operational public notices.
Regardless of the source of funds, all government advertising is subject to the legislation, policies, and procedures that govern this function. For example, to access funds in the $65.4-million set-aside, departments and agencies work with the Privy Council Office to develop advertising proposals that are based on government priorities. The priorities are often established by documents such as the Speech from the Throne and the federal budget, or by cabinet. These proposals are coordinated by the Privy Council Office and are brought to cabinet for consideration and approval. If they are approved, they are then submitted to the Treasury Board for review and funding approval. Finally, if approved there, they are submitted to Parliament for approval of appropriations.
Once the funds are approved, they are allocated to departments, each of which manages their own campaign budgets and expenditures on behalf of their ministers.
The next stage in the process is the procurement of advertising agencies for production and media planning. Advertising procurement is undertaken solely by Public Works and Government Services Canada, which works closely with and on behalf of departments. The procurement of advertising agencies is based on a competitive process, and it is done in accordance with the established policies and procedures.
Public Works also manages the government's advertising agency of record, which is a single firm that purchases all advertising time and space for the government. The objective of centralizing media purchases is to leverage the combined buying power of the government to obtain the best prices, whether it is for television, radio, print, out-of-home advertising, or the web.
As I mentioned earlier, advertising is subject to Treasury Board policies and procedures. To help all departments comply with the rules, Public Works and Government Services works closely with the Treasury Board to review proposed advertising for compliance with policies and procedures. My colleagues here from Public Works are Mark Perlman and Louise de Jourdan. They would be very pleased to answer any questions you may have regarding the role and functions of Public Works in the advertising process.
Treasury Board policies and procedures also require departments to pre-test creative concepts for their ads and to then conduct post-campaign evaluations of their major advertising initiatives.
Finally, the last step in the process is reporting. It is performed on a number of tracks, such as, for example, by means of the website the Treasury Board Secretariat has that identifies the moneys committed to advertising from the fiscal set-aside.
Public Works also has annual reports on advertising that provide an overview of the Government of Canada's annual expenditures.
[Translation]
I have briefly described the process, and I sought to identify the responsibilities of the institutions represented at this table today: Treasury Board Secretariat, Public Works and Government Services Canada, and the Privy Council Office.
[English]
I hope this brief overview will assist committee members.
I've also given three handouts that summarize what I was talking about. On one page you have the advertising management framework. You have some examples of major themes and campaigns for 2010-11. Finally, you have a document produced by Public Works on the Government of Canada's advertising process, roles, and responsibilities. They are all bilingual, and there's considerable information in the little handout.
Thank you very much.
This is a kind of responsibility.... It upsets me quite significantly. We know that recently there has been a lot of change with the moniker of the federal government, and we have lots of articles by the Canadian Press on this very issue. The moniker of the Government of Canada has literally been changed to “the Harper government”.
My questions are on the common look and feel. We know, for example, that the federal identity program and the common look and feel policies exist, and yet they seem to be now being changed so that you could use the Harper moniker.
I'm just going to quote from the Canadian Press article, which says:
Civil servants in at least six departments now say the naming policy comes from “the Centre”—meaning the Prime Minister's Office and the Privy Council Office.
The branding of the Government of Canada ensures from an international perspective that internationally we're known as the “Government of Canada” and even that the people of our country know that this is Government of Canada official information. How is it that we can now be using “the Harper government”?
Further to that, was there a communiqué verbally or in writing that made that dictum?
:
I noticed a few things on the Web site for Canada's economic action plan that do not, in my view, have anything to do with the economic action plan. I can submit them to the committee, Mr. Chair, if you would like.
When the purpose of a Web site is to promote programs aimed at helping Canadians, I find it rather odd to see the site promoting the Prime Minister, the finance minister, the industry minister, the minister of this or the minister of that. I find that rather peculiar.
I see you cannot respond. But could you provide the committee with the breakdown by province of the Government of Canada's advertising expenditures for the past year? How much did the Government of Canada spend in each province? I do not want the numbers for each region, but for each province.
My next question picks up on what my colleague was saying. When there is a government action plan and you decide on a given advertising project, you need to have plans and criteria. Could you please provide the committee with the criteria you are told to give priority to? Is it the information aimed at Canadians or the promotion of the federal identity? I want to know.
My last question is how do we rank against other countries when it comes to advertising spending? Do you have enough money to work with, or are we among the biggest spenders?
:
Thank you very much, Chair.
Again, witnesses, I'd like to thank you for attending with your testimony today.
It's rather interesting. I've heard a series of questions and responses, and one of the things that came up fairly loudly in the first round of questioning had to do with dovetailing ads—that is, the apparent perception by some that Government of Canada ads and Conservative ads are within the same mix of commercials in between the content of shows. Sometimes I'm not sure whether it's the advertising we're watching or the shows, based on amounts of time. But the comment came back by a member opposite that this “dovetailing” can't be coincidental, but Mr. Perlman, you made it really clear, from what I heard, that there are guidelines in place in terms of the numbers of ads, the separation of ads. They cannot be in that same series or segment of ads. And in fact, did I hear you correctly that if that were ever to happen you would treat the Government of Canada ad, the cost of it, as if it never happened? Is that correct?
Here is another thing I'd like to lay to rest as well. It's rather interesting. I'm hearing more recently, “the Harper government this”, “the Harper government that”, and I'm hearing that reference more from members opposite than from any reference to media, so I guess I should say thanks to our friends opposite for the continued support. In fact, it's rather interesting. I'm on the Standing Committee on International Trade, and the critic for international trade for the official opposition made the comment in referencing our government; she called it the “Harper government”. That was about an hour and a bit ago, and a witness made the same reference as well.
I guess if there were a perception that that was a bad brand, I suppose it's okay, because I certainly recall many times with various media releases from members opposite when they talk about the “Harper government” this or that, but now that it appears that the brand seems to be fairly positive, now all of a sudden it's kind of curious that it's somehow.... Maybe they shouldn't be saying it so much, but it's what it is, and I'm hard-pressed to understand that rationale. But it's what it is.
Madam Smart, it seems to me that the Government of Canada has checks and balances to ensure that our advertising process complies with existing policies. Can you help me understand a little bit better how these checks and balances work?
Every year the government either does a Speech from the Throne or a budget, and the priorities for advertising are usually laid out as coming out of that budget under themes. For example, I have done a one-page handout of the major themes that are actually related to the Speech from the Throne for 2010-2011—families, economy, recruitment. When those major themes are established, my role is coordination and pulling together this annual advertising plan. We would work with departments to pull together advertising campaigns under each of those themes.
So under families, just as an example, you would have protecting the health and safety of Canadians, or victims of crime, and you'll see the various posters there. As the departments pull together those campaigns—and they're the ones that know their clients best, so they pull it together—they would work very closely with Public Works to make sure procurement and policies and procedures are followed, and they would work very closely with Treasury Board to make sure the common look and feel and the fit are identified properly in the creative concept.
As they come together, we also look. Ministers' offices look. So these things are not usually developed in one step. They're usually developed back and forth, back and forth. They're pre-tested. They're adjusted. There are many checks and balances built into this as it goes forward. And then after it's over, after it has run, if the campaign is a major one, we do an evaluation. The department must do an evaluation of the campaign.
:
I can take that question.
I think the incident you are talking about had already been brought to our attention some time ago and we investigated it. It was actually related to a DND ad and dated back to quite a number of years ago; it was in 2006, when the Government of Canada was just beginning to use the Internet more as a form of advertising. We do use it a lot more now.
Our processes have evolved substantially. For example, like the instructions that Mr. Perlman spoke of earlier with respect to spacing of ads and so on and so forth, the AOR, the agency of record, also has very clear instructions on the placement of Internet that it uses with broadcasters. It's done on a filter basis. There's a whole series of filters that are in keeping with our values and ethics. So there are words provided.
There are some types of Internet buys that do pose a little bit more risk. It's kind of technical, but at the end of the day we've pulled away from those types of Internet buys. So we're following it pretty closely.
The AOR in addition to that has put in remedial action because it also affects them as a company. So it's company-wide not just in keeping with our stuff but they are working with the network providers to ensure that these filters are very strong and are taking action if they're not adhered to.
It's ironic, because on the one hand you have the opposition claiming we're a secretive government, but you're here today because they're also telling you that we advertise and we communicate too frequently with people. They are upset that we communicate too frequently about changes to taxes, with respect to the economic action plan, and the budget.
I note that when we talked about the economic action plan and the stimulus, we were told that we weren't telling people what's going on. Then when we worked with our provincial partners to advertise and put up signs at all the locations so people could see the progress in action, we were told they didn't want us telling people what was going on, that's not what they meant.
So it's very difficult for you. Especially in this committee over the last year or so, the public service is brought in and they are told this and that with respect to the West Block construction, and then we find two, three, four layers of accountability is built in. With the G-8 and G-20, layer after layer of accountability is brought in.
What I find most offensive, to be honest with you, is the wording that comes from some of the members of the opposition. Earlier in his questioning Mr. Regan used the word “regime”. I don't know if he's being funny or if he just has a complete lack of respect for the public service, as opposed to me. I think the public service is doing a spectacular job. It's just a commentary on the fact that when he says things like that, and when the Liberals in particular say things like that because they think they're being funny or they think they can score some cheap political points, what they're really saying is that they don't trust the public service, the professional public service. And we've seen it time and time again in this committee over the last year.
I'll say this. I think you've done a spectacular job. This has been a very difficult couple of years. We've been focusing on jobs and the economy. I know that's not what the opposition has been focusing on.
When it comes to advertising, you look at H1N1. We're being criticized for spending on H1N1.
On August 12, 2009, the opposition issued a press release saying the government should spend more on communicating with respect to H1N1. They repeated that on November 3, 2009. The leader of the opposition in the House of Commons said the government needed to do more to communicate to people what's going on, and yet you're brought here today and told you shouldn't have spent $23 million telling people about H1N1; you shouldn't spend money telling people about elder abuse; you shouldn't spend money telling victims of crime where they can go to access help and information; you shouldn't be told about jobs and the economy; you shouldn't be telling people you can access tax cuts and the changes that have happened as a result of the budgeting process; you shouldn't tell homeowners that you can get a tax credit for the work you're doing at your home.
For some reason, these are all bad things. You know what? After a decade of darkness and misery in the Canadian armed forces, this government put in an action plan to restore the pride and the effectiveness of the armed forces--but we don't want people to know about it, so don't tell people about it. We can buy this new equipment, give them the resources they need, but let's not do anything to recruit more people.
I know it frustrates the opposition to no end that this has been a government that has been extraordinarily accountable and effective with people's money, but just to go back, how do you ensure the integrity of the contracting process when you do your advertising?
:
First of all, all the contracting for advertising services goes through one group, and that's Public Works and Government Services Canada. Right there it enables one group to ensure they are following all the principles of open, fair, and transparent government.
Every contract for advertising services is awarded on a competitive basis. We worked to put in a series of tools that are at the disposal of departments. For instance, we already talked about the agency of record. That contract was let after a national competitive process.
We now have a series of three sets of instruments that departments use: standing offers for services up to $350,000; they also have access to companies that have been pre-qualified on supply arrangements; and departments can also ask PWGSC to run a full RFP process on MERX.
As I said, every contract is awarded competitively, and it's done on a two- or three-year cycle to ensure there's a rotation, and it's open to as many suppliers as want to apply.
Further to that, we have....
Ladies and gentlemen, let's be very clear about this. We have no intention of blaming you for anything. We're here to try and understand the process and what happens in the case of all government communications.
Yesterday, I logged on to Canada's Economic Action Plan website. It contains photographs of average Canadians, which gives the impression that the site is intended for the average Canadian. An explanation is given of the policies associated with the Economic Action Plan. If you check out the site further and click on some of the additional photographs, you come across a series of photos promoting either the prime minister or ministers. These are the kinds of photographs and observations normally found on departmental websites.
So then, you can see why we have some major issues with this approach. We know that these were not your decisions. We know that you must comply with policies and follow orders. That's what has been said and reported by the media. We're merely trying to delve into this a little further and to get more information, so that we have a clearer picture.
When Ms. d'Auray appeared before the committee, she was accompanied by Simon Kennedy. My colleague probably mentioned that earlier. Simon Kennedy told the committee that the government's Economic Action Plan website is managed by the Privy Council Office. You are telling us that the Privy Council Office in fact decides what material is posted on a website like the Economic Action Plan website.
That said, did I understand correctly that the office has dealings with Cossette Communication? No? Earlier, I thought I heard the name Cossette mentioned. Why has the name Cossette Communication come up?
:
There are different things at different steps. Before a campaign is completed, there is pre-testing done on several concepts. When you hire an ad agency, typically they'll present a minimum of three concepts. Those concepts are tested in the target population to ensure that the messages resonate with them. That's one safeguard.
At the end of the campaign, as part of the evaluation process, if they're large campaigns where the media exceeds a million dollars, they're automatically subjected to an evaluation process. This includes the testing of the audience—whether or not they remember seeing the ad, whether they can recall the major messages.
In addition to that, other types of measurements are done. Typically, an ad campaign will have a call to action, so in the message it will say call this 1-800 number, visit a website, take a particular social action, and there are ways to measure that. We'll measure how many hits there were on the website, or how many calls there were to the 1-800 number. For the home renovation tax credit, one of the results that was put forward was the number of people who actually claimed the home renovation tax credit. So there are different measures like that.
Again, following through on what my colleague just asked, we're understanding that the finance department has said that some of the money has already been spent preparing an ad campaign and that it would be a comprehensive national campaign. I'm just following up on him.
I'm hearing from you that Privy Council doesn't know about that, but the finance department does. Okay, we'll follow up on that.
When you determine that an advertisement will air, for example, using—and I think you talked about it earlier--the Oscars or the Super Bowl.... I was in marketing a long time back, and those ads are at a hyper price, a lot more expensive than most.
I'm seeing shaking heads. So you're saying you don't pay a premium for these particular placements?
:
Thank you very much, Chair.
I'll carry on with some comments if I can.
I've listened to questions from around the table as well as your thoughtful responses. It's rather interesting. Here's what I've heard so far, and I find this very compelling. There's been no dovetailing of ads such that the Government of Canada ads and Conservative Party ads appear in the same short segment. I've heard that. I've heard that there's been no direction under the PCO to promote the Harper government. We actually leave the opposition to do that. I've heard that all government advertising is subject to legislation, policies, and procedures, and that they're rigorous. I've heard that all contracts are awarded competitively. I've heard that by centralizing media purchases, the Government of Canada leverages combined buying power, whether it be TV, radio, print, or web advertising. I've heard that Public Works provides annual reports on advertising to offer their overview of the Government of Canada's annual expenditures.
Madam Smart, have I missed anything? Would you deem those comments I've made to be reasonable considerations?
:
Thank you, Mr. Chair. I appreciate that.
I will just reference my friend across the way, Mr. Regan, who was talking about the amount spent on H1N1. Obviously it was far more than the amount he indicated.
We on the government side do believe there is an essential responsibility of government to step in, to assist, to ensure there are lives saved. When we think of the H1N1 development, there was a necessity for government to step in to ensure that Canadians were prepared for the impending problems that would come as a result of the flu, and we obviously see the benefits of that. Canadians were well prepared and many Canadians who may have been infected were otherwise spared that situation.
He belittles the investment we made to ensure Canadians are aware of the economic action plan. While it's essential for government to help spare the lives of Canadians, it's also a responsibility of government to help spare the livelihoods of Canadians, to ensure their families have an income, to ensure people have access to jobs and an opportunity to take advantage of the measures that the Canadian government is bringing forward with regard to different tax savings and different training opportunities Canadians have in general. If we were to reference the different ads that were brought—obviously television is one, probably the one that we most often reference in our minds—was there a program designed to link Canadians from one medium to another?
I often think that television is simply the most obvious reminder to Canadians that they should look further. With common branding, when they go to a government website, they see there is an economic action symbol and it would reference back to the television ad. Then by going on the Internet, they would be able to find how they would actually get the individual services provided. Was that linkage there? Is there a common effort to ensure that people can follow the advertising or the common themes to where they might actually be able to take advantage of the opportunities government is providing for individuals?