Finance Committee on May 2nd, 2013

[Scott Brison, Liberal, Kings—Hants, NS]

Thank you very much.

Mr. Catta, you were speaking of the public opinion research that the Department of Finance commissions to gauge the effectiveness of your advertising. You commissioned Ipsos Reid to conduct a survey on the effectiveness of the jobs and growth campaign using the Government of Canada's advertising campaign evaluation tool. The results were that more than two-thirds of Canadians did not see any economic action plan during the survey's timeframe. Of those who could remember the ads, 92% said they did nothing as a result of the ad. So how can you say they are effective when 92% of the people who actually remember the ads said they did nothing as a result of the ads?

[Jean-Michel Catta]

As I said previously, there are two dimensions to the research we do. There's the level of awareness of the economic action plan. In terms of the actual action, you're right to point out that the numbers are not necessarily high. At the same time, you will avail yourself of the benefit to receive more information on the basis that you are seeking that information. The fact that you're made aware of the economic action plan is one part, knowing that the government has a plan. The second aspect, which would make sense, is that there would be fewer people who would then take action to avail themselves.... They could also seek information through other means, for example, visiting the economic action plan website. Our research is one measure of the effectiveness of our campaign.

[Scott Brison, Liberal, Kings—Hants, NS]

Yes, but you said your research validated the effectiveness of the advertisements. I'm saying that the research you commissioned did not validate the effectiveness of the campaign; in fact, it was quite damning. More than two-thirds didn't recall it, and of those who did recall it, 92% said it did not affect their behaviour; it did not impact their decisions.

[Jean-Michel Catta]

Again, I go back to what I pointed out earlier. Our research has shown that Canadians do want the government to communicate about its priorities, and that's what the Department of Finance is doing. The economic action plan is an extremely important piece of the—

[Scott Brison, Liberal, Kings—Hants, NS]

Do you have a part of the survey where you ask Canadians questions such as, for instance: Do you want the government to communicate or advertise its priorities? Do you attach a price tag to that? Do you ask whether it's worth $100 million of tax revenue? Do you provide them with the opportunity to weigh it against the actual cost to the treasury?

[Jean-Michel Catta]

Actually, the research that we do is accessible through the National Archives site. Within six months of the research that we do, it has to be posted and made public. You can track the evolution over four to five years, and it includes the data information questionnaire.

To your question, and I don't have the exact wording with me, it's more of a generic question as to something like, do you believe it is important for the government to communicate?

[Scott Brison, Liberal, Kings—Hants, NS]

Have you ever considered the idea of asking a question such as, for instance: Which would be a priority for you in terms of government investment—government advertising to promote its message, or investments in food safety?

I'm just curious. Have you considered maybe bringing Canadians into the tent a little bit and giving them an opportunity to opine more granularly?

[Jean-Michel Catta]

No, we haven't asked that question specifically.

Again, our research focuses specifically on the advertising campaign itself. There's a bit of a set formula to those kinds of evaluations. The other research is, for example, pre-budget research that we do in terms of gauging people's sense of priorities for the upcoming budget. They are pretty big-picture types of questions.

[The Chair, Conservative, James Rajotte]

One minute, Mr. Brison.

[Scott Brison, Liberal, Kings—Hants, NS]

I'd like to ask a question on OSFI's funding. OSFI's requested funding in the 2013-14 main estimates is the same as that requested in 2012-13. At the same time, the RPP indicates that there will be a need for new resources, or ought to be, due to staffing, technology demands, or changes to the Basel capital framework.

How do you expect OSFI to meet these increased challenges and responsibilities without any increase to its resources?

[Sherry Harrison]

I believe we have somebody from OSFI here who can speak to their main estimates.

[The Chair, Conservative, James Rajotte]

I'll ask you for a brief response, please.

[Marie-France Caron, Director of Finance, Office of the Superintendant of Financial Institutions, Department of Finance]

OSFI is mainly funded through assessments that we get from the financial institutions and the private pension plans that we regulate. The fact that the amount in the main estimates is flat is the Office of the Chief Actuary is actually using that appropriation. So, the increase that you see in the other parts of the main estimates is funded through our base assessment in the financial institutions and the private pension plans we regulate.

[The Chair, Conservative, James Rajotte]

Thank you.

Thank you, Mr. Brison.

We'll go to Mr. Adler.

[Mark Adler, Conservative, York Centre, ON]

Thank you, Chair, and I thank the officials for being here today.

I want to begin by saying that we on this side believe in transparency and accountability, and so we are in favour of informing the Canadian people of the government services we offer so they can take advantage of them, unlike the members on the other side, who clearly do not believe in such a concept.

I would like also to mention that in terms of provincial spending on government advertising, it's the governments of Ontario and Manitoba that lead the way on the provincial side. It's a Liberal government in Ontario and an NDP government in Manitoba.

I've noticed that the main estimates are presented in a little different way this year. Could you explain the difference, and why they are different from previous years?

[Sherry Harrison]

There are some changes in format. The organizations, for example, are listed alphabetically rather than by portfolio, just for ease in trying to find an organization, but within this there is a little bit more graphical information.

For all departments, the statutory items, which as I indicated in my opening remarks have been previously approved by Parliament through the enabling legislation, are summarized in the text. There is more information given on the voted appropriations, which for the Department of Finance are our operating costs and our grants and contributions costs.

You have more information. You have the 2011-12 actual expenditures, as well as last year's main estimates, plus what was approved in the supplementary estimates, which is new this year. You can see last year's full picture of the estimates year compared with where we are this year in the main estimates. There's a little bit more information on the voted portion. The statutory information is still there, but most of it is online on the Treasury Board site.

[Mark Adler, Conservative, York Centre, ON]

This would help with transparency and being more open to the Canadian people.

[Sherry Harrison]

I would say there is certainly much more estimates and expenditure data in these estimates than in prior years.

[Mark Adler, Conservative, York Centre, ON]

I also see there is a decrease in interest costs in a few of the items, such as unmatured debt. Could you comment a bit on that?

[Sherry Harrison]

Perhaps my colleague could do that.

[Galen Countryman, Senior Chief, Fiscal Policy, Economic and Fiscal Policy Branch, Department of Finance]

The interest costs on unmatured debt are lower because, as we do an average of the private sector forecast, their interest rate forecast has been lower compared with what was in the last estimates.

[Mark Adler, Conservative, York Centre, ON]

What would you say has caused these lower rates?

[Galen Countryman]

I deal with these. I can't speak for the private sector economists, but their expectations for interest rates going forward are generally lower, both in the short term and the long term.

[Mark Adler, Conservative, York Centre, ON]

These are an aggregate of the—

[Galen Countryman]

We take an average.