Perfect, thank you.
Mr. Chair, ladies and gentlemen of the committee, thank you for this invitation to provide information on government advertising with my colleagues from other central agencies.
I am here today in my former role as the PCO's assistant secretary to the cabinet for communications and consultations. I have since accepted a new position as deputy minister of intergovernmental affairs and youth, but I occupied the assistant secretary position from March 2015 until last week.
As mentioned by my Treasury Board Secretariat colleague, the current process for the management of advertising was established in 2016. There were two important changes in the policy. The first one was the introduction of a clear non-partisan requirement for all government communications, and more specifically for advertising, and the establishment of an independent, mandatory oversight mechanism for any campaign with a budget of over $500,000. The second change was the suspension of advertising activities 90 days prior to a general election on a fixed date. Another important change last year was the commitment made by the President of the Treasury Board to reduce advertising expenditures, which was also confirmed in budget 2016.
Also important to highlight is the fact that campaigns on initiatives that are subject to parliamentary approval or related to trade agreements that require ratification, as Ms. Baird pointed out, cannot take place until such approval has been received.
As noted by my colleague, the new advertising oversight mechanism is now in place for all campaigns over the $500,000 threshold. On a voluntary basis, we can also submit for approval campaigns with a different value.
It is important to note that this process was established as an interim mechanism. The government has asked the Office of the Auditor General of Canada (OAG) to conduct an audit of this process. The scope and timing of these audits will be determined by the OAG. This process will remain in effect until a permanent oversight mechanism is established, in the form of legislation.
As part of its advisory role during campaign implementation, including ensuring that all advertising activities comply with the government's laws, policies and procedures, Public Services and Procurement Canada serves as the liaison between departments and Advertising Standards Canada (ASC) during the ASC's review process.
With respect to the role of each of the players in the government advertising process, the respective roles and responsibilities of institutions are established for all stages of an advertising campaign, including planning, implementation, and evaluation. In terms of PCO's role more specifically, it's very much in line with our role in government communications more broadly in that it focuses on the coordination of government communications generally and on advertising specifically.
In collaboration with departments, ministers' offices, and the Prime Minister's Office, PCO develops the Government of Canada's annual advertising plan in accordance with government priorities as determined by the Prime Minister, cabinet, cabinet committees, the Clerk of the Privy Council, and as described in the Speech from the Throne and in the budget.
PCO provides leadership, a challenge function, strategic direction and coordination during the implementation of major advertising campaigns. We also advise client departments on advertising, creative, and media strategies. Having a global view of all advertising campaigns within the government's broader communications strategy allows us to provide strategic advice on campaign timing and messaging. Our overarching role also allows us to share lessons learned from recent campaigns and apply them to future campaigns. We also provide feedback on creative work and on strategies, including suggesting alternative means of reaching target audiences and ensuring that all safety regulations are followed.
We also provide advice on public opinion research activities related to advertising, such as the best concept testing approaches for a given campaign. We can suggest, for example, in-person versus online testing. We also conduct post-campaign evaluation analyses.
While PCO always ensures that government communications are non-partisan, it does not play an active role in the non-partisan review process or in contracting for advertising. Rather, this is part of Public Services and Procurement Canada's and Treasury Board Secretariat's responsibilities.
Advertising activities can be funded by two sources: departmental operating budgets and the central fund, which was established in 2004 to support major government priorities. Last year, the government announced a permanent annual reduction of $40 million in advertising expenditures.
The objective when planning government activities is to stay within this commitment by using both paid and unpaid communications channels to inform Canadians on key programs and services.
From 2005-06 to 2014-15, the government's advertising expenditures averaged approximately $80 million per year. According to the information collected by Public Services and Procurement Canada , we anticipate last year's expenditures to be less than $40 million. Final expenditures, once all invoices are received and verified, will be published in the annual report on advertising activities prepared by my colleagues.
This year's plan is very much a continuation of a number of last year's themes, for example, education and skills, Canada 150, free admission to Parks Canada places, settlement services for newcomers, and remembrance. All these initiatives will be funded via the central fund. National Defence and the RCMP will also continue their recruitment advertising campaigns using departmental funds for this year.
So how are advertising campaigns selected?
As part of the annual advertising planning cycle, departments and agencies prepare their annual advertising forecast. These forecasts include proposals to access the central fund for key government priorities.
Based on these priorities and the budget available in the central fund, PCO then prepares the Government of Canada advertising plan in close collaboration with departments and the Prime Minister's Office. The plan is then presented to the prime minister for approval and shared with the Cabinet Committee on Open and Transparent Government.
Once the plan is approved by the prime minister, PCO then prepares an omnibus Treasury Board submission to seek funding authority for campaigns funded via the central fund. The funding amounts are then submitted to Parliament as part of the government's estimates process.
Departmental advertising is also an important part of government advertising activities. It is most often local and targeted. Examples include legally required advertising, such as notices regarding permits or endangered species. There are also revenue-generating activities—such as Parks Canada tourism advertising—, program-related activities—such as the agricultural loans program— and recruitment-related advertising, as I said, for the RCMP or DND. There are also Health Canada recruitment notices for nurses for the North.
While advertising themes are relatively similar from year to year, at any time, unforeseen advertising campaigns could be deployed in the context of a major health crisis such as we saw during 2009-10 with H1N1. As has been mentioned by my Treasury Board colleagues, regardless of the source of funds, all government advertising is subject to the legislation, policies, and procedures that govern this function.
To assist all departments in complying with the new partisan requirement, a new coordination process was put in place, and PSPC serves as the liaison between the departments and ASC. As was also noted, the government's overall advertising expenditure has in fact been reduced. Given this cap, we need to work with departments on both earned and bought media in communicating our activities.
My colleague Marc Saint-Pierre will now give you an overview of the role of Public Services and Procurement Canada.
I hope this overview has been helpful to you today. I'd be happy to take your questions.