I've done a quick audit, Mr. Chair, and I will keep it to about five minutes.
Thank you, Mr. Chair, lady, gentlemen. It is a pleasure to appear before you today to provide some commentary on the Auditor General's report on recruiting and retention to outline some of the activities we are currently embarking upon and to share with you some of the success we are achieving as we progress with force expansion for the Canadian Forces.
Although my focus will be on the successes we have made in addressing the Auditor General's recommendations, I will also highlight some challenges that still remain. Regarding the Auditor General's report, I must first note that the report is an accurate reflection of the state of play as it existed for the 2002 to 2005 period covered.
The Auditor General's team noted our considerable progress made since the last report in 2002 and correctly pointed out some areas where we did not progress as well or as quickly as intended.
The report itself centres on four key issues: recruiting, retention, retention strategies, and the need for clarity on responsibilities and authority with regard to personnel management and what we call personnel generation. Allow me to make a few comments on each of these issues, commencing with recruiting.
It is important to point out that the years covered in this most recent report were pre-force expansion. Indeed, the 2003 to 2005 period was one in which the Canadian Forces was stabilizing after years of downsizing, followed by a short, sharp spike in recruiting and a period of planned, slow increase to achieve a more reasonable trained effective strength. Trained effective strength is basically our measure of Canadian Forces members who are trained to deployment level and who are available for deployment.
In fiscal year 2005-06 we commenced what has become known as the first tranche of force expansion. The first force expansion requirement, the one on which we based the 2005-06 strategic intake plan, required an increase of 5,000 regular force over five years. We achieved 106% of our strategic intake plan last year, effectively increasing the strength of the Canadian Forces by more than 1,000. Over the course of this fiscal year 2005-06, a larger force expansion was announced. This new plan will see the Canadian Forces move to a total paid strength of approximately 75,000 regular force. This strategy will see the Canadian Forces grow in phases, with a first step to reach a total paid strength of 70,000 regular force by fiscal year 2010-11.
I have recently given direction to begin processing applicants using new protocols designed to increase the efficiency of our recruiting system while maintaining Canadian Forces standards. The new protocols are designed to move from the sequential applicant processing system used during previous years of zero growth and/or downsizing to a system of concurrent steps. For example, criminal record and credit checks have been moved forward to occur while verification of new applicant information or electronic verification of service for applicants with prior military service is being conducted.
Advertising plays a huge role in the attraction process. After all, if people do not know we are hiring, they are less likely to apply. On the subject of advertising, I must admit that we do not have scientific performance measurements that show the return on investment for advertising dollars spent. I can say, however, that advertising campaigns do increase awareness, and when campaigns are running there are more individuals showing interest and more applicants. As well, experience shows that about one month after advertising stops, interest and applications decline.
My colleagues in the United States, United Kingdom, Australia, and New Zealand report similar results. The Canadian Forces advertising budget was recently increased from $5 million to $15.6 million, which is similar to a comparable allied nation such as Australia.
With respect to retention, we continue to develop and build a retention strategy with a view to enhancing a Canadian Forces culture of retention. Performance measures for this strategy remain elusive because of the wide range of activity included under the retention rubric. From quality of life initiatives to fair compensation and education and training opportunities, to family and member support initiatives, we know that all of these types of initiatives contribute to establishing a two-way commitment that is essential for creating and sustaining a culture of retention.
Over time, we have maintained an overall attrition rate of approximately 6.5%, a rate that is the envy of our allies. If anything, these rates are at the lower limits of the healthy attrition required to ensure force renewal.
To establish conditions for success, the military human resources group has undergone internal reorganization consistent with the Chief of the Defence Staff's principles, in that we have established a command-centric, operationally focused entity, known today as the Military Personnel Command, led by the chief of military personnel, the position I fill. Internally, we have reorganized to focus on specific lines of operations and to separate policy from service delivery. This new structure is more in keeping with the military personnel generation function and provides the command-centric view so necessary for providing clear direction.