March 15, 2004
Vancouver, B.C.

NEWS RELEASE

The Honourable Stephen Owen, Minister of Public Works and Government Services, today announced a moratorium on new government advertising pending the implementation on June 1 2004 of new measures aimed at strengthening the management of the government’s new advertising activities. Minister Owen also announced that the government will reduce its purchase of media space by 15% for the next three years for a total savings of $36 million.

“Our goal is to address and go beyond the concerns raised by the Auditor General regarding the management of government advertising,” said Minister Owen. “Canadians must be confident that federal advertising is managed in an open and transparent manner with a focus on achieving value for money. We are taking these steps so that we can get the right tools and management systems in place as quickly as possible.”

The government has placed an immediate moratorium on new advertising campaigns until a new Agency of Record is chosen through a fully competitive process and new procurement tools are available to government departments. The moratorium affects new advertising programs until June 1, 2004, but will exclude advertising for emergencies, ongoing campaigns central to government operations and public notices.

By June 1, 2004, the procurement tools available to departments will include new supply arrangements and standing offers for access to the services of creative agencies, all chosen through open, fully competitive and transparent selection processes. The government will also implement a new Advertising Management Information System to track and manage advertising projects in government departments.

The Government will also reduce its overall spending on government advertising through a 15% reduction on media placement. This reduction in media placement spending will be in effect until 2006-2007, saving approximately $12 million each year.

“I am confident that these changes will allow us to manage our advertising more efficiently, through better planning, improved coordination, to better focus on government priorities, while ensuring better value for taxpayers,” added Minister Owen.

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