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Advertising Management Approach Post Auditor General’s Report
March 15, 2004
Vancouver, B.C.
BACKGROUNDER
Three key messages
- Making sure Canadians get value for money, by changing how government works and reducing spending.
- Addressing, and going beyond the AG’s concerns.
- Implementing an overall approach that is transparent, open, accountable and which provides value for Canadians.
Key Points
- On March 15, 2004, Minister Owen announced measures aimed at strengthening the government's new advertising program and ensuring its implementation.
- The Government’s approach to advertising has four goals:
- Increase openness, transparency and accountability;
- Be seen as addressing findings/recommendations of AG report;
- Manage our advertising better, that is, advertising planned and focused on government priorities;
- Demonstrate our commitment to fiscal prudence by reducing the overall expenditures on government advertising.
- The new advertising program will ensure the GoC is acting on the management issues raised by the Auditor General and is moving forward with the implementation of a new advertising management model.
Background
In April 2003, the Honourable Ralph Goodale, former Minister of Public Works and Government Services, announced that a series of reforms to strengthen Government advertising management would be put in place over a 12 to 18 month period.
Once implemented, these reforms will enable the Government to demonstrate to Canadians that federal advertising is managed in an open and transparent manner with a focus on achieving value for money.
Following this announcement, Communication Canada and PWGSC began putting these reforms in place. However, given the seriousness of the current situation, it is imperative that we further curtail operating under the advertising management model announced in April 2003, and quickly move to full implementation of advertising reform.
On March 15, 2004, PWGSC launched a competitive process to increase the number of advertising suppliers the Government draws on
A new Advertising Management Information System is being developed. This system will help address the advertising reporting and file transparency issues identified by the Auditor General and ensure adherence to the requirements in the Communications Policy of the Government of Canada.
Auditor General’s Concerns
With respect to the government’s advertising program, the Auditor General was specifically critical of how the government managed:
- The competitive process;
- Fulfillment of contractual obligations, and oversight of the Agency of Record
- Meeting our obligations under the Financial Administration Act.
Agency of Record
PWGSC has launched a competitive process to establish a new Agency of Record and is currently finalizing the evaluation process (expected to be completed and approved by Treasury Board by May 31, 2004).
Once this contract is in place, it will be closely managed and subject to performance evaluations and audits to ensure value for money.
Moratorium on Advertising and Exemptions
To ensure the reforms are implemented and the new management model is put in place as soon as possible, Minister Owen is imposing a moratorium on new advertising activities until June 1, 2004.
This temporary moratorium would freeze all new Government advertising, with few exemptions.
Departmental requests to be exempted from the moratorium would be reviewed on a case-by-case basis. PWGSC would be responsible for contracting in the event an exemption is granted.
Criteria for exemptions to the moratorium include:
- Advertising for mandatory GoC business (e.g. CRA’s Income Tax Campaign);
- Advertising related to a pressing emergency in which delay would be injurious to the public interest;
- Campaigns for which contracts have been awarded using the new contracting model (e.g. DND’s recruitment);
- Public Notices continue, as required;
- Crown Corporations not subject to the Schedules 1, 1.1 and 2 of the FAA (e.g. Canadian Tourism Commission, Business Development Bank of Canada).
Freeze on Media Placement
- In order to show that we are fiscally prudent, media placement spending will be reduced by 15% - using the 2002-2003 fiscal year total of $83 million as a baseline (the reduced amount would be approximately $70.55 million per year in placement).
- The government proposes to freeze media placement spending at this level until 2006-2007.
- It is important to note that the freeze does not affect Crown corporations, which are outside of the purview of PWGSC.
Contracts Suspended
Contracts have been suspended with the following companies:
- Lafleur Communication Marketing
- Gosselin Communication
- Groupaction
- Communication Coffin
- Group Everest C.M.-P.C.R.
Contracts have also been suspended with the following affiliates of the above mentioned companies:
- Publicite Dezert
- Alleluia Design
- Everest Estrie
Payments have been withheld and no new contracts have been awarded while the RCMP investigation continues.
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