Putting your money where its mouth is
Author:
Walter Robinson
2002/05/07
Pop quiz time: What company spends more money on advertising and sponsorship than any other in Canada? Here's a hint? It has almost 15 million shareholders. Still stumped? Well, it was a trick question. The correct answer is the Government of Canada; its shareholders being 15 million taxpayers.
Given that the combined size of all levels of government represents over 40% of our GDP, some advertising expenditures are inevitable. Die-hard small "c" conservatives will argue that government should only advertise changes to the bus schedule. Others may go further and argue that the buses should be privatized, hence, no need for any advertising.
But as we move from the pages of political theory to reality, some government advertising is necessary. Public information campaigns guarding against foot and mouth disease at our airports and borders come to mind. Vaccination campaigns for meningitis outbreaks or annual free flu shots are areas where reasonable people do not quibble with cost-effective and targeted advertising.
And announcements telling citizens how to access government services during public service strikes fall within the bounds of providing good government. These activities are not in question.
At issue is when governments pony up your hard earned cash to sponsor events like formula one races, hunting shows, tulip festivals, folk music gatherings, winter carnivals, fishing bonanzas, fireworks displays, etc. Or when monopoly service provision crown corporations (think Canada Post, Royal Canadian Mint, the LCBO, Ontario Lottery Corporation, TravelOntario, etc.) take out rink board and stadium advertising at sporting and cultural events.
Thankfully, federal Auditor General Sheila Fraser will likely recommend today that the RCMP be called to investigate the federal government's $40 million annual sponsorship program. This stems from recent revelations that Montreal-based GroupAction Marketing billed the feds $1.6 million for three reports, which were almost identical in content.
These revelations have spurred a flurry of opposition and media interest - like never before - into Ottawa's sponsorship portfolio and the fact that some the brokerage fees for placing advertising and the Canada logo, especially in the province of Quebec, went to firms that have donated generously to the Liberal Party of Canada.
We know that internal audits (hmmm, sounds like the HRDC billion dollar boondoggle) at Public Works have raised questions about this sponsorship activity. In some instances, auditors have raised questions about paperwork for sponsorship being prepared after cheques were cut and recipient events were finished. In other cases, little justification can be found for sponsorships to various festivals.
Of course the Mounties being called may not be that big of a deal. This is the same RCMP that has become more than a little politicized in recent years. Recall their baseless hounding of former Prime Minister Brian Mulroney for alleged Airbus kickbacks. This investigation was clearly politically driven and ended up costing taxpayers dearly in terms of settlement fees for Mr. Mulroney's lawyers. (Note: Mr. Mulroney never received a penny from taxpayers in his settlement).
Nonetheless, from all the evidence dug up so far by media organizations, the opposition parties and advocacy/public interest groups, an investigation is warranted. And from my years of political observation - as young as I may be, I've been a political junkie for over 20 years - I truly think this is the tipping point for Jean Chretien's nine-year old visionless and directionless Liberal regime.
Thankfully, Canada has chugged along in spite of his administration.
Several media organizations are pursuing different angles of this story. All the opposition parties are hot to trot with questions that are more factual and pointed than those offered up during the previous Shawinigate and HRDC scandals. And more than one Minister is under the proverbial gun.
The public is engaged on this issue. Talk radio lines are buzzing with disgust, I even heard folks complaining at the downtown Tim Horton's in the shadow of Parliament Hill and if email traffic to CTF in-boxes along with a recent public opinion poll is any indication, 69% of us sincerely believe the federal government is corrupt.
Taxpayers of all partisan stripes can hopefully agree that sponsoring a formula one race through to advertising through on rink boards constitute a shameless waste of public funds. We pay our taxes to build roads, equip our forces, pay down our debt, fund health care, defend our borders and for a host of other "real" public goods and services. Sponsorship and political payoff advertising is an abhorrent use of scarce tax dollars.
And here's the final kicker. When the AG's report is released today, the Prime Minister won't be around to answer questions. He'll be off in Europe on "official business." I wonder if he'll have time to drop in on the man who was in charge of the whole GroupAction mess to start with, our Ambassador to Denmark - and former Public Works Minister - Alfonso Gagliano?