Thank you, Mr. Speaker.
I'm here today to seek guidance from the board on certain temporary policies implemented to help members address the challenges related to the COVID‑19 pandemic. These policies are set to expire on March 31, 2022.
These temporary policies increase the advertising spending limit from 10% to 20% of the budget. Members may include in their advertising and printed material certain messages and solicitations for certain donations related to COVID‑19. Members may include the cost of Internet services for teleworking employees in their budget.
Mr. Speaker, you'll also find in your handout a letter from a member of the board asking the board to consider making permanent the increase in the advertising limit to 20% of the member's office budget.
The House administration has conducted a preliminary review of member spending trends since the implementation of the temporary policy to increase the advertising limit. As of January 31, 2022, 3% of members had exceeded the standard 10% limit. This percentage was 13% at the end of the previous fiscal year.
Pursuant to a board decision in December 2015, the member's office budget is increased each year based on the adjusted consumer price index. As a result, the purchasing power for advertising increases proportionately.
On April 1, the member's office budget will increase by 3.7%, with the cumulative increase over the past five years totalling 8.9%. This reflects an average increase of $3,531 per member in purchasing power for advertising.
The administration is suggesting that the board maintain the increased advertising limit, that is, until the end of June 2022, while the administration reviews the implications of setting it permanently.
Should the board decide to discontinue the increased limit when the administration presents its findings before the end of June, it will suggest alternatives that will minimize the impacts on members, considering that they may have already committed to spending plans for the entire fiscal year.
With regard to the reimbursement of net costs of Internet services incurred by member employees, 25% of members have made use of the temporary policy. There have been fewer Internet reimbursements this year compared to those of the prior year, when 35% of members submitted claims. As this policy impacts member employees who are teleworking, we are also suggesting and recommending that this policy be extended until the end of June 2022 and that the administration also return to the board with a recommended approach for the future.
In summary, the administration is recommending, first of all, that all three policies be extended until the end of June, and second, that the administration be provided with a mandate to assess the potential impacts of any further extensions or any change to these policies.
Mr. Chair, that concludes my presentation. Once again, I welcome any questions you may have.