Covid, tourism spur Andrews government’s record ad spend

The Andrews government has spent a record $150m on advertising, doubling its outlay in six years.

The Victorian government’s record ad spend is up 50 per cent from the last directly comparable financial year. Pictured: Victorian Premier Daniel Andrews. Picture: NCA NewsWire / Nicki Connolly

Victorian government annual advertising spending has surged to a record $150m, fuelled by huge outlays on Covid-19 campaigns and attempts to revive the state after the lockdowns.

The Victorian government’s advertising report for last financial year shows broad Covid-19 spending of about $45m but with other indirect costs including to promote the state both nationally and internally.

This was after Australia’s longest lockdowns contributed to border closures and the national shutdown of international travel.

The record spend is up 50 per cent from the last directly comparable financial year – 2018-19 – when a shade over $100m was spent on government advertising.

It then fell sharply the following year during the pandemic crisis before shooting back up again to $147m in 2020-21 and then climbing further last financial year.

The $150m mark – the highest under Labor – is double the ad spend in 2015-16.

Labor has been accused by the opposition of using the advertising budget for political gain.

The Department of Health was the top spending agency overall, splurging $35m, mostly for the pandemic but including for health and safety campaigns that wrapped in items like surviving summer heat.

The government spent $8.5m on its so-called ‘Big Build’ advertising, which is where it has pumped many tens of billions into large infrastructure projects such as regional rail, rail crossing removals and the metro tunnel project.

The Department of Premier and Cabinet spent more than $4m on Covid-related advertising as well while the money-thirsty Australian Grand Prix sucked up more than $2.2m.

Victoria is one of the nation’s biggest spenders on advertising, using it to promote government spending in areas across the state, as well as for categories like teacher recruitment.

The government has defended the record spend – which excludes the period running up to the 2022 state election – as necessary to help run the state.

“Government advertising helps find the right people to work in our kinders, hospitals, schools and infrastructure projects – boosting our economy, getting Victorians into great, well-paid jobs, and delivering health messages to keep the state safe,” a spokeswoman said.

She said the advertising had helped drive the state’s recovery with Victoria’s $31bn visitor economy returning to 97 per cent of pre-pandemic levels.

The top 10 spending advertising departments were the Department of Health, Visit Victoria, Department of Education and Training, Department of Transport, Transport Accident Commission, Department of Jobs, WorkSafe, Department of Justice, Premier and Cabinet and the responsible gambling foundation.

But it also comes amid signs the government will slam the brakes on spending in next month’s state budget amid a looming debt nightmare.

Debt is forecast to hit $165bn in the budget out years and the cash-starved WorkCover scheme is on target to lose billions over the next decade without draconian reforms.

On top of this, the major projects budget has blown out, raising questions about what planned cuts will be imposed to once signature projects.

The airport rail link, mooted for decades, could be severely delayed and timelines for other projects face being affected.

The government appears to be opting for a face-saving strategy, where core projects will continue to be delivered but those less voter sensitive plans will be either axed or wound back.

The Geelong Fast Rail project, which links two of the nation’s fastest growing areas, is also in doubt.

Victoria’s debt level is forecast to hit $165bn by 2025-26, but there is no guarantee it won’t continue to climb under the pressure of the state-run workers compensation scheme and major projects blowouts.