Live sheep exports: Government criticised over Universal McCann

A US-owned advertising company decided where $2.3 million of the live sheep export transition package was spent – and most of it was not aimed at WA.

A $2.3m advertising campaign as part of the Albanese government’s live sheep export transition package relied on a US advertising agency with an office in Sydney to decide where the money should be spent.

While 75 per cent of the cash went to radio and newspaper advertising in Western Australia, 85 per cent of its paid social media posts were targeted to the east coast and as far afield as the Northern Territory, which has no sheep.

The Weekly Times revealed earlier this month the Department of Agriculture, Fisheries and Forestry handed $2.3m to Universal McCann to develop an advertising campaign on the federal government’s phase out of live sheep exports – a move that primarily affects WA producers and widely opposed by many in the agriculture sector.

A Senate estimates hearing this week heard that DAFF wanted an advertising program that was “simple and factual in nature”, but that the ad agency was not briefed on exactly where the money should be spent.

A breakdown of the social media spend from the $2.3m showed of the $15,165 allocated for advertisements on Facebook and Instagram, just $2346 or 15 per cent was spent in WA.

The biggest social media allocation of $6290 was in NSW – more than double that spent in WA where the nation’s live sheep export industry is centred.

Part of the $2.3 million advertising campaign for the live export transition program which included social media posts.

When questioned on the advertising program, including the social media spend, DAFF strategy, performance and engagement division first assistant secretary Michelle Wellington said they were guided by the advertising company.

“I would say that Universal McCann provided advice on the placement that was based on feedback from the independent panel and from others ... that what happens in WA does affect the sheep industry in other parts of Australia, and that extends to supply chains, including financial business advisers, investors and researchers, for example,” Ms Wellington said.

“So that informed their decisions around advice to us around media placement.”

The hearing was told advertisements also appeared in metropolitan newspapers including the West Australian, the Adelaide Advertiser, The Age, the Sydney Morning Herald, the Brisbane Courier Mail, as well as The Weekly Times.

Assistant Minister for Agriculture, Fisheries and Forestry Anthony Chisholm said advertising across the nation was important.

“It might be the case that a meat processor might see an opportunity and think, ‘This is something that maybe I can go to WA and get involved with’,” Senator Chisholm said,

But Senator Matt Canavan said it was hard to understand the rationale for advertising the package outside WA.

“Almost no one in eastern Australia is going to be accessing this assistance,” Senator Canavan said.

“The only rationale that you can come to, the only conclusion you can come to, is the government is using taxpayer money to help its re-election campaign.”

Australian Livestock Exporters Council chief executive officer Mark Harvey-Sutton said it had not been good use of the transition package.

“The money that the government has given to Universal McCann has been an outrageous waste,” Mr Harvey-Sutton said.

“People in the industry are already all too aware of the impending ban, because it is already impacting their businesses and bottom lines.”

He said DAFF had been entrusted with taxpayers’ money and should “maintain closer oversight of million dollar contracts”.

“That’s particularly the case when it comes from the funds allocated to those businesses that will suffer the most under the ban,” he said.

“Instead of helping farmers, truckies and small business owners, the department has seen fit to enrich a US advertising agency.”