Flawed Labor Policy to cost West Australian Jobs

< back to news

Flawed Labor Policy to cost West Australian Jobs

Sunday 22 January 2017 | Download Media Release

Gavin BainThe peak body representing an industry worth $4.6 billion to the WA economy has expressed concern over Labor’s plan to gut the sector if it’s elected to office in the upcoming March state election.

The Communications Council is a non-political body representing creative, advertising, PR, production and corporate communications agencies. According to consulting firm Deloitte Access Economics, the Advertising industry generates more than $4.6 billion dollars annually to Western Australia’s economy, more than the hospitality and real estate industries.

WA Council Chair, Gavin Bain today expressed concern at Labor Leader Mark McGowan’s plan to slash $20 million dollars ($80 million across the 4 year term) from the Government Advertising spend if elected as premier.

“More than 40 thousand Western Australians are employed directly and indirectly in the sector and if Labor is elected and this policy enacted, jobs will go, it’s that simple.” Gavin Bain said.

“The industry is concerned by the short sightedness of this plan, it certainly doesn’t take into account the billions of dollars annually that advertising and associated sectors generate every single year to WA’s economy.

“It’s very easy to talk about the cost of advertising but the data that we have shared with both sides of politics shows us that for every dollar invested in advertising, $3 is generated in economic return. There are precious few industries that can boast a 300% return on investment.”
The Communications Council’s Danielle Norrish said the Deloitte Access Economics study, called Advertising Pays, also found that on a national level, every job in the sector supports three others.

“We know that the WA economy has been in a state of transition since the winding down of the mining boom, so we’re baffled as to why there would be such a direct attack on an industry sector that is actively innovating and assisting other sectors to do the same. The advertising and communications industry creates new jobs for all Western Australians; our sector works strongly to diversify economic development; our sector makes a hugely significant economic contribution to WA.” Danielle Norrish said.

“The plan’s announcement to build Brand WA and Tourism, support innovation, support local businesses, support education of science and coding in schools is contradicted by the cut to advertising spend. Mark McGowan clearly does not understand, without advertising spend the support of his plans to boost the WA economy is not achievable. Advertising and communications plays a significant role in corporate and government strategy and policy success, the statement is naive and uneducated.”

“As a non-political organisation we have been striving to engage with both parties, most recently with the release of Advertising Pays, to ensure the critical role played by this sector is properly understood. We would encourage the Labor Leader to acknowledge our correspondence and reconsider his position for the sake of WA jobs for today but also for future generations of Western Australians and the wider economy.”