Senate Rural and Regional Affairs and Transport Legislation Committee, , 6:52:18 to 7:00:17
The committee examines the expenditure of the $139.8 million live sheep export transition package, including payments to farmers, supply chain grants, and departmental administration costs.
Topics: Live animal exports, Government spending
Speakers: Speaker 24, Hon Matthew Canavan, Nick Blong, Matt Lowe, Unknown Speaker
>> Okay. Thank you, chair. Um, just on live sheep, uh, how much is of the 139.8 8 million has been spent.
>> We'll just have officials come to the actually I've just found it. Um so as at 30 September 2026, approximately 75 million of the 139.8 8 million has been
>> Okay. How many how much of that 75 million has gone directly to to farmers?
So, Senator, um 92.3 of the package goes directly to farmers, but in terms of so far business transition program, $8 million in round one has gone out to farmers. Nothing yet in round two because we've just started contracting. Livestock transport, that's truckies, 200,000 so far. And supply chain capacity, 1,291,592,
That's only 10 million. You've spent 75 million and you you've only can only identify 10 million going directly to
>> That's right, Senator. But some of that money, the 75 has been paid to WA who will pay it to farmers.
>> Right. How much has gone to WA?
>> Uh to WA to date. So life-to- date annual budget 50 uh that's the total uh 30 million
>> 30 million to WA.
>> So 30 million sorry excuse me Senator 30 million for the supply chain capacity grants 1.5 million for community well-being grants and 1.359 million to WA for administration.
>> Oh so only 1.3 million to WA. Uh that's
WA DEUDRD for the administration of the grants. So I was I was giving you three figures.
>> They're all to WA those three.
>> That's correct. Then
>> and the 30 million what was that for again?
>> So that's for the supply chain capacity grant. So that's the grant going direct to producers and processes.
>> And that has that been um has that been already those grants already provided or you provide the money to WA up front?
>> So we we pay to WA each year a payment. Yes. And then as I said to you before,
>> just so no, I'm checking to see are they only invoicing you when they need to send something direct to farmers or you giving them the money and then they go away and >> work out it. So that 30 million may not have all been provided yet, >> but it's intended to be. >> Right. Okay. Well, let's just take it as it has. But that gets me to 40 million of the 75 going to farmers. Uh is there anything else we're missing? What's what's the other 35
million? So, Senator, that's the um what those figures I gave you were the initial payments under the grant program. So, they're the people who have either um commenced their grant program or their grant activity and we pay on milestones for effective grant management. So, it doesn't mean that that's all the money that's going. It is simply the first payments.
>> No, I understand that, but I'm just trying to get to the 75 million figure. Roughly speaking, you've outlined just over $40 million so far. So, what's the rest of the $75 million been spent on?
>> Okay, Senator. Um so we um we have spent 800,000 on the sheep industry strategy and implementation plan. 1.216 million for research and development extension. That's to grow a group alliance for the master program. Um the 8 million uh that we've talked about for the farm business transition program. 2 million has gone for the market feedback and forward contracts. So 750,000 of that went to grower group alliance. 1.25 25 mil went to MLA. Uh the shearing industry transition program, that's $938,000. So that's the WA shearing industry association that's running the beyond the shed program for a senator. Um as we mentioned the payment to truckies, 232,000. Um and then industry co-design and a range of different elements 13.2 million. If we go to agricultural counselors, 3.668 million. the market development grants 3.25 million enhancing market demand grants 2.133 million and then um Osrade received 5.511 million senator
>> okay getting pretty close with that the 13.2 2 million code design. Who did that go to?
>> So Senator, that's that's a range of costs. That's um departmental cost. That was costs of um the supplier who provided codeesign services. When I say codeesign, I'm really talking about the um policy and implementation team within the department and a range of service providers to deliver the overall policy and implementation and manage the grants.
>> Did any funding go to the grants hub?
>> Yes, senator. Grants hub money. I'll have to take on notice exactly what we spent with GrantsHub.
>> Well, you've got everything else there. How how can we do that?
>> I just don't have that split out because we pay Grants Hub costs for every single grant that we deliver. And so that means colleagues in Trading International who are doing the enhancing market demand, they have a bill. We can add up the bills for you.
>> Okay. Of the original 140 odd million, how much was um budgeted to go to the
>> I'll take that on December.
>> Right. Okay. So those figures you've given me each grant that [clears throat] would include say the n the farm transition program is that 8 million direct to farmers or does that include a component that goes to the grants hub?
>> No that's the direct payment to farmer
senator. >> Okay we'll take that one. 8 million bucks how much has gone to the grants
>> I I'll need to take that one on notice.
>> All right. Um uh
>> so if I can just add just terms of giving a sense of scale. So those business facing uh grant programs that uh you initially asked about uh so the farm business transition program uh is the one that we administered going directly to sheep producers in Western Australia. So we've run uh two rounds of that grant program for 391 individual sheep producers uh who will receive funding under that program and the supply chain capacity uh program. there's been uh I think 144 farm [snorts] businesses and nine processes that will receive funding under those programs. So those grant activities have taken place and I guess we're sort of contracting and the and that funding will scale up as milestones are reached. So uh understand uh sort of interest in making sure that funding is going direct to farm businesses and I guess giving you some assurance that there is u I think it massive my head sort of over 550 individual grants to individual businesses and those payments are made on a milestone basis as you'd expect. So that that funding allocation will increase as those milestones are met.
>> Okay. Um, just quickly to finish this off, uh, there's been some reporting and I definitely noticed it myself. Uh, lamb prices are through the roof at the moment. Uh, lamb cutlets come from about 50 bucks a kilo. Um, I thought the idea was the suggestion that doing this would actually help increase the supply of domestic uh, lamb. Uh, but the flock is at record lows apparently. Why has that happened?