An ag boss who benefited from tens of thousands of dollars to attend an overseas business course has been given almost half a million dollars from the taxpayer and farmer-funded Australian Wool Innovation (AWI) to leave his job.
The body responsible for Australia's wool research and marketing has disclosed it made a $479,531 termination payment to former chief executive Stuart McCullough.
Mr McCullough was employed at AWI for almost 23 years, including 11 as CEO.
Most recently, he was employed as its chief marketing and innovation officer (CMIO) in the United States.
Earlier this year, AWI announced the CMIO position would be made redundant and that Mr McCullough would remain in the US.
A 2023 report by the Australian National Audit Office (ANAO) stated it found no record of the CMIO role's responsibilities, the remuneration package or the board's decision to establish the role.
"Nor are there records of the board's resolutions regarding the appointment of a candidate to the role," ANAO reported.
The Australian wool industry is struggling with low prices. (ABC Rural: Jess Davis)
In 2017, the ABC revealed Mr McCullough had charged AWI nearly $100,000 to attend a six-week business course in the US, which offered guest speakers morning exercise and optional yoga.
In 2021, Mr McCullough faced questions from senators about a proposal to sell Australian wool into North Korea, which would be illegal.
More information needed
Farmer lobby group WoolProducers has called for greater transparency around the CMIO role's creation and questioned whether the "extraordinarily high" termination payment included Mr McCullough's salary during his six-month notice period.
"At a time when woolgrowers are doing it exceptionally tough with low prices and increased costs, this figure seems hard to justify," WoolProducers chief executive Jo Hall said.
A spokesperson for AWI said Mr McCullough was paid his legal entitlements.
"With his departure, substantial savings will be made by the company," the spokesperson said.
Ms Hall noted that AWI's annual report showed the board's salary had also increased by more than $20,000 over the past year.
"While this might not seem a lot over the seven directors and could be attributed to an inflationary increase, unfortunately, woolgrowers aren't afforded the same luxury when it comes to their wool prices that have been received over the past 12 months," Ms Hall said.
On Tuesday, Federal Agriculture Minister Julie Collins was in Western Australia announcing an additional $32 million to help the sheep industry adjust to a ban on live sheep exports, that will come into effect in May 2028.
"I'm not aware of that story in terms of Innovation Australia, but what I would say is that salaries of these organisations go through the remuneration tribunal, and they're hands off from government," Ms Collins said.
Julie Collins was not aware of AWI's termination payout. (ABC News: Matt Roberts)
Farmers set to vote
Details of Mr McCullough's payout come as almost 45,000 wool growers around Australia are being asked to vote on how to set the wool industry levy.
AWI's main income is a farmer levy currently set at 1.5 per cent of the sale price a grower receives for their wool.
The federal government does not contribute to AWI's marketing budget, but taxpayers do match up to half of AWI's research spend.
In a process known as WoolPoll, growers are now being asked if they want to set the rate at 0 per cent, 1 per cent, 1.5 per cent or 2 per cent.
A result of 0 per cent would see AWI close. Its board has formerly recommended growers back a 2 per cent rate.
Australia's wool production is forecast to fall 10 per cent to 285 million kilograms this year.
If that eventuates it will be one of the the smallest wool production years since 1924.
In Western Australia, the third-largest wool-growing state (behind New South Wales and Victoria), the clip is forecast to fall 19 per cent this year, after dropping 9 per cent last year.
With less wool being produced, and at lower prices, AWI expects reduced revenue will lead to reduced services.
Katrina Blomfield grows wool in Walcha, NSW. (ABC News: Kath Sullivan)
Woolgrower and stud breeder Katrina Bloomfield, who farms at Walcha in NSW, said farmers could not afford to increase the levy, based on current wool prices.
"In 1971, we were getting about $20 to $30 a head for our wool and at the moment we're getting $50 to $60," Mrs Blomfield said.
"It's only doubled what we were getting in 1971.
"Whereas a steel post cost $0.30 back then, and now they're $8 and there's lots of things like wages, all our inputs, have gone up."
WoolPoll will close on November 1.
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