Last night, Shadow Treasurer Chris Bowen couldn't deny the ad was an effort to shore up Labor's base in Queensland. But he joined in the criticism saying the commercial was "appalling".
Labor's pre-Budget build-up was left in tatters on Sunday night when the new ad, meant to focus attention on the Coalition, spectacularly blew up in the Opposition's face with claims of racism levelled at the party and Shorten.
In the ad, Shorten talks about Labor's plans to invest in domestic jobs with the Donald Trump-style slogan, "Australians first". To hammer home the point, he stands in front of a group of people who are all, presumably, Australians. With the exception of one Asian woman, every one of them is white.
The new ad has quickly turned into Labor's "Oscars so white," moment, generating online backlash and forcing a review of the ad.
Shorten has slammed the racism claim as "rubbish" but he said he wasn't happy about the video either. Shorten admitted the lack of non-white people was not a good look.
"I am not in the business of making ads," he said. "I had a look in the final product and I think we need more diversity and I will speak to the Labor Party about that."
But Monday night's Lateline claimed Shorten's office had indeed been fully aware of the ad.
The ABC said staff in Shorten's office had seen the advert before it was broadcast. Although some concerns were raised, they weren't serious enough to prevent the advert from airing,
Bowen said he had "seen the speculation" about the advert being produced specifically for Queensland voters where One Nation is polling strongly, but didn't know if that was the case.
"I don't know the process behind it, the strategy behind it. I know the result was appalling. It doesn't represent the way I think things should be done," he told Lateline's Emma Alberici.
"There will no doubt be further discussion about it and Bill's keen to put in measures to ensure this doesn't happen again."
Asked what those measures might be, given Shorten's office had seen the ad, Bowen said "necessary checks and balances".
The Shadow Treasurer is one of a number of Labor MPs to distance themselves from the "Australians First" ad fail.
"Anyone who sees it will know exactly what's wrong with it," senior Labor MP Anthony Albanese told reporters in Canberra on Monday, calling the ad "a shocker".
"I have no idea [what the approval process was]. I know because of Channel Nine's exclusive; clearly it was dropped to Channel Nine to be shown last night.
"I don't know what the process is. I am a member of the ALP national executive, I assure you that I hadn't seen it."
Hinch continued the criticism of the ad today.
"It could be an ad for the Ku Klux Klan," he told ABC radio. "Didn't Bill Shorten look at it the first time and say 'hang on where are the multicultural people here?'
The opposition leader reassured his colleagues during a caucus meeting late on Monday, saying it was poor oversight and won't happen again.
Indigenous Affairs Minister Nigel Scullion said Shorten had done the right thing to pull the ad.
"That Shorten appeared in the advertisement and is the shadow minister for indigenous affairs makes it all the more disappointing," he said.
In the ad, which debuted on Sunday night on Nine News, the opposition leader proclaims how "A Shorten Labor Government will build Australian first, buy Australian first and employ Australians first".
The ad has turned into an unwanted distraction for the party in the run-up to the Federal Budget. Labor MPs represent some of the most ethnically diverse electorates in Australia, including the Barton electorate in western Sydney and Batman in Melbourne, and it's understood several of the MPs have voiced concerns about how the ad will play with voters in their communities.
The head of the right-wing Australia First party, Dr Jim Saleam, has told news.com.au that far from being annoyed at Labor borrowing its name, Shorten could actually have "done us a favour" by "legitimising" his party.
Saleam, told news.com.au Labor "would have had to have known their slogan was the name of another party" and speculated whether it was partly aimed at their supporters.
Australia First stands on a platform of protectionism, heavy limits on immigration and has committed to "abolish multiculturalism".
Saleam said the ad campaign could be a dog-whistle tactic to appeal to some Labor voters who had drifted to minor, more fringe parties.
"They are worried people are thinking outside the mainstream political parties who don't support Bill Shorten and would consider Australia First.
"The ad could end up doing us a favour, " Saleam added.
"It could legitimise our [use of] language and Labor could promote Australia First without intending to do so."
Greens senator for Tasmania, Nick McKim, berated Labor on Sunday night.
"How about you put the dog whistle away and start fighting for multicultural Australia?" he wrote.
Shorten said he did not believe the ad was racist, but would seek a review of it.
Others have put it down to just sheer incompetence on the part of the agency that produced the ad.
