Tony Abbott says no taxpayers' money to rescue SPC Ardmona

THE Federal Government has announced it will not give struggling food processor SPC Ardmona an assistance package.

THE Federal Government has announced it will not give struggling food processor SPC Ardmona an assistance package.

SPC Ardmona had wanted a $25 million handout, but Cabinet decided against the move during a lengthy meeting in Canberra today.

Prime Minister Tony Abbott praised SPC's parent company Coca-Cola Amatil, but has told reporters it is important businesses lead their own restructures.

"The best thing the Government can do for the workers of Australia is not to borrow money to give it to highly profitable businesses like Coca Cola," Mr Abbott said.

"The best thing the Government can do for the workers of Australia is to get the frameworks right and to encourage the management of these businesses to do what they need to do for these businesses to be profitable in the medium and long term."

GOVERNMENT UNDER PRESSURE TO THROW LIFELINE TO SPC

News_Rich_Media: SPC Ardmona needs some 'real encouragement' from the government to stave off closure of the fruit processor.

Liberal MP Sharman Stone, who is at odds with the Treasurer and some other Ministers, rallied her colleagues to support SPC heading into the meeting.

"Today's Cabinet decision will decide if Australia is to continue to grow and process fruit, tomatoes and baked beans. Once gone, its gone," the local member for the Victorian seat of Murray tweeted.

Earlier, Labor accused the Government of being un-Australian if it didn't give the handout.

Acting Opposition Leader Tanya Plibersek urged the Government to act in the interests of SPC, to keep the last fresh fruit processing company in Australia.

"I don't see anything more un-Australian than sending Australian jobs offshore," she told reporters in Canberra.

Her comments came after Tony Abbott yesterday took a swipe at the ABC, suggesting the broadcaster takes ''everyone's side but Australia's''.

Ms Plibersek used Holden's decision last month to cease production in Australia to claim the Coalition has no plan for jobs.

"The Government has already goaded Holden into leaving Australia," she said.

"They're now looking at trashing jobs in food processing, an area that will only grow as individual wealth in our region increases."

Joe Hockey last night indicated he was not in favour of giving the handout.

He told the ABC, if the Coalition is asking voters to help the Government live within its means, corporate Australia must follow.

"The parent company of SPC Ardmona, Coca-Cola Amatil, which is an Australian company, in the first six months of this year had a profit of over $215 million - for six months - and yet there is a request for $50 million of taxpayers' money," he said.

"I think you can understand why we are being very cautious, very careful about handing out taxpayers' money to companies that are profitable, let alone companies that aren't profitable."

News_Image_File: No taxpayers' money to help company ... Peter Kelly is the CEO of SPC Ardmona at the factory in Shepparton, Victoria.

Not all Ministers around the table supported the decision, but the Prime Minister said they all had their say.

Coca-Cola Amatil has already pledged to invest more than $150 million into the local business if it received help.

Mr Abbott said the parent company "is one of the most profitable in our country" and he is confident Chairman David Gonski will not let workers down.

Industry Minister Ian MacFarlane claimed the Government would have to borrow money to fulfil SPC's request.

"We believe Coca Cola with a very, very healthy balance sheet is open to find that money from within its own resources," Mr MacFarlane said, adding "it is a defining point in terms of where we go with industry policy in Australia".

Labor has hit back, accusing the Government of sending thousands of jobs overseas as a result of its decision.

Victorian fruit growers said the federal government's rejection of a $25 million lifeline to SPC Ardmona will have "devastating'' consequences.

The decision will affect many people in the Shepparton region, Fruit Growers Victoria deputy chairman Gary Godwill.

"The town is going to be decimated because so many industries rely on the fruit industry, it's not just fruit growers,'' he told AAP.

"There are pickers, processors, people on the spray pumps and all of the people in the supermarkets.''

Mr Godwill said he would be forced to reassess his own business and may shut up his farm.

He criticised the Abbott government for being inactive in protecting local industry.

"We've got to have food security in our own country - we can't keep bringing fruit from overseas.''

###