Senator Penny Wong accuses government of taking hard line on SPC Ardmona

SENATOR Penny Wong has accused the Abbott government of taking a hard line on SPC Ardmona, and said assisting it would have been value for money.

SENATOR Penny Wong has accused the Abbott government of taking a hard line on SPC Ardmona, and said assisting it would have been value for money.

Senator Wong claimed the prime minister's hard line decision on SPC Ardmona was made to make up for browbeating from the Nationals to reject the sale of Graincorp.

SPC Ardmona's parent company Coca-Cola Amatil was seeking a $25 million contribution from the federal government, claiming the cash would allow it to continue production and provide thousands of jobs.

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But the government announced last week it would not provide any assistance.

Labor's trade spokeswoman Senator Wong said the amount sought from taxpayers would have been value for money because it provided job security and benefited a struggling regional economy.

Criticising the Abbott government ... Senator Penny Wong disagrees with the decision not to assist SPC Ardmona financially.

"You don't have governments as a matter of course simply propping up business, but there are occasions when it's important for government to work in partnership with particular firms," Senator Wong told Sky News.

Senator Wong said Treasurer Joe Hockey was trying to make up for criticism over his decision to block the sale of Graincorp to an American food giant.

"He has to (take a hard line) because he was so roundly criticised for the Graincorp decision, where he was clearly browbeaten by Barnaby Joyce and Warren Truss," she said.

Mr Hockey gave in to Nationals pressure last November to block Archer Daniels Midland's $3.4 billion offer for Australia's largest grains handler.

But Employment Minister Eric Abetz defended the government's decision to leave SPC to its own devices with the backing of parent company CCA.

"What they need to do is have a look at some of their cost structures and help themselves," Senator Abetz told the ABC. He maintained that some conditions in the SPC enterprise agreement are "over-generous" and dated and should be addressed.

"At the end of the day, that is the company's responsibility, the unions' and the workers' responsibility to come together to make sure that this enterprise can succeed," he said.