MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

A LIBERAL MP has called on Prime Minister Tony Abbott and his cabinet to approve a $25 million handout to fruit processor SPC Ardmona, calling the decision a "no-brainer".

Backbencher Sharman Stone, whose Victorian electorate of Murray is home to the struggling company, says the "measly" assistance package will help support an industry in which Australia has a great natural advantage and which employs a large number of people.

"We are a country with magnificent climate, great soils, great orchards - for a measly $25 million in support," Dr Stone told ABC radio.

"I just see this as a no-brainer."

SPC wants $25 million each from the federal and Victorian governments to upgrade its product development facilities, topped up by $150 million from parent company Coca-Cola Amatil.

Federal cabinet will consider the request at its meeting on Thursday.

Prime Minister Tony Abbott does not appear enthusiastic about helping, saying earlier this week businesses need to put their own house in order. Treasurer Joe Hockey also appears opposed, saying Coca-Cola Amatil turned a half-year profit of more than $200 million and now wants taxpayer money.

But Industry Minister Ian Macfarlane is reportedly planning to argue in favour of the assistance.

And the coalition did promise $16 million to chocolate maker Cadbury during the election campaign.

Dr Stone said each case needed to be assessed on its merits.

"I certainly would be most concerned though if the same considerations weren't given to our own fruit manufacturing, Australian-owned company and one which has far bigger impact in terms of the numbers of people it employs," she said.

"You are not going to be able to kickstart our orchard industries once the bulldozers have finished their work."

Labor says the government's indecision on SPC is leaving Shepparton and the region without certainty or stability.

"Mr Abbott has already abandoned automotive manufacturing in Australia and the tens of thousands of jobs it supports, today we will see if he walks away from our food processing industry, too," Labor's industry spokesman Kim Carr said in a statement.

"The Abbott government has no plan, no new ideas when it comes to jobs and keeping Australians in work."

Senator Carr says the business case for the co-investment has been examined in detail and should be supported.

Acting opposition leader Tanya Plibersek said it is "un-Australian" of the government to allow domestic jobs to go offshore.

SPC's food processing is not just important to the manufacturing sector but also to farmers she said.

"If those jobs go offshore we lose that capacity for the future," she told reporters in Canberra.

"What's more un-Australian than allowing Australian jobs to go offshore?"

The $16 million promise to Cadbury was just "one company in one seat in Tasmania", not having a full plan to save food processing jobs.

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