A Liberal MP has accused the prime minister of misrepresenting the troubles at SPC Ardmona. Source: AAP
FRUIT processor SPC Ardmona says the federal government has used trumped-up and wrong information to justify not providing a $25 million grant.
The Victorian-based company was backed up by local Liberal MP Sharman Stone, who accused Prime Minister Tony Abbott of misleading the public over reasons for the decision.
Mr Abbott has said the government could not justify a grant to SPCA as its parent company Coca-Cola Amatil was profitable and worker conditions were overly generous.
Treasurer Joe Hockey backed up the prime minister's comments saying it was up to companies to do the heavy lifting and the "age of entitlement" was over.
Dr Stone says the claims being made by her government about SPCA workers are wrong.
Asked whether she considered it lying, Dr Stone told ABC radio: "Well, you could use that word if you like."
Later she said: "It is a complete furphy what is being said about the troubles of this last fruit-preserving industry."
SPCA managing director Peter Kelly said that claims being made about pay and conditions at the plant were wrong.
The cost of allowances for all production staff in 2013 was $116,467 - less than 0.1 per cent of the business' annual cost of goods.
The "wet" allowance", cited by Mr Abbott had not been paid at all in 2013.
Mr Kelly said workers received a standard 20 days of leave and not nine weeks, as was reported by the Australian Financial Review which cited the 2012 agreement between SPCA and the Australian Manufacturing Workers Union (AMWU).
"We are doing our best to reduce all costs across the business," Mr Kelly said.
But the serious problems that had beset the company were not because of labour costs and certainly not from the allowances, he said.
Dr Stone said the government was making SPCA a scapegoat and not confronting important issues such as the dumping of cheap foreign imports into the Australian market, tariffs imposed on exported products and the high dollar.
Finance Minister Mathias Cormann said SPCA's parent company Coca-Cola Amatil had a strong balance sheet, including a $9 billion market capitalisation and a six-month profit of $215 million.
Asked whether the government had used wrong information in assessing the grant, Senator Cormann told reporters: "We have weighed up the relevant facts."
"They were asking for a grant from the taxpayer at a time when the commonwealth quite frankly doesn't have the balance sheet," he said.
With the company now considering whether to continue its operations, Senator Cormann said it was not up to the government to "second guess" the decisions of private companies.
Opposition Leader Bill Shorten, whose party has pledged $30 million for SPCA if its wins the Victorian state election in November, said the government had insulted workers.
"The government should be part of the solution for these workers and families - not the problem threatening their job security," he said.
AMWU national secretary Paul Bastian said Mr Abbott had come to power on the basis of being open for business, leading an adult government and not lying.
"Well, businesses are closing, the government is lying, and it's pretty childish to refuse to take responsibility for your own decision by blaming workers," he said.
