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."
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."
