Labor turns up heat on SPC investment

Prime Minister Tony Abbott insists SPC Ardmona's parent company has a stronger balance sheet than the federal government as Victorian Labor ramped up pressure on the federal and state governments to help the fruit processor.

Victorian Labor on Monday pledged $30 million in taxpayer support for SPC Ardmona should it win the state election in November, a move labelled a hoax by the state government.

The promise follows federal cabinet's rejection last week of a request from SPC's parent company Coca-Cola Amatil (CCA) for a $25 million contribution to upgrade production facilities.

Mr Abbott insists CCA can fund its subsidiary, with its market capitalisation of $9 billion and a "stronger balance sheet than the Commonwealth of Australia".

"It really is up to (CCA) management to put the ... funding in place to ensure that this very historic and potentially very good business can continue far into the future," Mr Abbott told the ABC on Monday.

Victorian Labor says its proposed assistance, which comes on top of federal Labor's pledge of $25 million, is conditional on SPC signing binding agreements that would guarantee its long-term operation in regional Victoria.

But Victorian Treasurer Michael O'Brien dismissed the move as a hoax.

"The last thing you want to do is commit more money with no plan attached," he said.

The federal government has not ruled out providing SPC with assistance as it works with the company to devise a strategic plan.

But Treasurer Joe Hockey maintains that if enterprise agreements such as SPC's failed, the parties involved should not come to the government "asking for other taxpayers' money".

"The age of entitlement is over. The age of personal responsibility has begun," he said.

Federal cabinet rejected the request last week, citing the company's overgenerous enterprise agreement with workers as one reason for its reluctance to provide financial support.

The agreement is reported to include pay of up to 58 per cent above award levels and nine weeks of paid annual leave.

"If that's correct, that's astounding," Mr Hockey said of the reported conditions.

But Opposition Leader Bill Shorten said there was no harm in workers earning above-award wages.

"What a cheeky bunch the Abbott government are, blaming tradespeople and food preservers, saying they're getting paid too much," he said.

Mr Shorten, who toured the SPC factory at Shepparton on Monday, said he understood that not every job in Australia could be saved but he didn't understand why the government had turned its back on workers without a fight.

The federal government's hard-nosed approach to industry assistance has the backing of the Australian Chamber of Commerce and Industry.

Chamber chief economist Burchell Wilson said the government had shown impressive resolve by refusing to hand out subsidies to struggling businesses.

"We do not improve the economic performance by handing out cash," Mr Wilson said on Monday.