Employment Minister Eric Abetz has defended the Coalition's decision to provide chocolate company Cadbury with $16 million of taxpayers' money in the wake of its rejection of SPC Ardmona's bid for government assistance, arguing the Cadbury funds will be good for regional tourism in Tasmania.
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Last week, after a meeting of the federal cabinet, Prime Minister Tony Abbott announced his government would not provide $25 million to SPC, reasoning that the business should be responsible for its own "restructure". This was despite Labor, unions and local Liberal member Sharman Stone arguing that without government help, the fruit grower would not survive, with devastating effects for the north-east Victorian region.
On Sunday, Senator Abetz said that it was wrong to make comparisons between the government's pledge to support Cadbury - in his home state of Tasmania - and its tough love approach to SPC.
"Can I say, it's not a fair comparison," he told ABC's Insiders program.
He explained that the government had announced the $16 million for Cadbury during the federal election campaign to help fund tours of the chocolate factory and in turn, generate regional tourism.
He said the tours used to be a "drawcard" for the state, which had a "shot" economy.
"That was seen as a reasonable endeavour by the federal government."
Senator Abetz added that the funds would also create another 200 factory jobs and help the local dairy industry.
"So overall a very good package, but in circumstances where the emphasis was on the regional tourism aspect, which all governments have engaged in and which makes it substantially different to the SPC Ardmona situation," he said.
Labor frontbencher Senator Wong argued on Sunday that the $25 million sought by SPC would have provided job security and helped the struggling economy in the Shepparton region. "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," she told Sky News.
In a statement, Australian Council of Trade Unions secretary Dave Oliver again attacked the Coalition's SPC decision.
“This will have a devastating impact on Shepparton and on the fruit processing industry; an unacceptable failure of foresight and wisdom from the Abbott Government," he said.
"It should be noted that Mr Abbott was more than happy to hand over $16 million to foreign owned Cadbury in the marginal Tasmanian seat of Denison prior to the election but has now changed his tune."
Also on Sunday, when asked if the Coalition could still generate one million jobs within five years, as per its election pledge, Senator Abetz said, "we would like to think that we can do that".
The Employment Minister said the government was "doing everything possible" to achieve its target but needed the Labor Party and the Greens to back the scrapping of the carbon tax and mining tax.
Asked how many jobs the repeal of the taxes would create, Senator Abetz replied that the carbon tax was an "impost" that was hurting manufacturing.
"To remove it will ease the burden and assist job creation."
With AAP
