Treasurer Joe Hockey has signalled he will recommend the federal government knocks back a $25 million request for taxpayer assistance for fruit grower SPC Ardmona.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Prime Minister Tony Abbott, Mr Hockey and the full federal cabinet will debate the request on Thursday during a day-long cabinet meeting in which senior ministers will debate the government's political agenda for the year ahead.
Mr Abbott will lead a strategic discussion about the year ahead, the government's legislative priorities and agenda, which include its plans to ramp up pressure on Labor to repeal the carbon and mining taxes, restore the Australian Building and Construction Commission, launch a Productivity Commission inquiry into the Fair Work system and review the welfare payments system.
On Wednesday night, Mr Hockey told the ABC's 7.30 program that if the federal government was asking people to live within their means then ''corporate Australia must also 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 $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.''
With the first draft of the Commission of Audit's examination of the federal budget due, and with Mr Hockey signalling a tough federal budget in May, the Treasurer is expected to remind his cabinet colleagues about the difficult fiscal situation facing the government.
Mr Hockey warned at the time that projected debt is expected to rise to $667 billion if substantial reforms were not made.
Assistance for SPC is the only formal agenda item listed for debate during the cabinet meeting.
Coca-Cola Amatil has promised up to $150 million in investment in its facilities in country Victoria if the federal and state governments stump up $25 million each.
The grower had struck a deal with the former Labor government to deliver that $25 million invetsment, but Mr Abbott signaled on Tuesday his growing aversion to industry assistance, a view widely held in the cabinet.
Asked about the package on Tuesday, the Prime Minister said ‘‘business should get its own house in order rather than seek government assistance’’.
That tough stance leaves Industry Minister Ian Macfarlane looking increasingly at odds with cabinet colleagues.
Mr Macfarlane is expected to press the case for investment in SPC on Thursday and stress that SPC’s manufacturing operations present an opportunity foreconomic diversification and growth.
