Monday, January 27, 2014

Govt cool on support for fruit processor 

PRIME Minister Tony Abbott has talked down the prospects of government help for fruit processor SPC Ardmona ahead of a cabinet meeting this week.

The Victorian-based company wants $50 million from the federal and Victorian governments to upgrade its product development facilities, which would be topped up by a larger investment from parent company Coca-Cola Amatil.

Federal cabinet is understood to have the issue on the agenda for a meeting on Thursday.
Cabinet is expected to consider a report from an advisory panel - comprising business leaders Catherine Livingstone and Dick Warburton, and former Labor minister Greg Combet - on possible assistance for SPC Ardmona.
It has also been under pressure from the Victorian Nationals and Liberal MP Sharman Stone, who represents the Murray electorate, to come to the company's aid.
The company says it has been battered by the "perfect storm" of the high Australian dollar, the dumping of cheap imports and low or zero tariffs on imported fruit products from China and Europe.
Dr Stone has argued that without support SPC Ardmona could close in the middle of the year, with the loss of 3000 jobs in the Goulburn Valley region of her northern Victorian electorate.
Mr Abbott told reporters in Canberra on Tuesday the government took requests from business seriously.
"But in the end businesses have got to put their house in order," Mr Abbott said.
"That is my advice to any business that might be doing it tough at the moment and thinking of approaching the government.
"Our job in government is to try to ensure the rules and the system is as conducive as possible to good business."
Industry Minister Ian Macfarlane, who is understood to favour an assistance package, declined to comment on Tuesday.
An industry lobbyist told AAP that while the decision was considered to be one for Mr Macfarlane, other ministers had argued for it to go to the full cabinet so they could "voice their opinions".
Treasurer Joe Hockey has argued unions must be more flexible to enable manufacturers and other industries to become more productive and efficient.
He also says companies such as SPC Ardmona, Holden and Ford should not rely on government support to remain profitable.
SPC Ardmona is the last remaining major Australian fruit preserving company.

source- www.news.com

 

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