Victorian fruit growers say the federal government's rejection of a $25 million lifeline to fruit processor SPC Ardmona will have "devastating" consequences.The future of fruit processor SPC Ardmona is up in the air after the federal government rejected a bid for a $25 million grant.
The decision will affect many people in the Shepparton region, Fruit Growers Victoria deputy chairman Gary Godwill.
"The town is going to be decimated because so many industries rely on the fruit industry, it's not just fruit growers," he told AAP on Thursday.
"There are pickers, processors, people on the spray pumps and all of the people in the supermarkets."
Mr Godwill said he would be forced to reassess his own business and may shut up his farm.
He criticised the Abbott government for being inactive in protecting local industry.
"We've got to have food security in our own country - we can't keep bringing fruit from overseas."
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Industry reform needs to be led by industry: Macfarlane
But Prime Minister Tony Abbott has defended the decision, saying it was up to the managers of SPC and their strong parent company to set the course.
"It's not really the government's job to restructure a particular business," he said.
"The job does need to be finished and it does need to be finished by the company."
Minister Ian Macfarlane says the decision reflects the government's future policy on government assistance for ailing industries.
"We believe industry reform needs to be led by industry," the minister said.
"And we believe that in this case the government would have to borrow money on behalf of the taxpayers to put into the proposal where we believe Coca-Cola with a very, very healthy balance sheet is able to provide that money from within its own resources."
It's a dark day for Aussie jobs: Opposition
Acting opposition leader Tanya Plibersek called it a "dark day" for Australian jobs with thousands potentially to go overseas.
The decision would affect both the people of the Goulburn Valley and the future of Australia's manufacturing industry, she said.
She said Prime Minister Tony Abbott had ignored the advice of public servants, his government's expert panel, and of those within his own cabinet and coalition in rejecting the request.
"The government has effectively signed the death warrant on Australia's last fresh fruit cannery, ensuring the destruction of thousands of jobs," she said in a statement on Thursday.
