SPC awaits word on $25m funding

The future of SPC Ardmona’s Shepparton cannery hangs in the balance as the Abbott government deliberates over a $25 million grant the processor was promised by the Labor government. The grant was to come from a clean technology program that was funded by the Carbon Tax, the Guardian has reported.

Despite signing contracts with Woolworths, Aldi and Coles, SPC Ardmona continues to struggle due to the high Australian dollar and a flood of cheap imported fruit and says it won’t survive without the grant.

The $25 million - along with a $4.4 million Victorian Government grant - was earmarked for a factory refit that would help bring the company’s processes up to date.

“The situation is urgent,” SPC Ardmona Chief Executive Peter Kelly said. “We had a productive meeting with Minister [for industry Ian] Macfarlane but we need an answer fast. We understand this is a new government and we need to show some patience, but the board has been holding off on a decision for some time.

“I can’t see a viable way for SPC to keep operating in the future if we don’t invest this money. I can’t say it any clearer than that.”

But Macfarlane hasn’t made a definitive statement on the funding.

“I have met with representatives from SPC Ardmona as part of my broad consultation with the manufacturing industry and food processing sectors,” the Guardian quotes Macfarlane as saying.

“These talks were constructive. No decision has been made by the government with regard to funding.”