MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

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MP says give 'measly' $25m to SPC

Federal cabinet will discuss a proposal to co-invest in SPC Ardmona's fruit processing operations. Source: AAP

PRIME Minister Tony Abbott has used the rejection of taxpayer support for fruit processor SPC Ardmona to set an important "marker" for how his government will deal with requests for industry assistance.

The 93-year-old Victorian company wanted a $25 million federal grant, topped up by $25 million from the Victorian government and its own $150 million investment, for new product development and technology to prop up its operation.

But after three hours of debate in federal cabinet on Thursday, Mr Abbott said the plan was rejected because it was not the government's job to restructure a particular business.

The decision, which workers and growers fear will lead to the operation's closure, comes weeks after Holden's bid for support was rejected and its parent company General Motors announced the end of car production in Australia in 2017.

"The decision that came from the cabinet today does set an important marker," Mr Abbott said.

"This is a government which will make sure that the restructuring that some Australian businesses need, that some Australian sectors need, is led by business, as it should be."

The government's role was to create the right climate for business, he said.

Mr Abbott said SPC Ardmona - owned by food giant Coca-Cola Amatil - was a strong business with the resources to allow it to restructure.

The company advised the government it was prepared to invest an extra $161 million into the business and renegotiate its enterprise bargaining agreement.

Mr Abbott said the company's present EBA had conditions "well in excess of the award", including a wet allowance and generous redundancy provisions.

However SPC Ardmona managing director Peter Kelly said the company would review its business plans.

"This is an unexpected and extremely disappointing decision by the coalition, particularly after the enormous support we have received for our business plans from the local community and beyond," Mr Kelly said.

Acting Opposition Leader Tanya Plibersek said the government had failed in its fundamental role - to protect jobs and bring on new investment.

"First they forced General Motors Holden out - now they are sending SPC Ardmona to the wall," Ms Plibersek said.

Labor pledged at the 2013 federal election to provide the $25 million grant.

If the plant closes, it is estimated 1500 direct and 2700 indirect jobs could be lost in the Shepparton region.

Shepparton mayor Jenny Houlihan said workers faced an unknown future.

"The $25 million that the government refused to let go today will be eaten up in unemployment benefits," she said.

Australian Manufacturing Workers' Union national secretary Paul Bastian said workers had been improving productivity, but other factors were affecting the business, such as the dumping of cheap imports and the high dollar.

"The government directly and indirectly subsidises mining, agriculture, finance, fisheries and other important Australian industries and yet it is continually cutting investment in manufacturing," Mr Bastian said.

"Soon, when we go to the supermarket ... there will be nothing left made in Australia."

Victorian Opposition Leader Daniel Andrews said if state premier Denis Napthine could not convince Mr Abbott to stump up $25 million for SPC Ardmona, he struggled to see how Dr Napthine could secure $300 million for Toyota as it considers its future.

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Police given bus CCTV after woman pinned

A woman has died in hospital after being pinned under a bus for two hours in Sydney's CBD. Source: AAP

AFTER the death of two pedestrians on the same day in Sydney, police are urging the public to be more careful crossing roads.

A 51-year-old Granville woman died on Wednesday night after being hit by a bus in Sydney's CBD. She was trapped in its axles for two hours before emergency services freed her and she died only hours after undergoing emergency surgery.

Earlier that day, an 83-year-old man died instantly when he was hit by a truck in Monterey in southern Sydney while crossing the road.

NSW Police Traffic and Highway Patrol operations commander Stuart Smith said the deaths were tragic.

"It was a dreadful day on NSW roads," he told reporters on Thursday.

Superintendent Smith said crash investigators are looking into both accidents, including CCTV footage from the State Transit bus as well as an examination of traffic and pedestrian control records.

"It's a complex calculation that can only be provided once a re-enactment is provided," he said.

Police say the bus was turning right when it struck the woman, and the 70-year-old driver was provided with counselling.

"We believe he is a very experienced driver with the State Transit Authority," Supt Smith said.

He could not comment on whether jaywalking was a factor in the accident but reminded pedestrians and drivers to look out for each other.

"It is a place where we all need to be aware and to keep a proper lookout," he said.

He warned people about the dangers of jaywalking and using electronic devices such as mobile phones and MP3 players.

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Woman freed from bus in Sydney's CBD

A WOMAN pinned under a Sydney city bus for more than an hour has been freed.

Fire and Rescue officers, police and paramedics worked to free the woman, who became trapped under the bus on Clarence St just before 4pm (AEDT).

A NSW police spokeswoman has confirmed the patient had been freed and taken to Royal North Shore hospital in a critical condition.

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'Wage explosion' claim astonishes unions

Unions say they are "gobsmacked" by suggestions Australia is on the verge of an explosion in wages. Source: AAP

UNIONS are "gobsmacked" by Employment Minister Eric Abetz's suggestion Australia is on the verge of an explosion in wages, while one of his ministerial colleagues says wage growth is likely to be subdued.

Business groups agree wage growth is likely to be moderate but say unions are still able to put too much pressure on businesses to cave into demands.

Senator Abetz warned in a speech on Tuesday of a "wages explosion" that would push thousands of people out of work if employers and unions didn't take a responsible line in wage agreements.

Australian Council of Trade Unions president Ged Kearney says Senator Abetz's claim is irresponsible and false.

"I'm absolutely gobsmacked that a senior minister of Tony Abbott's government is saying that we are on the edge of a wages breakout," she told reporters in Sydney on Wednesday.

"Workers are working very hard for this country and to say that they do not deserve the decent wages that they have is an outrageous statement."

Assistant Treasurer Arthur Sinodinos said in a speech in Sydney on Wednesday that in fact wage growth had slowed and is expected to remain subdued.

Opposition frontbencher Richard Marles said Senator Abetz was living in the past.

There was no chance of a wages breakout similar to that in the 1970s because the nation no longer had a centralised wage-fixing system, he said.

Australian Industry Group chief Innes Willox said although some unions continued to push extravagant claims, wage growth was likely to be moderate in the coming year.

"Whether it turns out to be a wages explosion or not, employers are making it very clear overall that they will accede to only on the whole very moderate increases through this year," he told AAP.

Senator Abetz also took aim at "weak-kneed" employers who cave into "unreasonable union demands".

Mr Willox said that may have been true in the past but employers were now much more likely to make it clear what they could afford.

Australian Chamber of Commerce and Industry workplace policy director Daniel Mammone said the industrial relations system still allowed unions to back up extravagant wage claims with strike threats.

"Employers are always willing to compromise and try to do things that are in the best interests of the company," he told AAP.

"But when threatened with crippling and damaging industrial action ... it is very difficult for companies to deal with these type of claims."

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Escort says former MP Thomson 'lying'

A court has heard former MP Craig Thomson tried to mask his use of union-issued credit cards. Source: AAP

AN escort who says she met with Craig Thomson on at least six occasions says the former MP lied when he denied using union-issued credit cards to pay for sex.

Thomson, 49, is accused of using the cards to pay for escorts and personal expenses while he was the national secretary of the Health Services Union and a Labor MP.

He has pleaded not guilty to dishonesty offences and has previously denied in media interviews using the cards to pay for prostitutes.

But a former Sydney escort who worked under the name Misty said Thomson was a regular client of hers who had paid for her services on at least six occasions.

"I have since seen him on TV and in the media deny that he used the services of prostitutes," she said in a statement tendered to the Melbourne Magistrates Court on Tuesday.

"He is lying and I am in no doubt that the Craig I performed a number of sexual services for over a period of time is Craig Thomson the politician."

The woman said Thomson would often provide her with champagne, and sometimes paid for more time with her so they could chat.

Copies of vouchers allegedly made from Thomson's union-issued card to the escort agency parent company Keywed Pty Ltd were also tendered as evidence.

In a separate statement, Keywed's manager Kati Traunwieser said she recalled a union credit card being used for a transaction in April 2005.

"I don't have any proof that it is him except for his signature on the voucher. I did not see him at the times of the transactions," she said.

Prosecutor Lesley Taylor SC said Thomson knew he was not authorised to use the cards for personal expenses.

"His application of union policies on others and his conduct in explicitly and implicitly masking transactions demonstrates that knowledge," she told the court.

"These expenditures were unauthorised according to the legislation and the (union's) rules."

Ms Taylor said Thomson had voluntarily given an interview to Fair Work Australia, in which he conceded that escorts were not a legitimate union expense.

Thomson faces 145 dishonesty charges over the alleged misuse of $28,449 between 2002 and 2008.

His barrister, Greg James QC, is expected to make submissions to the hearing on Wednesday.

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Baby rescued after boat hits rocks

SYDNEY, Jan 27 AAP - Eight people, including a baby, have been rescued after a catamaran ran aground on the NSW south coast.

Local lifesavers, Marine Rescue NSW and the Westpac Lifesaver Rescue Helicopter were called in after the vessel struck rocks at Caseys Beach, Batehaven, about 4pm (AEDT) on Monday afternoon.

A rescue crewman was winched onto the boat from the rescue helicopter and all passengers were brought to shore on an inflatable rescue boat.

Rescuers say no one was hurt.

"Everybody seems to be okay," Marine Rescue Batemans Bay watchkeeper Peter O'Connor told AAP moments after the transfer.

The catamaran has since been salvaged.

It's believed a navigational error may have been to blame.

Andrew Edmunds from Surf Life Saving Far South Coast told AAP it was a "textbook" rescue.

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Treasury given nod for $500 billion debt

Treasurer Joe Hockey has ordered Australia's debt limit be set at 500 billion dollars. Source: AAP

TREASURER Joe Hockey has given Treasury authority to borrow $500 billion, in line with the government's unsuccessful bid last year to set the debt limit at that level.

Mr Hockey's directive relating to government borrowing was officially gazetted on January 22.

"I direct that the maximum total face value of stock and securities that may be on issue is $500 billion," Mr Hockey states.

The directive expires on April 1, 2024.

The government tried to set the debt cap at $500 billion in 2013, but Labor would not agree to it.

Subsequently the coalition reached a deal with the Greens to abolish the debt cap altogether.

The Treasury now has authority to borrow 500 billion dollars, which is consistent with the government's initial position.

A spokesman for Mr Hockey said the decision was in line with the legislation passed in December and "satisfied funding and operation requirements".

Shadow treasurer Chris Bowen told AAP on Monday the decision followed the extraordinary deal between the Liberals and the Greens to deliver the Greens' policy of no debt limit.

"The Hockey-Milne deal on no debt limit has ensured the economic fringe dwellers are at the centre of economic policy and decision-making in this country," Mr Bowen said.

"It doesn't matter what regulation Joe Hockey signs, this deal ensures he can run up unlimited government debt."

The mid-year economic review released last year forecast debt to rise from $310 billion in 2013/14 to $460 billion by 2016/17, and $667 billion by 2023/24 if the budget is not brought under control.

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