A FEDERAL Liberal MP has accused Prime Minister Tony Abbott of "lying" in an extraordinary outburst on national radio.

In an interview with ABC Radio this morning, backbencher Sharman Stone said senior government figures had lied about generous workers' conditions at Victorian fruit canner SPC Ardmona.

Mr Abbott, Treasurer Joe Hockey and the employment minister, Eric Abetz, have hit out at the "astounding" workers' conditions there, which reportedly included a five-day Melbourne Cup long weekend and nine weeks of paid leave.

"It's not the truth. That's right, it's lying," Dr Stone said, after being pressed by an interviewer.

The government has cited the company's overgenerous enterprise agreement with workers as one reason for turning down a request for $25 million to help upgrade facilities at its regional Victorian plant.

Dr Stone, the local Liberal MP, lashed out at claims the enterprise agreement was responsible for SPC's woes, saying it had already undergone a "massive'' restructuring.

Asked if Mr Abbott and Mr Abetz were lying about their reasons for refusing the assistance she said: "You could use the words you like''.

"But what they explained as the reason for not supporting SPCA - which was basically awards and conditions - was about focusing on unions, it wasn't about the realities of the last standing fruit-preserving industry,'' the Murray MP told ABC Radio.

Ms Stone said SPC would soon publish details of the 2012 enterprise agreement.

"It is a complete furphy what is being said about the troubles of this last fruit-preserving industry,'' she said.

"Perhaps it's a distraction from the facts which would require some government action.''

But Dr Stone's Liberal colleague Steve Ciobo said granting the SPC request for assistance would not have been in the national interest.

"Sharman Stone is a fine local member - understandably she's very passionate about this issue, it's in her backyard, it directly affects her constituents,'' he told ABC Radio.

"It's something the Cabinet had a look at and found that additional taxpayer funds, borrowed money, wasn't the way forward."