Employment Minister Eric Abetz has defended the Coalition's decision to provide chocolate company Cadbury with $16 million of taxpayers' money in the wake of its rejection of SPC Ardmona's bid for government assistance, arguing the Cadbury funds will be good for regional tourism in Tasmania.

Last week, after a meeting of the federal cabinet, Prime Minister Tony Abbott announced his government would not provide $25 million to SPC, reasoning that the business should be responsible for its own "restructure". This was despite Labor, unions and local Liberal member Sharman Stone arguing that without government help, the fruit grower would not survive, with devastating effects for the north-east Victorian region.

The then opposition leader Tony Abbott is presented with ingredients to make his own 'Marvellous Creations' block during his visit to the Cadbury factory in Hobart last year. Credit:Alex Ellinghausen

On Sunday, Senator Abetz said that it was wrong to make comparisons between the government's pledge to support Cadbury - in his home state of Tasmania - and its tough love approach to SPC.

"Can I say, it's not a fair comparison," he told ABC's Insiders program.