A VICTORIAN Liberal backbencher has accused Prime Minister Tony Abbott and Treasurer Joe Hockey of lying about worker's conditions at the SPC Ardmona factory in her electorate.
Sharman Stone made the allegations on ABC Radio on Tuesday, angered by the Cabinet decision last week to turn down an appeal from SPCA for $25 million to help support its operations.
Ms Stone, who represents the electorate where the SPCA factory is located, accused the senior Liberals of lying about workers' conditions - a key reason given for denying the grant last week.
Mr Abbott last week said the "extraordinary" generous conditions given to employees at the factory were part of the decision to turn down the appeal for support.
But Ms Stone on Tuesday said "It's not the truth - that's right, it's lying" in regards to the Prime Minister's comments.
It is understood Mr Abbott's office has declined to comment on the backbencher's accusation.