Employment Minister Eric Abetz has fired back at criticism of the government's support for workers and business.
But as he defends the government's hard line that Australian industry be self-sustainable, Senator Abetz concedes the coalition faces difficulty delivering its election promise of one million new jobs over five years.
Unions and the opposition continue to chastise the government for its refusal to extend a $25 million lifeline to ailing food processor SPC Ardmona (SPCA).
The government instead urged SPCA to restructure and review its "over generous" enterprise bargaining agreement.
Labor argue it would have been good value for taxpayer money to approve the co-investment, providing job security and benefiting a struggling regional economy.
"There are occasions when it's important for government to work in partnership with particular firms," Labor frontbencher Penny Wong told Sky News on Sunday.
The government's decision not to lend assistance to SPCA is an "unacceptable failure of foresight and wisdom", ACTU Secretary Dave Oliver said.
"They are happy to send a clear message to SPC that they will not support industries, communities or workers," he added.
Senator Abetz said SPCA has the backing of a strong parent company, Coca-Cola Amatil.
"The reality is this company does have the wherewithal to fix the problems and ensure that they are viable and we believe it has a great future," Senator Abetz said.
"Might I also add, if we could remove the carbon tax and other imposts, it would make the viability of SPCA so much better."
The Victorian-based company is facing additional costs of tens or hundreds of thousands of dollars each year under the carbon tax scheme, Senator Abetz said.
As the company considers its future Senator Abetz was asked if the government is on track with its promise to deliver one million new jobs in five years.
"We believe that we can do that but our task has clearly been made more difficult by the intransigence of Labor and the Greens in the Senate by not allowing us to remove the carbon and mining taxes as early as we would like," he said.
The private sector can "flourish" and grow jobs if the government were allowed to push ahead with its policies, Senator Abetz said.
Labor has also called for the government to reveal how it intends to investigate reports of union corruption in the building sector.
"We're considering the allegations and considering what the appropriate response will be," Senator Abetz said, stopping short of committing to a royal commission and adding that the government will not rush to make a decision.