Queensland's Opposition says it is hard to stomach the State Government's reasons for giving $40,000 to fast food giant KFC.
The Newman Government is contributing the money towards a project to install recycling bins at 43 KFC stores in Queensland.
Environment Minister Andrew Powell says it is part of the national recycling initiative., Do the Right Thing.
Mr Powell says it is a partnership between Government, industry and the community to reduce waste from ending up in landfills and public places.
But Deputy Opposition Leader Tim Mulherin says taxpayers should not be giving their money to a multinational giant to recycle its own waste.
"This Government has twisted priorities," he said.
"On one hand they will take away from organisations that help the needy within our community, on the other hand give $40,000 to a multinational company.
"This company isn't struggling - this company should do the right thing without having to get $40,000 from the Government.
"This company should be able to do the right thing and install these bins rather than having to rely on a subsidy from the State Government."
Mr Powell says the State Government is only indirectly funding the program, but fully supports where the money is going.
"We have committed $40,000 to this initiative - that money goes to the Australian packaging covenant," he said.
"It's the Australian Packaging Covenant that works with industries to roll these bins out in public places and it's great to see this first initiative taken by one of our fast food outlets.
"Our involvement with the Australian Packaging Covenant and Keep Queensland Beautiful in this initiative is something I'm unashamedly going to continue to support.
"The Australian Packaging Covenant is the one that determines which industries receive these initiatives."